Sunday, November 13, 2022

MoneyWalk 175 Eliminating Debt Is Smart

This program will help you undo financial bondage.

A lifestyle that moves you to eliminate debt always betters your long-term financial condition because it positions you to always be able to honor God with tithes and offerings. Windows of Heaven will be opened over you for the pouring down of greater future rewards, a portion of which you can use to bless others.

Some advisors tell people it’s not good to pay off particular loans because you can make more money by investing. However, this is tricky at best because even with investment advice most people are not good enough investors to be able to get annual investment return greater than costs they pay on loans to their creditors. It is certainly good to consult reputable financial guides to help educate you to be a responsible manager of money entrusted to you and to help you maintain emotional composure and reasonable investment allocation / diversification whether the economic environment looks good, bad, or indifferent over short and long periods of time. Just don’t pick a particular one because you think he or she can guarantee the greatest investment gains. For good reason the SEC advises investment firms to put the following type of statement on their investment literature, “Past investment returns are no guarantee of future investment results.”

Another thing people are often told is they should always keep mortgages because of the tax deduction interest payments afford them each year. However, they usually present a flawed analysis of this situation. You will get no deduction for mortgage interest paid if the total amount of expenses you can itemize is not greater than the standard deduction on your federal tax return. Thus, less than 15% of homeowners get a tax reduction, including for mortgage interest paid. Even when you can itemize interest payments, you should consider whether it is smart to pay an amount of money only to 15 to 25% of it back via taxation laws.

Investment real estate can certainly be a worthwhile and lucrative endeavor for some people; however, history seems to show most people are simply not good handling this type of investment when leveraging loans to get properties. As a result, they lose money and find over the years they are not in a better financial position than if they had simply paid off their debts and used cash to invest. Let’s be honest, most people will never maintain ample investments when they’re bogged down with debt. They usually don’t have enough surplus cash flow due to spending on too much unnecessary stuff, much of which they can’t remember a few years down the road.

By eliminating debts, you will lift a great burden off your shoulders and feel extreme freedom. You’ll also eliminate the possibility of foreclosure and repossession of items you made monthly payments on for so long. You can then begin saving enormous amounts of cash flow and not have to worry about whether you can actually earn more than the interest paid on loans. You’ll be free to take greater investment risk, if you choose to do so, without running into the possibility you may one day owe financial institutions money you cannot pay them. Financial freedom relieves stress and pressure and puts you in a position where God can entrust you with far more money and resources because you have proven to be a good steward whose eyes and actions are on Him and His way rather than the way of the world.

Deuteronomy 28:12, Proverbs 22:7, Romans 13:8, 1Peter 5:8

Please pray for this ministry and email questions to parlor@ameritech.net and share the links below with others who need guidance. May the LORD bless you richly as you follow His plan!

Share http://kminfo.org/ministries/financial-freedom weekly with family and friends so these bondage-breaking articles and other financial information can help them gain helpful insight!

The book at the link below provides principles and practical steps that help you use the Power To Get Wealth. By 1992, we had $135,000 of debt and a negative $35,000 net worth. Financial bondage and turmoil led me to seek principles and a process for employing good stewardship. As a result, we became constructively debt-free in 1998, mortgage free January 2004, millionaires in 2012, multi-millionaires shortly thereafter, and retired in 2018 in my mid-fifties from public servant jobs while giving abundantly to fund the gospel of our LORD Jesus Christ. The same power is available to you!

https://www.amazon.com/Power-Get-Wealth-Randy-Parlor-ebook/dp/B08QCH5MVH/ref=sr_1_2?keywords=Randy+Parlor&qid=1638336718&s=books&sr=1-2

You can find books authored by Randy and Karen Parlor at www.Amazon.com.

You can also connect with Randy Parlor on Facebook, Twitter, Linkedin, Instagram, Google Blogger, WordPress, Jesus Social Network, Social Cross, Pinterest, Tumbler, and You Tube.

 

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