Although I was not aware of Antique Furniture while I was buying houses, I still did not feel comfortable in spending money to buy furniture, when it would only depreciate in value. I believe if it were not for my dad specifically, and other friends and family giving me different pieces of items, I would probably only have the two pieces of furniture that I purchased, during the four years that I bought houses. I mention my father especially, because he used to bring over items that were thrown out by people in his neighborhood. I did not care where the items came from, because I knew I wanted to continue to invest my money in as many assets as possible, and furniture was at the bottom of my investment list. Ironically, while I was unattached to the furniture, I was very attached to owning the houses. Being a multi-property owner was a big accomplishment for me. I felt that all my hard work paid off. While it took the realization that the bank owned the properties until I paid off the mortgage, and the responsibility of having my son to help me to open my eyes, I finally had to change my mindset, and detach myself from the California Real estate. I mentioned this as an example that even I had to learn how to change my way of thinking in certain areas.
Whether it is furniture, shopping, smoking, drinking, etc, it can greatly deter you from your path to wealth and prosperity. Sometimes it takes an outlet for you to change your mindset. For me it was wanting to be home full time to raise son, and for others that drink or smoke, it could be that feeling of walking into his or her haven, filled with beautiful antique furniture. We have a friend that mentioned that she had not had a cigarette for 6 hours. She was so excited with the idea of collecting and investing in antiques that she forgot to smoke. Detaching herself from this habit would actually save her hundreds of dollars that she could invest in assets that she would own out right, free and clear. The same is true for those buy modern furniture. By not spending his or her money on furniture that is depreciating in value and investing in antique furniture, he or she will not only save the money , but earn money as well.
If you want to be successful in investing into antiques, gold, silver, etc, it is “IMPERATIVE” that you change your mindset and start doing that math. For example, Let’s say that Sarah and Daniel decides to invest in a piece of Period furniture
Year 1- Buy Antique Period Federal Bed for $500.
Year 2- Antique Bed is worth $600
Year 3- Antique Bed is worth $700
Year 4- Antique Bed is worth $800
Year 5- Antique Bed is worth $900
Year 6- Antique Bed is worth $1000
Year 1- Buy new Bed $500
Year 2- new Bed is worth $400
Year 3- new Bed is worth $300
Year 4- New Bed is worth $200
Year 5- New Bed is worth $100
Year 6- New Bed is worth $000
While this chart speeds up the process on both ends, the principles remain true. You not only gain money from buying antiques, but the purchase of the antiques also prevents you from losing money. Year two is net $200, year three $400 and so on. The reverse is also true. Buying new furniture, you net loss is $200 per year, because you are not only losing out on the profit, but you are actually going further in the red with each passing year.
I challenge you to detach yourself from something that is causing you to spend rather than invest. For example, if you like to shop daily or spend money, take a week off. If you smoke a pack of cigarettes a day, skip a day. If you have furniture or a piece of furniture that is worthless or decreasing in value, sell them or it. Each day you hang on to it, you are losing money twice over. As mentioned in an earlier challenge, invest the money in an item that is appreciating in value. Have a blessed rest of the week.