I am not talking about everyone being a millionaire I am talking about individuals being financially secure. I am talking about individuals with their homes paid off with significant savings and investments. This is also called Net Worth and True Wealth. A person with a Net Worth that far exceeds what that individual has in debts (Gross Worth) can also be considered wealthy. Gross Worth is a total value of what you own before you add in Loan to Value. Net Worth is the value of what you own after you consider your Loan to Value. If your Loan to Value is seventy five percent your Net Worth is twenty five percent. If what you have financed is close to or exceeds your Gross worth you are not wealthy and this is where many of us run into trouble.
If struggling to live pay check to paycheck is not wealth it is what it is?
Struggling paycheck to paycheck and it does not matter where you live or what you drive you are still struggling paycheck to paycheck. In this blog we want to get you away for that routine and on with a new way of thinking about money and how you spend it. This however is a process that cannot be done overnight. It is a process of breaking old bad habits and establishing new good and disciplined habits.
What we are talking about here is taking the time to plan your financial future or financial well being before it is too late. The true basis for this blog is coming from the book The Millionaire Next Door by Thomas J. Stanley, Ph.D. and William D. Danko, Ph.D. Where I do not believe everyone has to be a millionaire to be wealthy I do believe the fundamentals in this book will make you wealthy minded and even if you do not attain a million in net worth you are wealthy if your net worth far exceeds your debts or you have no debt at all. This to me is financial freedom and this is what we are seeking with this blog. If you get nothing else out of this blog you will get a strong sense of financial responsibility to yourself, for your family and live a more rewarding life day by day.
Above I said asset because your home is usually worth more than what is owed on it. As a result in the crash of the real estate market this is not always the case anymore. However it is still real property and in time may regain its value and more becoming an asset again. This is where Loan Modification comes in. As long as your home is your primary residence you are most likely eligible. The one requirement is that you have to be able to afford the home after the Loan Modification is complete. This is where people get confused and do not even try or just do nothing. . In the previous entry we told you of a source to help you do the Loan Modification through the government. This program is due to expire July 22, 2011. If you do not want to do the modification by yourself there are services that can help you and you will find out more coming up.
If this is a rental property and you do not live in it you may not be able to get a Loan Modification on it. Some companies do modification on assets but it may be a time consuming chore to find a Loan Modification company that handles that kind of loan modification. There are some out there.
We have again have ways you can get more information on Loan Modification.
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