I CONGRATULATE YOU in your decision to take the first step towards a debt free tomorrow in a more "conventional" way, by accelerating it (paying it off faster without increasing your out of pocket expense).
Even though a few people do know what they are doing financially…. Most people have NO IDEA...
Most people keep getting deeper and deeper into the credit nightmare. Paying the mortgage and food etc. with credit cards.
In ten or twenty years, you'll be thankful that you had the discipline to stay with this program. What will it cost YOU if you delay taking action?
Debt is a MASSIVE issue today...
- People pay over $50,000 just to get $5,000 back in tax savings
- People pay $175,000+ back just to borrow $60,000 at @ 10%
- On a $500 mortgage payment, usually well over $400 is interest
- Most people can't retire, because they are still making payments
- Debt is a MAJOR factor when couples get divorced in the USA.
- And there are many more problems that you will hear about…
There are many benefits for starting to use this today (don't let this sit)
- You can begin building equity up to three times faster.
- You can have your debt paid off much sooner.
- You can save tens of thousands in interest.
- You can do this without refinancing your loans.
- You can do it WITHOUT increasing your current monthly expense!
That's the reality… so there is where we come in.
You will see that the Strategies used are simple and straight to the point. This is not rocket science. We are not "trying to look smart", or "fill you with a bunch of bull". We will be straightforward and right to the point. This is the financial strategy and debt elimination business. The exact definition of the "JOB" is "To analyze a situation and recommend a customized strategy to achieve better results" with the help of our calculators. With money, there are NO standards… everyone is different. Therefore… we use EXAMPLES and it is up to you to "play" with the calculators to customize your Strategy.
- It's easy!
- It's powerful!
- It works!
The Strategies are simple… yet… statistics say that over 90% of consumers and homeowners don't know about them. Our industry charges people just like you Thousands to do this for you if you are not a client, so even though what you are about to learn may seem simple after you've learned this is never-the-less, extremely powerful and effective. Keep in mind, a financial consultant within our industry (The Money Business) is just someone who knows the answers to questions such as:
- How do I eliminate my debt?
- How do I save more money?
- How do I make my money work for me?
- How do I make money grow?
And he/she is NOT a "brain-surgeon" or a "walking encyclopedia".
Yes, you can do it too. This Manual is used to train you how to do what we would have done FOR you, IF you were OUR client and wanted to eliminate your debt, and nothing else. It is written as THE CONSULTANT (Me) talking to THE CLIENT (You). This way, you can learn and use (copy) the exact same thing that I'm about to tell you with your clients, if you opt to make money by helping others eliminate debt by referring them to The Money Manual. That's one of the many things that makes The Money Manual unique!
Here's the bottom line
In our example, you could have saved an average of $50,000 in interest. In our example, each month you delay could cost you $400, on the average, which you will never recover. So instead of putting $400 into the pocket of your lender, why not keep it yourself?
So from now on…
YOU are the client and I am the consultant. I will be explaining the concepts and tell you what options you have and why we use them. That way, you know how I explained it and you can doo the same. This is a powerful addition to your Real Estate a Mortgage Brokering activity, use it well. Then, you "become your own client" and get your customized strategy in place using the calculators. YOU ARE IN CONTROL. Make sure that you read and understand it, or you may have trouble explaining it.
You borrowed the money, or didn't you? 🙂
The biggest financial "drain" you and most consumers face is the amount of interest you pay to creditors every month. This occurs because although Credit Companies make it very easy for you to acquire the goods you want, and a 30-year mortgage makes it easier to buy more home for less money down. This also makes it also easy to fall into the "credit nightmare". Remember, YOU borrowed the money, you got yourself in this situation, and now, you are paying your creditors for it and ONLY YOU can get yourself OUT OF IT THE SMART WAY!
My job is to teach you strategies to systematically eliminate all your debt!
I am on your side… I am not trying to sell you anything anymore ( I already did). I am now your consultant (Financial Advisor) and your friend/business partner. All I want is for you to reach your goal and give us your testimonial.
If you follow the strategies, the results are GUARANTEED!
