Real estate is a great way to not only build wealth, but also a safe place to store and protect your capital. You work very hard to earn your income, and you need to make sure it is protected, otherwise it will disappear. If you don’t protect your money or pay attention to it, trust me it will go away.
Once you have accumulated some dough, it’s time to put it in a safe place. I’m not talking about a bank or a safe, because it will slowly go down in value due to inflation and eventually be worthless. Put it somewhere where it is protected but also growing.
I want your money to be safe and working for you.
Places money will not be protected
- Bank – your money won’t even come close to keeping up with inflation at less than 1/10th of a percent and will go down in value each year sitting in an account. If you had $100 in a liquid account 4 years ago, it would be worth $80 in buying power today at best. Not to mention, if money is sitting in a checking account odds are it is going to get spent and “burn a hole” in your pocket. Idle hands are the devil’s playground. What do you think idle money is? If your money is going down in value it is NOT being protected.
- Under your mattress – this isn’t safe at all. If your house burns down what happens to the cash under your bed? You might forget about it, and it is useless unless it is put to work. Not protected.
- Crypto – could go up yes, could go down yes, hopefully it goes up a lot. It does not have a proven track record over decades and is proven to be vulnerable and unpredictable
Multifamily investing pays you each month, goes up in value outpacing inflation, and has a proven track record even during recessions. All the other benefits aside, protecting your capital is very important if you are looking for security for your hard-earned money and building wealth as a goal.
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