Interest money

Spend your money on assets that earn you money

Try to make decisions that will grow your wealth by investing in things that will earn you money.

TEXAS, USA – In 2020, more than 65% of Americans owned a home. Any financial planner will tell you that the house you live in is “good debt.” Studies show that children who live in these homes do better in school, and you’ll build wealth. But what about the bad debt you have?

We’ve all heard the saying that “when you drive a new car, you lose $5,000.” But at some point, that vehicle is paid off and you own that value. But what if you pay something back as its value increases?

6 News asked Rolondus Johnson about it and he told us, “I will say there is good debt and bad debt. If you have a house, you know that paying for a house will be a plus for you later on. It’s going to give you a number of things, you know it’s also going to give you buying power with equity and those different things.”

Whatever your salary if you can start saving, Johnson recommends saving 10% or even increasing it to 15%. He says you’ll never be a slave to your bills, “I’ve come across several situations where you have someone letting you know $30,000 a year and they have tons of money to invest because they don’t have to nothing to anybody And then you have people who make $250,000 or $300,000,000 a year and they have maybe $100 a month because they have so much they try to buy and the banks give them money money, just offering them money and they take it.”

The average American has over $5,000 in credit card debt and all the interest he pays on top of that every month. Rolondus told 6 News, “You know old credit cards never want to have a high balance on [them]. Things like buying cars is a personal situation, you know? If you have an opportunity where you don’t have any debt, your personal finances may seem exceptional!”

Americans know how bad those car payments can be. However, we are still driving our cars longer. The average age of a car on US roads is now just over 12 years old, marking a new record high, according to S&P Mobility, which continues a five-year climb.

Rolondus says, “My wife and I have developed a new habit. If we buy a car, we want to pay it off before we buy anything else. Good and bad debt depends on your personal situation. I always tell my clients to invest in things that they want to buy. Things that will become an asset to you later on. And so if you look at it that way, in terms of assets and liabilities, I think you have a concept clearer or a vision of what is good debt and bad debt.”

How much do vehicles cost these days? Well, the average monthly payment for new cars is $648. The average monthly payment for used cars is $503. That seems like a lot to me!