We all aspire to be financially independent but being independent in your 30s can be terrific. This is the case of a 39-year old Canadian man who made CA$1 million, around US$791,000 in 2019.
Chad attained financial independence through real estate.
Chad, who grew up seeing his father change properties got lessons that motivated him to enter the real estate sector and currently manages rental units, and he is living his dream. In 2019, Chad left his full-time job as a network administrator, and alongside his real estate investments, he also focuses on stock market investment. The man and his partner, Catherine, a Ph.D. student, save around 50%-80% of their income annually and live off $27,000 in yearly expenses. As a result, Chad and Catherine can travel with their dog, but he also works as an IT consultant. During his free time, he volunteers at the local fire department.
He said that the key to his happiness is owning his time. Financial independence has gifted Chad with the ability to draft his schedule and not depend on a job to follow his interests. Besides his side jobs and volunteer experience, he is also a sheepherder.
Real estate can be risky due to rental loss.
However, there is the risk of rental loss when relying on real estate as the main income stream, as most landlords experienced during the pandemic. A vacancy for a lengthy period can be detrimental, and as a result, landlords should balance between lowering the price of the unit or complete loss of income. Chad said that it is just calculation, and you have to figure out what you are comfortable with.
Interestingly, one can maximize real estate earnings, and part of Chad’s success is down to a hands-on approach with rentals. Chad repairs his rentals, including installing heated flooring, painting garages, creating wooden wall panels, and redoing bathrooms. He said that convenience is among the most extensive budget killers, and people are spending more on convenience. He said that we could prepare our food, but people see it easier ordering the food.