The wealthy, think about how do I have capital that I control because I like to think of it as an emergency opportunity fund, right? You’re going to have life come at you where you have a bigger expense in some months that you weren’t expecting that would be considered an emergency. You’re also going to have opportunities, which is the thing that’s really exciting.
It’s the reason that I want to have cash that I can get to, and that cash that I’m storing. Is way more valuable than paying off the loan as quickly as possible. Here’s the thing. If I have the cash to be able to pay off my mortgage, I’m not in debt. Now. This is something that we talk about on a regular basis.
And people say just because I have a loan, that means I’m in debt, but I know you and your audience are super smart and you’ve probably thought this completely through already, but you’re only in debt when you have negative equity. And negative equity is a position where your assets are less than your liabilities.
Now, if you had your cash sitting somewhere that you could access and say you had $700,000 and you want to pay off your $700,000 mortgage. You could, if that was the best use of that capital for you, but what if there was something that would produce a higher return than paying off that loan? And you wanted to go ahead and put that into a commercial property or multi-family deal, or you wanted to go into mobile home parks.
And invest in that you have so many options when you have cash, but you limit your options when you just focus on paying off the loan and interesting, like that word opportunity fund doesn’t exist with the layman. They have an emergency fund. And as you can see what I do at my opportunity fund for when deals come along, my video, there is simple passive cashflow.com/bull fund, but I use a little bit of infinite banking and some other more liquid investments in there is that all the time.