Money management may be one of the most important skills that all of us
need to learn. Yet it is not always taught to us. I feel very fortunate
to have been a student of Mr. Nick Cokinos for over 23 years. He has
always told us about the value of earning a great living in the martial
arts field, while investing our money in bricks and mortar and in the
stock market. Mr. C. says: "Pay yourself first." I've followed his
advice, and it's worked out extremely well for me.My father-in-law used
to remind us: "Short-term gains create long-term pains." It's very common
to see someone with their daily Starbucks, eating meals out, planning
their vacation, etc., instead of thinking about their life in the long-
term and/or other long-term habits. The most successful people think
long-term even in the short-term and plan for success.My humble
beginnings began in Rochester, NY, in 1986, when my love for the martial
arts was so strong I decided to dedicate my life to it. I had been
teaching at a YMCA and wanted more days and times to offer classes. The Y
wasn't able to accommodate me so I signed a lease on my first location.In
1991 when my lease came up for renewal his office told me it would be
$2,225 per month to stay in my school. A 31% increase seemed pretty
extreme to me, since at the time I was struggling to pay the rent.Let's
fast-forward 16 years. My school is very successful. I've purchased
several residential properties. I've paid myself monthly and saved enough
for a down payment on a commercial building. I was so afraid I was going
to lose the check. Now I own a commercial building, from which I receive
monthly rent.If or when I decide to retire, I will still own the building
and will continue to receive a monthly rent check. In a few years, I'll
own the building, so once taxes and expenses are paid, the rest will be
my retirement check. In addition to the dojo, I have two tenants in the
building, who pay rent. I own five other rental properties, not including
my custom-built home, which of course I live in.The money management
system that's worked for me has been:"Goals we set are goals we get." It
all began by setting goals. I set a goal to purchase one property per
year for five years. This translated to six properties being purchased in
eight years.Get a system for saving your money. It's so easy to have 5%,
10%, or 20% of your income put into a separate account each week/month.
Pick a number and "just do it.""Track your monthly spending. Easy to do,
but easy not to do." Jim RohnBudget. Spend less than you earn and buy the
"right" things: houses, stocks, bonds, IRAs, businesses, etc. Do not
spend on too many high-priced dinners, cars, vacations, etc.Only borrow
money for the "right" things: houses, businesses, and investments. Never
borrow for liabilities: vacations, cars, credit card debt, or anything
else that doesn't have the potential to increase in value.All the best to
you with your financial goals!