As someone else pay for retirement

I am the older sister, two brothers. Like any big sister, made a I care of them when they were little and I am concerned they are doing now. I'm worried about their future, and I'm worried more recently in my little brother.

He is a carpenter with. Had to be a leader, and he was very good in this too. You can also rebuild or repair any type of car. His experience, patience and attention to detail, everything is strange. But this is not true when it comes to howmanages his money.

He is only in the early '30s, he thinks it's time for him to continue working and save the left. He points to the fact that virtually nothing has saved her time as an excuse. So I'm worried that the government take care of us in our old age pensions are a thing of the past. When he's not saving anything for retirement soon, he will not have enough to go to never retire. It could not.

When his older sister, I decidedHelp making a plan. Now my brother has three cars, and does not need all three. I convinced him that a car should be sold. The money he makes from the sale may be used to start a savings account, and will save $ 500 a month for savings.

It can also be extra money to take additional jobs. These should not be full-time jobs or side jobs as kitchen renovation building fences. Carpenters are making very good craftsman. Although onlyThe work on the weekends can save enough for 10% below a $ 200,000 home is gone in no time. Maybe a year or less.

Since he is a carpenter, you can also buy handyman's special. If he lives there while setting up, he can save even more. For some years, has rented the house for about $ 1,400 per month. Now is the time to buy and move into new property.

Fast forward 25 years, we see what he has.

When added $ 25,000 value of the house, staring at him, andthe property goes to 4% on average each year, then in 25 years, the property is worth almost twice what he paid for it. And the best part is the tenant to pay the mortgage. This is like someone else to contribute $ 1,900 per month for your savings.

If you wonder where 4% is historically features an average increase of 4% per year, albeit with ups and downs. But this is not so high, by renting, tenants have not paidThe mortgage on the period of 25 years. Now that the mortgage is paid, the building is a positive cash flow for its withdrawal. Remember, traditionally the hiring of around 4% a year.

In 25 years, he has to pay his true home away. The two properties would have $ 1,000,000 in equity. This is a nice little nest egg for your retirement or something!

When I told my brother, my plan, got excited and sold a car. With the money that is going throughhelps us with one of our properties, is saving for a down payment for a house of fat. You can too! Why do not you?

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