tiistai 29. syyskuuta 2020

My reasons; what, why and how

As an investor it is always good to think beyond horizon and to know the past. One has to know themselves and dig deep. I have earlier written a post about what, why and how (link) and my DIY reasons (link). Now I want to open and think more about my own reasons.

My WHAT is investing itself. It is a solution for me. It is interesting, I like it, I like the gains and the difficulty. In a way you always "know" but still you really don't know anything. And for me investing is a little bit of everything: a job, a hobby and "just" stocks and "just" real estate. It is everything but it is nothing, it is only money. 

My WHY is to be free? I think I already am. I am doing pretty much everything I like. I think I could work less and be with my friends and family a little bit more, but everybody needs to have a purpose, something to do. So I think that in the beginning I started investing to be able to just to show off. Just to show that I can.... It was a challenge... Well yes, I can. Then I think it became more, it was a way to start really go towards something bigger... My aim probably was to be able to do whatever I like. Now when I am already able to do things I pretty much like, investing is a little bit of everything: a purpose, part of my identity, a challenge, a possibility, a way of life...

My HOW was at first pretty basic funds. But probably the first real thing was my first house and pretty soon after that my first real estate investment appartment. Real estate was the first big thing for me. It was "easy" for a stupid young bloke like me, it was also interesting. I really dove into it when I was looking appartments and eventually my own first house. Then I really started to understand real estate, how it works but it took some time to understand what leverage really does.

When I bought my first house, loan was obligatory, I did not want it. But I was not able to buy anything without a loan. My first (very finnish) intention was to pay it off as quickly as possible. About a year later thanks to that loan, I was able to buy my first apartment that I rented out. Maybe a year or 2 later I really started to understand that if I make more than what I pay to the bank it really is quite nice. If I get 5% and pay 1% in some sorts of expenses, I still get 4%. It is better than 0. Loan wasn't so bad after all. But it is good to know the risks.

It really seems that money makes the world go round (read more HERE and HERE). But for me money is only a vehicle. Yes - it is something that I need - but it does not control me. Not anymore or at least not that much.

With money we can do and buy a lot but we only live once. I want to live knowing that I lived and loved and I really don't love money that much. It is nice to know that you can or could buy stuff. The more you have, the more you are occupied and therefore the less you give. I think that is also true about real estate or investing. Investing really takes time if you allow it. It is good to know what you are doing and why. 

The vuokranantaja has left the building...

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