WHO IS ABRAHAM MASLOW AND WHY IS HIS BOOK IMPORTANT?
Number two in a series on planning your life goals
Abraham Maslow had a PhD in Psychology and from his research into human motivation he designed a five stage pyramid in which he outlined how human beings would always satisfy their needs.
It has become known as ‘Maslow’s Hierarchy of Needs’.
It is fundamental to human behaviour and is forms the basis of my belief that a roof over your head should be number three on your list of priorities right after food and clothing.
Despite the fashionable talk of renting rather than buying the fact remains that at the end of everyone’s working life they need to own their own residence if they are to live a comfortable retirement.
So target you owning your own home first.
Noel Whittaker, one of the most level headed investment advisers appearing in the newspapers today, says that there is no more tax efficient investment than paying off your own mortgage.
Why? Because you are paying your mortgage in ‘after tax’ dollars.
If your tax rate is 30% and your mortgage is $1,400 per month you need to earn $2,000 per month to pay the mortgage i.e. $2,000 earnings less 30% tax or $600, leaves $1,400 to pay the mortgage.
So before you start chasing investment properties, stop and consider the ideas above.
You will not get that advice elsewhere.
Ross Cutten
Director
Noble Real Estate
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