What I wish I’d learnt at school
1. WHERE TO GO FOR ADVICE:
Most people go to a bank for advice on the right bank accounts and loans to have. A bit of a laugh really, when you consider their profit margins. It’s like asking the mouse where to put the cheese! I wish I had been taught to ask someone who has money the best way of handling it.
2. CREDIT CARDS ARE JUST LIKE GUNS:
A loaded gun in a playground is dangerous, but treated correctly it isn’t. Credit cards are the same. Most of us just use them to help the banks, but you can turn the tables and use the banks’ money for free and use your money to reduce your interest. This secret could have saved me thousands!
3. THE MORE ORGANISED YOU ARE THE MORE MONEY YOU HAVE:
It is a fact that if you get organised with your money, you have more of it. Bills get paid on time, you don’t waste precious money on fines, fees, overdue payments and you make your money work for you instead of against you. A cash management program accelerates your debt reduction and wealth creation.
4. YOU CAN MAKE COMPOUND INTEREST WORK FOR YOU OR AGAINST YOU:
Saving to buy something instead of borrowing can halve the price you pay for most items. This sounds boring to us in this ‘have it now’ world, however, compound interest working for you instead of for the loan company saves you thousands. I wish someone had told me that ‘interest free’ isn’t free at all. The interest has been tacked onto the price – ask for the ‘cash’ price and see.
5. DEBT CONSOLIDATION CAN BE YOUR BEST FRIEND OR YOUR WORST ENEMY:
Consolidating credit card and consumer debt onto your home loan can reduce your repayments each month and lower the amount of interest you pay. I wish I had been told to use this extra money to then reduce the home loan much faster, not fall into the same trap again and again – burning up precious equity that could have been used for investing.
6. THE POWER OF SEPARATING YOUR LIFE FROM YOUR INVESTMENTS:
One and a half million people in Australia invest in property, only 0.5 per cent get to five properties or more. Why? They don’t keep their personal and investment money separate. I wish I had learned the key to successful investing and stress-free living was to keep these sides quite separate from each other.
7. NOT TO ASSUME A HOME LOAN IS A LONG-TERM DEBT:
I wish I had been taught that a home loan doesn’t have to be a stone around my neck for 25 years, or best case, if I paid weekly or fortnightly, 17 years. What most people don’t know is that handled correctly a mortgage should be paid off in five to seven years just by doing your banking differently.
How amazing life would have been had I known these very simple truths. The great news is I have started now and it really does not matter where you start as long as you take action and get started!mes. Is it easy? … No way!! Is it worth it? … most definitely!! Just check out our Wealth Retreat posts on Facebook to see for yourself.
Lynn Levitt – Think Money Wealth Coach and Goal Mapping Expert.