Financial Freedom
Written by admin on January 20, 2009 – 7:52 am -It is generally the belief in the United States that the more you spend, the more patriotic you are. It is true that the more industrial products and services you buy, the more manufacturing will take place. More production means more employment opportunities. It is good for the economy.
But how do you pay for the products and services? If you have money in your hand that means you can afford to buy these things. If you do not have sufficient money, you go to the lenders promising to repay later with interest. If the monthly payment due is more than what you can afford and if there are many people like you, the lender cannot get back his money. The collateral may not be sufficient because their market value will go down due to the volume of identical collaterals in the market for disposal. The lender will go bankrupt or go for government aid. Ultimately, what the government pays is to be born by the people by way of increased taxes. Buy only what is absolutely necessary and what you can afford. That will keep your and your country’s health intact and give both financial freedom.
For those senior persons who have no sufficient income, no budgeting will help. There is an option called reverse mortgage for senior home owners. Here, senior means those who are of the age of 62 or more. They can convert a part of their home equity into income. The loan becomes due only when the last of the owners leave the place. The income from reverse mortgage is tax free and the home owners can retain the title to themselves. There is no liability for the home owner as long are he lives in the house.
A prudent way of keeping your financial freedom is to budget your expenditure according to your income keeping at least a minimum amount for savings to take care of emergencies.
| Posted in » 