Recently, I provided recommendations to a very nice couple looking for help crafting a debt free plan. Their situation was fairly typical. With a solid income and focus, they are well on their way.
I commonly enter a financial profile into a debt payoff calendar to estimate a debt free date. This date helps you visualize the process of finishing your debt free journey. It also helps people create S.M.A.R.T. goals when crafting a plan to dump debt.
I recently noticed a nifty little piece of feedback offered from this calculator. Let me offer a hypothetical example.
Here’s where I generally stop and celebrate because my focus is to help people dump debt and regain control of their household finances so they are in a position to build wealth. However, I’ve never continued the visualization exercise. That changes today.
Here’s what blew my mind.
If this hypothetical client continues to direct all the money previously paid toward debt into a conservative investment vehicle (this calculator assumes a 5% interest rate) for the next 4.5 years (the same amount of time needed to dump consumer), they would amass $280,000. The numbers have been changed to protect the innocent.
Guess what the median home price in the United Stated is…$188,900 for the sale of existing homes.
Yes, there are a lot of assumptions in the calculation. One must also assume that an aggressive savings plan can be sustained for an extended period – after working hard to pay off debt. However, even if you save only 2/3 or 1/2 of that original amount, good things will happen.
Does this seem unrealistic? Try the calculator for your personal situation. I know this, debt freedom gives you options. Accomplishing your debt free goals is a great place to start.
Are you ready to eradicate debt? I can help. Take a sneak peek at The GREAT Debt Dump.
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