I Finished 2020 With Cash in the Bank – and I’m Mad About It

by | Jan 20, 2021 | Blog

2020 wasn’t my best year ever… but it was my best year yet.

I used to say “Best year ever,” but this year Ben Benita replied to one of my emails and pointed out that using the word “Ever” implies future years won’t be as good. Ben always says it was his “best year yet” to avoid limiting himself.

So now I say “Best year yet,” too.

I know 2021 will be better than 2020, and 2022 will be better than 2021, and so on. I am determined to make each year better than the last. We all have the ability to do that, no matter what the world throws at us.

And yes, 2020 really was my best year yet in almost every way, but there is one area that did really bother me, and I need to improve on this in 2021.

I ended 2020 with a few hundred thousand in cash.

That bothers me.

I like to end each year broke.

Money in the bank does not earn you anything. You need to invest what you earn in order to multiply it.

I’m not talking about stocks either (I don’t like them). I invest in things I can control more. Things that are driven by real value. Things that are not manipulated on Wall Street.

Two investments fit that criteria for me:

  1. Myself/my businesses
  2. Real Estate

The more money I invest in those two categories, the more my net worth goes up.

Investing in Myself & My Business

Investing in myself and my businesses greatly increases my ability to go out and generate more income. Yet this is the area most people will not invest in.

When I go to conferences or training events, the people in the front row immersing themselves are the people with the most money. The people who you would think need that training the least are the ones most willing to make that investment.

Successful people tend to be the ones who make the biggest investments of time and money into developing themselves.

I believe this is why they end up having the most freedom of time and money: They were willing to invest the time and money to get there.

 

Investing in Real Estate

After investing in myself and my business, I invest in real estate. Here’s why:

  • Real estate is naturally indexed to inflation, so when the government increases spending and fires up the printing presses, real estate increases in value.
  • You can borrow at insanely cheap long-term rates to invest in real estate – so you get very cheap leverage.
  • There are huge tax advantages for investing.
  • It’s a real asset.
  • When you invest in real estate, you have multiple exit and continuation strategies available to you.
  • Everyone needs a place to live.

I also happen to know real estate very well.

 

Maintaining High Performance

 Here’s what else happens when I invest my excess cash into these two asset classes:

I feel more pressure and motivation to perform.

If you have money sitting in a cash account, it’s human nature to get complacent and lazy.

Pressure is the best form of motivation. If you get rid of your excess cash (by making investments that will grow and multiply) you will experience pressure to go out and make more.

Right now I am looking for ways to invest my excess cash into myself, my businesses and real estate.

You should too.

Here’s to a great 2020 (best year yet!) and an even better 2021.

Dan Lesniak has sold billions of dollars’ worth of real estate, developed over 500 homes, and written multiple best-selling books. He is a speaker, real estate coach, six-time Ironman, father of four, and husband to Keri Shull.

📱Text Dan your toughest questions about real estate, business, and investing at (703) 215-1684 or click here: https://my.community.com/danlesniak

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“I never grew up thinking I would have a real estate career. It was not something I planned. It actually was born out of what I thought at the time was failure…”

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