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They are people out there doing extreme things: They avoid having a couple of coffees at the café each week and feel guilty if they spend 15 euros on beers with friends. Even though they work hard, they take very few vacation days a year and always choose the cheapest hotel they can find on Booking. Some obsess over not exceeding 100 km/h when driving on the highway and use an app to tell them which gas station to refuel at to save 0.01 cents per liter of fuel. Others go to the supermarket and spend half the time looking for discounts, 3-for-2 promotions, and shampoos with 20% extra volume. ​ Probably, you also know the case of my neighbour, spending hours a week and lots of petrol, risking every day to get his car towed to save a few pennies in paying parking. ​ Of course, I have absolutely nothing against these people. Everyone does whatever they want with their life, and that’s perfectly fine. ​ If their plan to amass a large sum of money and achieve financial freedom is this, I wish them luck. ​ If you’re new to world of investing, you’ve probably come across things like this: “If you invest the euro that you spend on coffee at the bar in the stock market, in 20 years you’ll have enough money to buy a car.” Or… “If you save €300 a month and invest it in an index fund tied to the S&P 500, with an 8% annual return, in 30 years you’ll have almost half a million euros and you’ll have achieved financial independence.” ​ I have to admit, these messages really hit home. The idea of getting rich “little by little” with a modest salary is pretty appealing. It’s hard to resist giving it a try. ​ The problem is, expecting an 8% annual return for 30 consecutive years… you never know. On the other hand, 30 years is a long time. Also, the half a million euros (which is actually less, but “almost half a million” sounds better) is gross. And let’s not forget inflation…. ​ But well… who am I to crush anyone’s dreams? ​ What I propose you today is knowing what would be the minimum return you need in a real estate investment to make it worthy. When investing in real estate I’ve seen many errors: People focused on “get the mortgage” paid through rents. Others, focused on “get the mortgage and expenses” paid. Others, selling their flipping project for 10.000 euros more than the money spent in the purchase and renovation… ​ What’s the minimum money that you should make when investing in real estate? Do you have any idea? It is 5%, it is 10%... it is just OK to get the expenses paid? ​ Listen to this audio and accelerate your path into financial freedom. ​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. ​ ​ |
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I did not know that idea from Bezos. Yes, the Amazon guy. Getting better with time like good wine. Apparently, when organizing meetings he is a weirdoo. And one of his weirdadas is that “if you have to order two pizzas, there are too many people in the meeting”. Of course, he does not care about people fasting. The idea is that 80% of the best decisions, ideas, etc. come from the 20% of people. So, why having to spend more money on pizzas… Bezitos is known for saving to the penny… and the...
Yesterday I saw an orange New Beetle. I love cars. And this “orange” that seemed so eccentric and powerful reminded me a picture I saw in LinkedIn. The picture compares two parking lots. One in the 70s and another one today. In the 70s, you had a rainbow of colours. Green, blue, red, yellow, orange… Different tones… If you go today to a parking lot, you’ll see black, white, a few grey and fewer red and blue. We are in a world where it’s better not to grab attention. To go with the flow....
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