The ultimate savings account

Many American’s find difficulty in saving money. Bills pile up, credit cards spend easily, and most of us live at or above our means. I believe the best answer for most people to force savings through building equity. Most people don’t realize the importance of personal equity as opposed to cash flow.  Your long term additions to your personal value can be converted to wealth, while maybe living broke your whole life! The idea is that when you buy an asset such as a car, house, by adjusting your payments, maybe even monthly, to increase your payment to the maximum you can afford, you are building equity behind the scenes that will contribute to your long term value. It’s a much easier way to save instead of actually setting money aside which you know you will tap into at a later date. If you put your equity into an asset that is not liquid you will be forced to make the payments and build your “savings” ongoing. Most people don’t realize you can simply call your bank and increase your car payments or house payment at any time if you have any excess cash at the end of the month. This way you will automatically pay less interest and build a savings account in that asset.