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Arnold Schwarzenegger Teaches You the Difference Between Spending and Investing Money

  • 2 min read

… and why you should buy income property before you buy a house.

As you might know, I’m a podcast fan.

On YouTube, I love to listen to bestselling author Tim Ferris’ (The 4-Hour Workweek) podcast.

Moreover, I’m a huge fan of Arnold Schwarzenegger.

Most people don’t know that Schwarzenegger got rich by investing in real estate.

In the episode I’m listened to, Tim Ferris asked Arnold:

Did you buy the six unit appartment building before you’d ever bough a house?

Schwarzenegger answered:

(…) I would not go and buy a house first before I buy income property. This is what I always recommend people.

For Arnold, that’s the key.

He adds:

(…) to me it’s much more important that when you buy your first real estate to buy a rental appartment. This is an income property.

The difference between spending and investing money is pretty clear

(…) when it comes to real estate if you invest wisely (…) its never called spending money there’s a difference between spending money and investing money.

Investing Money

  • (…) in real estate, you invest. The money goes up. The value goes up.

Spending Money

  • (….) when you buy furniture that’s spending money because as soon as you take furniture out of the furniture shop, you lose automatically. Right off the top 30%. You will never get that money back

Key Lesson

Be as smart as Arnold Schwarzenegger.

Think twice before you spend money on shiny things.

Better invest your hard-earned money.

Before you buy a house, invest in income property.

I’m curious. What do you think about this topic?

© Kristina God

Kristina God is a 25x Top Writer on Medium. 
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