Clients often ask for a refinance to get a better rate.

Why not, Right? But actually, the question should be why? What is your reason for a better rate, to save a few dollars? What are you planning to do with the extra money you will have when this is done?

You see, getting a better rate is great, but only if you “save save”. What I mean by that is you saved the money, now put it somewhere safe. Do something good with that money, have a plan as to where this extra money is going towards. That could be an investment plan, paying off a debt, saving for a car or holiday. Save save it. Because if you don’t, it will disappear in your everyday spending and you won’t be any better off.
Here is what the full plan looks like:

1) Better money control

     Start with examining where your money is going through a personal expense analysis and where the opportunities are to save money
     Then check what your money habits and mindsets are
     Then set up a structure that keeps you in your planned lifestyle as well as allows the mortgage to be paid as fast as possible in your circumstances

2) Invest

    With the money saved, look at an investment plan, consider your options, your personal preferences and goals
    What is important to you, how quick do you want to get to your goals, what are the milestones along the way
    What rewards should be build in to help you keep on track
    The focus is on buying assets that increase in value as well as assets that generate income. No point being asset rich and cash (flow) poor.

3) income for life

    Income for life is the outcome of your investments. The assets you have bought generating an income stream
This is the basics or a wealth creation plan. It’s aim is to help you replace your salary with re-occurring investment income over time.
I hope that makes sense to you. It will be an exciting journey if it does!