One of the major benefits of using
our Money Management System is
that it will increase your Credit Score.
Best part it does not require
a change of income, an increase in income
to achieve a raise in your Credit Score.
You will not need a credit or debt
restoration program to help you achieve
the benefits of a) credit score increased
b) all loans paid off quickly
c) soon to have retirement funds invested.
Check it all out at SimplifyYourFinances dot com
Sunday, June 20, 2010
Sunday, June 13, 2010
Interest Rate Vs True Cost of Interest
Rate versus Cost
There are multiple ways of calculating interest.
I don't know them all, but some are compound,
simple, average daily balance, amortized,
minimum monthly balance, to name a few.
The way interest is calculated makes a huge difference
to the actual costs associated with a loan.
For instance when you purchase a car for example
the interest rate might be 5%,
cost of car $25,000,
monthly payment $575,73,
with a 48 month term.
So what is 5% of a monthly payment $575.73?
answer is $28.79.
Most people think this is what they are paying.
However the first payment will be divided into
$471.57 towards principal and
$104.17 towards interest.
So that means you are actually paying
18.09% interest that month.
After 13 payments you have paid $25,000 -
$18,714.02 = $6,285.98 in principal payments
plus $1,198.54 towards interest
equals a total of $7,474.52 in payments.
The percentage of interest volume you have paid
the lender is still 16.01%.
So for the first 13 of 48 months you are really paying
an average of 17% interest on a 5% loan.
If you do pay the whole loan back over 4 years
you will actually pay $2,635.15 in interest charges
which is 10.54% of $25,000 on a loan charge rate of 5%.
The national average is that most people return
their vehicle for a trade in before they have paid
off their loan, so during the last year or two when
you would be paying mostly principal payments
you start a new loan all over again beginning
with the higher percentage going towards interest.
The interest rate does not matter as much as the cost
you are really paying.
Once you pay the lender your money for the car,
that money has now gone, never to be seen
or used by you again. So now you have to start
all over again, borrowing more for the next thing
you want.
What if there was a way to recapture not just the 17%
or 10.54% interest charges but also the principal so it was available for
you to buy the next car with when you are ready for a new one?
Would it be worth it to you to learn how?
How many investments offer 10.54 or 17%
returns guaranteed?
We help people Simplify their Finances
by reducing the effective interest rate on all loans.
There are multiple ways of calculating interest.
I don't know them all, but some are compound,
simple, average daily balance, amortized,
minimum monthly balance, to name a few.
The way interest is calculated makes a huge difference
to the actual costs associated with a loan.
For instance when you purchase a car for example
the interest rate might be 5%,
cost of car $25,000,
monthly payment $575,73,
with a 48 month term.
So what is 5% of a monthly payment $575.73?
answer is $28.79.
Most people think this is what they are paying.
However the first payment will be divided into
$471.57 towards principal and
$104.17 towards interest.
So that means you are actually paying
18.09% interest that month.
After 13 payments you have paid $25,000 -
$18,714.02 = $6,285.98 in principal payments
plus $1,198.54 towards interest
equals a total of $7,474.52 in payments.
The percentage of interest volume you have paid
the lender is still 16.01%.
So for the first 13 of 48 months you are really paying
an average of 17% interest on a 5% loan.
If you do pay the whole loan back over 4 years
you will actually pay $2,635.15 in interest charges
which is 10.54% of $25,000 on a loan charge rate of 5%.
The national average is that most people return
their vehicle for a trade in before they have paid
off their loan, so during the last year or two when
you would be paying mostly principal payments
you start a new loan all over again beginning
with the higher percentage going towards interest.
The interest rate does not matter as much as the cost
you are really paying.
Once you pay the lender your money for the car,
that money has now gone, never to be seen
or used by you again. So now you have to start
all over again, borrowing more for the next thing
you want.
What if there was a way to recapture not just the 17%
or 10.54% interest charges but also the principal so it was available for
you to buy the next car with when you are ready for a new one?
Would it be worth it to you to learn how?
