Why Someone Earning $50K/Year Can Be Richer Than Someone Earning $200K/Year Through the Power of Saving
Summary
This article discusses financial independence and how making smart financial choices, like saving more and avoiding unnecessary expenses, can lead to greater wealth. For hosts, this means that managing finances wisely, and not overspending, can help you achieve financial goals, and allows for greater investment in your STR business.
Key Insights
- •Saving more money allows access to better investment opportunities, such as co-investing clubs that offer investments not open to non-accredited investors.
- •Putting down a 20% down payment on a home avoids paying PMI, which protects the lender, not the homeowner. Saving more money also keeps your debt utilization ratio low, improving your credit score and enabling lower interest rates.
Action Items
- ✓Hosts should prioritize paying off credit card balances in full each month to avoid interest charges and maximize rewards. Consider utilizing tax-advantaged accounts such as HSAs and retirement accounts.Effort: lowImpact: medium
Tools & Resources
- →Co-investing clubs: The article mentions co-investing clubs.
Common Mistakes
- ⚠Avoid spending every penny earned on appearance, and instead invest in yourself and your business.
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Curated by Learn STR by GoStudioM