Pay Off Your Car Note And Mortgage Within 6 Years?
It's been a while, but I'm back, my UPA peoples! I'm going to share a very powerful technique with you on how to buy a house and pay off your mortgage, buy a luxury car (I'm talking $50,000 luxury car) and pay off the car note, all in a matter of 6 years or less! This is only an example. Use different numbers to fit your personal needs (your income, your side hustle monthly income projections, etc.).
"What!? Are you stupid or something?"
Absolutely not! All it takes is an extra $1500 a month. Where are you going to get that from? You should do your best to come up with a side hustle that requires just a fraction of your time while you still have your 9 to 5. This is just starting off, so don't feel sorry if $1,500 a month is all you can make. You're going to see how powerful this technique really is with just an extra $1,500 a month that you don't even need to touch after you've paid your bills and bought the things you currently enjoy.
Let's say you have a job that pays you (after taxes) $1200 a month. With this $1200 a month, you have a cash flow (money left over after you've paid your bills, utilities, living expenses, luxury items, etc. each month) $500 a month (you live with a friend until you can get your own spot). Sucks right? Well, this is why you need that side hustle. People think that they should put that $500 into savings. You can, but we all know how savings gets dipped into very often. There is always an emergency, and that emergency comes when you have the urge to buy the new Jays. Don't feel bad; you're human and we have that part of our brain to buy the things we want. Prepare to stretch your beliefs when it comes to savings, loans, and money.
Okay, you've been working on your credit and finally got it to a point where the banks are willing to hand over their money to you. Don't fear debt. Debt is only scary when you don't have an income that can pay off the debt. Okay, let's say you finally see a house you want, you ask the banks for a loan to buy the house (aka a mortgage). You get approved. The house cost $50,000. Surprisingly, your mortgage is less than the rent your friend was charging you. Six months later you decide that you would like to take out a personal line of credit. Not to splurge and go on a shopping spree. No, you're going to put that towards your mortgage, the whole thing. It'll look like this:
$50,000 - $15,000 = $35,000
You pay off the line of credit with the side hustle money ($1500 X 10 = $15,000). You put in another $15,000 on the 11th month, and you do the same thing again.
$35,000 - $15,000 = $20,000
You like how this is going. You pay off that loan in 10 months and do it again.
$20,000 - $15,000 = $5,000
You pay off that loan and all that's left is to pay off the remainder of the mortgage.
June. 2016 $15,000 Line of Credit (LOC) #1.
April 2017 Paid off LOC #1
May 2017 $15,000 LOC #2
March 2018 Paid off LOC #2 $15,000
April 2018 Took out LOC #3 $15,000
Feb 2019 Paid off LOC #3. Paid the remainder of the mortgage without using LOC.
You were able to pay off a $50,000 mortgage a little less than 3 years. You don't have to pay your mortgage the way the banks tell you to. If you do, you'll be wasting your life paying for something that can be paid off in less than 3 years! You just saved yourself 27 years of built up interest and headaches! Okay, we're not done yet. It's time to buy yourself a brand new luxury car. We're going to buy a luxury car for $50,000. We're getting aggressive with it so right after we purchase the pay off the house; we buy the car.
June 2019 Mortgage paid off/Take out $15,000 LOC #1
April 2020 LOC #1 paid off
May 2020 Take out LOC #2
March 2021 Paid off LOC #2
April 2021 Take out LOC #3
Feb 2022 Paid off LOC #3. Paid the remainder the remainder of the car loan without using LOC.
Okay, you've seen it here in plain English. You paid off a $50,000 mortgage and paid off a $50,000 car note in a matter under 6 years. Let's look at the steps to see how we can get to this level in the game.
1. Build your credit. Try to get to a credit score of at least 700 or better.
2. Work on a side hustle while you have a job. Aim for at least $1,500+ a month.
3. Don't be afraid of debt. Pay off a lump sum on your mortgage and car note using Line Of Credit. Tell the lender you have a job and on top of that, you may have a part-time business that shoots off $1,500 a month consistently.
4. Pay off that LOC in 10 months and reapply the LOC to the mortgage/car note.
5. Repeat until your mortgage and car note is paid in full.
Let me make a note. Even though you are paying in lump sums, you'll still have a mortgage/car note payment each month. You'll be using the money from your job (remember that your mortgage payment is already in the budget of monthly expenses. Once you have no more mortgage payments, that will transfer over into a car note payment) to pay that each month.
Once you have no more mortgage or car note payments, and your side hustle is making triple what you made at your job, it's time to enjoy your new life of luxury (All luxury items can be easily paid off quicker knowing what you know now). Hell, you can even quit your job and just keep finding investments to grow your money. –Confidence Magnet (July 2, 2015) Courtesy of UPA (Post)
Game. Many businesses use this same method. Goes to show if you have a solid credit score, steady income, and money management skills acquiring assets onto the ownership phase is not a problem.
Another key is budgeting for accidents and breakdowns. –The Mill Worker (July 6, 2015) Courtesy of UPA (Comment)
I wish I could take credit for this technique. Not in these exact examples, but I got the technique from a YouTube video from VIP Financial Education. Look up the videos. Definitely good game there. –Confidence Magnet (July 8, 2015) Courtesy of UPA (Comment)
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