How is a game of chance going to help you understand mortgages, debts, or what life’s priorities should be? Well, stick with me, and I’ll walk you through it. We’ll start small and simple, like the first roll in a game of Monopoly, and work our way up to financial graduation.
You might be here because I asked you to check out my blog, or maybe you’re searching for the secrets of life (or at least how to save money). If you’re after secrets, I’ve got a big one for you: I’ve never lost a game of Monopoly. Ever. Monopoly is my game because it mirrors real-life financial strategies—except, of course, with fewer consequences if you land in jail! The goal is simple: get as rich as possible, acquire properties, and avoid mortgaging them. Pouting, guilt-tripping, and making clever trades are all part of the fun.
Here’s where it gets interesting: in Monopoly, if you’ve got Boardwalk mortgaged and someone lands on it, the rent doesn’t go into your pocket. In the real world, if your property is mortgaged, that rent isn’t padding your wallet either—it’s paying off interest! My biggest beef with Monopoly? That rent should go to the bank. Let’s debate that all day if you’d like (comments are open!).
For now, let’s focus on the basics. In both the game and real life, you want your mortgage paid off as soon as possible, so when someone “lands” on your property, that money is yours. In the game, I spend whatever I can to un-mortgage my property as soon as I have enough cash. Why? Because there’s only so long you can skate by with everything mortgaged before bankruptcy or foreclosure catches up with you. Who wants to sell their property to pay the bills?
This Week’s Mortgage Tip: Budget Like It’s a Game
Take this lesson and apply it to your own life. If you budget everything carefully and allocate any windfall—tax returns, that $200 you collect when you pass "GO," or even that small prize from placing second in a beauty contest—to your mortgage, you’ll pay it off sooner and free yourself from years of interest payments. Also, reduce flexible expenses to a level you can live with. I can help you with that through my mortgage management workshop.
Now, I’m no banker in Monopoly, but as an Independent Mortgage Broker in Calgary, I know a thing or two about interest. In fact, it’s often what gets clients calling me in the first place. They want to know, “What’s your best rate?” If I were the Monopoly banker, my answer would be easy: 10%! That rate wouldn’t compound every trip around the board, it wouldn’t come with prepayment privileges, and you definitely couldn’t port it to Marvin Gardens or anywhere else in Alberta. Sounds great, right? Well, in reality, even a rock-bottom rate like 3.25% comes with important questions:
- Can you port your mortgage if you move?
- What are the costs to close it early?
- How much extra can you pay on it each year?
- Will the bank call you if the rates change?
The smartest move isn’t just about the rate. It’s about understanding the product and how it fits into your life. I start by understanding the needs of my clients, then make product suggestions that fit those needs. Quoting a rate and pulling it away because the client didn’t tell me their full story? That’s a nightmare for everyone.
Prioritize Your Mortgage Payoff
By now, paying off your mortgage should be high on your priority list. The faster you pay it off, the less interest you’ll end up paying over the years. If you need advice—whether it’s on choosing the best mortgage or even deciding whether to pick the dog, thimble, battleship, or top hat in Monopoly—I’m here to help.
Dependably yours,
Michael Richmond
- The First Place Winner of the Beauty Contest
P.S. If we ever play Monopoly together, I call dibs on the top hat!
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