Have you ever thought of yourself as being a banker? No, I don’t mean that you work for a bank, but your financial savvy puts you up there with the best money managers around. Wouldn’t it be nice to have a stash of cash you could tap to finance various projects you have planned? Well, you already do if you are a homeowner who has built up equity in your home. Let’s take a look at a novel way you can pay for important projects through your home equity line of credit account.
Instead of using your checking account to receive and pay out funds, you can use your home equity line of credit account for all income deposits and expense pay outs.
Your Home Value Means You Have Home Equity
Once you have established an equity line of credit account through your bank, credit union, or other financial institution you can take the following three steps:
Step One: Pay off consumer debt using your banker home equity line of credit account. Credit card debt, auto loans, and other consumer debt can be wiped away thanks to your home value equity.
Step Two: Next, deposit all of your income into your banker home equity line of credit account. You will take all of your income sources and deposit them into your equity line account instead of your checking account. These deposits include: all salary income, capital gains, personal savings, and spare change.
Step Three: Finally, use your banker home equity account to pay expenses including everyday budgeted and planned expenses such as: your monthly bills, food and clothing, mortgage payment, budgeted card charges, and other living expenses.
Please view our demonstration for more information.
Pay Off Your Debts Faster With Your Discretionary Income
Your discretionary income – income minus expense – stays in the banker equity line credit account to reduce the balance of your debt. By using this method of tackling debt, you can pay off what you owe twice as fast or use the funds to finance additional expenses including home improvement, your daughter’s wedding, college costs, and more.
One final point: In most cases a home equity line of credit is tax deductible, just like a mortgage loan. Therefore, additional savings can be realized when you take your government approved tax deduction. Consult with a financial advisor to learn how an home equity line of credit account can work for you.
Are you your own banker?
Please check out our 10 Step Plan For Success to manage money the smart way.
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