Did you know that monthly payments are mostly interest for more than half the term of the loan and mortgage payments are mostly interest for the first 23 years of a 30-year mortgage? The early years are the worst. After paying in monthly payments, you will only build an insignificant amount of equity after ten years. So first… we will focus on the biggest "drain" to your wallet, as well as your biggest asset/source of money… your home loan. Even though most of this text refers to Home Loans, the same strategies also apply to home equity loans, boat loans, student loans, loans on airplanes, machinery, business equipment . . . and almost any other loan. And if you think that you are going to miss out on your tax deduction by accelerating your debt… forget it! The tax relief looks like "pocket change". It makes no sense to give your lender $10,000 in interest just to get $2,000 back from the government. People have been systematically fooled (by lender driven campaigns) to believe that keeping a 30 year mortgage and all other debt for its full life is a good thing, because you can experience minor tax benefits. That could NOT be farther from the truth, because the 30 year mortgage, credit cards and all other credit debt is responsible for damaging the financial stability of many good and hard working people who have placed their blind trust in the banking industry. Most people will not be financially prepared for every-day life, NOR retirement (You are probably one of them) and 87% of "us" will fall into the federal government's definition of the "poverty bracket" with incomes under US$10,000 per year. This has now become an epidemic of global proportions and people are "sinking" worldwide. Then… what happened to all that hard earned money? Statistically, you throw away tens of thousands of dollars in interest during your lifetime. Using the methods described in this manual can save this money. This money can be invested and saved for retirement as we explain on the Live Training Sessions. When you realize what is happening to your hard-earned money, and how much of it has been, and is being wasted on interest… you can't ignore the FACTS. The Real Cost of Buying a Home Do you realize it can cost you $300,000 to pay off a 30-year $100,000 mortgage? That's $200,000 in interest to borrow only $100,000! YES… it's true… $200,000 in interest payments! If you think that's bad news, let's look at the first years of your debt and watch the " Dream" turn into a nightmare . . . The First Years are the WORST! Here's an example as if YOU had a 30-year $100,000 mortgage with monthly payments of $800. We will "round it of" to the nearest $1,000 to make it simple. When I have finished explaining this to you, you will be able to customize a strategy right for you.
- After one year you've paid almost $10,000 and about $9,000 went to interest.
- After 3 years, you've paid almost $29,000 and over $26,000 went to interest and your equity is only about $2,000 after "blowing" about $29,000!
- After six years you've paid over $57,000 but you only added $5,000 or so to your equity. And if you decide to sell your home at this time, you will not make what you expected and should be glad to break even after Real Estate commissions are paid. (sorry)
And this is WITHOUT counting al your other debt such as:
- Credit Cards
- Student Loans
- Business Loans
- Dental Plans
- Medical Plans
- Personal Loans
- Other Loans
- Car loans
- Medical Bills
- Any other loan with interest!
When you use these simple strategies, it only means More Money to You! Did you ever think what you might like to do, if you had your home paid off 10 or 20 years sooner? Maybe retire early . . . much earlier than you could have, if you were still making payments. Maybe begin taking what had been your mortgage payment and investing it so you will be able to retire in LUXURY. Think about it… if you didn't have those payments… what would you do with the money saved?
My recommendation to you is
- Systematically pre-pay and eliminate all your debt and begin to generate additional income to aid the process by referring others. That way, you could even invest your earnings to further reduce your debt. That's the BEST investment you'll EVER make!
The trick becomes in doing it without any additional out of pocket expense.
But before we talk about "the buffer", why accelerate? Because there is only ONE true way to systematically eliminate debt and that is to PRE-PAY IT the SMART way UNTIL IT'S ALL PAID FOR! Obviously… you need to invest some money to pre-pay your debt systematically, so the "trick" becomes to invest without increasing your current monthly out of pocket expense, right? Many ask me where the best place to invest their money is… They don't even think about investing in accelerating their debt. Debt reduction is the wisest investment you can start with… period. And if you "don't have a few extra bucks to invest", there is the Independent Biweekly option! Either way, YOUR DEBT MUST BE ELIMINATED, PERIOD! Because before you generate wealth… you need to eliminate ALL your negative debt.
Very few people know (much less use it) that by paying your lender the principal amount for the following month with this month's regular mortgage payment, you can save the interest charge for that next month's payment. Because when the next monthly payment is paid, it will be credited as though it was payment #3, because by prepaying the principal for payment #2, you bypassed payment #2 permanently. Another benefit: The lender will reduce your payment schedule by one month since you prepaid one month. Cool huh?
And as each payment comes due...
Usually every month, your lender will be calculating the exact amount of interest you are liable for, based on the outstanding balance on your account (your principal amount due.) When your check arrives, the lender first deducts the amount due for interest (and escrow, if any), then applies the remaining amount to the balance due on your debt. In America, almost 90% of homeowners never pre-pay any of their loans and only about 3% pre-pay on a regular basis. This helps explain why about 95% of Americans can't afford to retire. They financed their biggest single purchase with an expensive 30-year loan. What exactly is pre-paying or accelerating your debt? Strategically adding an extra amount to each payment or using a Biweekly payment strategy. This prevents your creditor from charging you compound interest on the amount you pre-paid. And we don't mean just one payment, but continuously, every month until it is PAID FOR!
