Financial freedom and wealth creation that lasts a lifetime
It is one thing to create wealth and quite another to maintain it. Here are some tips that can help you build a nest egg that will continue to accumulate and appreciate in value throughout your life. Be sure to establish a good credit rating. Establish good credit while you’re young and make sure you understand that credit is a means of building a good “creditworthy” reputation. It’s a means to an end, not a way to top up your bank balance!
Pay your credit cards and bills in full each month before the due date. The moment you pay a credit card bill or any other type of bill late, it causes a ripple effect with your other payments. Other credit cards immediately increase the APR on your credit card for not paying your “other” bills on time as agreed.
Pay what you can, whenever you can up front and in full. This doesn’t mean you avoid using your credit entirely, but the more you use cash, the less interest you’ll be charged on your purchases over your lifetime.
Pay your taxes on time. One of the most miserable, life-defining, terrible mistakes a person can make is paying their taxes late. Not only does this flag you in the eyes of the bureaucracy for a costly and time-consuming tax audit, but the penalties and compound interest charged for paying late has created many poor people.
Own your own home, don’t rent it! This is one of those secrets found in every wealth building advice book out there. Obviously, if you own, you are gaining equity and value rather than paying for someone else’s property.
Don’t take equity out of your home to pay the bills! There are many scams out there that will advise you to get the equity out of your home so you can pay your credit card bills. This puts your home at risk if you can’t make a payment. Even if you have lost your job or are sick, try to keep it as an asset.
Look for deals when buying real estate. Take advantage of people who are really motivated and need to sell their house for pennies on the dollar and then fix it up or resell it for a profit. Never take money out of your retirement plan to pay bills! Money withdrawn from your retirement funds is not only taxable, but you may have to pay interest on it. This can cost you a lot of money in the long run.
Make saving money a priority, not the last thing on your wealth-building list. Saving money has nothing to do with your income level, bad luck, or investment decisions. Even people with low-paying jobs can become very rich if they save money and invest their savings wisely. Financial experts call this “pay yourself first!”
For more tips on building wealth, and in particular on investing in real estate to make money, visit http://www.reiconferences.com