“It seems as though the harder I work the more I have to work to get ahead. At the same time I watch other friends and colleagues seem to be able to take vacations, retire early or enjoy life while I toil. How do they do that?”
There is no way to compare one person’s life to another, but there are some certainties. Most people who toil their way through life, borrowing and taking out loans to pay for things like education, vehicles and homes, will always have to work long hours and struggle to make ends meet. Banks and lenders count on consumers who will pay them interest compounded over time. In order to fund an education for example, the Federal Government contracts with lenders who will charge students and their parents at rates of up to 6.25% Annual Percentage Rate in interest over the course of 15 to 20 years to pay for a degree. Add the interest to the cost of the original loan, say $45,000 and by the time you’ve finished paying off the debt you have probably paid for another one and a half degrees.
Especially these days when a college education costs upwards of $400.00 per undergraduate credit hour at public universities, it may seem impossible to think of a degree without student loans, but why not? It takes planning ahead, and changing your way of thinking, but it can be done. Not only with education, but with other major purchases as well. You have to start thinking like a lender rather than a borrower.
On paper it looks simple, but it may take some time to turn your way of thinking from one of a borrower to one of a lender. How can you become a lender? By loaning yourself money for what you need and paying yourself back with interest rather than giving your hard earned money to bank or loan office. Let your money work for you rather than you working for it.
How do you loan yourself money when you need to borrow it? First you have to stop believing you need to borrow it. A good beginning is to start eliminating debt, disposing of credit cards and stop borrowing money thinking you will have more. The difference between you and your seemingly more prosperous neighbors is the way you think about money and the choices you make.
For more about securing your family’s financial future, contact an AC Financial adviser at 800-564-3196.
