This line between investing and having a job is very blur if you don’t have a solid financial education. there are great job in real estate that pay extremely well that could be mistaken with real estate investing
There is nothing wrong with having a well pay job! However, if your goal is to having real estate as a passive income stream to support your lifestyle, then you have to watch the line. I learn a simple way to distinct between investing in real estate vs having a job in real estate I can share with you here
Investing:
Cash –> Asset –> Cashflow
Labor –>Asset –> Cashflow
Having a job:
Cash –> Asset –> Cash
Labor –> Cash
Time –>Cash
The end goal is different, at least for the expectation. Cashflow is the name of the game for investing vs having a job, your end goal is cash. There is a huge different between cashflow and cash.
What is so hard is that with poor management. The investor end up managing the asset and it ended up become their job. So at the end of the day. It is really come back to trading labor for cash.
Some example of Investing
Buying Rental Properties and get rental income (Cash –> Asset –> Cashflow)
Buying stock and get dividend yield (Cash –> Asset –> Cashflow)
Buying apartment and get rental income (Cash –> Asset –> Cashflow)
Building a Network Marketing business (Labor –>Asset –> Cashflow)
Own a brokerage (Labor –>Asset –> Cashflow)
Owning A mortgage company (Labor –>Asset –> Cashflow)
Building Revenue Share organization (Labor –>Asset –> Cashflow)
Some example of having a job
Being a Property Manager (Labor –> Cash)
Buy low and sell high (Cash –> Asset –> Cash)
Flipping Apartment (Cash –> Asset –> Cash)
Flipping Houses ( Cash –> Asset –>Cash)
Wholesaling (Labor –> Cash)
There could be good job and there could be bad investment. This is where thing get tricky when for example an investor think he is investing in real estate but in reality, his job is actually property management.
Knowing the fundamental different between investment vs job will give you a clear guidance of where do you want to go next in your life.
Is buying gold and silver consider investing?
I don’t know. it’s really up to you as far as the interpretation but from what i see. Unless you can cashflow from it. It’s not an investment. In my personally option, it is a transfer from something that is backed by a government entity (Us Dollar, Yen, Yuan..etc) to something that has intrinsic value that is trusted by every single soul on earth. “It is god money”, Robert Kyosaki said.
just some random thought for today before the day start.
