The Forever Cash lifestyle is all about investing in assets that will provide a constant cash flow for the foreseeable future. These assets come in all kinds of forms, but a few notable examples might involve purchasing a small business or renting a house to a tenant. But how can you invest in a cash producing asset if your bank account is looking pretty lean? You will have to find a way to generate some short term cash that you can use as seed money for future investments. How should you go about doing that?
Keep in mind that at you are looking for quick ways to turn a little time and money into more money, which you can then invest in a cash-producing asset. You shouldn’t be quitting your job at this point, so try to find a way to make money using the time you have outside of your full time job. A good idea might be to post some articles or eBooks on amazon.com, where you can generate several hundred or thousand dollars per month depending on the success of the product.
Also, consider using any skills that you may have to hire yourself out using craigslist.org or elance.com. These are websites where clients post jobs ranging from web design to translation and transcription. If you have internet access and can use a computer, chances are that you can find a job to do in your spare time. The work might not be super interesting, but keep your eyes on the prize. All you want to do is make your bank account grow.
Another idea might be to humble yourself and offer to do chores for your neighbors. Does the idea of mowing lawns and washing cars embarrass you? While it’s true that those jobs are generally reserved for teenagers trying to save up money for their prom, remember your long term objective. Your goal is to save up enough money to invest in some sort of a cash producing asset. So who cares what the neighbors say. Let them laugh. They aren’t the ones who will be paying your bills when you retire. You have to take control of your own finances.
There a lots of ways to earn a little extra cash that you can use to invest later. If you resist the temptation to spend it on toys, then that money will soon multiply itself and will turn into a sort of fountain that produces Forever Cash for you and your family.
So will your plan work if I don’t have too much money to invest with? Getting a good return like 30% would be good but 30% of let’s say $100 is not too much. I don’t mind working hard so will your book help show me how to turn a very little into something worth while?
I was fortunate enough to get a copy of your book “Forever Cash” before the official launch in book stores. I am a slow reader but I’ve managed to read about half the book and like very much what I am reading. I have one rental property in Phoenix (I live in NC) that I purchased as a “turnkey rental property” in 2009, before I retired with a pension. It was cashflowing about $350/month with the initial tenant that was in place when I purchased it. I purchased the property for $123,500 with $3500 down and got back $2250 (1st month’s rent of $1250 plus $1000 security deposit) at closing. The initial tenant moved out in October of 2009 and things started going downhill from there. Someone broke into the house and stole the gas hot water heater which I had to replace. My property manager finally got another tenant after a couple of months being vacant and the rent had been reduced to $995. The tenants would not pay the rent, so my property manager took action to collect the unpaid rent. I just got a portion of the proceeds of the action. Then the tenants trashed the place and left. Then another break in and a new gas cook stove was stolen that I had replaced from a home warranty company that came with the initial property purchase package. Another loss for replacing the stove that was stolen. To make a long story short, I had to reduce the rent again to $895 plus $35.80 admin fee (I fired my second property manager) to get my current tenant(s) and they were interested in purchasing the house, so I gave them a 3 year lease with option to purchase (rent to own) which seems to be working out ok so far. So I’ve had a mostly bad but some good experiences from own a rental property ( a form of Forever Cash, right?)
Anyway, I noticed in the book that you don’t like whole life insurance, and of course you aren’t the only one with that opinion. Both Dave Ramsey and Suzie Orman say that whole life is a bad investment and that if you need life insurance, buy the cheapest term insurance and invest the rest. Ok, I ran across The Infinite Banking Concept, aka, Becoming Your Own Banker, in which you purchase dividend-paying whole life from a Mutual Life Insurance Company. The idea is that you finance life’s expenses by taking out loans from the policy you own and control and then pay yourself back with interest, in a tax-advantaged way. It does required you to pay higher premiums during the “capitalization phase” in order to build up your cash value enough to finance your life’s expenses, i.e. purchase cars, etc. The important thing is that you continue to build up value in the policy with dividends and interest while you use it to finance life.
Can you or one of your advisors give me your honest opinion on using this technique? I do concede that this does not satisfy the definition of “forever cash” in that you end up paying out each and every month to pay the premium and repayments of the policy loans.
Thanks in advance.
Hi there, Jack Bosch here.
I feel for you on the rental property. to me it seems you have a bad property manager.
While the main issue here is that you leveraged the house too much, (during the 2009 time frame I bought $50,000 houses and $70,000 and bought 2 houses for each one you bought and made more cash flow on each – and even a $super low down payment would have made the numbers work better) – but it is done now so we want to focus on you making as much money as possible from that house and not losing money. A house that costs $123,500 in 2009 should be in a decent area and demand at least $995 rent (could be more but without knowing details I can’t say) and should attract SOLID tenants.
So if you could please contact our support at forevercashsupport.com and put in your personal information and ask them to pass that through to me personally and I will put you together with my property manager here in PHX. He should be able to do better with your house than what you are doing.
To your other question:
I am aware of that concept and kind of like it, because you can get to your cash and use it for investments while the policy grows, but I have not yet run the detailed numbers on how that works and how it compares to just doing Term life insurance and investing the extra money you have left from not having to stuff it into a whole life insurance…
I will post something on http://www.ForeverCash.com when I have done that analysis.
I’d be happy to send you a copy of R. Nelson Nash’s book “Becoming Your Own Banker” if you’re interested in learning more about the concept from the original organization that conceived the Infinite Banking Concept. Or you can order a copy yourself from http://www.InfiniteBanking.org
I have been asked to be an Advocate for the Infinite Banking Concept by the owners of South Park Group, a Charlotte NC Financial Advisor, that specializes in and is IBC approved by The Infinite Banking Institute. I will earn a small commission (Forever Cash) for referring others that are interested in Becoming their own Banker using dividend-paying Whole Life Insurance from a Mutual Insurance Company. I may decide to get licensed myself to earn higher commissions :).
Thanks for taking a look at The Infinite Banking Concept.