Pay less interest: Because the velocity banking strategy requires free cash flow, the length of the mortgage is significantly shortened. Because you are paying more up font you have less compound interest on the principal amount owed.
Pay off your debt early: Velocity Banking is one type of debt repayment strategy that will work to help you pay off your debt more quickly. (Example in the video below)
Free up equity: Mortgages don’t allow you to tap into your equity, a home equity line of credit (HELOC) combined with velocity banking lets you use money that you wouldn’t ordinarily have access to.
HELOC adjustable rates: You may not be able to find a bank that offers fixed rate HELOCs. This may put uncertainty on the amount of...
One thing you will notice about the blog is that I like to talk about the questions I get asked regularly. This is because of a couple of things: Velocity banking can be confusing, and I want to be sure you understand the intricacies when you start
If there were excellent resources out there that explained this stuff, I probably wouldn't need to answer these questions all the time
I want to have written accounts of the topics I discuss on YouTube, so I'm able to
A question I get near the top of my frequently asked questions list is:
"Denzel, is there a difference between simple interest and amortized interest?"
Well, the short answer is yes, but I've had conversations with people where they tried to tell me there was no difference. So what I'm going to do for you is layout definitions and examples of simple and amortized interest so you can see what I'm saying when I say there is a difference. Let's get into it.
Amortized interest is interest that is calculated on the...
Investing is a crucial part of personal finance, and understanding investing will give you a great starting point for the concepts of Velocity Banking.
Let's start technically - your standard dictionary (or Google) will tell you that an investment is "expending money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture."
Now that you've read a definition that overcomplicates the topic of investing, we can get to a simple explanation.
A financial investment is to multiply money over time.
Principal x Interest + Time = Profit
Investing as a broad term can also mean putting in time and effort - not just money - into something with to gain a long-term benefit. My most significant piece of advice when it comes to investing hinges on this second definition.If you're going to invest in anything the main thing you should invest in is you.
Whether you do this by putting...
The "Rule of Three" is used in learning situations with young children, wilderness survival, mathematics, language, and so much more. I want to focus on learning and survival because both of these topics, when looked at from a big picture, also apply to your finances. You need to learn how to use your money efficiently to pay for things that you need to survive (like I said, big picture).
Rule of Three in survival situations:
You can survive for 3 Minutes without air (oxygen) or in icy water
You can survive for 3 Hours without shelter in a harsh environment (unless in icy water)
You can survive for 3 Days without water (if sheltered from a harsh environment)
You can survive for 3 Weeks without food (if you have water and shelter)
The main point of this set of "Rules of Three" that you need to focus on the most substantial problem first. If the biggest problem is that you can't breathe we need to remedy that immediately.
I hear you asking "How does this apply to...
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...
My goal in life, through God's guidance, is to help as many people as I can reduce and relieve stress brought on by financial burdens like debt. I hear pretty regularly about how you guys are nervous about taking the next step in your business because you don't have the cash flow to spare right now.
Since many of you are entrepreneurs, business owners, and people who are ready to start your own business, I thought today we would talk about how vital activity is when creating your Kingdom.
So, let's grab a cup of coffee and maybe even a notebook because I'm going to talk to you about how you can implement the steps I took to launch my business and build my Kingdom for yourself.
I started my business after seeing the Velocity Banking method work for my family - I saw how it worked and felt passionate about sharing the info I learned with as many people as possible.
The best advice I can give you about growing your business is to choose a platform - blogging, YouTube,...
Now that we have taken on creating Activity Income for your business, it's time to talk about Passive Income and the dream of "making money in your sleep" you hear so many entrepreneurs talking about.
Learning how to create Passive Income is the key to running a sustainable business. The goal is to have your Passive Income equal more than your Activity Income - when you get to that point, that is the true definition of financial freedom.
In the realm of Velocity Banking, your Passive Income is saving and investing. So when I refer to saving, I am mean establishing a tax-free asset. When I save money, I intend not to risk that money - the sole intention is to have an emergency backup. When I refer to investing your money, I mean literally putting your money to work for you - you don't have to do anything with it, and it is "making" more of itself.
So if I'm saving money, I cannot put that money at risk. I need to have that money stored somewhere safe where it'll grow - minimize or...
We've been going over some vital lessons on how to establish your Kingdom, how to protect it, how to create activity income, passive income, and most recently acquiring tools for your Kingdom. Now, we're going to start stepping into funding your Kingdom using the Velocity Banking concept to your advantage.
Even after you're completely debt-free, you can continue to utilize Velocity Banking strategies to maximize your business productivity. Velocity Banking's primary use is actually to make money and invest money. That's what real estate investors and business owners are doing with their funds when they practice Velocity Banking.
I want to give you an example of how I fund my own Kingdom, so I can be a cheerful giver and help people while building my business -with cash flow, great credit, and the bonus of feeling secure in my finances.
Watch the video below for a look at the numbers:
Like I mentioned in the video above - the end goal is to...
I went to a training this spring where we really focused on the concept of the gratitude mindset. This really flipped my views on what my next steps in my business would be, so I wanted to share the most significant pieces of gratitude mindset and how you can apply gratitude mindset to your life, every day.
What is Gratitude Mindset, you say? Well, it's the action of seeing the upsides instead of the downsides to the situations around us. Or if you like metaphors, we will be working to see the glass as half full instead of half empty.
Many people look at their circumstances and see that they don't have enough money to achieve their dreams, or their partner may not be living up to the expectations we have set, maybe you think after a while that your home isn't nice enough or your car isn't new enough. We don't usually stop to consider what a blessing it is that we even have money in the bank, a job, partner, and roof over our heads.
It's become commonplace, and even comedy to...
So, let's start at the beginning because on a basic level, we've already discussed the two main types of income streams, Active and Passive. Active Income is income earned by actively putting forth effort to create income while Passive Income is the income you earn in your sleep.
Many of us are already hustling and bringing in a second stream of income, whether we realize it or not. Did you know 4 in 10 Americans have a side hustle or a source of income that is outside of their standard paycheck? Now you're wondering - what are the benefits to having multiple streams of income? Well, I'm here to share my three favorite reasons why people are gravitating towards having various streams of income, and I'll share a video explaining my multiple streams covering how I'm expanding my Kingdom.
Potential for More Financial Security
Multiple streams of income make you feel more secure in your finances. Your day job may pay your bills, but if you are already on a tight budget and ready to...