wealth building

JuegosThere are many reasons why you might want to make money quick. Sometimes too many bills or big events such as Christmas leave you with more outgoings than incomings. Or maybe you just would love to have a little extra money to treat yourself. So here are a few ideas for making money fast.

TrabajarTransforming your debt into wealth involves linear math and a critical path system, not a magic wand. Despite the obvious benefits of paying off your mortgage sooner, many homeowners still ask, “Why should I pay off my seven or eight percent mortgage when I can get a better return by investing in the stock market? I can probably get ten to fifteen percent or better there.” This is one example of the conventional financial wisdom that so-called experts have taught us, and it’s complete rubbish!

Here are 3 Reasons Why the “Better Return in the Stock Market” Idea is a Myth:

Reason #1: Comparing mortgage interest rates to stock market investments is an apple to bananas comparison.

Trabajo Empleo Most investments in the market are simply “paper returns.” If the market plunges, then you lose that investment. When you pay off your home mortgage, however, you’re getting a guaranteed return on that 7 or 8% interest rate. The closest comparison in the market would be thirty-year Treasury Bonds, which currently pay less than seven percent, and have no guarantee. Our faith in the U.S. government makes the investment feel like a sound one, but feelings should never guide our financial decisions. When you compare return rates on investments, you must compare guaranteed rates with other guaranteed rates, apples with apples. Non-guaranteed rates are bananas, not apples.

Reason #2: Homeowners who have a 7-8% interest rate on their mortgage have either bought or refinanced a home recently.

If they would take a look at their mortgage payment coupons, then they would see that what they’re paying right now is nowhere near 7 or 8%; it’s really about 85-93%! They disagree, saying, “Yeah, but that’s right now, but over the next thirty years, it will only be 7 or 8 %.”

Well, according to the National Association of Realtors, the average American family moves every 7.1 years. During my seminars I ask the question, “How many people have moved in the last seven years?” Invariably, the majority of the people in the room raise their hands.

Many women never think of this, but if you like taking surveys and giving your opinion there are ways to go about doing that now and making a bit of money for what you do. Some of them don’t give money but give gifts instead that you get to choose. This is one way you can save money as well.

What we’ve found is that the average American can become completely debt-free by paying off his or her mortgage in 7.7 years and saving over $105,000 in interest. $105,000 interest saved is $105,000 earned. That translates into a 31.32% guaranteed return for those 7.7 years. No other investment on the market even comes close to that, yet most people never consider debt-elimination as a legitimate investment. The solution for transforming your debt into wealth is right under your nose.

Reason #3: Paying off your home mortgage is not only a guaranteed return, but it is also a guaranteed tax-free return!

Paying off an eight percent mortgage is the same as getting a guaranteed, tax-free eight percent return. If you invest outside of a sheltered plan, you are subject to income and capital gains taxes, which can significantly lower your return. If you’re in the 28% tax bracket that 8% guaranteed, tax-free return equals a taxable return of 11.11%.

The idea that you get a better return in the stock market is a myth. Paying off your debts in general, and your home mortgage in particular, is the best possible means for transforming your debt into wealth you can be published without charge. You can to republish this article in your website or blog. Please provide links Active.

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