Six Strategies over the next Six Weeks!
Consider the time and money one spends in a lifetime to finance their lifestyle – houses, cars, boats, appliances, education and major life expenses. Now consider the ability to recapture and redirect this wealth which is normally lost to debt, interest and market cycles back into families and communities. By learning how to apply these strategies you can be completely debt free in five years and be less exposed and much safer in the event of a financial disaster.
Here are the six strategies we will cover for the next six Thursdays:
1. Put your income to work for you daily to limit interest accrual and optimize returns
2. Restructuring debt to increase cash flow and lower monthly payments
3. Safely use alternative financing mechanisms to eliminate debt years early
4. Borrow from yourself and level the playing field with the banks
5. Liquidity management
6. Create multiple income streams
If you are like me the last time you planned a long road trip or vacation you did your best to make sure the road you planned on taking was the quickest and safest way for your family to get where you wanted to go. Taking the wrong road could cost you time, money, and could end up getting you lost in the middle of nowhere or driving around in circles. Not something we want to do neither on vacation nor with our finances. Sadly, this is what most Americans have been doing for years as it pertains to trying to find the right strategy for getting out of debt and staying out of debt.
A successful strategy gets you to your destination the quickest and safest way possible. Until now conventional methods of financial management have been very costly to the consumer and fail to offer any real solutions to the debt crisis we are experiencing. Implementing these self banking strategies, individuals and families can create a safe, less costly and predictable financial plan wherein real wealth can be created, both for themselves and for future generations.
Strategy 1: Cash flow optimization
Optimizing cash flow deals with how to get your money working for you as efficiently as possible from the moment you earn it. Self banking strategy one uses each dollar you make in a specialized line of credit where it immediately impacts principal balance and reduces interest accrual by up to 80%. Redirecting your income out of idle accounts like checking and low interest savings accounts into either a personal or home equity line of credit is the first step to maximizing the potential of your income.
Conventional checking accounts and costly fixed rate loans are money traps that keep your money sitting idle daily earning you zero return or savings. A person who brings home $5,000 a month has the ability to use each one of those dollars daily to decrease the amount of interest owed on existing debt. That is $60,000 a year and $300,000 over five years. That is a lot of money and an incredible resource to put to work for you in the right system rather than just give it to the banks who kindly welcome that cash flow into their pockets each month.
Using this strategy you can eliminate $100,000 of debt in as little as three years costing you as little as $5,980 in interest. Compare that to a conventional loan where it could take you 30 years to pay off and cost you $115,000 in interest alone. As with a checking account you do not lose liquidity of your money even though you are using it to accelerate debt and reduce interest. Through analysis you may also find that current payroll deductions or assets in idle accounts can be redirected into the credit line to produce even more savings and faster debt reduction.
A detailed holistic analysis of your personal economic profile is a way to determine if this strategy is safe and how effective it could be for you. If you would like a free holistic analysis and strategy session please contact me at 727-502-7157 and visit my website at www.faithandyourfinances.com for more information.
Optimizing your cash flow is the first step to getting on a path that will help you accelerate towards your destination.
Stephen Vincelli is a Financial Strategist specializing in self banking strategies of financial management focusing on becoming debt free and living debt free. He has ten years experience in the financial services and mortgage industry. He and his wife Kristin consider what they do their ministry because of the lives they have seen changed by practicing these strategies. They seek to educate clients to become better stewards and help them build wealth for the the Kingdom.