Hey, guys, so today we're
going to talk about three things that I would do if I had 20 grand.
So I get a lot of questions around this issue, and a lot of times
I get questions from people who have
some money that isn't necessarily enough to maybe buy real estate,
but it's a good chunk of change
and they'd like some help with figuring out what to do with it.
So let's say I have a nine to five job and I just received a windfall of 20 grand.
It's not enough money to quit my job or completely transform my life,
but it's definitely enough to increase my comfort.
So without further ado, here are three things I would do with 20 grand.
So one of the first things that I would do is eliminate any bad debt from my life.
It's OK to have debt in the form of a mortgage, a car payment,
or perhaps a student loan, because those types of payments typically
stay the same from month to month.
But if you're carrying high interest credit card debt, that's got to go.
Credit balance keeps growing exponentially.
If you're not paying off your balance
quickly, over time, you can wind up paying twice as much
for a shopping splurge or a dinner that you don't even remember.
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Thanks again. What you want to do is create value from that 20 grand.
And one of the best ways to do that is by investing in silver.
Historically, silver has excellent purchasing power over time,
just like gold. But silver is far less expensive than gold.
Silver reach twenty seven dollars an ounce in twenty twenty.
While gold was trading at about two thousand dollars an ounce,
silver is one of the very first things
that I started investing in because it's so inexpensive.
And you can buy one out and you can carry it
from state to state, country to country.
Silver is valuable because it has a lot of practical uses
due to its reflectivity and electrical connectivity.
Many industries continually use silver.
So there is a consistently high demand for it.
Silver can be found in all sorts of products, including coins,
batteries, solar panels and different types of machinery.
Silver can also be the perfect form of investment for uncertain times, since
it has a negative correlation to stocks, government bonds and other asset classes.
In other words, when stocks and bonds plummet, typically
the price of silver typically rises.
Silver is also a great hedge against inflation.
The price of silver typically rises much more than gold,
with the following US dollar for every one percent.
The US dollar fell year over year on the average.
Silver gained three point three percent on average,
versus gold's gain of one point nine percent on average.
The other thing I would
do is, you guessed it, use that 20 grand for real estate.
Come on, you didn't actually think I'd stick to just precious metals.
I know a lot of you are thinking
the 20 grand is too low to get into a down payment.
But what if you were to partner with someone else who also has 20 grand?
You could either go in with a friend
and form a partnership where you both share in the profits of a rental company,
or you could seek out a hard money lender.
If you and your partner or investor were to go in together,
you could use your combined resources for a forty thousand dollar down payment
on a rental property.
That would put you in the ballpark of being able to purchase
a two hundred thousand dollar property depending on where you live.
That might be a low number, but I would encourage you to get creative.
Even expensive markets like New York or San Francisco,
you can find less expensive deals a couple hours away or two hundred
thousand dollars can put you in a small house or a condo there.
I would go through the steps of identifying cash flowing properties.
Of course, it's not enough just to be affordable.
You need to buy in a region with a large population of renters.
Ultimately, if you get a windfall like this, the most important thing to remember
is that you want to make that money work for you.
But first things first.
If you have credit card debt, pay off that debt immediately, because that will
just keep growing and will stand in the way of your other financial goals.
Silver is more of an insurance policy rather than an investment,
and it's more of a hedge against the dollar and real estate.
Hopefully, if bought well will appreciate
over time and using real estate as a rental property will create
passive income for years, while silver won't create any passive
income is a great way for you to make money
potentially even appreciate during times of high inflation.
Until next time.