I thought that I would take the liberty to reblog this great article written by Jason Sardi. I have to agree with this article because I believe that we as Americans have gotten away from something that our fathers and their fathers before them instilled in us. That is that home ownership is not about keeping up with the Jones, but to invest into something that will shelter and protect your family for years. And, one day, you should be able to turn over the keys to you child or maybe a grandchild.
That is something that does not happen in today's society much anymore. Instead, we live in a house for 3 to 10 years, and then it is time to find a new one.
Cash-flow is a foreign term to many folks these days. The ability to spend, save, collect and consume aren't where we are used to being. In fact, I would venture to say a whole lot of people have one mindset in their mind... save money.
There's one issue I have with that. What some folks are doing, or rather thinking, is that they should save money in the short-term... and reap wealth when the "economy" and "housing industry" comes back. Let me tell you something about short-term, it seems to translate to those very results as well.
*I should warn you; I like putting quotations around words for no other reasons than it makes me feel special and stupid... all at the same time.*
Let's just say that there's a bunch of individuals out there who aren't feeling (tangibly) the pinch that is going on with others. Let's just say that they are more than making "ends meat". They aren't rich and perhaps will never be. Yet, they are secure in their financial situation. They bought their house exactly two years ago with a 6% rate attached to their 20% down payment. That's a 30-year fixed rate, if you are curious:)
Well, now there is today! If you can get a fixed rate in the mid to high 4% range, keep your mortgage payment similiar or slightly above what it is now... why not shave three years of payments and get into a 25-year term? You will pay (assuming you do;) a mortgage down faster and own your abode free and outright before you reach diapers... that's the goal, at least. That's long term wealth, my friends. If you can afford it, do it. Especially now.
My guess is that some are and some aren't... in the postion or mindset of long-term wealth.
I think we got too heavy in quick bucks in Real Estate, the Greed Factor. We also changed a paradigm from thinking a house is a roof over your head into a house is a way to make some coin. Real Estate allows us to survive, folks. There is no icing when you aren't eating the cake.
Real Estate makes coin, yet it's a roof. It's time to cover your head and ignore your ego... coin in any investment has always been up and down depending on when you sell... or if you even do. Keep when not wanted, sell when it is hot. If it isn't either, just sit back and review the perception. The medium considers all odds.
If you are lucky/capable/competent enough to be in the postion to do so, increase your payment another $100.00 or keep it the same to keep your financial lives in order.
I believe in long-term wealth, even/especially when it involes long-term pain. Wealth ain't "Lincolns" or "Franklins"... it's a smile:)
I typically add a song or song(s) to my post. If you stuck around this long, here it is:)