How many investments offer 10.54 or 17%
returns guaranteed?
We help people Simplify their Finances
by reducing the effective interest rate on all loans.
Friday, April 9, 2010
10 Tips for a Better Tax Day
10 Tips for a Better Tax Day 2010 on April 15
Thursday April 8, 2010
Categories: Happier You
By Deborah Price
As Tax Day 2010 rolls around we wanted to bring you this popular post from Deborah Price's 'Your Daily Spiritual Stimulus' blog. As Deborah pointed out last year, rather than worry, approaching taxes with gratitude and a sense of peace can make dealing with them so much easier. Here's hoping your Tax Day 2010 is a good one.
Let's face it, April 15th is not exactly one of our favorite date's on the calendar. In fact, it can be downright stressful and turn an otherwise good day into little more than a grouchy irritation to be gotten done with as quickly as possible.
Even Albert Einstein said (on filing his taxes), "This is too difficult for a mathematician. It takes a philosopher." Somehow, knowing that even Einstein struggled on April 15th should help us all feel a little more at ease.
Perhaps he's right, maybe we should approach tax time a little more philosophically and spiritually. So, here's my Ten Tips for improving your April 15th:
1. Begin your day by counting your blessings for being an American. In spite of what you may owe the IRS, you still live in one of the best countries in the world and have more personal freedom than over half the world's citizens.
2. Have gratitude for the shower you are about to take that comes from municipal water that you pay taxes for. It's hot, it's clean and for now anyway, it's plentiful.
3. If you have children that you have to get ready to go to school, pause for a moment as you pack their lunch, and remember, your tax dollars help to pay for their public education. Yes, we could be doing a better job, but it's a blessing nonetheless that not everyone in the world is entitled to.
4. As you drive to work today on paved roads and freeways, remember to have a moment of gratitude for these roads that your tax dollars help to provide. Believe me, one trip to India and you'll never see a paved road the same again!
5. As you sit to fill out your tax forms, make a list of all the things that you are grateful for in your life. Take a moment to feel the heat that warms your home and notice the electricity that lights the table or desk that you're working at. Life is good in many ways that we fail to notice.
6. If you owe money to the IRS, think about how the tax dollars you're about to pay contribute to the world you live in. Yes, I think it's safe to say most of us would like to see our tax dollars used more wisely but they do help to make the things we value continue to exist. If you have to write a check to the IRS, write "thank you" in the comment section.
7. If you are receiving a refund, think about how this money will be spent to improve your life or those around you. How will you use this money to stimulate your life or the economy? Create an intention to make good use of this tax refund.
8. Before you send in your tax return, say a prayer for your family and for our government that we will all learn to be more thoughtful and wise about our personal and financial resources, that difficult economic times will end soon, that the unemployed will find jobs, and that this great country will rise to be prosperous and whole once again.
9. If you don't have the money and owe the IRS, send in an extension with a thank you note for the good work they're doing and ask them to set up a payment plan for you.
10. And last but not least, if the whole experience is just too overwhelming and you can't quite pull it off by April 15th, file an extension and give yourself another six months. Take a deep breath and remember: it's only taxes, it's not your life and tomorrow, Scarlett, is another day.
Thursday April 8, 2010
Categories: Happier You
By Deborah Price
As Tax Day 2010 rolls around we wanted to bring you this popular post from Deborah Price's 'Your Daily Spiritual Stimulus' blog. As Deborah pointed out last year, rather than worry, approaching taxes with gratitude and a sense of peace can make dealing with them so much easier. Here's hoping your Tax Day 2010 is a good one.
Let's face it, April 15th is not exactly one of our favorite date's on the calendar. In fact, it can be downright stressful and turn an otherwise good day into little more than a grouchy irritation to be gotten done with as quickly as possible.
Even Albert Einstein said (on filing his taxes), "This is too difficult for a mathematician. It takes a philosopher." Somehow, knowing that even Einstein struggled on April 15th should help us all feel a little more at ease.
