3 Ways to Reduce Stress (By Investing in Real Estate)
We all know life gets stressful. Very stressful. I still take pride in telling myself I never get stressed, but there have been times that I’ve looked back on, in particular, when I bought 15 properties in 11 months back in 2014, that I was stressed out! So, if you’re watching this video because you want to learn how to reduce your stress, I guess I can say I know a bit about it!
With that being said, what I’m going to tell you may make me sound like a hypocrite, but investing in real estate will actually help you reduce stress. Yes you heard that right. So stay tuned and watch until the end of this video, as I’m going to explain to you why, because yes, although investing in real estate has been stressful for me at times, when done right, investing in real estate can be almost stress free, and help to relieve other stresses in your life.
How can investing in real estate reduce your stress?
There are actually 3 ways.
The first way, is you are investing for your future.
By investing your cash, your income, into an illiquid asset, you are less likely to go and spend it. Which means, since it’s tied up, it is much harder to sell so you can use for wants. Which is a good thing, because the reason your investing in real estate, is to save for your kids college, to save for your retirement, to save for your future. The best part, is when you invest in real estate, you’re making money 24/7.
Well, owning a rental property where a tenant pays you rent to live there, means that the rent you are collecting goes towards paying the mortgage. By paying down your mortgage on your investment property, you are making money, as well, if you invest in good areas, in good markets, the property is also appreciating, going up in value, another way that you are making money. And by having your investment, your property making you money 24/7, means you can focus on other aspects of your life, and not stress about saving for the future, about saving retirement, about affording retirement.
This is why I love investing in real estate, because your money is working for you so you can live, enjoy life, not the other way around, where you live to work.
The second way investing in real estate will reduce your stress is by providing you a goal.
I love knowing that each morning when I wake up I have something to look forward too. When I use to work an 8-5, the motivation just wasn’t there when I’d get up each day. It was just the same thing, day in and day out. The same old routine each week, each year. I needed to spice up my life, something to disrupt the status quo, something else to do, to strive for, and investing in real estate gave me that.
Actually, if you know what I’m talking about, let me know in the comments section below by putting a ‘yes’ if you agree with that feeling. Anyways, by investing in real estate, I had a goal, a sense of accomplishment, because I was building a business, my own business, something that I owned and ran. Something that I was in control of, where my say actually mattered, because I was the boss, and I made all the decisions.
Owning real estate will make you feel important, will motivate you, will make you want to do more, to be better, and it will make you forget about other things in your life that aren’t going that well, that are stressing you out, such as an 8-5 job that you are going to have to work at for another 40-50 years.
The last way investing in real estate will reduce your stress, and I touched on it earlier, is you are in control.
No more stressing about your investments, calling up your advisor, wondering what is going on. I know right now, advisors phones are ringing off the hook with people having lost hundred of thousands, if not millions, or even billions (look at Jeff Bezos), of dollars in the market, and there is nothing you can do to control the bleeding, well there is, invest in real estate. And even though you can’t control the economy, if a recession is coming, at least it’s on you to make your investment perform better, not a CEO a company you bought stock in.
Just knowing that your investment is in your hands, that you are the one being held responsible, is much less stressful then counting on someone else, because you know you are doing everything you can to make sure you get a good return that investment. That right there will reduce your stress, because there is no one else to blame, and if anything, it will light a fire under your butt to do something if the market does ever go down.
Sidenote, in a down market, yes property values tend to decrease, however, not very much in good/popular areas. In one of my recent videos, this one here, Where to Invest in Real Estate, I talk much more about why and how to find the best markets to invest in, so that if a recession does occur, you’ll be much safer then when investing in undesirable markets.
Plus, rents historically stay the same in a down economy, because people still need a place to live, which results in demand for rental units actually increasing.
In saying that, if you want to start reducing your stress, I urge you to first learn as much about investing in real estate, before you go ahead and actually invest in real estate. How? Well one way is by enrolling in real estate investing bootcamp which teaches you the foundation you need to begin investing in real estate. WHAT TO DO NEXT: Enroll in Real Estate Investing Bootcamp