Consequently, this method is often used solely by professional real estate appraisers. If you want to attempt it, the first thing to consider is the cost of the lot. Contact brokers and builders in your area. Find out what similar lots cost. In our example, the lots are about 5,200 square feet. After some diligent research on your part, let’s say that in your area,  and that size is worth $135,000.

Step two is to figure out what it would cost to build your building. Analyze the square footage and construction method of the property you want to buy. Let’s say that the cost to build a standard wood- frame and stucco building like the  one you want to buy is $85 per square foot, and the cost to build the garages is $30 per square foot.

Investments are touted for their high returns. Investors must balance return with anxiety and other emotions. High return often entails high anxiety, and low return usually means low anxiety. However, investing is complex. Some investments have high returns with complexity and low anxiety. Investors who can handle complexity will be happy. Other investors will be miserable. Some investments offer high returns with extensive effort. Some low-return investments entail an emotional roller coaster. Extreme speculation sometimes leads to gambling addiction. Some investors can handle a multitude of investments, and other investors are only comfortable with one asset class.

I’m not going to show you step-by-step how to calculate the exact amount you should save each year, but I do want to give you a rule of thumb and show you how painful procrastination is.

My rule of thumb, based on a decade as a retirement planner, is that you’ll need to have 20 times your “unmet income need” for your first year of retirement in the bank on the day you retire. In other words, if you think you’ll need $50,000 per year for the rest of your life, and Social Security is going to give you $20,000, you’ll need $600,000 in the bank ($50,000 minus $20,000, multiplied by 20). This amount would provide you with a large enough nest egg to live off just the interest of your investments.

Not using up the investments themselves is crucial because none of us know how long we’re going to live.

Now, a good percentage of you reading this book will say something along the lines of “retirement is so far away that I’m not worried about it” or “I’ll worry about retirement when I get out of debt.” But, the key thing I want to pound into your head is that retirement planning is monumentally less painful the earlier you do it. In fact, if you wait until 15 to 20 years before retirement to start planning, you may not be able to pull it off.

Why is it such a big deal? Well, the biggest problem is that people are living longer and longer, and our employers and Social Security system are giving us less and less. In fact, it is very possible that you might retire at age 65 and live to be close to 100 years old. That means that 35 years, or one third of your life, will be spent without income from a job. If you are hoping Social Security is going to cover even the majority of that, think again.

I don’t mean to scare you, but rather hope to give you some major motivation for moving forward. Just like my wife kept her eyes on that little sailor outfit during delivery, you need to keep your eyes on retirement as you try and decide what to do with each and every penny of your income and expenses.

Just how do these repatriated profits benefit the entire nation rather than just the companies and individuals controlling the investments? First, on entering the country, these funds push up the value of the British pound. And once the profits are in the coffers of a recipient company, that company will tend to spend the money in a number of different ways. They will invest some into research and development, employing scientists, engineers, physicists, chemists, and a slew of technical support staff. They will conduct marketing surveys and advertising campaigns, employing PR firms, communications experts, marketing staff, and legal spin doctors.

They may expand their premises, employing architects, engineers, construction workers, electricians, plumbers, painters, and the like. I think you get the picture. Money coming into a country tends to end up benefiting everyone. Money leaving a country tends to disadvantage everyone. That is why a balance of trade surplus is so healthy for a country, and a deficit is so debilitating.