Using you money twice at the same time!

All of us know that once money is spent there is no way of using it again. It’s gone, caput, spent, never to be seen again.

Unfortunately, no one told wealthy people, tax lawyers, investor groups and real-estate moguls this idea. You see they all operate with the idea you can use some money over and over again spending it several times in a row. Yes, it is the same money, they just spend it multiple times as opposed to only spending it once like we were taught.

Use some money over and over again spending it several times in a row.

This really isn’t a secret though. You and I have always heard about this idea, we just never knew what to do with it to use it for building more wealth and cash flow for our lives. You and I know it as a Home Equity Line of Credit (HELOC).

What is so special about a HELOC is that its your money at work. Here’s an example: your house. If you own a house you know that after a few years the house is worth more than what you owe on it. The difference between what you owe and what it’s worth is called “equity”. So you are paying for your home, some of that money goes into equity and that equity just sits there. It does nothing for you unless you sell the house.

The only way to use YOUR money in the house is to loose the house. Well, that is unless you have a bank that will give you access to the equity today for a small fee.

Now things have changed. Now you can use the money that would just sit there for something else. You just have to make sure that whatever you do with it makes more than the cost of using it.

This is how wealthy people continue to build more and more wealth with the same dollars.

I like thinking about stuff as a formula. So here is a simple one to show how this all works.

At the top, you see your money going into an asset. That asset has to be able to grow in value and be able to be borrowed against to get access to the equity. Assets that can do this are Real-estate, stock portfolios, Permanent life insurance, antiques, precious metals and several others.

You borrow against the equity and invest that money into another asset that grows more than what it costs you to use the equity. Then borrow again and do the same thing. Only this time you take out the equity to pay you back.

This is the basic concept. It does take some specific planning to accomplish well but it is doable for everyone! You can do this with your money.

One of the tools that can help make this work well (I recommend it as step one of the asset building ladder) is a high cash value life insurance policy. These work best as the first step because of the guarantees built into them. Guaranteed rate of return, tax free growth and several ways to access the money which gives you layers of protection for future investments.

If your looking to start your asset building journey or wish to see the numbers of how a properly structured high-cash-value life policy adds to your asset sheet contact us for your personal meeting today.