BECOMING A LENDER AND NOT A BORROWER: 3 RULES
Happy new week everyone-i just have some quick motivation for those that are working on and alining their financial situation for success . Check out my 3 rules to start this process i kept it at 3 because applying these rules usually recommend some time and learning curbs.
1- Change your mind set
Change your mindset to think like a saver vs a spender. Search your finance for areas where you are spending unnecessarily and work on cutting off those spending. Live within your means buy things that you can afford while still leaving money in your pocket. Buy things you need not necessarily things that you want if its a want save for it over time.
2-Build your Net worth
Your Net Worth is your assets minus your liabilities. Your goal is to owe less so try not to borrow if you already have debt focus on getting rid of them aim to have more money attached to your name than the money you owe. Focus on investing vs spending. Buy things that have value whereas you can sell it if needed and get money.
3-Borrow only to Invest
Your goal should be aimed at borrowing to invest whenever you think of borrowing. What comes to mind is borrowing to buy a vehicle you can sell that vehicle back and get money for it but it might not be enough payoff what you owe because over time the vehicle depreciates in value, so for that fact I believe in saving your money and buying a car cash. One of the ultimate borrowing to invest is borrowing to buy a house or a property as usually the property increases in value over time so you build equity, or maybe even refinancing your home to purchase a business as the business should increase in value over time building you equity and cash flow, regardless of what it is transition your mind to build your self to a point where you only think of borrowing to build your Net worth.