Did you know all my lessons start with a story?
It was a warm Friday night that I peddled my bike up to the big metal gate
topped with barbed wire. I knew that
gate would be closing soon, so I had to do something to get back home without going around the whole base.
I followed the fence line down a bit and hide my bike in some grass behind a shrub. I then walked back to the road and the gate thinking I was so smart for planning ahead. In the past, I realized that getting yourself over a fence, with a bike on your back is so much harder when there is barbed wire on the top, you are wearing shorts, and you may or may not have had a pint of Jupiler.
I was headed to this little place called “My Friends” which often was an off base meeting spot for many of us brats. Half way between the gate and the little public house, I heard some loud noises which I immediately identified as fireworks, and everybody loves fireworks! I picked up my pace so I would not miss the show. Moments later I saw in the bush a group of people running. I walked over to them and asked what was up, as I knew them all.
They said someone called the Military Police
(MP) on them for the fireworks so they were running away. Just as that was stated I heard a screech, a
big flood light hit me like it was day again.
I was like a deer in head lights. Flutterpated so to speak. My peers in the bush, shouted. "RUN! RUN! RUN!.." What did I do?
I ran.
I climbed over the fence that was separating us, and ran into the bush with the flood light on my back. Sprinting was so easy back then will all the training we did every day. What was not so easy? The poison ivy, and stinging nettles and the branches that burned and scratched my legs as I sprinted through the trees till there was no more light from the MP's.
My legs were cut, and I was curdled in a ball in a bush listening to see if they were were being chased. When the coast was clear, I worked my way back to my bike, and it was gone! The MPs had taken it according to an innocent bystander. I went to a buddy’s house changed, and went down to the police station to collect my bike which by this time it was 2 in the morning.
The hour long question period held all sorts of accusations. They loved questions like, Why did you run? What were you hiding? Did you have anything illegal on you like fireworks or drugs? The receipt of the bike claimed was mailed to my house, and the pick-up time was highlighted for my parents attention, and they did not seem too happy. I think I was in a little bit of trouble.
1) If you do what you’re told before thinking things through you could be at risk of very negative consequences. Like signing a mortgage renewal notice from the bank without checking all the rates.
2) Going with the flow, and not changing or asking yourself why or is the a good move could get you into hot water.
Lets pretend for a second you are not very special, and just completely average. I know hard to imagine. But, please just imagine here ok?
Do you know what the average level of consumer debt is?
First, we take the national
average of consumer debt of $28,853 and for the record this is non-mortgage
debt! Things like credit cards, car loans, lines of credit fall into
this category.
Second, we average a rate on these credit facilities. For ease of numbers we can use the average credit card rate of 19.25%
Third, using these numbers we figure out what we would pay per month to pay off just the minimum payments. This would take you 364 payments to get it paid off.
Forth step is to figure out how long you would take you to pay it off. We would be sitting at 30.33 years to get it down to zero.
You would have paid in total around $31,943 in interest as well.
What am I saying? Two things.
Pay down your principle as fast as possible by making more than your minimum payments when you can.
AND/OR
By Michael Richmond
I followed the fence line down a bit and hide my bike in some grass behind a shrub. I then walked back to the road and the gate thinking I was so smart for planning ahead. In the past, I realized that getting yourself over a fence, with a bike on your back is so much harder when there is barbed wire on the top, you are wearing shorts, and you may or may not have had a pint of Jupiler.
I was headed to this little place called “My Friends” which often was an off base meeting spot for many of us brats. Half way between the gate and the little public house, I heard some loud noises which I immediately identified as fireworks, and everybody loves fireworks! I picked up my pace so I would not miss the show. Moments later I saw in the bush a group of people running. I walked over to them and asked what was up, as I knew them all.
I was like a deer in head lights. Flutterpated so to speak. My peers in the bush, shouted. "RUN! RUN! RUN!.." What did I do?
I ran.
I climbed over the fence that was separating us, and ran into the bush with the flood light on my back. Sprinting was so easy back then will all the training we did every day. What was not so easy? The poison ivy, and stinging nettles and the branches that burned and scratched my legs as I sprinted through the trees till there was no more light from the MP's.
My legs were cut, and I was curdled in a ball in a bush listening to see if they were were being chased. When the coast was clear, I worked my way back to my bike, and it was gone! The MPs had taken it according to an innocent bystander. I went to a buddy’s house changed, and went down to the police station to collect my bike which by this time it was 2 in the morning.
The hour long question period held all sorts of accusations. They loved questions like, Why did you run? What were you hiding? Did you have anything illegal on you like fireworks or drugs? The receipt of the bike claimed was mailed to my house, and the pick-up time was highlighted for my parents attention, and they did not seem too happy. I think I was in a little bit of trouble.
What does this have to do with saving money on your mortgage? Two things.
1) If you do what you’re told before thinking things through you could be at risk of very negative consequences. Like signing a mortgage renewal notice from the bank without checking all the rates.
2) Going with the flow, and not changing or asking yourself why or is the a good move could get you into hot water.
Lets pretend for a second you are not very special, and just completely average. I know hard to imagine. But, please just imagine here ok?
Do you know what the average level of consumer debt is?
First, we take the national
average of consumer debt of $28,853 and for the record this is non-mortgage
debt! Things like credit cards, car loans, lines of credit fall into
this category.Second, we average a rate on these credit facilities. For ease of numbers we can use the average credit card rate of 19.25%
Third, using these numbers we figure out what we would pay per month to pay off just the minimum payments. This would take you 364 payments to get it paid off.
Forth step is to figure out how long you would take you to pay it off. We would be sitting at 30.33 years to get it down to zero.
You would have paid in total around $31,943 in interest as well.
What am I saying? Two things.
Pay down your principle as fast as possible by making more than your minimum payments when you can.
AND/OR
If you have existing equity take that consumer debt and roll that debt into your mortgage, then take the money you would have been paying on those debts and put it on your mortgage.
Why? If you are paying that high interest rate you are paying most of your payment to interest and not to the principle. You could save money by consolidating to a lower rate freeing up your cash flow to pay down more on your mortgage! Lets do the math to make sure it works for and how much money we can save. I have my calculator ready, give me a call. I will do the numbers for you for FREE! Email me. Call me @ 4038078779. Or even text if you are not in the mood to talk!By Michael Richmond
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