Equity, what is it and where can I get it from and how will I know when I have it?
Equity is that wonderful pot of money that grows without you even having to worry about it. It is that buffer zone that sits between what your home or investment property is worth and what you owe the bank.
Learning to create equity is something that would benefit our children if they were taught this at school. Being taught how to save money has it benefits but why would I put money into a savings account, where the bank makes more money from me, when I could be paying down my mortgages and reducing my debt to create equity? Equity that I can use to create more wealth for myself.
Equity is king! With equity and a great strategy you can buy more property and sit back and watch them create wealth for you. The magic of equity is that it is money that created itself. You didn't have to work for it or save it.
Unused equity is like money in a mattress - it can't help create wealth. By using equity to buy an investment property, which in turn will create more equity. (Money) is momentum wealth creation - a snow balling effect that creates wealth. This is a secret known to the wealthy. You would have heard the saying 'The Rich Get Richer' - this is why! The knowledge of how to create wealth without cost and the best way to handle your money and debts.
Our wealth creations strategies at Think Money focus on your banking and how you allocate your money correctly. How you use your credit card and most importantly how to reduce debt. Understanding the difference between productive debt and consumer debt are the fundamental differences that most successful and wealthy people know about.
Do you know how to create Equity? Do you know if you have any? Might be worth having a chat with Chris about your finances to make sure your money is working for you and not the bank.
Lynn Levitt - Think Money Wealth Coach and Goal Mapping Expert.