Financial & Insurance Advice Blog

You were always told to save. Saving is the act of putting money aside to grow for a time when needed. It is hard work, onerous, and requires discipline. The purpose of saving is to increase your wealth to allow you to purchase or to protect yourself from adversity or to plan for when you will not be working. Saving had to be done because disaster and misfortune were just around the corner. The only way to save was to take the money out of funds that were earmarked for spending on lifestyle. Lifestyle is the car you drive, where you live, the movies and restaurants you go to, the vacations you take. It is everything that makes up daily life.

What if you could increase your spending and saving at the same time with the same amount of money you are now earning!

How much money are you now spending unnecessarily and unknowingly. This is the money you don’t know you are spending nor do you have to spend it. This is also the money that can be funnelled into savings without taking away any additional money from your lifestyle.

Let me show you what I mean. You have decided to pay off your mortgage quicker so that once mortgage payments are out of the way, you can start saving. To do this, you are now going to make mortgage payments every 2 weeks and not every month. Your dollar payments every two weeks are now half of the former monthly payments. This now means you are making 26 payment of ½ the monthly payments or a total of 13 monthly payments. This will on average cut your mortgage from 25 years to 19 years. You are saving 6 years.

If you kept to the old monthly payment and since you were willingly to spend it anyway, invest the 13th month payment in whole life insurance, after 19 years you would have a cash value in the policy equal or close to the mortgage balance. In other words, you would be able to pay off your mortgage in the same time period.

However you would have saved the cost of getting mortgage insurance. You would have savings to use at your discretion. You would not have waited to pay off your mortgage (19 years) before starting to save. Lastly, if you chose after 19 years not to pay off your mortgage but continue until year 25, you will be 19 years ahead towards retirement planning.

All this was done without taking money from your lifestyle and without any additional out of pocket spending. I want to be known more for the problems I solve than the products I sell.