when talking about money, we must always be cautious enough to avoid suffering at any given time, some other economic scare. Money is obviously essential to get ahead complex situations, and for this, it is convenient to have on certain occasions a mattress that allows us to sleep peacefully.
For all these reasons, and since capital is so important in many life circumstances, Harvard University; always known for the fame that precedes it and for the value it has had from the first moment of its existence; has prepared a study through which we can better preserve our economic power. Specifically, it has been the scientist Laurence J. Kotlikoff es profesor de economía y autor del best-seller ‘Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life’; y se doctorate from Harvard University in 1977.
Kotlikoff focuses on many more issues related to the tax system and even the American way of life. However, here we bring to light the advice that can be applied in Spain:
Pay off the mortgage as soon as possible:
Consider the expert, pay off the mortgage as soon as possible is much preferable to keeping it, despite having the opportunity cost of shelling out all that money at once and losing the option of getting it back. The example it uses is the following: “If you have $100,000 that you can invest Right now on a bond earning 1.5%, you would have $1,500 in interest income over the course of a year. But if you had $100,000 in debt at 3.2% interest that you could pay off right now, you’d save $3,200 over the year in interest payments.”
Being the owner of your house:
For the economist, the long term rental is harmful, so as far as possible it is preferable to acquire a home. Having money invested in your house is a way of protect it from some taxes.
A good option to take advantage of what you like
In terms of this, the youngest are the most attracted they usually feel with this type of alternatives. However, people of all ages can try get some kind of income to get some capital out of what he thought impossible to profit from. For example, if you like making desserts or cookies, you can try to make an online store where you can sell some products.
Dare to take job leaps:
Despite being a daring practice on certain occasions, changing work activity is, in fact, something that the expert recommends actively and passively, trying to go pivoting and getting returns every time a new opportunity arises.
If you don’t have the need, don’t retire early.
Although it offers us a lot of quality options of desired life at those ages; Putting it this way makes it clear that the wonderful benefits – extra time with the grandchildren, freedom to pursue hobbies, reduced stress – come at a high price: lost years of income from work and a lower pension.
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