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Imagine a life without repayments

March 27, 2018

[Image credit: Max Pixel]

 

Today I'm here to bust a huge myth.

The myth that only geniuses can avoid having to make repayments.

Plenty of people I grew up with just take it as truth that the only way to pay for something like a new car, is to get a car loan and spend the next 7 or so years paying it off.

"The only people that can save for a new car ahead of time are 'numbers people'. It's impossible for the rest of us....."

Sometimes a belief can be so common that we don't stop to challenge them. Not today!

We're going to see if this belief still stands when challenged with a bit of maths.

For this example we're going to use a common car loan scenario of $20,000 over 7 years, at 7.25% interest (per Canstar 2014 report).

In this scenario, you will be paying at least $304 per month, more if you have loan fees to pay. By the end you will have paid $25,562!!

If you can put aside $304 per month after the loan, why not put it aside beforehand?

If you choose to put it aside in advance, you will pay the loan off in around 5 1/2 years. That's a saving of 1 1/2 years on the exact same car!

Now here is the fun part... you don't need to be perfect.

What I mean, is that if you're only half way there, then life hits hard, and you end up getting a car loan anyway.... you will only spend around 2yrs 10mnths paying off half of the loan. Isn't that amazing?

Relax  

  • You DON'T have to be perfect

  • You DON'T have to "do it all at once"

  • You DON'T need to live on weetbix for the next 5 years

What you DO need, is to remind yourself - if you can do this after getting a loan, then you can do it before!

All progress you make is worthwhile.

 

"Progress not perfection"

 

Book a FREE Consultation to Get Started

 

Speak soon,

Erika Gilbert

My Income Organiser

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