Now I’m telling my story about a teenager to this day. What made you strive for financial independence? And how did I do that?
I’m an entrepreneur, investor, wife, and mother of two. So far, there have been several significant events in my life in which money has played a more or less big role.
I realized at the age of 17 that anything can happen to anyone in life. The recession of the 90s was just coming to an end. My father, a renovation professional, became unemployed in 1995, in the very last meters of the recession. With our father’s unemployment, our standard of living fell sharply. I realized that in the event of financial difficulties, a lot has to be given up. The welfare state did not guarantee the standard of living that our family had reached out to.
“I thought my career development shouldn’t get stuck, at least in education.”
My weekly allowance was ten marks. If I did more work, I could raise the amount to $ 13 or even $ 14. At home, I learned to save and work. After my father’s unemployment, I started actively getting jobs.
I also began to wonder how I would make sure in my life that bad luck in financial matters doesn’t take root from everything. Could I somehow get non-work income?
The desire to ensure financial security came from the lives of mothers
I applied to the School of Economics after printing a white hat on my head in 1997, but I got in with another try in 1998. I wanted a commercial education, the highest possible one. My mother never progressed to the service of the city because of a lack of a degree, even though she was more qualified when she came. I thought my career development shouldn’t get stuck at least in education.
This spring marks 25 years since I first met my husband. When I got into the same class as he did in 1998, we started dating. Her mother suffered from incurable cancer. Unfortunately, the public health service refused to treat him for a couple more months.
Despite her struggle, my husband’s mother died. The family was left with grief, memories, and a big pile of debt for private care. That’s when I realized that it’s best to get decent insurance and kick the money, because you can never know what’s going on in your own life and whether, for example, public health care will be even strong in 40 years.
“My husband and I set a common goal – 20 apartments in ten years. We reached the goal in 3.5 years. ”
After graduating in spring 2002, the overall economic situation was poor. That’s what it was for us too: we had just bought our apartment, there was no information about the work and my account was only eight euros. We had to get jobs because unemployment was by no means an option. So I went into sales and became an entrepreneur – even though neither was on my wish list. I have now been an entrepreneur for nearly 20 years, just like my husband. This has had a significant impact on our family’s cash flows. Because I’ve always wanted a family, is Monetary Affairs had to think about also seems angles.
Housing investing was love at first sight
First, I started saving money on my ASP account. The first $ 1,000 was deposited into the account at the end of March 1998. During my studies, I made my first investments in Basware shares. Since then, I have invested in funds, stocks, gold. When I found the investment homes, it was love at first sight.
I started investing in housing in 2005. I was hugely excited to get rental income from my homes monthly and with the help of leverage I can get significant assets, even if I can’t find huge capital myself. I stopped the lottery right away. In particular, monthly cash flow was mentally important. That was the answer to my question about how I would survive if I didn’t get an income from my work.
“In 20 years, I became financially independent.”
My husband and I set a common goal – 20 apartments in ten years. We reached our goal in 3.5 years. Admittedly, this meant an almost seven-figure amount of debt.
There are many different ways to invest in apartments. Our strategy has been to acquire rental apartments, so the investment will start to generate concrete euros as soon as the apartment is rented. I’ve always liked numbers and twists like to cash flow calculations. In the mid-2000s, the availability of funds was relatively easy, but I’ve always been aware of, the economic risk a leveraged brings with it. Fortunately, I have been able to live with it.
After the 2008 financial crisis, we headed to the United States in 2012. We sold some of our properties in 2017 and repaid the loan. With the capital released, we bought new properties on the other side of the ocean. With this measure, cash flow increased significantly and I can say that in 20 years I became financially independent.
I have rented the apartment backgrounds to very different people. While renting can be outsourced, housing investment is a human business. Good negotiation and interpersonal skills are useful both in the bank and in matters related to homeownership and management. We have lived in rent for a long time, so I can settle in tenant status.
There is always a risk involved in investing. Since we still own dozens of homes, it means “problems” at regular intervals. I treat these as well as all the challenges in life – solve them as well as possible, one at a time.
Things to consider for a home investor:
- Think about who your ideal customer is: Who do you offer housing or housing services to?
- Monitor the financial situation: How much money do people have available for housing?
- Think about location: Where would there be a lot of potential entrants?
- Find out financing and risks: If you use debt money, think about how a delay in renting or selling an item would affect your finances.
Investing has enabled time with family and a touch of luxury
As a child, I dreamed of traveling and adventure. I’ve also always wanted a family. The placement has enabled adventures along with the family. For many years, we have spent long periods together in both the United States and Europe.
Also, I like to do business, but it often requires capital or at least the opportunity to work without being dependent on income from the business. Business challenges all the time as a person and in a few “sports” you learn so much all the time. I also like the fact that there is always the possibility of a five-star life at times.
Luxury products are to me prizes – reminders of the achievements that I struggled towards the front and which I have done a lot of work. But most important of all is a sense of financial security.