Prepayments cost you nothing extra... why?…
Because you have to pay back the money you borrowed anyway, right? You're just doing it systematically and ahead of schedule and, in the process, saving tens of thousands of dollars that you would have otherwise wasted. A number of people think that pre-paying a loan can be an expensive idea. That is not true. Because if conserving money appeals to you, then you should NOT pay your debts as scheduled… you should accelerate them or you WILL be wasting your money.
I'm your consultant and I think that just as you invest your money in whatever you choose, your debt elimination strategy should be looked as the most important Investment of your life. After all, you're living with it every month. Investing money in accelerating your debt or applying an Independent Biweekly strategy (if you are low on funds) is one of the best investments decisions you'll ever make, hands down! This is a perfect example of "your money working for you". You must understand how debt works and be in control of your finances… or you will become a statistic in the bankruptcy courts.
4 easy options
There are 4 ways you can accelerate your loan. Let's take an $80,000 loan with a $700 monthly payment for this example.
- With a 30-year $80,000 mortgage with a $700 monthly payment, just by adding an extra half monthly payment every six months ($350), you can save over $53,000 and pay off your loan about 8 years early. That means that you can save 100 monthly payments.
- OR… you could apply a full monthly payment ($700) once each year which would result in similar savings as in the example above. Using this system would pay off your loan about 8 years early. Obviously, the six-month system is a better choice… if it's compatible with your financial position.
- But… adding only 1/12 ($60) of the monthly amount to each monthly payment ($60) will result in the beginning of your dreams coming true and will save you a fortune. The amount you save in interest is relative to the amount you add to your payment each month.
When accelerating… OPTION #3 is obviously the best one, right?
That's the BEST "bang for your buck". Just ADD 1/12 of the monthly payment towards the loan's PRINCIPAL every month until it's The Money Manual This is the absolute BEST way to accelerate any debt. Every month… like clockwork. Since it IS the most powerful option, we'll show the effect of adding 1/12… or… $60 on top of this example's regular payment every month to reflect the results on option #3. We are rounding off these figures for simplicity. Look at what happens
- The monthly Principal and Interest payment for the above mortgage would be about $700. Dividing the $700 payment by 12 gives a result of about $60. So by adding $60 to each monthly payment, (bringing the total monthly Principal and Interest payment to $760), the mortgage term would be reduced to about 258 months, thus saving 8 and a half years.
- Your interest expense would be reduced to just over $105,000, saving you more than $54,000 vs. the standard 30-year term. And that's just by adding $60 per monthly payment…. and just because you're doing it strategically.
Imagine the savings if you added $100 per payment!
Your term would drop to 217 months. That's 18 years and one month, a savings of almost $75,000 in interest payments. Now, imagine if you added $200, $300, $500 or more… which could be done with your earnings from referrals to The Money Manual and Earthblock PRO, right? either way, remember, this is an investment and is not costing you ANY extra money! BUT... WHAT IF YOU want to eliminate your debt but ARE "FLAT BROKE" and don't have "any EXTRA cash" to invest towards a DEBT FREE tomorrow?
OPTION 1: Refer others
- Anyone .....with any kind of debt
- Anyone .....in the Financial Industry
- Anyone .....in the Real Estate Industry
- Anyone .....in the Lending Industry
- Anyone .....in the Futures Trading Industry
- Anyone .....in the Investments Industry
- Anyone .....in the Sales Industry
- Anyone .....in the Network Marketing Industry
- Anyone .....young or old... with the desire to make and save money
Therefore, helping others accomplish what you are will make you a strong residual income. You don't have to do the "work" and all the marketing materials are already set up and ready for you to use. You could easily make more than enough to accelerate your debt and eliminate it in a few years. Just read the compensation plan to see how much you can make by referring others. 1 sale pays 20% and then it continues… 7 levels deep. So believe me, you will be impressed with the results if you take this option! And better yet… your entire marketing machine is set up and ready to GO right NOW!
