Transforming Debt into Wealth by Paying Off Debt and Investing
Transforming debt into wealth is not difficult, if we put your mind to it. The book at the left will help us a lot. I will show you how but you will have to cooperate. If you do, you could easily retire a millionaire. How good it will feel to know you own your own home and everything in it, instead of it owning you. For that is what it is, if you have to slave yourself just to pay for everything, then your home owns you.
So here's what we should do. This is the last part of becoming rich. Did you follow all the steps? Just look at the navigation bars. By now, we should have paid up the credit card, mortgage, and college debts. Also, we should have gone through debt and credit counseling, debt consolidation and management and now we're into investment. If you have not passed the above yet, be patient, go back and go over what you have missed.
Or I know some of you are getting hurt. It is not easy to remember everything we have to do. There is the job to go to that consumes eight hours every day. Then we have to look after the home and family. So all of us really need reminders from time to time. Not only that for there are four steps in the learning process to go through before we can follow instructions.
Unless we get a coach or a guru which is expensive. Besides, the concept of "who do we listen to" is very important. It has to be someone who has been there and gone through the stages and has gotten the results we are aiming for. And it has to be someone with a heart and not just out to get our money. And these days, it is difficult to know for sure because it seems like every Tom, Dick, and Harry can say he can help. So that leaves us the only other thing we can employ and that is through repetitions.
But you know what? Among all those so-called gurus, there is one I trust because he is real and will not do any foolishness just to make money. He is Jim Daniels and he will give you a free silver membership where he has a lot of things to guide you. How do I know he is the real deal? Because I went through him and was satisfied.
But just in case you don't want to do that, to do my good deed, I am going to offer a five-day mini course to remind you of some specific things that will help manage the debt. You can be reminded exactly what to do from day to day and year to year on things we sorely need so we do not forget some essentials.
As a bonus, after the five-day mini course, you will get alerts and tips just in case there are new things you need to know. The most you will get is once a week and you can always unsubscribe anytime. Those who are already subscribed to the alert and tips can unsubscribe so they will not receive it twice or delete one each time. There will be an unsubscribe button at the end of every mail you receive.
Before we start investing and transforming debt into wealth, let us review the basic law of investment. The possible return should vary precisely with the risk of loss and in reverse with the liquidity. That said, are we now ready to invest?
No, not yet, not until we consider the two basic recommendations to be certain that transforming debt into wealth will be a reality. What are these recommendations? Be reasonable about liquidity and about risk. These two basic recommendations will help guide us in our investment activities. Let's take them one at a time.
Being realistic about liquidity is something we have to decide once and for all in order to get transforming into wealth to be more than a dream. You see people are afraid to lose their cash so they want to hold on to it by depositing it into bank accounts that pay measly interest. Before you know it, you'll lose the inflation game.
Regarding risk, while it is true that putting the money in the bank is not a wise move, neither is putting it in risky propositions. That is no way to be transforming debt into wealth. You'll have to possess the nerve of steel, time and the energy to check on investments that are risky.
With those basic recommendations in mind, let us now study the investments that are waiting for us. Reviewing them will help us decide which ones fit our profile with regards to risk we are prepared to face. We will just be listing them down here and then on the next pages, we will review each one and make recommendation.
The first ones we have already covered: pay off loans and build emergency fund. Then save for a home and buy it before we start putting the money somewhere else. The next in line will have to be retirement savings, saving bonds, T-bills and term deposits.
The we can consider the next level of possible investments. The guaranteed investment certificates, bonds, preferred shares and mortgages are in line here. But remember, we are just mentioning them here; we will discuss each one later.
The common stocks, mutual funds and real estate are next in line. Gold and silver come after that. Then we have options and tax shelters. Last but not least, we are going to talk about commodities. With all of these, if we play our hands right, we will be transforming debt into wealth.
Transforming Debt Into Wealth
Transforming debt into wealth is possible only after the debt is paid so let's review how to pay off debt fast. First, write down the debts from the least to the most amount. Second, keep paying the minimum due on each one. Third, find extra cash from garage sales, from cutting the budget of things you can live without and perhaps even a part time job.
Fourth, use this extra cash to add to the payment of the least debt until it's fully paid. Fifth, proceed to pay off the next debt in line until all debts are paid off. After that, we can do some investing for you and the family. And one of them that I tried is the following:
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