Not much to report for May. I’ve been going steady with a focus on paying off my HELOC balance and have been researching the heck out of the concept of privatized banking.
What Is Drawing Me To Privatized Banking
Every time we make a purchase, whether it’s a home or a new car, your payments are being made to someone else’s bank. The opportunity to reuse the money you just sent away can never be reused again.
When you buy a car, you will either need to pay in cash, get financing, or lease the car. If you pay in cash, you have lost the ability to reuse or earn money on the cash you just sent away forever. If you get financing on or lease the car, you lose the ability to earn money on the monthly payments you make and pay interest to someone else’s bank.
If you buy a home, every mortgage payment you make is flowing away from you and towards the bank. You can access your equity from your home by either refinancing or by getting a HELOC. However, in both cases, the bank is in control of the loan.
The idea that I can buy a car or even a home (eventually) in cash by taking money out of my personal “bank.” Then make payments towards my own bank like I would have if I financed a purchase traditionally. The concept of privatized banking would mean that I would never have to qualify for a loan ever again, jump through anyone’s hoops, and, more importantly, I’m in control of the loan and the repayment schedule.
I’m still in the process of researching this subject to see if it right for me. I would plan to use this concept to help with funding my investments. Currently, I’m held hostage with the HELOC and how much I can use from it. The HELOC balance gets reported in my credit report, limiting what I can do depending on the investment I’m looking at. When I use funds from my own “bank,” it’s a private loan to myself, so it does not get reported in my credit report, removing some of those barriers.
Fishing Website Update
Website Content:
- Posts Published: 27 (+3)
Website Analytics:
- Monthly Visitors: 4.8k (0k)
- Monthly Page Views: 6.3k (+ 0.8k)
Financial Update
Monthly Incomes = $6,330
- Career = $5,300
- Lending Loop = $140
- Real Estate Syndication = $360
- Stock Dividends = $80
- Mortgage Investment = $350
- Fishing Website = $100
Monthly Expenses = $5,850
- Cost of Living = $2,600
- Discretionary = $550
- HELOC Payment = $2,500
- Fishing Website = $200
Net Worth (Month-Over-Month Change):
Total Assets = $621,145 (+$2,615)
- Home Value (Online Estimator) = $362,800 (+$0)
- Lending Loop = $15,980 (+$140)
- Real Estate Syndication = $78,680 (+$360)
- Stocks = $32,200 (+$1,285)
- Mortgage Investment = $50,000 (+$0)
- Cash = $48,650 (-$110)
- Retirement Accounts = $32,440 (+ $564)
Total Liabilities = $148,400 (- $3,230)
- Home Mortgage = $116,650 (-$620)
- HELOC = $31,775 (- $2,615)
Total Net Worth = $472,370 (+$5,475 / 1.16%)
