|Some family silverware awaiting Friday night's with family and food.|
IMAGINE our life with no consumer debts.
Sometimes when it is hard to visualise being debt free, using numbers can be helpful instead.
EXAMPLE: Let’s use an average Australian family’s debt load consisting of a very conservative mortgage, a couple of credit cards and a car loan – all of which is just pretty normal these days apparently.
Mortgage - $1,300.00 per month
Credit Card 1 - minimum payment $60.00 per month
Credit Card 2 – minimum payment $73.00 per month
Car Loan - $395.00 per month
Total monthly debt load is therefore $1,828.00 per month.
So what would this average family’s life be like with $21,936.00 AFTER tax still in their pockets?
Depending on their tax bracket, that could be close to $30,000.00 of taxable income that they would no longer need to earn. The pressure to earn would be off. That might also mean someone might be able to stay at home full time, or maybe both earners could go part time perhaps.
|The soft evening lamp light falls on the clowns and clock|
So, what would $21,936.00 of post-tax discretionary money happening each and every year mean at your home? How could this change your home reality?
Imagine if you continued earning for another 5 years or so after the debt was gone, that could be easily over $100,000.00 savings in-the-hand not needing to be spent on anything.
If we are feeling brave, we can now go and crunch these numbers, but this time, using our own debt load figures……….(are we game enough?)
Write it down – decide to be debt free – have that tough conversation (yep, you know the one) - make a plan – act on it immediately
Take care folks – stay nice.