| |
Take Waste Out Of Your Spending
By Drew Miles
Buyer Beware:
The ability to save money has nothing to do with income. Take waste out of your spending and you'll drive the haste out of your life. Continue to learn "the rules," as they're always changing.
Learn the rules
We're not taught "the rules" in school—high school, college, law school. So we go through life in the dark, not understanding why it's so hard to get ahead. Hard work and perseverance unfortunately aren't enough—you have to know the rules to become financially free.
CAR
The first time I bought a new car, I'd just gotten out of law school. When I asked how much the car was, the salesperson asked how much I could pay each month, instead of telling me how much the car was. He never told me how much the car was, but I still bought it. This is not a smart way to buy a car. A few of unexpected life events and suddenly I was struggling to make the car payments. I bought it under their rules, not mine.
MORTGAGE
Prepayment penalty—Many mortgage companies want to entice you to keep the mortgage in place for the life of the loan. For many people, very little money goes toward paying down the principle the first seven years of a loan. Some mortgage notes have prepayment penalties so that if you pay the mortgage off earlier, you get penalized. Know what is on your note. You need to make informed decisions instead of being whisked along by a strong breeze—direct your own choices.
Adjustable rate mortgages—These adjust no more than X%/per year and X% over the life of the loan, with a lifetime cap. Be prepared to pay the maximum adjustable amount, incase rates increase. When the stock market crashed in 1987, my mortgage increased $1,000/month, an amount I couldn't afford and had no backup plan for paying.
The mortgage broker is trained to help you get in the home you want, as is the real estate agent. If you say your maximum is $300,000 for a home, the agent will show you homes at $350,000. Then when you insist on only seeing homes in your price range, suddenly you really want a more expensive home and are likely to buy something more expensive. Remember, money is emotional. Stick to what you can afford and master money's power over you.
About the Author
During my years of law school, I completed an internship with a New York Supreme Court Justice and second legal internship with a law firm and also began investing in real estate. Immediately upon graduating law school and passing the bar exam, I opened my own law practice. From 1988 to 2001, I practiced with my partner under the name Miles and Gillard, where I concentrated in the area of real estate and business law.
Drew Miles
Find Out More:
http://www.irabusinesssystem.com/
Article Source: http://www.simplysearch4it.com/article/24650.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/24650.html" as shown above and make it hyperlinked. |
| Some other articles by Drew Miles | Smart Yearend Planning-Corporate Formalities
There are three main areas we need to keep in mind as the year ends:
1. Taxes
2. Corporate formalities
3. Planning ...
Entity Structuring
Entity structuring is the use of limited partnerships, limited liabilities, and corporations. These can help you accomplish three things:
1. Bullet-proofing your assets so that the bad guys are worse of if they ...
Smart Yearend Planning - Tax Deductions
There are three main areas we need to keep in mind as the year ends:
1. Taxes
2. Corporate formalities
3. Planning for next year
Revisit the idea of converting your 10 largest ...
The Two Biggest Thieves In Regards To Wealth Building
The two biggest wealth thieves a person will encounter are tax deductions and lawsuits. Taxes work against you by chipping away at your wealth. These include federal ...
Repairing Your Credit Report
Fixing your credit report and repairing your credit are two distinct processes and problems. If your credit is bad, you can implement some of the strategies below to fix a low score.
Negotiate ...
A Love/Hate Relationship: How your credit score can open and slam doors for you
There are many ways to get ahead financially: attend seminars where you cut up your credit cards with hundreds of other people, participate in debt consolidation services that help you take out a ...
|
|
| |
|
