January 2021 Living Debt Free and Wealthy Newsletter

Protecting Your Home For Your Family
We all want to live the Great American Dream. We want the opportunity for prosperity and success, and an upward social mobility for our family and children, achieved through hard work in a society with few barriers. And, a big part of that dream has been to own a home free and clear, with no mortgage. Having a roof over our head is one of our most basic needs. Plus, it gives us safety, security, and pride. It would be a nightmare to lose it. So, how do we safeguard our home for our family?

Most people believe the best way is to use a 15-year mortgage to pay off the home as soon as possible. Others say to put extra payments towards a 30-year mortgage. The problem with both of these plans is that until you actually pay off the mortgage, they don't protect your family against the loss of the home.

What happens if you become critically ill, suffer an accident, become disabled, or lose your job? Where will you get the money to make your mortgage payments?

Consider, if you have been putting all of your money into paying off your home early, then isn’t all your savings tied up in the equity of the home? If you don't have an income are the banks going to give you a loan to take equity out of your house? Of course not! And the worst part is that it doesn’t matter if you owe $2,000 or $200,000 on your home, if you can't make your monthly mortgage payments, they are going to foreclose, and take your home. If that happens, then all of those extra payments were for naught. Nobody wants that! 

 ...Continued on top of page 2
9 Lessons From 'The Richest Man in Babylon' Pt 2

In part 1, we discussed the importance of paying yourself first, living below your means, making your money work for you, and seeking advice from experts. Here are the last 5 financial lessons from "The Richest Man in Babylon."

5. Protect your biggest asset

Your ability to earn an income is the biggest asset for your family. You should consider buying life insurance and disability insurance now in case something happens. This is a proactive approach and one we should take and not forget. The idea is to protect your family from the loss of your income now and in the future.

6. Your home is your biggest expense.

Your home is your biggest EXPENSE and you must reduce that expense as much as possible. Many people buy the biggest home they can afford. Instead you should buy a home that is comfortably affordable, in a location that you like, with enough space for you and your family. I know that many people think of their homes as an investment, but the truth is, it is not. It is an expense and a very high expense at that and one we must manage carefully.

...Continued on bottom of page 2

Free Report- Learn How to PAYOFF Your Debts and Truly Live Debt Free!

"If it is important to you, you will find a way. If not, you'll find an excuse."

-Unknown



Interesting Facts:

-Tea is said to have been discovered in 2737 BC by a Chinese emperor when some tea leaves accidentally blew into a pot of boiling water.

-Depending on how you define "match," the cigarette lighter was invented before it.

-The wick of a trick candle has small amounts of magnesium in them. When someone tries to blow out the flame, the magnesium inside the wick continues to burn and, in just a split second (or two or three), relights the wick

-"Rhythms" is the longest English word without a vowel.

AULD LANG SYNE

You may not recognize the name, but nearly every American knows the song, or at least the tune of Auld Lang Syne.

"Should auld [old] acquaintance be forgot, and never brought to mind? Should auld [old] acquaintance be forgot, and old lang syne? ..."

However, there is more to the song than just the one verse and chorus. The song originates from a Scots poem written by Robert Burns in 1788. It is important to note, that Robert collected the poem and wrote it down, he did not fully compose it, although it is believed he composed the latter half.

Auld Lang Syne, translates to "old, long, since," or more idiomatically "old times." The song is sung as a tribute to "old times."

Source: https://en.wikipedia.org/wiki/Auld_L ang_Syne  
Protecting Your Home For Your Family
Let me ask you, if you could have a tax write-off, how long do you want it? As long as possible! And, how big a tax write-off do you want? As big as you can get! What is one of your last big tax write-offs? Isn’t it the interest on your mortgage? Does it make sense to not take advantage of this big tax write-off?

What if you could put money in a separate account that would grow so you can pay off your home faster, while maintaining the tax write-off as long as possible? On top of that, what if your money would grow tax free, and had no government restrictions on how much you can contribute to it, or penalties for withdrawals. What if that money could be used for other financial priorities like replacing lost income, funding your retirement, or funding your child's education? Finally, what if it was a self-completing plan that would protect your family against death and disability? Would that be a dream come true?

Call me today, and I would be happy to go over a plan that fits your unique needs, to protect your family's dreams and future.
9 Lessons From 'The Richest Man in Babylon' Pt 2

7. Have a retirement plan

You are going to be retired for 20, 30 or more years. Do you want to have enough money you need to live comfortably on in retirement? The younger you can start putting money away for your retirement, the more you can take advantage of the magic of 'compound interest'. “Remember that money is of a prolific generating nature. Money can beget money, and its offspring can beget more.” Benjamin Franklin

8. Invest in yourself

The best way we can increase our earnings is by investing in ourselves. We can do that by continually learning and striving to develop ourselves. When we become smarter and wiser, our ability to earn more also increases. “Those eager to grasp opportunities for their betterment, do attract the interest of the goddess of fortune. She is ever anxious to help those who please her. And who is she pleased with? She is pleased with those who do – rather than those who merely talk and engage in wishful thinking. Action will lead you forth to the successes you desire.”

9. Track your wealth

You need to face the whole truth of your current situation. The difference between wealthy people and those who are not, is wealthy people know their net worth, while the poor do not pay attention, nor care at all about tracking their assets and liabilities.

“You cannot manage what you do not measure.” Bill Hewlett (co-founder of Hewlett Packard)

For help with any of your financial needs, or for more information about how to apply this to your life, please call my office today!