Recently, I received a capital distribution from a private real estate fund, and it couldn’t have come at a better time. The experience brought me both joy and relief, prompting me to share it in the hope that it might inspire you to invest more for your future.
After purchasing a new home in October 2023, my liquidity resembled a lake after a three-year drought. I felt like a fish flopping around on the cracked lakebed, desperately in search of water. Furthermore, I was bombarded with unexpected capital calls from various private funds.
As the primary financial provider for my family, I experienced heightened stress for six months, knowing that a single large expense could force me into expensive consumer debt. Please roof, don’t blow off during the storm!
However, with this recent capital distribution of $105,951.76, I now have some much-needed liquidity and relief. The initial investment was $47,000 for a compound annual return of roughly 12.2% after seven years.
This post will discuss: The benefit of treating your investments like expenses Why investing in private funds and companies is good for patience, which in turn, is good for your future The importance of responsibly buying big ticket items like houses or cars How so much can change over a 5-10-year time period, so you must invest for the unexpected Not to take your liquidity for granted. Investing Is An Expense Until It Isn’t
Two years after graduating college, I began treating investing as an expense. It was a strategy to deceive myself into investing more, knowing my tendency to splurge on unnecessary things.
In those early days of employment, I made impulsive purchases like a Honda CBR 600 motorbike, even though I didn’t have an official license. Racing up
