This month, with the end of the year rapidly approaching, I wanted to take a step back and think about goals.
About things like more money in YOUR pocket. Everybody wants that, right?
Yes, yes, yes!
Now, our newsletter always has ideas, but we’ve heard from readers, friends, and clients a host of other ways. For that reason, we’ve decided to include a few in this week’s email.
- Check out a HELOC – For a lot of homeowners, the idea of a HELOC – a Home Equity Line of Credit – took a big hit when the real estate boom busted years ago and today, with higher interest rates, it really has to be managed effectively, but a HELOC isn’t a bad thing. What you’ll have to have is the discipline to not waste the money you’re freeing up. Need to put a new transmission in your car? Take it from the HELOC. Need a new stereo for that same car? Pay for it in cash! A HELOC cannot be used to buy consumer goods; you need to consider it as a valuable tool for easing you and your family over rough spots OR for buying assets. Imagine investing $10,000 from the equity in your home to buy and “flip” a home you then sold for $25,000? See the difference?
- Take the free money from your company – If you have a 401(k) at work, then you have a certain threshold of money that your employer will match. Sometimes it’s dollar for dollar, up to a point, sometimes it’s some fraction of that number. Take all you can! If they’ll go up to 6%, then use up to that point, then take your investments elsewhere. It could be a whole life insurance policy that you’ve overfunded, an IRA, or even simply buying stocks, but make sure that your money is working and never sitting idly.
- Speaking of insurance, take time to sit down with your life insurance company’s representative and determine if you can use that money more wisely, too. Many times, you can convert a term policy to whole or universal life and when you do, there is a cash advantage to that. At a certain point, that policy will act as a savings account, allowing you to borrow from it and pay back as you need.
No matter what you do, as a grown up, you have to manage money – it won’t manage itself and if you let it, it will flutter away like a lonely sparrow.
You guessed it, we can help with that, but you have to ask us! Come by or schedule a time to meet with us and let’s see if there are some new ways we can put more money in your pocket!