Getting a good financial education does not mean you need to go to a business school. Sometimes the best way to learn a skill is to find a mentor that you trust or pattern yourself after other successful people. By doing this you avoid a lot of the mistakes that you might normally make, and shortcut yourself to success much quicker. For instance, assume you have just bought your first house on a 30 year fixed rate mortgage. Although most people on average move every 5 years, you have decided you are going to live within your means and keep this house for the long haul. But 30 years seems like a long time to be paying for it. What can you do? Did you know that if you will make ONE extra payment a year, you can drop the time you will be paying that loan back to something more like 21 years? This is so simple, it is amazing more people don’t do it, but it is usually because they just didn’t have someone to tell them about this little technique. Imagine again you are getting started in your adult life and you want to be a good saver and not risk too much of your savings at the same time. What is the best course of action? In this case if you were to talk to a smart financial planner, he might teach you how to use a whole life insurance policy to accumulate savings in the form of the policy’s cash value. At the same time you would learn that you could also use those funds to make loans to yourself for cars, vacations, etc. The great thing is that because you started early this investment will grow quickly and earn you a very healthy return because you would determine what the interest was going to be on loans made to yourself. The insurance company would help out by protecting your money from any creditors and giving you tax savings by paying you your earning through tax favorable dividends. So, if you want to get a real life financial education make sure you pattern successful people and find good mentors. It will pay off over the long term. |
