A friend of mine had a phrase
that he said to me early in my years that stuck with me for decades:
"Whether you are rich or poor, it's nice to have money". I have to
say my friend had it right. Wealth certainly is a main ingredient of a
life well spent, but how do you get wealth? Less than one percent of the
world can earn their way to wealth; the rest of the population must do the
following. In order to create wealth you must spend less than you earn,
then invest the difference. There are actually 3 ways to increase your
wealth; first, you can increase your income, secondly reduce your expenses or
third increase the rate of return on your investments.
Investing to some people can be scary. The stock market’s ups and downs can be overwhelming and investing in Real Estate for rental purposes is out of your comfort zone, as well. The challenge is in order to become wealthy you must invest. Fortunately, you already have an underutilized investment vehicle, your home.
Today I am going to talk about the third option, increasing your rate of return. One of the substantial investments available to all of us is an investment in your own home.
I know that your home is your castle, and it is sacrosanct. Nevertheless it is still an excellent vehicle to invest in as you will have the ability to watch it, nurture it and make sure that it stays in the best of shape. Best of all you will not have to expend any additional energy, unlike the stock market or rental properties as it is your home.
The hidden secret that most people don’t realize about their home is there is a guaranteed rate of return when you pay it off. So for those of you who need to start investing to generate wealth and are not prepared to invest in more real estate or the stock market, you can invest in your own home. Investing in your home has a guaranteed rate of return and almost zero risk.
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.