{"id":10900,"date":"2022-09-22T17:41:13","date_gmt":"2022-09-22T22:41:13","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10900"},"modified":"2022-09-22T17:41:14","modified_gmt":"2022-09-22T22:41:14","slug":"millionaire-shares-4-unpopular-money-rules-that-made-him-rich-dont-buy-anything-you-can-lease","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10900","title":{"rendered":"Millionaire shares 4 ‘unpopular money rules’ that made him rich: ‘Don’t buy anything you can lease’"},"content":{"rendered":"\n

Many people know how to earn<\/em> money<\/a>, but that’s only a small part of the equation. You also have to know how to multiply it over time, and when you should \u2014 and should not<\/a> \u2014 spend on something.<\/p>\n\n\n\n

It took me 20 years of trial and error before I achieved a multimillion-dollar net worth. I had to exercise tremendous discipline and invest as much money as possible into income-generating assets.<\/p>\n\n\n\n

Now, I draw income from the 18 companies I started, and the 12,000 apartment units I own that make passive income<\/a>.<\/p>\n\n\n\n

Here are the four unpopular money and spending rules I followed, at a young age, that helped me get rich:<\/p>\n\n\n\n

1. Don’t make big purchases unless you have 2x its price saved up.<\/a><\/h2>\n\n\n\n

As soon as some of my friends started earning more money, they would reward themselves with fancy cars, boats and trips to Paris.<\/p>\n\n\n\n

But I set a rule for myself: In order to buy an expensive watch or even a house, I had to have twice its price saved up. This kept me from overspending on something, while also giving me time to consider whether I really needed it.<\/p>\n\n\n\n

Rather than dropping cash on big one-time purchases that had limited effects on my overall quality of life, I focused on putting my earnings towards improving my businesses.<\/p>\n\n\n\n

2. Don’t buy anything you can lease.<\/a><\/h2>\n\n\n\n

While working my way to becoming a millionaire, the only big-ticket items I would buy were ones that could increase my cash flow, such as commercial properties I could rent out.<\/p>\n\n\n\n

I never bought anything I could lease \u2014 like a primary residence or car \u2014 so that I could avoid the higher monthly payments and upkeep costs associated with owning.<\/p>\n\n\n\n

In 2012, for example, I sold my home and lived in rental houses for almost 10 years. This freed up more money for me to invest into money-generating real estate. Once I saved up a hefty amount, I bought a house with cash.<\/p>\n\n\n\n

To this day, I still lease my cars. However, I never extend a lease for more than 24 months, even if it makes the bill more affordable. A lot can change in two years, and I try to avoid being stuck with a car that doesn’t serve my needs.<\/p>\n\n\n\n

3. Don’t spend to impress others.<\/a><\/h2>\n\n\n\n

My goal has always been to create a legacy of generational wealth<\/strong>for my family. That was more important to me than buying things I didn’t need.<\/p>\n\n\n\n

So even when I could afford something, I didn’t buy it just to impress my peers. Instead, I invested at a higher rate and built my wealth in private.<\/p>\n\n\n\n

Even though I now have money to buy expensive things, I still consider myself as fairly frugal. I don’t care about being flashy, and I try to live below my means.<\/p>\n\n\n\n

4. Only spend your passive income.<\/a><\/h2>\n\n\n\n

If I earned $100,000 a year from my job and $20,000 a year in passive income, I would try to only spend $20,000 on things beyond my basic living expenses.<\/p>\n\n\n\n

All these rules require a great amount of discipline, and they might not be for everyone. Occasionally, I would wonder why I was working so hard but not able to enjoy the fruits of my labor.<\/p>\n\n\n\n

But because I abided by these rules for two decades, I’ve successfully weathered several major recessions and a global pandemic.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Many people know how to earn money, but that’s only a small part of the equation. You also have to know how<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421],"tags":[888,3635,3429],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10900"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10900"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10900\/revisions"}],"predecessor-version":[{"id":10901,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10900\/revisions\/10901"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10900"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}