Hard work is required to achieve your financial goals, but little steps are what will get you there!
Just as all marathons start with one step, gaining financial freedom is exactly the same – one step at a time.
No matter of your age, if you are 27 or 47, let’s have a look at what happened when we all bought our first home? Firstly, we save like crazy to at least pay down a deposit. If we are lucky enough, we have a little more. We then take out a mortgage or loan for the balance over a 25 to 30 year period. The bank informs us of the minimum repayment required usually on a per month basis and we begin the process of repaying our debt. We need to at a minimum, make this monthly repayment to ensure that the principal amount borrowed is repaid over term of the loan. Add to this a massive amount of interest required to be repaid over the years to the bank. That’s exactly how the banks want things to go. You take your time and the banks and their shareholders get rich.
Why aren’t people striving to get rid of the banks quicker, to get rid of those ugly mortgages that just seem to hang around year after year? Yes, I’ve heard it all before, you can’t afford it, kids cost too much, have to fix the car, school fees and the list goes on and on.
To achieve financial freedom, to have choices and flexibility, you need to change, and you need to change now.
If not, why aren’t you striving to get rid of that mortgage quicker? One step at time is all you need to focus on, don’t let the entire mortgage put you off.
Where practically possible, even paying a small additional amount of the mortgage each week will save you thousands. It may be as little as $10 per week or maybe you can afford $100 per month. This amount can change over the years, depending upon your circumstances at any particular point in time. Your goal must be too take little steps, one at a time, to help repay the mortgage quicker. Obviously, by doing this, it will save you tens of thousands of dollars, and allow you to repay your mortgage quicker, maybe even ten years earlier if we are lucky. Imagine the interest that you will save. Imagine the financial freedom it will give you and the choices that will arise from the flexibility you will now have around your finances once your mortgage is paid off early.
If you haven’t realized, the key ingredient here is that you are saving a little extra per week. This factor alone will work a long way towards your wealth creation, especially taking into account the compounding effect over the years. Remember, the first step of adding an extra amount to our repayment needs to be taken before the final step of repaying the mortgage happens. Little steps over time can and will accumulate to massive differences later on.
What little steps can you take today, tomorrow and beyond to make a massive difference.
Need a plan to pay off your mortgage faster? Contact www.zjl.com.au to chat about how we can help.