To get to the top of the mountain of real estate investing, you will want and need to use all the tools available in your financial tool belt. While you can theoretically build a home with just a few tools, the quality of the home can suffer if you don’t have certain specialized tools at your disposal. The same is true when you try to finance your real estate transactions.

First, a key truth in real estate: You don’t need to have excellent credit or access to a ton of cash to make a fortune as a real estate investor. But you will get to real estate investing in the promised land much faster if you do.

Because your end goal is to build a large portfolio of real estate and a large residual monthly income that comes in regardless of whether you decide to get out of bed every morning or choose to sleep in, you’ll want to make sure your finances are in a tight spot. maximum state of health. That requires you to give your finances an intensive check-up, just like your personal physician would to make sure you have the image of good health.

Step one: get in the right frame of mind

The most critical step in analyzing your financial situation is realizing that how you approach money and financial decisions plays a critical role in your ultimate success or failure. If you have a proven track record of blasting yourself with poor financial decisions, it is imperative that you make a radical change and change your spending habits.

If you waste a ton of money on music downloads, splurge every day at an expensive gourmet cafe, or are by name with the front desk at Walmart, I have news for you: Your budget has more pork than a bill of Congress expenses. By removing much of the waste from your personal finances, you can generate cash out of thin air that you can use for purposes far better than instant gratification. Instead, it can change your life for the better. But the choice is yours.

Step Two: Cut Expenses Relentlessly

When you finish paying bills at the end of the month, do you usually have cash left over, or do you tend to spend it all within a day or two of payday and then limp until your next paycheck arrives? Most people spend most of their salary on bills, food, and other necessities. If you’re lucky, you can save a few bucks for a rainy day. The difference between those who are in control of their finances and those whose financial lives are in disarray is that being in control means taking control and staying in control. While many people have trouble increasing their income, it is possible to cut back on spending. To do that, you need to monitor your spending and identify areas of your budget that can be cut. While this is not the sexiest topic of conversation, it is absolutely vital to your ultimate success as a real estate investor. Budgeting for monthly expenses and spending only what is on your list is one of the hardest aspects of taking control of your financial life. By eliminating unnecessary expenses, you will reach your goals faster. Here are some ideas to get started:

Gut the cable pig: That’s how it is; cancel your cable. You’re constantly complaining that there’s nothing good anyway, right? Instead, talk to your spouse, go for a walk, listen to a podcast, or read a good investment book.

Reduce the size of your cell phone plan: Most people are saddled with expensive and wasteful cell phone packages. Unlimited texting, mobile internet, and bulk calling plans are great, but most people don’t use all of their phone’s features. Do you need mobile navigation or is it just a toy you use to watch YouTube videos when you should be doing something else? Do you need unlimited texting or can you give your thumbs a break if it saves you $ 20 per month?

Check your credit card statement: See if you have any recurring charges every month. Are they items you need? You may even have a few small charges every month that you forgot to sign up. Eliminate the ones you don’t need and stay current to make sure you don’t throw money out the window.

Stay away from the drive-through – your waistline and wallet will thank you. These often daily trips to McDonald’s and other fast food places are killing your health and your budget, sometimes to the tune of $ 5 to $ 10 per trip. This also applies to coffee. Caribou and Starbucks are tempting, but do you really need to stop for a $ 5 cup of coffee each day, or would you save money making it at home?

Step Three: Pay off Excess Debt

Another area that is probably holding you back is excessive debt. High credit card balances, store credit card balances, and computer payments are a reality for millions of people. However, if they are holding you back financially, you should go down the 8-track tape path and join the growing list of things that once served a useful purpose and no longer do. Make extra payments, have a garage sale, or do anything else to eliminate excessive debt. If you can’t find the cash to settle some of these accounts, consolidate them or at least make larger payments. If what’s in your wallet – credit cards – is taking up too much of your cash, it’s time to take control and protect your financial interests. No one else will.

Step four: check your credit report and score

How is your credit history? Do you have a long history of consistently paying your bills on time, or do you tend to pay many of your bills late, if at all? If you’re like most people, your record of paying bills on time falls somewhere in the middle. The first step in making that determination is to examine your credit report and find out what your credit score is. Once you know those details, you can get to work improving your credit and positioning your finances to take advantage of real estate opportunities when they present themselves. The good news is that you won’t have to spend a small fortune to get your credit report. The federal government, for once, finally had a pro-consumer idea that makes sense. The three major credit reporting agencies, Experian, TransUnion and Equifax, have partnered with a single website www.annualcreditreport.com that allows you to obtain your credit report once a year for free. Whether you get all three at the same time or stagger them to examine a different one every four months, it’s your choice. The important thing is that you get these reports and see what information they contain. They will have most of your credit transactions, as well as cancellations, late payments, etc., along with your current balances. If you find that your report contains errors, omissions, or fraudulent accounts (accounts listed in your name that were opened by someone other than you), there is a mechanism to correct these entries. Because your ability to borrow money and the interest rate you will pay depend on the accuracy of these reports, it is in your best interest to make sure your credit report history is the truth. While you may not get free credit scores with your free credit reports, it is important that you have an accurate understanding of your current credit score as part of a thorough examination of your finances. You are much more than a number, but for a potential lender, numbers are the only thing that matters. If your FICO score is too low, your chances of getting approved for a loan are reduced. This knowledge will allow you to act decisively to improve your credit score, and the rate and terms that you can demand in all your financial transactions.

Step five: increase your income

You have two options to increase your income: work harder at your job or find a business opportunity that can put you on the path to financial success. Real estate investing is a proven method of creating wealth, residual monthly income, and life-changing opportunities.

Pine Financial Group aims to continue to provide you with tools that you can put to work in your life today to increase your income and build real, sustainable wealth. What you do with this knowledge is up to you.