Welcome to your personalised guide to achieving a rapid mortgage payoff! In this journey, we will help you pay off your mortgage as quickly as possible. It’s time to take control of your finances and become debt-free. Let’s get started on your path to financial freedom!
Get ready for an absolute ripper of an article! Inspired by Case Study 3 from our best-selling book, “Make Money Simple Again,” this article is packed with captivating graphs, charts, tables, and real-life scenarios. Discover life-changing tips and strategies that will revolutionise your finances. Don’t miss the chance to download the book for FREE and embark on a journey to financial freedom!
You are living in Australia, determined to be debt-free, particularly when it comes to your mortgage. You bought your owner occupier property for some time ago, and although it has seen some growth, the current mortgage debt is still there. Your goal is to destroy this non-deductible debt as quickly as possible while interest rates are relatively low.
To achieve this dream, you’ll explore different scenarios using the Money SMARTS system. Here’s a high-level snapshot of your current financial situation:
You have a handy monthly surplus due to your reasonable spending habits.
To embark on your journey to pay off the mortgage, let’s implement the Money SMARTS system’s 7-step process!
Gather your financial documents, including payslips, bank statements, and credit card statements. Familiarise yourself on where to look for those information cause you’ll need it soon. Is it on an online banking platform? What’s your log in to it? Or is it a paper trail? Do you know where you’ve stored them? Or perhaps, is it in your email inbox?
If you are in a relationship and have multiple separate bank accounts, consider combining your finances by setting up a joint bank account. This will allow your combined money to work harder for you, improving your overall outcome. If you prefer separate accounts, you can still use the Money SMARTS system with virtual Jars to track your surplus amounts.
For the Sort stage, record your income, savings, assets, and outstanding debts. This will give you a clear view of your financial situation and help you identify areas where you can cut back on spending to increase your surplus income.
And don’t lose sight of your Motivation! Keep your goal of becoming debt-free in mind. Create a motivational message and put it on your fridge as a reminder of your bigger picture.
How can Moorr Help?: Create your free account in Moorr, log in, and follow the prompts. You’ll be asked to enter some numbers. Don’t worry if you don’t know it off the top of your head. Just put in a rough figure, and you can update it once you know for certain.
Once you have the financial documents, update each section on Moorr, particularly the income, assets, and borrowings sections. We’ll work on the expenses next.
Use the Money SMARTS virtual Flour Jar categories to calculate your income and expenditure. Identify discretionary spending and areas where you can cut back to increase your surplus income.
Categorize your regular spending, credit card expenses, direct payments, loans, and planned provisions spending. Analyze each category to determine where you can save more and increase your trapped surplus money.
How can Moorr Help?: Let’s track your spending!
Once you’ve completed all this, check out your Dashboard on Moorr! This is the coolest part because it tells you how much surplus you have and more. It’s like a profit and loss statement. If the dashboard shows that you should have a surplus in place, but you don’t, it means you may have overestimated your income or underestimated your expenses/repayments. Make sure to check and update accordingly.
This could be a reality check, but use this opportunity to motivate yourself!
For Step 4, you might remember that we mentioned about combining your finances by setting up a joint bank account. Additionally, leveraging our years of experience in money management and insights from the thousands of users we’ve served, we’ve incorporated our account structure recommendations for each category of bills and spending. Please note that this is a general recommendation based on all our users and MoneySMARTS, and it may not be customized to your unique spending habits. So, feel free to tweak it as you see fit.
Once you’ve reorganised your banking structure, make sure to update it in Moorr!
Regularly review your progress and make tweaks to your spending to stay on track. You’re doing great so far, but you can always do better. We’re going to be upfront with you… The first few months of MoneySMARTS are the hardest. From our data, most users tend to understate their expenses. That’s mainly because we’re simply not aware of ALL the transactions.
As you progress on your financial journey, you will need to make adjustments to your plan. Be open to tweaks and improvements that will help you reach your goals faster. Focus on reducing discretionary spending and increasing your trapped surplus money to build the deposit more quickly.
Rollover any surplus money each month to accelerate your savings.
How can Moorr Help?:
Monthly check-ups allow you to track and understand your money and cashflow position in a shorter timeframe to give you some clearer insights into how well you are progressing and controlling your money. In short, you are assessing the cashflow for the month – money in and money out – and tracking it against your yearly targets.
The great news here is, when set-up and it’s running smoothly, this check-up should take less than 10 minutes a month to do! To see the full reporting and insights, you only need to input three figures in Moorr:
And while doing your monthly rollover, if you noticed either of these scenarios:
Review it, ask yourself if you can optimise this and get fitter with the spending and update Moorr. Stay grounded in reality, but never lose sight of the ultimate goal—to pay down your debt and achieve financial freedom. Moorr is here to support you every step of the way, providing the tools and resources you need to succeed.
For the annual rollover, we’ve made it super easy for you on Moorr! Simply head to the rollover section on the MoneySMARTS page and follow the prompts.
By calculating your finances, pinpointing discretionary spending, and setting up your banking for accelerated mortgage payments, you are well on your way to achieving your goal of owning your property outright sooner. The Money SMARTS system and scenarios provided are tailored to support and guide you throughout this journey. Remember to stay focused, disciplined, and motivated, and with dedication, you will see your mortgage decreasing rapidly, turning your dream of a debt-free home into a reality in no time! Keep up the great work!
Let’s explore different scenarios to see how quickly you can pay off your mortgage. This section below is based on the numbers and scenarios in Case Study 3 of our best selling book, Make Money Simple Again. There are heaps more graphs, charts, tables and examples so make sure you check it out. It’s free to download!
Only making minimum repayments on your mortgage will lead to significantly higher repayments over the full term.
In the case study, the couple paid over $1 million in repayments over the full term.
Using Money SMARTS., you can pay off your mortgage faster and save on interest because you are trapping that set targeted surplus to firstly wipe out the Car loan and tackle the Mortgage beast!
Every dollar counts! By adding $50 or $100 extra per week using Money SMARTS, you can accelerate your payoff even more.
Consider consolidating your car loan into your mortgage, but only if it benefits you financially.
If you consolidate your car loan and add an extra $100 per week, it will make quite a significant difference in your payoff timeline.
Make sure to download the free chapter below to find out the difference in time saved, interest paid and interest saved in each of the scenario!
If you’ve been enjoying what you’ve read so far, we’re thrilled to offer you a free copy of “Make Money Simple Again.” Inside, you’ll find some nifty charts, graphs, and tables that make financial concepts crystal clear.
Whether you’re an owner-occupier or aiming to become debt-free, this guide has something valuable for you. Just pick your path below, share your first name and email, and it’ll land in your inbox within the next 5 minutes. Let’s make money matters stress-free!
You’ve got great potential for you to achieve your dream of being mortgage-free. By implementing and sticking to your Money SMARTS system and staying disciplined, you can make a huge impact on your mortgage payoff timeline. Imagine the freedom of being debt-free and the opportunities that await you.
Your future home is within reach, and with the right financial strategy, you can get there even faster. Stay committed to your goal, and success will be yours! Let’s get started on your journey to a rapid mortgage payoff!
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