Owens told Martin and the “NewsOne Now” Straight Talk panel that we need to transform our minds from an “income mindset” to a “wealth mindset.” She further explained that we need to focus on our personal balance sheet and make sure that our net worth is going up and not just our income.
One way to close our personal wealth gap and shift to a wealth mindset is to pay off your debts. Owens said debt is a greater percentage of our overall balance sheet.
“We’re carrying a little more mortgage debt than we ever have and the fact is that we’re told that everybody should have a mortgage,” said Owens. “There’s this benefit, but when I was an advisor, the people who were the most prepared for retirement were those that didn’t have a mortgage at retirement.”
Owens explained one of the ways to increase our personal balance sheets is to increase the equity that we have in our homes by reducing mortgage debt. The financial guru also said by accelerating mortgage payments we can pay down the principle on the mortgage faster just by increasing their payments by $50 to $100 a month.
Owens said this move can financial move can turn a 30-year mortgage into a 15-year mortgage.
Listen to America’s wealth coach and financial guru Deborah Owens explain how to close our personal wealth gap in the audio clip below. For more information and for more wealth building tips visit www.deborahowens.com/newsonenow.