OPTION 2: Refinance your home
Many think that borrowing money to pay off debt is "stupid". Well… it is… unless you are using it to strategically eliminate all your debt completely. This strategy only applies if there's equity in your property and a new loan can be secured. In this scenario, the ONLY reason you are borrowing money on your property is to have enough cash to PAY OFF most or all of your short term debt that is eating up your monthly cash flow. Your numbers may differ, but let's assume that you are paying $300 on your car, $250 on your credit cards and $350 in other misc. loans such as department store credit, mail order etc. Then, you are spending $900 in monthly payments. This means that if you pay as many or all of these debts off through a refinance, you can experience an extra $900 SAVINGS in your monthly expense. You would now have $900 IN EXTRA CASH EVERY MONTH and you are to invest it by applying it towards the PRINCIPAL on your newly taken (refinanced) home loan on a MONTHLY BASIS. Make sure that it is applied to the PRINCIPAL and this new loan will be PAID FOR before you can imagine!
OPTION 3: Start your own "Consulting" business
You can already show others how to eliminate their debt through The Money Manual and get compensated 6 levels deep for doing so, but if you want to take your knowledge to another direction, you can also do the service for clients and charge a consultant fee just like "other industry professionals" do every day. Normally, you can charge 1-10% of what the client will save with your strategy but this option comes with a lot of responsibility. Your fee can be an average of $2,000-5,000 per deal, but please check with your local department of finance before opening any consultant business and make sure you comply with any applicable laws. Also, make sure that you know what you are doing before playing with other people's money.
But... what if you can't even refer others or have a house to refinance or can't even run a consulting business from home?
In the event that you can not afford a few extra dollars towards a debt free future, apply an Independent Biweekly Schedule and you will get impressive results anyway. Awesome huh? An Independent Biweekly Structure yields about 99% of the savings of a true bank originated biweekly mortgage, but without the need of refinancing! It simply "creates an extra monthly payment every year and without you even feeling it".
How does an Independent Biweekly schedule work?
There are 12 months in one year. Multiply the 12 months by 4 weeks and you have 48 weeks. But there are 52 weeks in a calendar year. This means that there is AN EXTRA month "hidden" from the MONTHLY PAYMENT theory. That's the foundation and thought behind the Biweekly. To take advantage of the "hidden month phenomenon" twice per year. A biweekly strategy can reduce the term of the loan by about one third, allowing 30?year mortgages to pay off in about 20 years. It also allows you to double or triple your equity growth and can save you an average of $70,000 in interest on a $100,000 mortgage.
But… your bank cannot convert your average loan from a monthly to a true biweekly without refinancing it.
And besides, Biweekly loans are EXTREMELY rare and hard to find/qualify. A lender managed biweekly conversion means paying off your old loan and starting a new one with all the origination fees and start-up costs. Another big disadvantage to a bank originated biweekly mortgage occurs if you are unable to keep up with the biweekly payments. Generally, if you have a problem with your payments, the lender will charge you late fees, and may want you to refinance again, back to a 30-year loan.
If you want the benefits of the biweekly method without the high cost of refinance, you'll have to do it yourself. Biweekly mortgages are here to stay (Popular in Canada). They offer a very effective tool for building equity and reducing interest without heavily impacting your budget, especially if you're paid biweekly. The higher the interest rate you are paying, the more beneficial a biweekly payment plan will be. One BIG disadvantage of a bank originated biweekly mortgage is that the extra mortgage reduction payment is usually only made once each year.
With an Independent Strategy, like The Independent Biweekly Strategy explained herein, you have the option of changing the payment plan to fit your circumstances, should you run into a problem. With banks, you don't have that option. Unless you're given a much better interest rate (which some banks do offer for biweeklies), it makes more sense to just prepay your mortgage. That way, you have the flexibility of making prepayments whenever you wish, but you're not required to make them with an Independent Biweekly Strategy. 🙂
Here's what to do to set up an Independent Biweekly Strategy:
1. Open a "separate" (free) checking account at your (a) bank.
2. Deposit 1/2 monthly payment into this "separate account" every 2 weeks. 3. Pay your lender your entire monthly payment as usual. 4. Every 6 months, an "overage" equaling 1/2 payment will be created in this "separate account". 5. Use this "overage" and apply it towards the PRINCIPAL of your loan. 6. Continue your biweekly deposits and repeat the prepayment every 6 months until your debt is The Money Manual
- Open a "separate" (free) checking account for easier tracking
- If your payment is $1,000 per month
- Deposit $500 into "the separate" account every OTHER week
- Make all your monthly payments as usual
- Apply the overage, or $500, towards the PRINCIPAL every 6 months
- Do it again until it's PAID FOR!
These 2 strategies can cave You money on other purchases as well. The Money Manual's debt elimination strategies is not limited to home loans. It works equally well on equity loans, boat loans, student loans, loans on airplanes, machinery, business equipment and almost any loan.
