Principle of Giving to God's Work | How to Use This to Build Your Church | Your Commitment | Credit Cards | Snowman Principle | Principle of Rock Salt | Myths and Other Lies | Owning Your Own Home Based Business | Investing for the Future | Books I would recommend you read | Learn From My Mistakes | The Disaster of Indebtedness | Links to Other Helpful Sites | My Web Map-Table of Contents
Become Debt Free In 4-9 Years
Principle of Rock Salt

Melting away your snowman only happens if you place the melting agent on the top. Laying rock salt around the bottom will take too long. So attack the top of the snowman.

Hints on finding extra money.

1. If you eat out for lunch every day, you will spend about $50.00 a week, or $200.00 a month. Take your lunch 3 days a week. Savings----approximately $120.00

2. Do not go to the grocery store when you are hungry. You will buy more than you need. Always make your list out before you go, and do not impulse buy. Savings----$35.00

3. Utilities. Turn the thermostat up 3 degrees in the summer and down 3 degrees in the winter. Use long distance during non peak hours. Watch the water consumtion. Savings----$50.00

4. Car maintenance. Change your own oil and do routine maintenance yourself if you can. Savings-----$20.00

5. Mow your own lawn. Savings-------40.00

6. Evaluate your membership in private clubs, Rotary, Kiwanis, Health Clubs, Golf, Fishing and other sports. Remember when you get out of debt, their will be plenty of time and money for those things. Savings----$50.00

7. Cancel magazine subscriptions. Cancel unneeded computer services. Monitor your cost of movie rentals. Go to the early movie on the matinee prices. Savings---$40.00

8. Stop smoking. Savings----$100.00

9. Do not buy credit life insurance on your debt. It is very high, and you can get a better policy from your insurance man. Savings-----$50.00

10. Never buy a new car again. They lose several thousand dollars in value when they go out the door of the dealership.

Put your thinking cap on and determine how much money you have to apply toward your debt. Amounts above are estimates only.

OK. We have built the snowman, and got the rock salt. Let's start melting this big fellow.

Your remember our first debt was $500.00 and the payment was $25.00 per month. Now let me show you how to calculate your debt freedom date. Place these dates beside your snowman, and watch him melt away.

Let's assume we have $200.00 worth of "rock salt" to apply toward your debts. That means that Mr. Visa is paid $225.00 per month which is $200.00 rock salt and $25.00 regular payment. In three months, he is melted.

Gone forever. Don't cheat. Cut that little baby up and throw it away.

OK now. Radical change. We do not go out and get a new debt, but we apply that $225.00 to the Master Card along with the $40.00 regular monthly payment and in about 4 months it is paid off. In figuring these amounts you can look at your old bills and determine how much interest the lender is adding each month.

Ok, now the snowball is rolling. Two debts gone, the rock salt is still working, but staying with the snow principle, we now want to keep the snowball rolling. It will get bigger and bigger.

Now let's apply the $265.00 along with the $65.00 payment to the furniture debt. $330 will pay off that $1250 debt in about four months.

Wow, ten months and 3 debts are history. $130.00 per month in mostly interest payment are in our control again. We are getting somewhere and getting excited.

Now let's attack the wife's car payment. The snowball is now $330.00 plus the $250.00 regular payment. That gives us $580.00 to pay off that $4200 debt, which is a little smaller now, ten months after we started. So in about seven months it is paid off. Wow!

Now to the mister's car. $580.00 plus the regular payment of $250.00 gives you $830.00 toward that big old beast. Balance now is about $8500.00 and in about one year it will be paid off.

Break out the party horns. Take the kids out for a Happy Meal. Two and one half years and all the debt is gone except the house. Now be sure and read the page about home mortgages, and how the mortgage companies are ripping you off. It will blow you away.

Ok, $830.00 to apply to the house. Let's say you had been living there one year when you started this program. That means you have 29 years left to pay on it. Now it is two and one half years later, so you still have 318 payments left. Twenty six and a half years. Now watch what happens when the same principle continues.

Let'assume your house loan was $95,000 8.5%, thirty year loan. Your payment of principal and interest is $730.47 and taxes and insurance gives you a total house payment of $900.00 Now you have 26.5 years left on the loan, and you will have paid back $265,944 in thirty years on that loan.

Let's now continue our plan. Take the $830.00 and apply it to your $900 and make $1730.00 a month payment on your home. Payoff will be in 80 months or 6.5 years. You will have paid back $124,763.00 and saved yourself $141,181 dollars in interest.

If you do not have a mortgage loan calculator, just go to any seach engine and type amortization schedule, and several will pop up, so you can calculate your own home loan.

Debt Free!

It took us 112 months in this illustration, or just a little over 9 years. That gives you a little perspective when you think it would have taken you thirty years to pay off that home. Most folks move every seven years, and start the pain all over again.

Investing for the Future

Owning and operating your own home based business is probably one of the best ways to conserve money. Millions of Americans are doing this and the tax writeoffs are very available.

You can write off part of the cost of your home, automobile and many utilities. Your meals can be partially deducted when meeting with business associates.

I have owned my own home based business for over thirty years, and it has given me great benefit.

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