Thursday, 30 June 2016

Two Income Family - We've Been Swindled


10 litres of excellent laundry liquid can be easily made for under $2
with three simple ingredients.



THE only word to describe two income families is heartbreaking.

Most families I know decide to send both parents out to work full time to make ends meet.  I applaud this brave decision because it seems to be the responsible answer to getting ahead and making ends meet - right?  Wrong.


The both of us.
We're in this together playing
to our strengths.


The following case scenario is based on most two income families that I know of. 

There is wild excitement and celebration that we both are now in full time employment - a bubbly gets popped in honour of this accomplishment. We go out and buy a few office-appropriate clothes (we can buy more once the pay packets begin to come in) and we enroll the three kids in childcare - yep, this is expensive but we will be OK.

After four weeks of catching the bus and it running late then consequently getting in trouble from the boss, we both agree to buy a good reliable second hand car to drive to work - $11,000.00 is a sensible sum to spend....after all, the repayments are well under $100 per week so there is plenty of money left.  Both of us are becoming too tired to make lunches every night, so $10 per day is way less than everyone else at the office spends on food and coffee each day, so we are at least being restrained. The car rego and maintenance are only a yearly or half yearly cost, so there will be money for that no doubt.  We are very proud to be contributing to the household, using our mind and making a better life for the kids. We'll be able to get ahead financially real soon.

One year down the track we realise that something is very, very wrong.  We both are pretty exhausted, no wealthier and weekends are dedicated to housework - what has gone wrong?

Here is what has gone wrong - let's do the very simple math:

Item Weekly
$
Net Second Income 
$720.00
Business Clothes
-$25.00
Child Care x 3
-$460.00
Public Transport/Petrol
-$60.00
Lunch/Coffee
-$50.00
Presents/Social Fund
-$2.00
Car 2 Rego
-$15.00
Car 2 Maintenance
-$20.00
Car 2 Repayment
-$86.00
Total Extra Net Income
$2.00

We are only two dollars better off per week. Oh, and this does not cover that fact that we are so tired that we end out buying dinner two nights a week, nor does it include that we have forgotten to factor in car insurance, nor does it factor in that we are now not eligible for child family payments because we earn too much as a combined income. Oh, and it does not cover the extra mobile phone and phone plan we went into so childcare could contact us at work.

We madly recalculate the math and replace the batteries in the calculator but still get the same result. We then figure it on a spreadsheet and end up sitting up in bed staring at the calculations on the laptop well into the wee hours of the morning - the realisation is just simply heartbreaking.

We reach over and shake our partner awake and chat about this sad, sad situation. We cry. We then both agree to get rid of the car and go back to public transport - that will save us $121.00 a week. Excellent! Then the realisation dawns on us that we are still only earning a net $3.20 per hour or $6292.00 a year. Our heart breaks again. Tears flow again for the real slavery we have found ourselves in. Then we just get mad. Real mad.


The family cat.
Do not be deceived, she's the boss.


Folks, there are easier ways to create $121.00 per week (or $2.00 per week!) in the family budget - going out and getting a second full time job could be the most heartbreakingly misguided decision we ever make.

There is another way.



Take care folks - stay nice.

Mr HM


Nothing matches.....
our cupboard of favourite ware

Monday, 27 June 2016

DEBT EXIT - Far More Important Than BREXIT


Hot DIY bread @ 80 cents per loaf - cheaper than shop-bought and with no additives.


BREXIT be blowed. We have our own personal state of emergency – personal consumer debt.

Time to DEBT EXIT !

Seriously folks, debt is an emotional and heartrending state of affairs that takes the shine off life real fast.  Dealing effectively with our personal consumer debt will be REALLY TOUGH.  No sugar coating it, no it’s not easy-peasey, no the you-won’t-even-notice-it strategy will not work, nope debt consolidation does not really work either. Successfully getting rid of our consumer debt will be hard work and will sort the adults from the juveniles. Being realistic and brave is foundational to dealing with personal consumer debt. Our personal consumer debt requires some tough self-behaviours.


Whose financial habits are we mirroring?



Tough Behaviours Required To Lay The Axe To The Root Of Our Debt

ADMIT OUT LOUD (CONFESS)
Have an honest conversation about every single debt you have accrued with your significant other.  If you are alone, then do it with a trusted acquaintance that will talk straight to you (not someone too nice).  This will certainly be a tough conversation, a very tough conversation – stick to being totally honest. Honesty requires personal courage.

SHAKE SELF HARD BY SCRUFF OF NECK (WAKE UP)
Realise that our consumer debt is a true personal EMERGENCY. Mr Money Moustache originally coined this concept HERE (I am pretty sure).  This paradigm shift is vital to being emotionally realistic about personal debt and its true nature – no it is not a good thing and no, there is no such thing as good debt (more on that controversial statement another time)


STOP BLAMING OTHER THINGS AND PEOPLE (TAKE RESPONSIBILITY)
Fold your arms, stand up straight, purse your lips, squint your eyes and say “No”. Say it again… “No”...and again "No". Today we start saying “No” to ourselves. 
Leave the cards at home, do whatever it takes to build personal integrity when it comes to money. If our significant other is not on board yet, we might just have to tread this one out alone – so be it. So what. 
No more excuses (nobody really actually cares anyway have you noticed?) it is time to make a real life enemy…..something to loath and hate, plot against and connive ways to destroy and maim.   Our good character is at stake here. Debt is our personal enemy.

