• 03:18:49 am on April 16, 2009 | 8
    Tags: , , , , , ,

    The Recap!

    I think if there’s one of our 7 Millionaires … In Training! who’s course seems to already be set, it’s Scott … the only question that I would have will be answered in the next part of our journey – stay tuned!

    In the meantime, what questions / advice do YOU have?

    _____________________________

    This next post seems to be a bit of a wrap-up to Money Making 101, where we take a final look at where we currently are exactly in our financial picture and what we intend to do about it.

    To be honest, I’ve pretty much covered this info pretty thoroughly a few times in my most recent posts, probably more so than was intended in those posts, so there’s just not a lot for me to add here with this post today. The only debt we have, other than the mortgage on our home and the mortgage on our rental is my student loan. We could probably have it paid off completely in 12-16 months time from now if we focused entirely on paying every available savings dollar to it, but that would not get us richer, quicker!

    The loan is currently at a little over 138k, but it is fixed at 2.8% for the life of the loan. Using up every penny to pay this loan off early would take valuable capital in the next year to year and a half that can go toward purchasing bargains in real-estate and stocks. Everything is on sale right now and I believe the next few years, it can be quite easy to reach an astounding annual compound growth rate with a little focus, research and picky buying. It would certainly be a shame to miss out on these opportunities before the recession ends and we want to take as full advantage of it as possible.

    Other than that, I really don’t have any specific questions regarding where we are, I ‘m just busy in the trenches doing what I know I need to do! Live on significantly less than we make, save it up into huge chunks of cash, purchase assets, and repeat!

    Pay cash for use cars, don’t take any extravagant vacations, delay gratification, don’t purchase toys, etc..etc…In the middle of that mix, start additional businesses that spin off even more cash and allow this growth snowball to really pick up snow as it rolls in the direction of our number by our date. In my mind, there’s just the wait to our date! At the same time, life is precious and short. You only get so much time here, so I don’t want to hurry time past either. I want to enjoy every minute of it along this journey, while at the same time, be doing everything I can, every step along the way to set us up for growth for our future so that we enjoy every minute now, and arrive out our departure to exactly where we want to be and then enjoy living our life’s purpose from that point forward and not live to make money!

    If anyone has any questions, please feel free to ask. If anyone thinks I’m doing things totally wrong, let me know!

    I’m all ears. Whatever tips, suggestions and information that can help us get to our number faster is good information for me!

     

Comments

  • Josh 8:05 pm on April 16, 2009 | #

    great recap Scott. The importance of having cash right now can’t be overstated, can’t wait to see what opportunities you seize.

  • Scott 5:00 am on April 17, 2009 | #

    Thanks Josh. We definitely feel the same way. We might actually just spend most of the year piling up cash so that we can establish a decent ‘starter continency fund’ for our real estate company, have a small contingency for ourselves, leave it put, then move into the next investment purchase to close the year out.

  • Adrian 7:29 am on April 17, 2009 | #

    @ Scott – I would be putting together a fund called “start / develop my practiceS [ emphasis on the second ‘S’ πŸ˜‰ ] as the highest priority, even before the real-estate company. I would be planning to buy real-estate with the excess cashflows that the practices produce OR having a ‘buy/start the practice and buy the real estate that sits under it’ strategy … which option is better (for you) is something that we will be exploring NEXT πŸ™‚

  • Scott 7:35 am on April 17, 2009 | #

    Sounds like a plan Adrian, thanks πŸ™‚

  • Mark 10:21 pm on April 20, 2009 | #

    Good job Scott! You are on the right track. I’m looking forward for more MM201 discussions. Will your real estate company own the commercial properties that your businesses are operating in? I’ve heard of some really creative accounting setup that you can have owning the business and also owning the commercial property via a different company.

  • Adrian 1:11 am on April 21, 2009 | #

    @ Mark – Great advice; in fact, if it were me, I would go so far as to own each property in a separate entity and possibly each practice in separate entities, as well (esp. if you eventual exit plan entails the possibility of selling each practice separately eg to a staff member/s).

  • Scott 6:47 am on April 21, 2009 | #

    @ Mark, thanks man! Actually, I was planning on doing exactly as Adrian outlined above to keep things seperate so that selling the practices and/or real-estate in the future will be much easier. If both the real estate AND the practices prove to be terrific assets, spinning off constant cash in the future, via new doctors running them, i’ll keep them all as MM301 tools!

  • Adrian 7:20 am on April 21, 2009 | #

    @ Scott – we’ll have a little chat about that when we get there πŸ˜›

    Here’s what I said to a different ‘Scott’; I’m not sure that businesses are ever truly ‘passive’, and I wouldn’t trust ‘outsourcing’ a business to a management company in the same way as I would a property:

    http://7million7years.com/2008/09/08/if-its-not-passive-its-active/


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