$1 How much can you save? Take the challenge, make a plan.

How much can you save?

Step 1 of 11 - Spending and Saving

Spending and Saving
Let's get started! Our goal is to help you save $100,000's. We will show you the tools, but it is up to you. It will take work and discipline. When you learn how to spend smarter, you will save more. Please input your contact information so that we can deliver your business plan.
Your name*
First Last
Your email address*
Enter Email Confirm Email
Partner's Name (You need someone to be accountable to!)*
First Last

Your partner could be your husband, wife, boyfriend, girlfriend, dog, horse. Whoever! This person will be in your business plan to help and encourage and to hold you accountable. All information is confidential and only used in your business plan.

The Mortgage
Here is a picture of a typical mortgage. Notice how you pay a lot more interest up front. And notice how much interest this family pays. This is a typical mortgage. Let's optimize your mortgage.
What was your original mortgage amount?*
For example, $250,000
What is your interest rate?*
for example, 6.125%
Length of Mortgage*
For example, 30 years, 20 years, 15 years, or 10 years

Mortgage Interest
Many people think that a mortgage is cheap money. It's not. Some people think that they only pay 6.5% interest when their interest rate is 6.5%. This family will pay over 85% interest for the first year of their mortgage. (Click image for detail.)

Prepayment Benefits
Look what would happen if this family were to add $10,000 to a payment in the 13th month of their mortgage. They would save nearly $50,000 in interest. Plus, they have an extra $10,000 equity.

A Dollar Saved is Five Dollars Earned
Timing is the key. The sooner you start paying off your mortgage, the more you will save. If the typical new homeowner were to pay just $1 extra on their mortgage, they would save $5. This family would save $6.9 dollars by paying just $1 extra.
How much can you afford to pay as a single prepayment right now?*
eg. 20, 40, 60, 75, 125, etc. Minimum 20. Sorry, no wimps. (No $ sign on entry)

$2 Saved is $1,000 Earned

Small strokes fell great oaks. (Benjamin Franklin, Poor Richard's Almanac)
To save a lot of money, you don't need a lot of money. This family saves nearly $100,000 in interest by paying just $200 extra per month. They also pay off their mortgage nearly 8 years early. Chipping away monthly makes a huge impact. (Even if this family were to add only $2 every month, they would save $1,000.)

$2 Saved is $1,000 Earned
The great thing about this formula is that it works with only $2, but adding a little more every month will mean even bigger savings. These numbers work for the example family. Your business plan will optimize your numbers. How much can you save?
How much can you add to your payment every month?*
50, 60, 70, 100, 125, 225, 500, etc.

If You Would be Wealthy

There are no Gains, without Pains. (Benjamin Franklin, The Way to Wealth) A small Leak will sink a great Ship. (Benjamin Franklin, The Way to Wealth) If you would be Wealthy, think of Saving, more than of Getting. (Benjamin Franklin, Poor Richard's Almanac)
Finances for most are tight. Most can't afford to pay much extra towards their next mortgage payment. So, they the minimum payment and the maximum interest. If you would be wealthy, you need to make cuts. Notice how even small monthly expenses really add up.
Now look at your monthly bills. How much can you cut?*
10, 20, 30, 40, etc. Minimum $15. You might need to pack a lunch to work. Maybe you need to turn the A/C down a notch or two. Maybe you can get new insurance that saves you $50/month. Get creative. The more you can cut, the more you will save! Paying off your home in 9 years and saving $100K+ is definitely possible.

The Sunny Day
You probably know what a rainy day fund is, right? (You should have 3-6 months of cash available in case of an emergency, or a rainy day.) Welcome to your Sunny Day Fund. The extra money you pay now will really add up in the future. Work a little now, and play a lot later. This is why you get out of debt. As soon as your biggest debt is paid off, you will be amazed: the world will open up for you. This is the Sunny Day. Wait until you see what your sunny day is worth.

Principal Mortgage Insurance
One final topic. Principal Mortgage Insurance (PMI). Many people who get a 3.5% interest rate on their mortgage also pay PMI. So, even though it seems like they have a great rate, with PMI, 3.5% is more like 6.0%. Until they pay off 20% of their loan (which is likely around 10 years), they actually don't have a great rate.
Do you pay Principal Mortgage Insurance (PMI)?*
- Yes
- No
- I don't know

Be Not Uncharitable
Well, that about wraps it up. We will analyze your mortgage and will have a business plan back to you within 2 business days. But one last thing to remember. Money is important, and we spend our lives working for it. But there are many things that are much more important than money. A final thought from Benjamin Franklin:
This Doctrine, my Friends, is Reason and Wisdom; but after all, do not depend too much upon your own Industry, and Frugality, and Prudence, though excellent Things, for they may all be blasted without the Blessing of Heaven; and therefore ask that Blessing humbly, and be not uncharitable to those that at present seem to want it, but comfort and help them. Remember Job suffered, and was afterwards prosperous. (Benjamin Franklin, The Way to Wealth.)
Thank you again!
Before we finish, is there anything else we should know about your mortgage situation?

Pay off mortgage and see how

$1 How much can you save? Take the challenge, make a plan.

How much can you save?

Step 1 of 11 - Spending and Saving

Spending and Saving

The Mortgage

Mortgage Interest

Prepayment Benefits

A Dollar Saved is Five Dollars Earned

$2 Saved is $1,000 Earned

$2 Saved is $1,000 Earned

If You Would be Wealthy

The Sunny Day

Principal Mortgage Insurance

Be Not Uncharitable

Homes in Order

Recent

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How much can you save?

Step 1 of 11 - Spending and Saving

Spending and Saving

The Mortgage

Mortgage Interest

Prepayment Benefits

A Dollar Saved is Five Dollars Earned

$2 Saved is $1,000 Earned

$2 Saved is $1,000 Earned

If You Would be Wealthy

The Sunny Day

Principal Mortgage Insurance

Be Not Uncharitable

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Homes in Order

Recent

Search

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