The most fundamental building block in any financial plan is to reduce debt. On some level, we all intuitively know that interest paid out to debt takes a chunk; but I don't think we realize just how much it is. This linked page will show the difference between doubling any dollar with, and without a portion of interest being taken off. Although the example is for tax, it really is the same thing for debt: whether that decrease is taxes or interest paid out, makes no difference.
After you've seen that, you'll understand just how important debt reduction is, if you are to grow your wealth. At Chinnici Capital, we have a program that is a very effective and painless way to reduce debt -- usually with no change in your budget or lifestyle. Whether the smallest of home budgets, or the largest of corporate debt structures, this is very well worth considering: If you have debt of any sort; credit card, loans, or mortgage, we highly encourage you to take advantage of this.
The vehicle that we recommend is the United First Financial Money Merge Account®. You'll see from that link, an extensive explanation. But we'll hit the highlights here: This is an incredibly creative program, used for over a decade, and the numbers work: I have one friend who had freshly refinanced his home for thirty years. His situation (as most are) didn't have an additional dime in the budget to reduce the term of debt. But his term was reduced from that thirty years, to 14.5 years -- on his precisely same budget.
How does it happen? I'll explain here in summary, although you may want to go to the DonHatesDebt.com website for the full details. In short, we all have idle, or underutilized cash. For the most part, it sits in accounts waiting for a contingency: bills coming due, equipment needing repairs, etc. In fact, the larger the contingency that may be necessary, the more that sits idle. And this is wise: to prepare for the unexpected. But, if there were a way to cause every penny of that amount to be interest bearing (at your highest paid-out interest rate) while you wait, can you see this being beneficial? On the face of it, you may think that these little amounts don't add up. But they do.
The solution is to reposition a portion of those idle funds by using a special type of loan instrument, whether new or existing, as a checking account. When your paycheck gets deposited, it reduces the amount of interest paid on that loan for those dollars, for that day. The "buffer" is still there: If a need arises, the loan can be tapped. Meanwhile, until it's needed, it's reducing your highest loan's interest by that amount for those numbers of days.
It's complex, which is why UFirst has a program for it that will track and advise you on how to accomplish this. Is it necessary to purchase this program? No. You can simply open and use the appropriate accounts. If you want to do this on your own, contact me and I'll tell you how to do this. However, for most people, the program will be beneficial. (Even for the diligent, it will mathematically reduce the debt quicker than if you do it manually.) But either way, contact me, and I'll help you to set this up.
Because either way, the most important strategy to strengthen your finances is to eliminate debt. We can help.
If you're ready to go to the site for more detail, click here to go to http://donhatesdebt.com now.