Today I had the privilege to speak with a group of college students on how to build wealth using their good credit. As a realtor and certified credit counselor, I've seen first hand how a great credit score can open doors to deals that most people only dream of! What's the key to getting from where you are to where you want to be in regards to your credit score?
Realize as quickly as possible that Your Credit Is An Asset.
When we use credit properly we save a ton of money in interest rates, obtain better terms and conditions and have overall peace of mind, which is truly priceless.
And what do we do with all of this extra money? WE SAVE IT; WE INVEST IT.
If you've ever had an emergency come up and had to charge, borrow or steal to resolve it, then you know why it's important to save. Once our savings is on point we immediately start investing in other income-producing vehicles; thereby increasing our wealth. Being able to save money is already a win, but when you add the ability to amass wealth to it? AMAZING!
The mistake that most people make is to use their available credit to purchase unnecessary, tangible goods and services that eventually leads to debt. Have you ever met a wealthy person with a ton of consumer debt? You won't.
Wealth is measured by our Net Worth = Assets – Liabilities.
We want as many items in the Asset column as possible. If we build more debt than assets, we are killing all chances of accumulating wealth.
Secrets to using your credit to build wealth:
- Spend less than your make
- Eliminate consumer debt
- Use your income & credit (including credit cards) as a tool
- Build & maintain your credit score
- Increase Your Savings
- Invest in income-producing vehicles
I hope you enjoyed today's tip!
And if you need assistance paying down debts and/or soaring your credit score, feel free to reach out to me, I'd love to help!