Neighbor Wealth

It seems that the insanity just continues. President Obama signed another big check for another bail out. I must say that I did not necessarily agree with bailing out our financial sector, but I like his plan of stimulating the economy through jobs to rebuild our infrastructure.

The news is always on at work. Every time I walk through our operations area the CNN is blazing away at the latest sensationalism. We live in a small town in Colorado. Our economy has slowed down, but we just aren’t seeing the impact that the rest of the nation is seeing. My only real link with the recession is the news! My wife and I do not watch much TV at our house, especially the news. If I hear any mention of the recession on the radio, I change the channel. The fear created by the media is a major contributing factor to a mindset that is fostering our existing economic state! Let’s face it if everyone is afraid of the economy they are going to be conservative with their money and save rather than spend. Not that that is necessarily a bad thing! It just depends on how you look at it.

It just goes to show you that an economic recovery or economic correction is in the eye of the beholder. It is all perspective. If you have lost your job then you are in a recession. If you still have your job then not. It is all how you look at it.

Even if you have lost your job, this is a great opportunity to step back and regroup. Decide what you really want to do. Get excited about a new opportunity and go for it! At some point in time we will all look back and be completely clear on why all of this has happened.

Until then turn the news off! The media only fuels the collective mindset regarding the situation. Remember the media is in this to get you to watch. The more dramatic they can be the more viewers they have, which means they can charge more for a commercial spot.

Do not pay attention to the news or any fearful, doomsday talk you are hearing! Take a look at your existing situation. Stay focused on what is at hand and remain optimistic about the exciting things coming your way. Remember every thing that happens in your life is designed for your growth so that you can move on to bigger and better things! So TURN the news off and do something to keep yourself in a good state of mind!

Why do we have debt? Why do you use credit cards? Why are people losing their homes? Could an over accommodating financial system be the reason for real estate prices escalating to the point of imploding into self-destruction?

Are you to blame for your financial situation or are you a victim of financial overdose?

We need to seriously wake up! Of course the government is going to step in to fix the situation, but do we want them to? Hell no!! We are the American consumer! We have incredible power! Our decisions move the market place and make or break businesses it is that simple!

What would happen if people no longer used credit cards?

What would happen if everyone paid off their mortgage?

How much power would you have if you had no credit cards and no mortgage?

What would you do differently if you had no financial obligation at all?

What would you do if you could live your life in any manner that you wish?

I ask again why do we as a society use debt?

Debt is used in our society to acquire something immediately. You pay a bank or someone an extra amount of money so that you can enjoy what ever it is you bought immediately. The fee you pay is called interest. The result is amortization.

Amortization is cancer to the individual paying it and a windfall to whoever is receiving it. This is our system and you most likely participate in it because you are a member of our society.

I have nothing against a bank making money. This is America and I believe that anyone should be able to charge a fee for a service and receive money for their goods and services. If you as the consumer agreed to an interest rate or the price of a car then I believe that whoever is on the receiving end of that is entitled to it.

I also believe that you as the consumer have the right to pay that debt of early. I believe that it is in your best interest to pay that debt off as soon as you can. If you don’t believe me, pull out your mortgage contract and find the total that you will pay the bank at the end of your note.

Search on-line and play around with an amortization calculator. See how much money you save if you pay your house off 10 or 20 years early. For example, if you borrowed $300,000 for a mortgage at 6% you will pay $347,514.57 in interest over a 30 year loan! Let’s say you pay your house off in 10 years. You will pay $99,673.81 in interest over 10 years. The difference is about $247,840 in savings!

Let’s say that after you paid your house off (in 10 years instead of 30) you took your house payment of $3,330 and invested it with an annual return of 5% for the 20 years that you would have been making your house payment anyway. You would be investing 39,960 annually with a 5% return. If you continued to invest 39,960 a year and you reinvested all returns for a total of 20 years, you would have $1,387,381.30! That is much better then paying the bank that extra 247K isn’t it?

Welcome to my Blog! I believe that there is an answer to this situation and it is not a Financial Bail Out! We need to address this problem at the very heart of where it started, with your mindset! This is the purpose of this Blog and my web site. (Under Construction) Please join me as I explore methods to assist you in finding your way to prosperity through debt recovery, debt resolution, credit debt help, and wealth management.