Being A Saver
Understand The Characteristics Of A Saver
Many?people weren’t properly taught how to manage money.?Most people are in a rush to pay off their mortgage but don’t realize that they no longer have access to cash by having it paid off. Let’s say you’ve lost your job and there’s a leak in your roof; you’re going to need cash to fix it.?If you do not have cash flow to cover a loan from the bank for the repair, the bank will not lend to you.??If you have a mortgage?and do not have another source of capital or income to satisfy the payments, the bank will begin?foreclosure.?In the end,?if your house is paid off, the bank will not lend you money against equity(bricks); they loan against?your capacity to pay.?
The Saver personality is the?polar opposite of the Spender.?They avoid debt as much as possible and prefer to pay cash for all of their purchases.?Savers are good at putting money aside for their purchases. When they have saved enough, and the purchase?is?made, the cash is depleted, and they start again. This is referred to as living above the zero line.
Many families have heard stories passed down about the Great Depression (1929-1933). They heard about the struggles their great-grandparents and grandparents went through as banks seized houses and property because they could no longer make their mortgage payments. They have been told that “if you own your home,?no one can take it from you.”?What they forget is that there are still property taxes, utilities, repairs,?maintenance etc., that are required. If you start falling behind on these necessities, it can still impact your homeownership.
Some will argue that you could take equity out of?your home through a bank loan, and the challenge is that you need to “qualify” at the bank to get your own money out. How eager would a bank be to lend you money if your capacity to pay the money back is not there from jobs loss or other issues??
In principle, there is nothing wrong with?the?Saver approach. Queen's?Bridge Financial Strategy believes there is a better way to achieve the same goals while maintaining Liquidity, Use, Control, and Knowledge that your money is working for you?(LUCK).
Don’t fret if you haven’t started saving yet?or feel you are too far?behind.?Queen’s Bridge?Financial Strategy?can?help you?come up with strategies to?get you on track.?We help you find the money you are losing?unknowingly?and?unnecessarily; believe us, it’s there, then we put that money to work for you. It all starts with a?15-minute?discussion. 15-minutes could change your life.