investing money alternatives

A Heat Wave Is Like Dealing With Money Managment

Scott CostelloAll, Blog 6 Comments

investing money alternativesI can not beleive how hot it’s been the last few days here in New Jersey.  For example, at midnight last night the temperature was 85 and humid as all heck.  Today we are looking to reach 100 degrees and I’m going to celebrate by being an idiot and going out to play golf.  It’s always a good idea to spend 5+ hours out under the sun during record high temperatures wouldn’t you say?   But I don’t get to play golf much these days so bring it on!

When I was thinking about what I would write in this post I wanted to try and relate this heat wave to my real estate investing some how.  After about 10 minutes,  I realized that I hate when other bloggers/writers do things like that.  It is so very cheesy and only seems clever to the person writing it.  So I’m not going to do that and just talk about money.

One of the biggest unanswered questions I have in my life is what to do with the money I have in my savings account.  I’d like to invest it somehow but I’m not sure what to do with it and I am afraid I’ll do the wrong thing and lose it.  Anxiety anyone?!?  I hate that overwhelmed feeling when I’m about to start something new.

I’d like to invest in things that I’m interested in like real estate, technology and sports. Tech stocks seem right up my alley because I’m always browsing the latest and greatest.  I also think that would lead to great topics for me with regard to affiliate marketing but that is a topic for another post.  Here are some investment avenues that I have interest in exploring…

  • Roth IRA
  • Technology Stocks
  • Private Money Lender
  • Rental Property

I guess the best way to start out any investment is to determine what I want to get out of it and then I can make a better determination about what I should be doing. So, I’ll start now and list a few goals that I’d like to achieve from investing my money.

  • Buy a house worth between 600k to 700k (NJ home prices are ridiculous) within 5 years
  • Future kid(s) college fund
  • Emergency Fund that my family could servive on for 1 year if needed
  • Retirement Accounts

Sure, those are fairly general goals and over the rest of the summer I’m going to try and be more detailed. Being more detailed will help me setup a plan of attack and will guide me towards which topics I need to learn more about.

What I do know is that leaving my money in a savings account just isn’t going to get me to my money goals. The only “investment” I currently have is through my job’s 401k.  I contribute about 10% of my paycheck to it.  That isn’t enough.

I also wanted to announce that I’ll be joining the Diva Monday Club next week so i can put myself in front of other people with similar goals.  Shae and Steph this is your warning, so hide the women and children..

How is everyone else managing/investing their money?

Scott Costello
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Comments 6

  1. just a couple of thoughts:
    a roth ira is not an investment per se, it’s just an entity that holds investments.
    there isn’t enough juice in private money lending unless you have a good amount of capital to deal with. 18% (usery cap here in florida) just isn’t enough.
    that leaves you with tech stocks and rentals. i went through the same decision process many years ago, and decided on rentals over stocks. i like the tax advantages, the inflation hedge, the ability to buy below market, and having a hard asset that i can go look at.
    since you are in the real estate business anyway, i would encourage you to become a landlord. it amazes me how many people in the real estate business never capitalize on the investment side. realtors, flippers, builders, rehabbers…none of these are investment operations. by treating properties as inventory instead of investments, they miss the real juice in the business.
    someone told me long ago “it’s not the property that you used to own that makes you wealthy”. that simple concept made a big impression on me.

    1. Post

      Completely understand what you are saying Chan and that quote is right on! I’d like to have multiple revenue streams from different spots (diversify) just in case the shit hits the fan with one of my strategies. Landlording is on the top of my list however. I’ve also thought about storage units.

  2. You are in the world of Real Estate now. Why would you invest your money in stocks instead of something that you know well and are constantly learning more about? Is it just to be diversified? There’s something to be said for that, but you already have the 401k, which is presumably already in the stock market.

    As a side thought, dumping money into the 401k sounds great, but as someone who followed that strategy and now has no real access to that money until retirement, I wish I’d put less into it. I would rather have the cash now to buy rental property or use for my flipping business. I’m not recommending anything to you here, just giving you an alternative viewpoint.

    1. Post

      That makes sense Mike. I do like the idea of a Roth IRA where I can direct the funds to my real estate investments. Although I’m not sure of the rules/limitation of how you can use the money in the Roth just yet.

  3. Scott -I think the answer to that question depends on where you are at this time. If you are a just starting out and you intend to buy a house and start a family, then you would have a different answer than a person that was twice your age. If you haven’t bought your first house, then I would do that.

    I do belive that one of the wisest things you can do (at any age), is take a portion of what you earn and put it into a Roth IRA that you will use to buy real estate. This money grows tax free. Think about it; You put $1000 in a Roth and use this money to make a downpayment on a piece of investment property. When that property sells and you make 10-20K, that money goes directly into your IRA tax free. You can get pretty rich just repeating this process a couple times a year.

    1. Post

      The IRA approach sounds like what I’m looking to do in order to save for retirement. That is certainly what I’m going to be doing. Ad for investments that I can use to save up for a house that I want to buy for my family in the short term (5 to 10 years) I’m not sure where to turn. Real Estate seems like the best option for me since I know that for the most part. I like the potential “triple” earnings approach that a Rental property would bring (equity growth, Income from rents, and hopefully appreciation). Gives me three ways to make money for one investment.

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