August 16, 2017
My Personal House

Do Extra Mortgage Payments Really Help?

When it comes to paying your mortgage everyone knows you can save money on the interest by shelling out a little more and applying it to the principal. That means additional principal payments benefit you later on, right? You may also view one dollar today as the same dollar tomorrow. However, that’s not technically true. It depends on how much and why you spend it. If that seems a little confusing, let me break it down a bit more for you.  That way you’ll know how much you really are or are not saving. Paying Extra on the Mortgage Let’s look at an example of what I’m trying to say. Here are some assumptions we’ll make. Joe Average secured a $300k mortgage for a 30-year term at 5%. He decided to pay an extra $30 each month to save himself in the long run. In doing so, Mr. Average shaves just over a year, 14 months actually, off his mortgage, thereby saving $13,458 in interest. Not bad. What if he doubled that $30 to $60? At that point, his home would be paid off just shy of 28 years. This time he’s saved $25,560 in interest. That’s almost double the […]
July 29, 2017
Debt Reduction

Pay my Mortgage Debt or Invest? Which Should I Do?

The thought of being debt free sounds like a dream come true for most of us. Many folks are wrapped up in credit card debt, car payments, mortgage payments, etc. However, there’s one debt that freeing yourself from could do more harm than good, from a mathematical standpoint. That is your mortgage debt. Honestly, it’s often not a good idea to pay it off or even pay extra on it before age 50. I know individuals in their 30s who received big inheritances, went out and paid cash for a house to avoid a mortgage payment. To them, it was a good idea. I also know individuals that decided they wanted to pay their home off as fast as possible. As a matter of fact, I have some friends that are also clients that ended up in this exact scenario. They bought a house in another state during the downturn of the market. Recently, they sold it and made $100k, to which they planned to pay off the mortgage on their current home making them debt free. I said to him, “You know that sounds good and I understand, but you‘re dealing with about a million dollar decision right now. […]
July 27, 2017
student loan debt

Student Loan Debt: Pay it Off Fast! – Financially Simple

Do you have mounds of student loan debt? If so then you can help knock it OUT quicker by following these seven financially simple tips!
April 28, 2017
5 Financial Do-Overs I Wish I Had

5 Financial Do-Overs I Wish I Had

Whether they’re personal or financial, life always comes with regrets. How many times in life have you uttered the words, “If I could do that over…” Probably many! Just like you I’ve wished for my fair share of do-overs. So today I’m going to share the 5 financial do-overs I wish I had, in hopes that you won’t make those same mistakes. 5 Financial Do-Overs I Wish I Had I wish I maxed out my ROTH contributions the moment I started making money. — If I’d put back $300-$500 a month back when I first began working at 16 years old, the compound interest alone would be unbelievable. However, like most young folks, I wasn’t looking toward the future. Obviously, I hadn’t grasped the concept of compound interest. Albert Einstein is attributed as saying, “Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t pays it.” Whether he said it or not, the truth behind that quote is undeniable. The power of compound interest is truly mind-blowing. I wish I had hatred of debt, the way I do today. — I hate debt! Hate it! I hate it! Hate it! I hate it! To see the crippling effect […]