Don't send in any extra money with your monthly payment without specifically telling the lender what to do with it. That's the worst thing you can do. Most people that "think" they are smart and are accelerating their loans are actually giving their creditor a NO interest loan for 30, 60 and even 180+ days. If you don't tell your creditor EXACTLY what to do with your EXTRA amount… What do you think will happen?
Do you think your lender will:
A. Help you make THEM more money?
B. Help you make THEM less money?
Because if you don't tell your creditor what to do with this "excess money" you just sent in, it will most likely get applied to an escrow account, which gives absolutely no value to you.
If you use your lender's payment coupon and that coupon has a box to select prepaid interest instead of principal, you could be completely wasting your prepayment efforts. MAKE SURE YOU ARE APPLYING THE EXTRA PAYMENT TOWARDS THE PRINCIPAL BALANCE and make sure that your creditor understands it! If your lender approves it. Write the following in BIG RED LETTERS on EVERY monthly "Invoice" or "payment coupon" of ALL the accounts that you plan to accelerate. Find a VISIBLE spot on the paper, or better yet, attach (staple) a separate note to your CHECK stating your name, account number and the following instructions:
Dear CREDITOR. I have included $??? more than my minimum monthly payment so that I can pay down my principal balance immediately. $??? are to be applied towards the principal balance of this account immediately in order to lower the principal balance by $??? right away. DO NOT deposit these extra $??? into any escrow account, ever. By accepting my payment, you are acknowledging that you understand this very urgent and specific request. Thank you. If you have any questions, please contact me as soon as possible. %name% - %phone%
I know, I know…. ridiculous, right?! 🙂
But that's the way you need to talk to creditors, or they will do as they please, I guarantee it! Some loans restrict the frequency of prepayments during the course of a year or the life of the loan but such loans are rare (but they do exist). Further, there may be times when you might be unable to make a principal reduction payment. If your financial position varies, you might wish to pay your principal reduction payments once or twice per year.
How to get started
- Get ALL your monthly bills (Credit Debt) together and sit down in a comfortable place (kitchen table, living room, bedroom etc.)
- Make sure that you look for and know exactly:
- How much the outstanding balance is on EACH account
- How much you are paying in interest on EACH account
- How many monthly payments you have left on EACH account
- Use Calculator 1 if you are ACCELERATING (ADDING) to your payment or
- use Calculator 2 if you are applying an Independent Biweekly Strategy. and/or
- If you want to/need to refinance, use the debt consolidation calculator.
- Enter your home loan, credit cards and/or other debt individually. Then click "calculate" and print out every payment schedule individually. This way, you will know exactly what to do on EACH account.
- As an option, you can begin to tell others about The Money Manual to create some extra cash or generate a powerful on-going income and maybe even increase your pre-payments to maximize your "new investment".
- Follow your Strategy Payment Schedule (printout) and you will reach your target… GUARANTEED! It's THAT simple and accurate. You can begin making prepayments anytime you wish, and stop anytime.
We said it once, twice and we'll say it again and again! Accelerating debt don't cost extra! When it comes to making loan payments, you will always have to pay the principal back no matter what. Nothing is stopping you from Investing your money in pre-paying your loan(s) principal and getting HUGE rewards as a result. But if you refer others to The Money Manual, you will be accelerating all your debt with your earnings, (NOT from your pocket), and securing your financial future once for all. Since prepayments cost you nothing, there's no harm in investing in yourself, or using your earnings to accelerate your debt. Even if the amounts are small and sporadic, don't worry. Every extra dollar you invest in paying off your debt matters. Regular monthly prepayments are preferable, and give simple results compared to making sporadic prepayments. But… any amount added, to any payment, produces positive results. The amount can be anything you can afford, but don't stop prepaying. In ten or twenty years, you'll be thankful that you had the discipline to stay with this program. What will it cost YOU if you delay taking action? Here's the bottom line. In our example, you could have saved an average of $50,000 in interest. In our example, each month you delay could cost you $400, on the average, which you will never recover. So after you know how EASY eliminating debt the right way is, instead of putting $400 into the pocket of your lender, are you going to keep it for yourself? 🙂 (I bet you are!) Again, here are just a few benefits for starting to use this today (don't let this sit)
- You can begin building equity up to three times faster.
- You can have your debt paid off much sooner.
- You can save tens of thousands in interest.
- You can do this without refinancing your loans.
I hope to see you 100% DEBT FREE soon!
Here are the calculators for your use: