In the world today where population boom is a great topic you’d think about, think about it, there would be more people who would need to have more space to put their things upon so they can accommodate whatever it is that they want to put inside of their houses. Maybe it’s the latest appliance system that they found to be on sale so they hastily bought it without thinking of where they would put the previous one they own inside their house, they’d be shocked then that they need more special space where they would put the thing that they don’t have any use no more, or they might have still use for it and they are looking for a place where they would put it until they have time to dispose of it. And that’s not typically all the uses of a self storage, many people are looking for storage places where they could put their other things, from cars, boats, furniture’s, cars, wines and many other things that needs it. They need to have contact with some of the many self storage owners all over the state.

What’s great is that with the many people who are always looking for a place where they would put their extra stuff at, you can be one of the many self storage owners who would earn a lot from these people, just think of the big possibility that your self storage unit would always be demanded, whether the sun might shine or not, you’ll be attending to many people who have a special need for storage matters. With the great deals on this business, you’d find yourselves having a business that you could rely on for the rates vary in different self storage facilities, climate controlled or not, people would always come to you and ask what your rates are on your self storage space, they’d either sign a contract of about months or up to even years. Imagine that, how big of an income you’ll be earning while they’re renting the space that you’ve made, it’s like a house for rent in a way, right?

It would be better if you have online advertisement so people could look for you in the easiest way possible, advertise in the biggest and most known self storage owners all over the country, or better promote yourselves all over the globe, find some other ways in which you’ll be well known so you can get all the prospects that you can so your self storage unit would always be in use every time.

With that you’ll be known as one of the many great self storage owners all over the country, of course clients would be very well looking forward to getting your service anytime they can for they would know that you can be reliable for all times sake.

Whether it’s a mortgage, car loan, student loan, credit card, or medical bills, you probably have some amount of debt in your life. It is only natural that you want to pay it off as soon as possible, but what do you payoff first and how do you plan for investing?

Since the amount you can pay towards these items is predicated by your income level, a decision normally has to be made between investing and paying off your debt.

What should you do? The answer depends on two variables:

1. The rate of after-tax interest you are paying on your debt
2. The after-tax rate of return you expect to earn on your investments

Before you answer the first question, you must understand that there are two different kinds of debt. On one end of the spectrum is high-interest credit card debt that originates from things such as credit cards and department store charge accounts. This type is the deadliest and generally should be avoided unless absolutely necessary.

The second type of debt is the lower interest variety; your mortgage, student loans, etc. Often, the interest on these types is partially or wholly tax-deductible, making it even more attractive.

With that in mind, the answer to the debt reduction vs. investing problem can be solved with this one statement: If you can earn a higher after-tax return on your investments than the after-tax interest rate expense on your debt, you should invest. Otherwise, you should pay off your balance.

Example of Debt Reduction vs. Investing - Calculation

Scenario 1
Assume you have a thirty year, $150,000 mortgage with a six percent rate. Also assume you are in the 25% tax bracket. Due to the itemized deduction of mortgage interest, your after tax annual percentage rate is really 4.02% (not the 6.00% you are paying).

Hence, if you expect to earn an after-tax return higher than 4.02% on your investments (odds are substantial you will if you have a long-term horizon), then you should invest.

Scenario 2
You have a $10,000 balance on a credit card with a 22% annual percentage rate. Credit card interest expense is not tax deductible, meaning you should only invest if you think you can earn a 22% after tax return on your investments.

Given that the historical long-term return on equities has been somewhere around 11-12%, this seems highly unlikely. In this case, it would be foolish to invest.

The Bottom Line

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