Chapter Five

Out of Sight, Out of Mind

 

Car loans are just one cause of wealth transfers (the transfer of your hard earned income to the financial industry and government). As you just saw, it is a huge one… that is just one loan, and those figures do not include what was also transferred away: all the compounding future value of those dollars if you were able to keep and invest them

Without an available and workable strategy that would recapture the interest that is routinely paid to finance your lifestyle, recapture excess income taxes, recapture certain fees and insurance costs, and enable you to invest those recaptured costs this would just be a bummer to even think about.

The strategy does exist. However, it is not a “box” (a financial product) that the financial industry can control and profit from... so they would never promote it. It is a process of using certain economic principles within your cash flow. Through that process, the same cash flow could look like this:

$100 per month invested at 8% interest for 20 years =
$59,295
$100 per month recaptured costs invested at 8% for 20 years =
$59,295
Net Gain in 20 Years =
$118,590

The strategy to convert cost to wealth is part of personal financial economics and is called “being your own banker”. Please read on.

 

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© 2007 by Michael Burrill. All Rights Reserved.