Top 2 Questions I’m Often Asked…

Top 2 Questions I’m Often Asked…

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There are 2 things that most people ask me once they’ve found out my background as that is;

  1. How do I get out of debt…… and
  2. How can I get an investment property?

Okay so you’re in debt and yes you want to know how to get out of it as fast as possible.

Then you want to know how to start investing in property because having the ability to drive past and see your investment is what we Australians love to do.

We have a love of property.

1.  My answer to the first question is if it’s credit card debt then cut up the card.

This can seem a little extreme for some when they have come to rely on it, but if you can’t manage to pay or sweep of the balance owed at the end of each month then my solution to this is to look to a getting a visa debit card facility.

Essentially, they work the same but you are using your money not the banks and you won’t incur the hefty penalty rates for not paying the balance off every month.

This is a great a solution as you only spend what you have in your account.

Regardless whether it’s credit card debt or other personal debt – there is a system that you can follow that will see you paying your debts off in no time.

There’s a worksheet you can download that will help get you started to working out which debt to pay off first and you can access this worksheet HERE.

2.  So, in answer to the second question I get asked about buying an investment property.

I gently say to people that you shouldn’t be thinking about investing until you get your debt under control and start to have some disposable income available.

There are other ways in which a person can get into an investment property even if they have some debt and that’s if they have equity in their home.

For those that are not sure what I mean by equity it means that if your home is valued at $450,000 and you owe $400,000 on it then the $50,000 difference is known as equity.

You also need to take into account your credit rating, which is affected your ability on how you are paying any outstanding debts off.

Understanding how your credit rating affects your ability to borrow is something I will talk more about in another blog.

So, that’s it the top 2 questions I get asked.

If you love the information and financial education you are receiving from me, then share with friends and subscribe to my channel so you don’t miss when new financial tips become available.

Until next time…to your financial health.

and the team at Financial Management 101

 

 

Your home is not a piggy bank

Your home is not a piggy bank

Home & Equity

Living paycheck to paycheck

YOUR HOME IS NOT A PIGGY BANK!

People today are using their homes as piggy banks.  Taking the equity out and re-financing their ever increasing personal debt.

The sad part of this, is that unless these people get control of their debt – their debt will take control over them and never allow them to get ahead financially.

These people will forever be in financial stress and that really saddens me!

Poverty consciousness is very real.  Some of us were raised by the worst financial planners in the world – our parents.  I’m sorry if I offend some people, it’s not my intention and I am not finger pointing – it’s just not their fault.

Financial education is not taught to any magnitude at school.  What we are taught is the fundamentals on how to work for money and how to get a good job. We are not taught what to do with our first pay check once we receive this and how money can work to our advantage.

With every person that earns an income they should be paying themselves first!

What do I mean by this??  Well some of you may have learned this concept from a very old book “The Richest Man in Babylon”.  Or some of you may have heard it from wise Grandparents or Parents.  I was fortunate to learn this lesson in life from my parents.  When I earned my first dollar many years ago, I was “strongly encouraged” to put 1/3 of this into a savings account.

The book “The Richest Man in Babylon” talks about paying yourself, or putting away 10% of your salary and letting it grow until it can be used to buy investment opportunities.  Now that’s making money work for you!

You see it’s hard to help the poor if you are one of them.

MONEY IS UP THERE WITH OXYGEN!

They say, money doesn’t make the world go round, well I have to disagree with whoever said this.  Whether we like this statement or not, without money life is extremely challenging and not as much fun!

Understanding money, how to keep it and how to grow it is essential to our life, relationships, happiness and future.

Your hard earned money should work for you and not you working for it!

The wealthy and comfortably abundant people have figured this out.

Embark on the journey with us at Financial Management 101 and acquire a greater understanding of how money working to your advantage will be life changing in all areas of your health, wealth and wisdom.

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