Mar 19, 2021
Becoming financially free is a top goal for many people. The usual first step is to focus on getting out of debt by paying off your mortgage and big liabilities. While this advice has been preached by the Dave Ramsey and Suze Orman types, this could actually be a huge mistake, according to personal finance advisor, Curtis May. In fact, he shares that paying off your mortgage could actually make you poorer and expose you to more risk.
There is good debt (that helps you make money) and bad debt (that costs you money). He believes you should leverage good debt in the same way a business would treat good debt. But debt is just one aspect of financial freedom. When looking at a mortgage, he shares that paying down the mortgage actually helps the lender, while putting you in a more risky position. Curtis elaborates on this and shares his 5 principles of personal finance to help people become financially free.
Curtis is the creator and owner of Practical Wealth Advisors (PWA) and host of The Practical Wealth Show Podcast. He helps individuals and families become financially free by following the principles of wealth creation that have endured for centuries. For 35 years, Curtis has been teaching people that their number one financial asset is their knowledge. The more they know, the lower their risk, and the greater their chance of success over time.
In this episode, he shares more about debt strategies and why paying off your mortgage could expose you to more risk. In addition, he shares details around prosperity economics, the accumulation theory vs the velocity of money strategy, and privatized banks vs. traditional banks.
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Key Insights on Personal Finance and Accumulating Wealth
You never make good money working for someone else.
The three rules of investing: Invest in yourself, invest in what you can control, and don’t chase returns.
The 5 principles of personal finance:
What’s good for the bank is bad for you.
I had to learn property management the hard way.
Less Annoying CRM
Most Recommended Book:
Becoming Your Own Banker: Unlock the Infinite Banking Concept (R. Nelson Nash)
The 12 Week Year
Becoming a better communicator
Wish I Knew When I Was Starting Out:
Whole life insurance is not evil.
Best Place to Grab a Bite in Philadelphia:
Get in Touch with Curtis:
Get this Report - Creating Wealth on the Velocity of Money: Text PWEALTH to 55444