Do I Need Life Insurance?
I hope you're enjoying your morning, afternoon, or evening, and you decide to hang out with me to learn more about a topic that most of us associate with less than pleasant issues, Life Insurance.
I choose to use life insurance; differently, I think life insurance can be used for wealth creation - as an asset tool. The goal of people like me is to minimize - minimize your premiums, which means the cost of insurance, and maximize cash value growth. If you want to know more about how life insurance works and what questions to ask when thinking about buying life insurance watch "What to Know About Life Insurance".
Now if you're here to get tips from The Finance Geek - here they are. I believe that to be able to coach you guys, I have to be using these methods on my finances, so I have an update on my journey and how I landed on my numbers. I've been working on this plan for myself for six months, and while I regularly update the YouTube crew on how things are going, I haven't given the blog the same info yet.
As I've mentioned in prior posts Cash Flow is KEY to success in Velocity Banking, even though they might slow you down you can do Velocity Banking with a small line of credit, a high-interest rate, bad credit, or all the debt in the world but if you don't have cash flow we can't take a swing at your bad debt.
To make this work, I had to make sure I wasn't cash flow is going to allow me to create a substantial amount of wealth and force me to discipline myself. We can't be spending money on frivolous things - there is no need to drive an 80K car - if you need to find cash flow let's take a look at where you are spending and decide if you can or can't live without those things. I continue to act like the money isn't there and choose to put the money back into real estate ventures, creating new income streams, advancing my business, and partnerships.
My 4 major numbers and L.O.C.right now:
Cash Flow 9,628.71
My Leveraged Debt:
BoA 5,500.00/0% 9 months
AmEx 4,500.00/0% 15 months
Discover 3,200.00/0% 6 months
So we get to the point where we are ready to establish a life insurance policy let me show you how I get my numbers. The key is to fund the policy based off of 40% of my cash flow and my total annual expenses in a year.
3,371.29 x 12 = 40,455.48
(9,628.71 x 40% = 3,851.48) x 12 = 46,217.80
40,455.48 + 46,217.80 = 86,673.28
If you want to see my financial flow and get a more in-depth look at why I'm funding my policy this way, watch the video below:
If you have been working on establishing you Kingdom and are ready to create a policy for yourself