The rich are the target of this frustration and let’s be honest, who’d want to be rich?
If you are rich or planned to become rich, here are some time-worn strategies to help erode wealth and alleviate the prospect of such a horrible burden.
– Borrow more than 80% the value of a property. Luckily this gives you the privilege of qualifying for mortgage insurance!
When taking out a $230,000 loan against a $250,000 property you’ll immediately add an extra $4,500 to your principle, which over the life of an average loan will cost at least another $5,500 in interest.
-Extend your house payments by an extra five years. The bank’s offering a 30 year term instead of 25, why not take it?
On that $230,000 loan you can cut your monthly payments by $91 and it will only increase your total interest paid by $69,000.
– Take financial advice from your family and friends. They can see the future with alarming regularity and their hindsight is 20/20 too.
They know of gold mines in Mongolia, rental properties in undiscovered boom towns, amazing tax loopholes and with all this money making knowledge they still work their day jobs.
– Buy to impress friends. Remember it’s not actual wealth giving you security and freedom that’s important, it’s perceived wealth to impress your friends that counts.
So show off in a new $40,000 car; it will only cost $50,000 over a five year loan term and hold a princely valuation of $20,000 when you finally own it.
– Don’t save money or invest sensibly. That’s for egg heads, keep renovating your house like they do on Better Homes & Gardens because houses never fail to double in value every seven years.
Good luck!
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL / ACL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. Need help with your financial your financial future, we think we’re Australia’s top financial adviser. Think you need a lawyer for a superannuation claim? Think again!
