Smart money is a term used in many financial circles. Depending on your age range; baby boomer, Gen Y and YES Gen Z, the understanding the power of a mortgage will have many different meanings. The one notion that seems to prevail amongst all age brackets is, they don’t want a mortgage! This is where being “smart money savvy” comes into play.
Life beyond a mortgage simply means your financial goals. Outside of being self-employed, there may be no bigger decision an individual or couple will make. Not to simply have a mortgage, it is how your mortgage will help you achieve your financial goals.
Large Sum of Money
For many American homeowners, they now have the ability to tap into a large sum of money. Money that isn’t tied up in a retirement account, 401k, or long term investment. Money that is appreciating and giving you the ability to tap into upon command! Where else would you have access to this type of money?
Many Americans today have seen market appreciation unlike any other time over the course of the last 3+ years. What does this mean?
- The ability to be debt-free. Trading in 19% money for 2.5% money.
- Pay off high payment student loans. Trading in $400, $600, $800 payments into monthly cash flow.
- Fully fund your retirement. Contrary to popular belief, getting free money by fully funding your 401k is not a bad thing! Retirement happens faster than you think Gen Y, and you never get back the days you lose by not having money in the market.
- Starting a business? Some experts say you never take a loan when you start a business. We agree — If you are paying 10% or more interest to start that business. How is 2.5% or 3.5% tax deductible interest? That is a smart money move.
These are four of literally hundreds of financial objectives a person or family should consider. Yet, only a few things in today’s money will let you get there, outside of your mortgage. Your life beyond a mortgage starts by having a financial plan. Understanding your debt. Understanding the cost of money. Understanding what 5, 10, 20 years from now may look like.
Let’s talk. Not about a mortgage — anyone can do that. Let’s talk about your goals. Let’s talk about your life beyond a mortgage.