FINANCIAL FREEDOM

Is your house a assit or a liability?

Most people have a dream of one day owning their own house.
The story normally goes something like this.Boy meats girl boy likes girl and then they move in with one another.They then realize that two can live as cheaply as one.But the house,apartment is small and cramped.They start to save money to buy their dream house and so that they can have kids,start a family.

They then start to focus on their careers and very soon their income starts to increase.They then decide to buy their dream,house,but a new house needs new furniture and new appliances.Then they buy a new car,it must be new,the Jonges has a new car.They then have more liability's,mortgage debt,consumer debt.The next thing that happens is that they have a kid.They work harder to pay the bills,but more money means more expenses.They get a credit card in the mail They use it ,it's maxed out.

Then one day the phone rings it is a loan company telling them that their greatest assit"their house"has appreciated in value.They offer them a "bill consolidation"loan,because their credit is so good.They also inform them that the intelligent thing to do is to clear off the high interest consumer debt by paying off their credit card.

They decide do it and pay off those high-interest credit cards.They breath a sight of relief.Their credit cards are paid off as is their consumer debt.These are now folded into their home mortgage.There debt has gone down,because their debt has been extended over 30 years.The fact that the items will cost them four times the original price does not seem to matter.The loan company has told them it is the smart thing to do.

Then their friends call and ask if they want to go to the mall,their are a lot of specials.They decide to go,but say to themselves they will just have a look,but they take their clean credit card with them just in case.Then the whole story starts again.

Most people think that their own house is a assit,but a assit is anything that puts money into your pocket.a House cost you money every month in the form of maintenance expenses,property tax and mortgage payments.So your house is not a assit.

Most people will not agree with this,because owning their own home is their dream and their biggest investment.

Here are some food for thought.
1]You will always have to pay property tax even when your house is paid off.
2]You work all your live for a house you will never own.Most people buy a new house every few years,every time starting a new 30 year loan.
3]Houses do not always go up in value.
4]The biggest loss of all is that of missed opportunities.When all your money is tied up in your house and a opportunity comes knocking.One where you can buy a assit that can generate an income.You cannot take advantage of it.That is the biggest loss of all.

In closing.
Yes everybody wants a house of their own,but to buy a house that is to expensive and prevent you from starting a investment portfolio,will influence you in at least the following ways.
1]Loss of education,because you do not have money to invest.You never learn how to invest and this can be the difference between being poor and being rich.
2]Lose of time.Time during which other assits could have grown in value.
3]Loss of additional capital.That could have been used to buy more assits,assits that could put more money into your pocket.

Yes buy a house ,but remember what is a assit and what is a liability and assits will make you rich.

DO YOU WANT TO HAVE A LIVE OF ABUNDANCE.THEN READ THIS.

Next on riches to you:Focusing on your assits will make you financial free.