Don't buy a car buy a house and it will pay for the car

They say that this generation will inherit more money than any of the previous generations to date.

So what should you do in case you inherit some money...even $10-$50K?

In the past 7 or 8 years we have interacted with a couple different young people who both inherited $40,000.

In one scenario, someone convinced them to lend all the money for an investment that was unproven and sadly they lost it all.

Bryce sat down to have a financial discussion with the second one. As is the case with the majority of young people who come into money, this person wanted to go out and buy a new car.

Bryce explained that instead of buying a car that will just depreciate, they could buy a house with a basement suite and a garage and rent them out and the house would pay for the car. They said emphatically, "Bryce it just doesn't work like that!"

But it actually IT DOES...

Cole and Bryce actually both bought houses that did just that.

This is how it works...

They bought a house then for $245,000 and put down $12,500 as downpayment. Then they rented it out for $1200 up and $800 down and that's not even including the garage! Their rental income less payment, (including principal, interest, taxes, insurance) worked out that they would have cash flow of $363 a month. There is the car payment!
Over the seven years since then, they have paid down their mortgage from $232,500 to $155,200. Therefore they had $363 a month cash flow each and every month for seven years. They would have had some improvements here or there but they have also paid down an average of $1100 a month over those seven years.

So instead of buying a car for $10,000-$15,000 that would have been worth nothing 7 years later, they bought a house that appreciated $80,000 and they have paid off $77,300 PLUS have cash flow of $30,492 over the seven years.

Summary:
If those that inherit money had bought a car for $10,000 and just let it depreciate, in seven years they would have zero to show for it and probably be needing another new car.

BUT If they bought the house and invested $12,500, they would've had a total gain of $187,792.
What would you rather have... $0 or $187,792?

This just goes to show that you don't need to start with a lot of money to create wealth very quickly.
The younger you start, the better and you're not getting any younger so lets get you started!