If you don't know the story behind this saying you can read up on it at Wikipedia. I think this is a much better version HERE. For the impatient, I will give you a synopsis; A king challenged one of his servants to find him a ring upon which any happy person looked, it would make him sad and any sad person happy, hence the saying; This Too Shall Pass. It is great to have this saying handy when things are not going your way. Unfortunately, it does have the appropriate effect if read when you are happy. I had this saying written on a Post-It note and stuck to the bookshelf on my desk. There were times when it haunted my thoughts particularly, sometimes for weeks on end in the early stages of my investing. I used it as a mantra to defeat the negative thoughts hounding me. Fortunately, through hard work, persistent and consistent action, times have changed.
While walking my dogs tonight the saying popped back into my head. Not able to comprehend how things could ever be like they were in the early stages, I pondered this thought for the remainder of my walk. Not that I was ever much of a consumer, but all my debt, except real estate debt, is retired due to committed action to eliminate this drag on my financial freedom. Every time I had the opportunity, I plowed more cash into short term debt and down payments on new acquisitions, sacrificing a false sense of security for monthly cash flow. I would rather have a steady income stream than a pile of money any day. At least with an income stream, I have a budget to work with. I can build operating capital with a steady income stream to reinvest. An income stream gives me a yardstick to measure growth. The elimination of debt is one of the keys to financial freedom. (The formula for financial freedom is: Passive Income - Outgo = Something Left Over.) A pile of cash has a time limit. It has an expiration date. An income stream has a micro expiration date. If it gets screwed up one month, you get a do-over the next, and the next, and the next, and the next. One can just go on screwing up every 30 days for the rest of one's life and there will always be the next opportunity 29 days away.
We wholesaled 2 more properties today and found an investor for our Equity Participation Program. Now in escrow: 4 houses & 1 lot (all closing tomorrow), 2 new condos, 1 EPP house. Everything is spoken for so if you are interested please let us know and we will put you on the list.
Tomorrow is a new day and there are more opportunities to dig up. Going to work reminds me of being a kid on the beaches of New England. We would go clamming in the summer. It is easy to do. Grab a bucket and slowly walk down the beach at low tide and watch for water to spout out of the sand about 12". Once you see the squirt, you dig! The pressure from your weight causes the clams to squirt water out of their foot. Every step is a surprise. It was always a lot of fun digging and seeing how big of a clam we would find. Every step is another day in the office and I never know what kind of deal we will create when the phone rings and we are focused on loading up the bucket with keepers.
OK, that is a pretty corny anology, but being in the office can be as much fun if not more fun than a day at the beach. Although I can't work on my paddle ball skills, I don't get sunburned and there aren't any seagulls to crap on me.