No, no, this is not about how to get a rebate on your mortgage, but it is a clever little trick that really brings in the statement, " pay yourself first!". Well, what I've figured is that after 20 years, people are quite used to paying maybe 1,000 dollars a month on their mortgage. So what if they continued to do that into a savings account? That's an extra 12,000 dollars a year you're saving! So lets say that once you've paid off your mortgage, you were looking forward to opening up a little more cash flow. So let's say you only paid 10,000 dollars a year. If you continue to do this for 10 years, at a 10 percent return rate, here's what you would end up with.
The numbers, in order, are: year, annual investment, earnings and ending balance.
1 $10,000 $1,000 $11,000
2 $10,000 $2,100 $23,100
3 $10,000 $3,310 $36,410
4 $10,000 $4641 $51,051
5 $10,000 $6,105 $67,156
6 $10,000 $7,716 $84,872
7 $10,000 $9,487 $104,359
8 $10,000 $11,436 $125,795
9 $10,000 $13,579 $149,374
10$10,000 $15,937 $175,312
I could go on like this for I don't know how long, but I'm bored of making a chart with tabs and spaces, so I'll do it some other time. So there's the amazing ways of paying for a second mortgage without having a second home!
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2 comments:
good how if you can do it. takes a lot of self control. finally figured out how to comment in this different blog space
that was supposed to be "show"
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