These wealth draining expenses are essentially holes in your investing income bucket! Multifamily investing success Rob Rowsell advises how YOU can cut expenses and keep filling your wealth bucket!

Five Wealth Draining Expenses You Should Know About!

Rob lists his top five wealth draining expenses in this video. Here they are, in order:

Expense #1: Ignorance

This may be the easiest trap to fall into for investors. When you have succeeded in one field with minimal effort, you likely will become overconfident. Remember, just because other past endeavors came easy to you, that does not mean that multifamily real estate investing will. This path is a lifelong pursuit, and you will find it to be both complex and competitive.

Expense #2: Taxes

Next to ignorance, nothing can cost you more as an investor than taxes can. “Tax Drag” as Rob refers to it as, can really poke holes in your wealth bucket. Conversely, you can plug those holes legally with the help of your accountant. When you employ the strategies your CPA recommends, the money you save in taxes will count as a big income stream! Remember, the US government has placed many tax incentives in place for real estate investors. Maximizing your wealth depends on finding and employing those incentives.

More Wealth Draining Expenses – Expense #3: Vitality Number

How could your vitality number be one of these wealth draining expenses? If your vitality number (cost of living) is too large, you are flushing cash down the drain. Your parents told you to live within your means, but Rob says live within your values! The alternative is just vanity. Get out of the habit of spending too much today, so you will have a comfortable lifestyle after you retire.

Expense #4: Fee Drag

Accountants, financial advisors, and coaches are crucial to our wealth building journey. However, it is important to periodically audit their services. Are you paying your wealth strategy team too much in fees for what they bring to the table? Keep your eye on the ball, because what you are paying them in fees could be taking a huge chunk out of your wealth bucket. Rob’s tip: insist on meeting with your financial team members via your own Zoom account. Record every meeting, and make sure you integrate the Fireflies AI note taking service with your Zoom app. This way, every piece of advice they give you is both on video and in writing, saved in folders for you to review later.

Expense #5: Inflation

In today’s economy, inflation is on everyone’s minds. The cost of goods and services has gone through the roof lately. With that said, make sure you add 10% to your Vitality Number. Don’t get caught lacking when it’s time to cash out and retire, because this trend will likely continue.