The velocity bank approach continues to gain traction worldwide. And this is for good reasons if they numerous benefits this strategy brings are anything to go by. From helping your develop high self-discipline and building financial independence to reducing your stress level and monthly cash flow increase, you can rest in knowing good things lie ahead.
Even though the velocity bank strategy sounds very appealing to most of us, it doesn’t mean you should leverage it blindly. You want to be sure it is the best approach to follow in your quest to achieve financial freedom, and it is best done if you have access to accurate information. Keep in mind there are many common myths and assumptions that accompany the velocity banking.
And that’s what this simple guide will help you uncover today. Here are the most important myths and assumptions to know before choosing velocity banking as a strategy.
You Only Benefit By Paying Off The Mortgage Early
Most people consider paying off their mortgage to be their number one priority. For this reason, they strive to use all the possible funds they have and strategies that help them attain this goal without the hassle. Even though there is nothing wrong with taking this approach, there is a specific price that comes with it.
You might not know this but our homes happen to be our most effective liabilities. No wonder it isn’t by default terrible to have a mortgage on it. To cut a long story short, not using all available funds only to pay for the mortgage has the potential to open many doors for you.
Having Liability Automatically Puts You In Debt
There is no denying that our liabilities are like our debts. But come to think of it, this is not aa simple equation that can be easily applied here. You can define debt as a ‘negative equity’, which means you shouldn’t be assuming your liability to be a negative thing in the first place. What we are trying to imply is that you are only in debt when your liabilities exceed your assets.
Stella Tennant has helped several global brands, which get heard across the digital space, through result driven content & social media marketing efforts. Studying blockchains and cryptocurrencies makes her hopeful of a free and decentralized future.