It’s really amazing to hear all the financial pundits on the news. If you believe everything they say we are all victims !. It’s not our fault we are in debt and it’s the government’s responsibility to get us out of debt.
This is a dangerous lie. The government does not produce anything. It spends! Any time it uses money, in any form, it is coming from taxes or printing extra money which creates inflation. Government intervention is not the answer.
As the government gets more involved it leads to socialism and then: total government control. Our present economic system is based on spending and not saving. Americans today are saving practically nothing. We are in debt to our eyeballs.
Ever hear the saying: good debt and bad debt. Baloney! All debt has a risk to it and all debt has to be repaid-with interest. The word mortgage comes from two French words: Death and grip. In other words, a mortgage is a death grip!
Debt will keep you in bondage and will keep you poor your entire life and it does not matter how much money you can be making. Multi millionaires might be paying $20,000 and up per month on a mortgage. Give me a break!
Life is not about outdoing the Jones’s. It’s about living a quality of life that eliminates undue stress in our lives. Believe me once you are debt free you’ll feel like you’ve lost 100 lbs off of your shoulders.
Myth # 1: You house is an asset. Wrong! An asset is something that produces income. How much income is your house producing? You are paying a mortgage, taxes, insurance, utilities, etc.
In other words, money is going out and not coming in. Hey, what about appreciation and making a killing on selling your home? First of all you have to live somewhere. Where will you go? Second of all, as your house appreciates-your taxes are going up. I would guess that in today’s market your house has lost value.
Keep tuned in!
Jacques
CreatingWealthThatLasts
3 comments:
I believe this post is not far from the truth. In my financial planning practice I never consider the personal residence an investment asset. It is a Use Asset. Rarely is equity taken from the sale of the house until the heirs get it. Couples may downsize, but they use all of the equity to buy a new residence debt free. Looking forward to the next installment.
Hi Jacques .. thanks for putting "money myths" so succinctly .. & I hope you'll have many readers.
Being debt free must be wonderful & as you say lift loads and loads of stress and anxiety off one's shoulders.
Dave; I appreciate your comments,as you are a professional in your field and you have unique insights in finances.
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