Successful Multifamily Real Estate Investor Rob Rowsell explains two examples of the Wealth Buckets model. Let Rob teach you about the Wealth Operating System method of long term investing. When you invest wisely, then you will find long term financial security once your active earning years are done!
How The Wealth Operating System Works
In this clip from our ATL Inner Circle Community Meeting, Rob describes that there are many potential money buckets you could use. Specifically, Rob focuses on using two different wealth buckets in this clip. One bucket specifically operates to save up an emergency fund. The other bucket is a Wealth Operating System, which is designed for your long term financial stability.
The Security Bucket Wealth Model Explained
When employing the Security Bucket Model, you base it on a two part formula. First, you calculate your vitality number. This number is based on typically based on ten months worth of your monthly expenses. You reach your comfort zone when you save up this number. Your mind should be at some ease knowing you have enough cash put away in case a major crisis occurs keeping you from earning active income.
How You Can Build And Operate Your Own Wealth Operating System Bucket
Next, Rob explains the Wealth Operating System, which is also called your Core Fund. This bucket exists as the base of your financial freedom. If you are younger, filling this bucket with potentially risky investments might be okay. When you are an older investor, you may not have much runway left to accrue interest on your money. Therefore, more conservative investments are in order. The first order of business to achieve freedom in your golden years? Invest in projects that will generate horizontal income that adds up to 1.3 to 1.5 times your vitality number. That formula equals financial freedom!
When you decide your own personal vitality and freedom numbers, factor in everything! This means transportation costs for trips, meals, taxes, and personal grooming. Only then can you get an accurate personal P&L on paper to work with.
Join Our Multifamily Investing Community Today
Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!
