• A good rule of thumb on selling items (except the home) to pay down debt is this: If you can’t be debt-free on it in 18 to 20 months, sell it.
  • It’s not recommended to sell your home unless you have payments above 45% of your monthly take-home pay.
  • Generally speaking, if your second mortgage is more than 50% of your gross annual income, you should not put it in the Debt Snowball. Pay it off with your first mortgage after you’re able to save for retirement.
  • You are secure and will leave a nice inheritance when you can live off 8% of your nest egg per year. If you earn 12% interest on your money and only pull out 8%, you grow your nest egg each year by that extra 4% to keep up with inflation. To live on $40,000 you’d only need a nest egg of $500,000.
  • Average household income in America is $40,816 per year. You would invest $6,000 (15% of income) per year or $500 a month. If you make $40k, have no debt, no payments except the house, you could invest $500 per month in Roth IRA from 30 to 70yrs old you would $5,882,386 tax-free.
  • 30 year mortgages are for people who enjoy slavery so much they want to extend it for 15 more years and pay thousands of dollars more for the privilege.
  • When you buy points on a mortgage loan you are prepaying interest and it takes an average of about 10 years to get your money back. Average life of a mortgage is only 5.6 months, you don’t normally save enough before you move or refinance to get your money out of the deal.
  • Most people are able to pay off the mortgage and all other debt in about 7 years from the date they declared war on our culture.
  • You are truly wealthy when you reach the pinnacle point where your money works harder than you do.