The 7 Remedies for an Empty Pocket – #5

5th Remedy: Make a Profitable Investment of the Place Where You Sleep

 

If you set aside nine-tenths of your income by which to live and enjoy life, and if any part of this amount can be turned into a profitable investment without detriment to your wellbeing, then your wealth will grow even faster.

When you pay rent, you are paying your landlord’s mortgage or adding equity to his or her bank account. However, when you have a home mortgage, you increase your degree of ownership in your home with every payment.

Also, a home is a vehicle for forced savings. You have probably heard the argument for term life insurance over whole life: Buy term and invest the difference. The reality is that most people who buy term life insurance spend the difference. Having a mortgage payment due forces you to make payments. Over time, you will find that you have accumulated significant equity savings in your home.

Last but not least, home ownership gives you and your family a sense of stability and security. You will have a sense of permanence and a feeling of being part of a community when you own your home.

Leave us a reply and let us know what you think about this 5th remedy.

Leave a Reply

Your email address will not be published.