Maybe you have decided that 2023 is going to be the year you take your personal, or business, finances to the next level.
But deciding to do that and actually knowing how to do that are two different things. It is not as hard as you think, once you have a concrete plan. Here’s how.
Tap Your Equity
If you own a home, car, or retirement plan it is possible to tap into the equity and use that money to create more opportunities for yourself.
For example, if you have lived in your home for five or more years, the chances are very good that there are tens of thousands of dollars of equity there. You may use that money to pay off high interest credit cards, which boosts your credit score.
This allows you to turn around and use the credit boost to ask for your lines of credit to be increased.
Put Your Money to Work
If you only have a savings account, then your money is not working as hard for you as it could. Consider booking a consultation with a financial planner to determine how a portion of that money might be placed in accounts that yield higher returns for investing.
Investing does not just mean the stock market. Your money can make you money by being placed in mutual funds or other types of financial “vehicles”.
Increase Cash Flow
The ability to leverage your assets allows you more financial flexibility whenever a good opportunity comes your way.
The way the wealthy do this is to borrow against some asset they have, such as the cash value of a life insurance policy, in order to invest it into purchase a rental property that also produces monthly income.
Now you have not only purchased another asset, but it is an asset that increases your leveraging power.
Carefully Consider Before Acting
It is possible to “over leverage” your assets, and that needs to be avoided at all costs. What this means is that you leverage the equity from one positive asset and invest it into a questionable or bad investment asset.
Avoid leveraging the power of your equity to the point where you are not able to care for or maintain the new assets you acquire. Whatever you invest in and leverage your assets for, make sure the investments you make are sustainable in the long run.