Three Reasons Why You Should Never Go With Equity

Why is it that when you borrow money from your bank you feel some sort of guilt when you look at your wallet or your ATM card? Why is this feeling not the same when you just signed a contract with your bank stating the equity you are giving them for your home in exchange of financing? These two should invoke similar emotion because they both cost you in the same manner. However, equity pushes the border a bit more, surprisingly.

1.    Debt is Less Expensive

When you take on debt, you are fighting against interest rates and payment deadlines. When you couldn’t pay, the banks would shun you or give you high interest deals unless you clear your name in the register and improve your credit rating. If you take on equity instead, you’re giving up part of your property forever. With debt, the banks have nothing on you.

2.    Paying Interest Lowers Tax Burden

Most Britons take a loan or mortgage instead of securing their loans with their vehicles because it helps lower their tax burden. This is why most homebuyers re-mortgage their home every five years. When you pay more to interest rates, these amounts are tax-deductible.

3.    Improve Discipline

It’s a different matter when you’re spending money with a credit card. Shop now, pay later, most would say. But when you spend actual money coming from your bank, which you have to pay regularly, you develop the discipline necessary to handle even a credit card properly

The Different Ways The Three Classes of Society Think About Money

Being rich is having time and money to enjoy life. It’s not about owning a yacht, a multi-million pound property or being able to buy everything you want. A person who sets a goal that would make them content with life is a person who is already rich. However, for the three different classes of society, the way money is thought about works differently.

1.    Low-Income Class

For the low-income class, it is about spending money on things that yield no profits. These may be consumer electronics, luxury vacations and new appliances. These only provide benefit for a short time and have no long-term possibilities. As a result, these bad investments only drag them down to living from one paycheck to the other.

2.    Middle-Income Class

The middle-income class also falls victim to spending on things that yield no investment value. These are more luxurious vacations, spending on a new vehicle, and more expensive appliances. Unlike the lower-income class, the middle-income class have the financial capability to invest, but seldom do so.

3.    High-Income Class

The high-income class in each country spends, but thinks of their returns first. They prioritise purchases according to the returns and profits they could get. As they think of it in such a way, they create passive incomes. Their money for spending for themselves increases with every purchase. Basically, it is just them purchasing items that would deliver returns.

Avoid Easy Investment Return Offers Like Instant Diet Pills

I have heard so many stories from my neighbours and friends regarding people offering to help you increase your investment by telling you they have a new method of riding the financial “trends.” Truthfully, these financial trends do exist, but the trouble is that most of these guys just want you to pay them up front and they can scam your money away from you.

Ponzi schemes begin by motivating you to invest time and effort and avoid procrastinating to get the lifestyle and earnings you deserve. Many fall prey to the sweet-talking dealer without considering that most pyramid schemes have you offer an initial amount that would give you some returns, but never really the full payment that was promised to you.

People offer these easy get-rich-quick schemes because many people in the world dream about their life when they get rich, but there are no avenues to ensure that their investment will get them somewhere.

For one, getting rich does not involve talking to a person offering an impossible solution. Second, check with a financial adviser regarding the probability of such a result being possible in the plan the salesperson had offered you.

I’ve heard one such story from a Multi-Level Marketing friend of mine. She said that the marketing managers focused on getting recruits instead of focusing on the product’s capabilities and advantages for the consumer. In the end, with just a few people left to sell to, the company just disappeared with all their income.

This is what a pyramid scam is. This is how one should be aware that get-rich-quick schemes are nothing opposed to proper financial education, saving and understanding how interest rates and even loans can help you get rich.