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Poor Texan Engineer
Rich Texan Engineer
The Rich Engineer | Rich Engineer |
| Incase you skipped Poor Engineer,
let me start with my education spill. What I am going to show you
uses the most basic accounting and finance foundamentals. I
have shown you how to determine net income and exactly what a
balance sheet is and a liabilty statement. If you don't know what
these are, or want to learn more about these concepts in a simple, well
written format visit RichEngineer.com and follow that advice. If not continue reading to learn from the Poor Engineer.
The
Rich Engineer went to school and got the same Engineering Job with the
same salary. Also to make life easier he also had the same basic
Expense Statement. How did he use his Engineering Job better than
Poor Engineer? Look at his Balance Sheet.
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As
time goes on one of his assets would be his 401K. Notice the
difference. Some stock that has increased modestly in value.
Rich Engineeing also borrowed $6000 for a down payment on a
duplex (which was his first home purchase) and is currently renting out
the other side for $700 per month. So his income statement looks
like this:
So instead of spending $800 per month on rent the RichEngineer
spends $800 dollars on a mortgage payment and property taxes. He
is then renting out the other half of the duplex to increase his
revenue per month. Not to mention the tax advantage of running a
real estate business. At the end of the year he is able to deduct
money from his taxes which would reduce his monthly expenses even more.
In summary I have
shown you the most simple way to get yourself out of a rental and how
to increase your income by 14%. Consider that the RichEngineer
will take advantage of lower taxes, building appreciation, and is able
to easily save up money for the next down payment to buy another duplex
that would gross him 1400 dollars per month and net him 600 dollars per
month! Now do that 10 times and you have easily exceeded your
monthly salary with passive income.
Follow the RichEngineer for more easy ways to build wealth.
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