How Safe Is Your Money?

Is Owning Rental Units a Risky Lifestyle?

People often tell me that the financial aspect of my life as a Real Estate investor sounds risky. 

I totally disagree! 

In my opinion, what’s risky is to have all your eggs in one basket so to speak… the basket of your employment income. This is especially true if you’re the main breadwinner in the family, and you only have a job to rely on!

What if you get hurt?

In a recent podcast episode, dentist Jeff Anzalone, aka the “Debt Free Doctor,” told me a compelling scary story. Fresh out of dentistry school, he had a life-altering skiing accident—he broke his wrist. He saw his ability to work as a dentist imperilled. This forced Jeff to reassess his financial strategies. After a major wake-up, he realized that relying solely on one source of active income was extremely risky.

Multiple Income Streams

This isn’t the first time I have had such a conversation. Regularly people around me share their fears about ‘taking the plunge’ as it were into self-employment or investing. In fact, I believe that the riskiest thing is to place your financial destiny in the hands of an employer! 

When you own rental units, you have as many income streams as you have tenants. That sounds safer than working for one employer (and more fun too)! My tenants don’t tell me when to show up to work in the morning, and they certainly don’t tell me when and if I can take vacations. 

Do What the Wealthy Do

Another very interesting aha-moment in my conversation with Dr. Debt-Free is the habits of the wealthiest individuals and how they speak about their livelyhoods. Wealthy people usually have multiple income streams. They also tend not to talk about themselves in terms of what they do for a living (eg. I’m a mechanic, a secretary, a lawyer etc.). Instead, they frame their income-generating activities in terms of what they own (eg. I Invest in Real Estate, I own a business). 

To All the Doctors & Dentists Out There

According to Jeff, investing in real estate shouldn’t mean diverting attention from one’s profession. On the contrary, it’s about leveraging one’s primary income source to build additional passive income streams without compromising the main profession. You can build additional revenue streams in many different ways–by investing passively, with partners or by purchasing shares or investing in businesses. 

Of course, this information isn’t taught in dental school, or in just about any other traditional training, such as engineering, med school or grad school. 

Peer Group Again

Once again it all comes down to what you surround yourself with. If you have peers who are minded to become financially independent, you will move past those who remain in a cycle of financial precarity and dissatisfaction with their work or their lifestyle. 

What you put into your brain is a lot like what you put into your mouth. Eat junk food and your hips will testify to your diet. If you consume Netflix aimlessly, scroll on TicToc or read escapist novels, your financial life will tell that tale. 

By curating your information diet and your peer group, you can really produce incredible transformation. 

Want to hear me talk more about this topic? 

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