Tag Archives: Finance

Equity Acceleration

Accelerating Equity Equals Debt Elimination

Everyone in life would like to accelerate the growth of their equity. Some try to do it through investing in the market aggressively. Others try to build equity the slow and sure way by investing in fixed financial instruments while others simply do not have the tools and knowledge to create equity, so they simply give up.

We meet families all of the time that have been working hard at putting money away, but they are yet to achieve real equity. Real equity is the sum total of your investments and real estate versus the amount of debt that you owe to lenders. You may have a good stack of money in the bank, but still owe a bigger stack of money to the lender. In fact, truth to be known, many are in a negative position when it comes to equity. Would you rather have the net equity of the family at the top of the chart on the left or the net equity of the family on the bottom half of the chart to the left? The two examples represent a spread of $400,000. Being debt free has a powerful impact on your net equity position. Continue reading