MONEY
MONEY MATTERS
B
By Ellis Liddell
By Evangelist Lynne E. Shivers
lessings and greetings to the Pentecostal Assemblies of the World (PAW) family. In this inaugural article, we will discuss varying techniques to accomplish Wealth creation. You can achieve this by adopting a few techniques such as paying your bills on time to improve your credit score, refinancing your home to lower the cost of your mortgage, approaching the cost of college education from a holistic perspective, investing disposable income that exceeds 3 to 6 months emergency savings, participating in company-sponsored retirement savings plans and lastly, supporting the ministries that uplift your spirit and state of mind. Paying bills on time is an initial step in this process. With the U.S. mail running a couple of weeks behind, ensure your payments arrive on time to avoid late payments and fees that adversely affect your credit report and score, also known as building your credit file (FICO Scores). As an added step, go online to check your accounts’ due dates and payments due. To be more consistent with your payment history, consider setting up recurring payments such as for your mortgage and car payments as they are usually static. In general, automate as many of your bills as possible to avoid the pitfalls of forgetting to pay on time. Credit scores drive the cost of credit, the higher the score the lower the cost of credit. Most individuals with an 800 or higher (850 highest for most credit bureaus) FICO score, do not carry a monthly credit card balance and pay off their balances within 20 days of making a charge. When we think of credit scores, we normally think of
mortgages, credit cards, and car loans. However, your credit score can negatively affect your car insurance rates and even life insurance premiums. Consequently, develop good habits and be vigilant in protecting and sustaining a good credit history. Check your credit report as part of your ongoing maintenance and take advantage of the free annual credit report provided by Experian, Equifax, and Transunion. Mortgage financing is one of the biggest expenses you will face in a lifetime, followed by the cost of transportation once you start a family, and financing the cost of educating your children. Refinancing your mortgage to lower your interest rate, for example, from a 3.99% interest rate to a lower rate of 2.99% for which you now qualify, will save you tens of thousands of dollars on a 15 year and thousands on a 30-year mortgage. Often, the difference between a 15 year and 30-year mortgage may only be, $200 - $300 per month. If it is not in your budget, a 20-year option may be more suitable. Another strategy to paying off your mortgage earlier are bi-weekly payments or paying one additional annual payment to the principal. The latter option seems simple but takes discipline; therefore, you will need to devise a workable plan. The objective with your mortgage is to pay it off as early as possible to increase your disposable income and become debt-free the closer you get to achieving your retirement objectives. Regardless of where you start in life, you can build wealth. All it takes is a plan and a solid foundation to improve your relationship with your money.
Ellis Liddell is the President of various ELE entities in Southfield, MI. He is also the author of “Wealth Management: Merging Faith with Finance” and a member of the Million Dollar Roundtable. Securities offered through ELE Wealth Advisors, Inc., member FINRA. Advisory services offered through ELE Advisory Services, Inc. ELE Wealth Advisors and ELE Advisory Services, LLC are affiliated through common ownership and control. Ellis Liddell is a member of Greater Grace Temple in Detroit, Mi, under the leadership of Bishop Charles H. Ellis III.
THE CHRISTIAN OUTLOOK
“POSITIONED FOR PROMISE”
MAY/JUNE 2021
37