Perhaps he's right, maybe we should approach tax time a little more philosophically and spiritually. So, here's my Ten Tips for improving your April 15th:
1. Begin your day by counting your blessings for being an American. In spite of what you may owe the IRS, you still live in one of the best countries in the world and have more personal freedom than over half the world's citizens.
2. Have gratitude for the shower you are about to take that comes from municipal water that you pay taxes for. It's hot, it's clean and for now anyway, it's plentiful.
3. If you have children that you have to get ready to go to school, pause for a moment as you pack their lunch, and remember, your tax dollars help to pay for their public education. Yes, we could be doing a better job, but it's a blessing nonetheless that not everyone in the world is entitled to.
4. As you drive to work today on paved roads and freeways, remember to have a moment of gratitude for these roads that your tax dollars help to provide. Believe me, one trip to India and you'll never see a paved road the same again!
5. As you sit to fill out your tax forms, make a list of all the things that you are grateful for in your life. Take a moment to feel the heat that warms your home and notice the electricity that lights the table or desk that you're working at. Life is good in many ways that we fail to notice.
6. If you owe money to the IRS, think about how the tax dollars you're about to pay contribute to the world you live in. Yes, I think it's safe to say most of us would like to see our tax dollars used more wisely but they do help to make the things we value continue to exist. If you have to write a check to the IRS, write "thank you" in the comment section.
7. If you are receiving a refund, think about how this money will be spent to improve your life or those around you. How will you use this money to stimulate your life or the economy? Create an intention to make good use of this tax refund.
8. Before you send in your tax return, say a prayer for your family and for our government that we will all learn to be more thoughtful and wise about our personal and financial resources, that difficult economic times will end soon, that the unemployed will find jobs, and that this great country will rise to be prosperous and whole once again.
9. If you don't have the money and owe the IRS, send in an extension with a thank you note for the good work they're doing and ask them to set up a payment plan for you.
10. And last but not least, if the whole experience is just too overwhelming and you can't quite pull it off by April 15th, file an extension and give yourself another six months. Take a deep breath and remember: it's only taxes, it's not your life and tomorrow, Scarlett, is another day.
Sunday, December 27, 2009
New Year's Resolution
MY NEW YEAR’S RESOLUTION
will save me a hundred thousand dollars
New Year’s Resolution
What will it be?
Do something different
To be debt and stress free
Enjoyed our home
Twenty years it has been
Now we owe more
Than when we moved in
How did that happen
Payments were all made
Never a late fee
No statement unpaid
Wanted a new car
‘Twas twenty grand
A home equity loan
Now I shine it by hand
Master cards, Visa Cards
For well deserved joys
Spent forty thousand
On travel and toys
Refinance your home
The bank advised
To pay our home loans
And reclaim our lives
Now thirty years owed
Starting over again
The ten years paid
All went down the drain
Do something different
U First Agent said
Follow this plan
To get out of the red
With Financial GPS
And 20/20 Foresight
Living debt free
Is now within our sight
Our New Year's Resolution
To be debt and stress free
We now found the solution
My Money Merge Account™ and me
by Walter Seward
December 2009
will save me a hundred thousand dollars
New Year’s Resolution
What will it be?
Do something different
To be debt and stress free
Enjoyed our home
Twenty years it has been
Now we owe more
Than when we moved in
How did that happen
Payments were all made
Never a late fee
No statement unpaid
Wanted a new car
‘Twas twenty grand
A home equity loan
Now I shine it by hand
Master cards, Visa Cards
For well deserved joys
Spent forty thousand
On travel and toys
Refinance your home
The bank advised
To pay our home loans
And reclaim our lives
Now thirty years owed
Starting over again
The ten years paid
All went down the drain
Do something different
U First Agent said
Follow this plan
To get out of the red
With Financial GPS
And 20/20 Foresight
Living debt free
Is now within our sight
Our New Year's Resolution
To be debt and stress free
We now found the solution
My Money Merge Account™ and me
by Walter Seward
December 2009
Saturday, December 5, 2009
Sunday, November 22, 2009
Friday, November 6, 2009
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