MAKE A CHOICE  (ALL ROADS LEAD TO ROME)
There are several ways to tackle debt, they mostly all pretty much work. Choose one and just do it.  Start today not tomorrow. Don’t dilly-dally over spending ages weighing up the pros and cons – take action now. Adjustments can be made later if necessary.  Oh – none of the methods are rocket science, so make sure you are NOT paying for a solution – so many (but not all) debt reduction companies are making a pretty penny from their clients and doing the hard character-building work for them whilst inadvertently treating their clients like juveniles by dolling out 'pocket money' (harsh, but Mr HM stands by that statement).


Delicious homemade carrot cake muffins from scratch


We are in this together folks – we have a real war on our hands that has a real enemy, real feelings attached, real sides to take, real casualties, real POWs and real victories to be won. 

Let’s DEBT EXIT – no need for a referendum, just start today.


Take care folks – but no more 'staying nice' when it comes to debt.


Mr HM

Sunday, 26 June 2016

Frugal Gentlemen and French Pastry



50% off gentlemen's accessories


WHAT on earth has French pastry cooking got to do with being a frugal gentleman? Actually nothing....and everything.

This weekend one of the family picked up a French pastry cook book for just $5 at a local secondhand shop. This type of cook book is reasonably rare and had been on the wish list for two years.  What a find for such an excellent book!

This brings me to the art of second hand shopping and by extension, being a frugal gentleman.


Bought second hand for $5 - a classic.


You see, I just love the 1940's fashions for men and whilst I certainly would not have liked to live through the horrors of that era, I do appreciate the ability of that generation to make do out of anything they had at hand to ensure they looked and lived the best they could.  To dress well in this general style requires me to be on the look-out for unused or lightly used pieces of clothing and accessories that match the 1940's period.  However, the art to second hand shopping requires patience.

When it comes to secondhand shopping, have a very clear idea of what it is you are looking for and do not make any purchase (no matter how cheap) unless it is what you are wanting or needing.....otherwise you will certainly end out buying lots and lots of junk.  Buy the best quality you can honestly afford. Also, be on the look-out for sales of new clothing....and by sales I mean a minimum of 50% marked down.  This weekend I bought a woollen 1940's style overcoat at 50% off and some men's leather gloves and hat for the same special.  The gloves; I have been waiting 4 years for such a special to appear - this is the level of patience required.


A rack of silk ties and braces
collected over the years and worn
daily.


I have colleagues who spend $1000's  on fancy designer suits for the office, yet the last suit I purchased was brand new with the tags still on (well over $500) a dark blue wool Fletcher Jones for $45 at the local second hand shop in my exact size. People always comment on my dress style despite me being rather (very) tubby and not the easiest on the eye otherwise!  My wardrobe is built up over the years with classics made from good quality materials and brands and has cost me very little.

Someone in my family is also an avid pastry chef (amateur) and would like nothing more than to go out and buy all the best books on the subject, but no, she has been fortunate and patient and is slowly but surely collecting a great little library of quality pastry books. The book bought this weekend is an example of such.


Paris Brest is a double hollow ring of choux pastry
filled with baker's custard, cream and strawberries.
It is meant to represent a bicycle wheel in honour
of the Tour de France


So this frugal gentleman just might be enjoying a French Paris Brest next weekend cooked by a frugal daughter. It will be delightful served in the garden with a china pot of percolated coffee me thinks.


Take care folks - stay nice now!

Mr HM

Saturday, 25 June 2016

Saturday Thoughts

A simple nourishing meal.
Delightful and meaningful.


We complicate life in so many ways.

 Life is quite simply really and yet we invent endless boundaries, idealistic story lines, irrelevant goals, fanciful expectations and 'truths' that we expect others to live by and indeed succeed at ourselves....and when it all gets too hard, we pretend. This pretending often involves us buying things to create the illusion of having succeeded in some way.....even if we have to buy the money from the bank.

Many folks' lives are simply a sum of their pretending and the debt they have racked up in an attempt to turn the pretense into something tangible.


A beautiful piece of tranquil coast.  The ceaseless waves
caressing the sand.


An important part of a meaningful life is to understand and relish the simplicity of life. Meaning and simplicity is not found at the top of the wealth pile, it is not found with the prettiest face, the fastest car, the biggest muscles, the smartest comment, the most convincing oration or the bravest stance. A meaningful life is often captured simply in scenarios involving the people we gather around us, the food we enjoy together, the shared experiences we notch up and quiet moments of clarity that come to us in unremarkable places. Life can be the most meaningful when we know we are loved and needed.  Life is clear and simple when we see a sunset or watch a cormorant dive into the sea for it's dinner.  Contentment can well up when we see the look of love in a child's eyes or feel someone's hand quietly slip into ours. A real sense of purpose is often at its most clearest when times are tough and we have to devise a survival plan and make it work.

Miles and miles of deserted beach quietly just 'being'.


Step away from trying to buy happiness, purchase meaning and putting success on a credit card. It just so happens that all the important things in life are totally intangible and invisible -  from the air we breath, the thoughts we think, the love we crave, to the respect or significance we yearn for.


The colours of a winter sunset will quiet the mind real fast.


Just thinking, just sayin'

Take care folks - stay nice.


Phil



Thursday, 23 June 2016

DIY Simple Easy Soap Making


The white soap in the middle is this recipe

ONE of our readers Ann emailed me recently and asked:  I used your recipe for simple soap ......It turned out great but I didn’t copy the recipe.  I can’t remember the exact amounts of ingredients to use. Could you please post it on this blog. Thanks Ann


Of course Ann! - Here it is.




This recipe is a great one to start with if you have not made soap before as there is no oil blending required, no thermometers required, no special molds or perfumes required either. The ingredients are not expensive which is important for a first time soap maker and vegetable oil is very forgiving.



Slicing the block of soap up into bars


DIY Simple Easy Soap Making

Safety Note: Wear eye protection, mask and gloves, keep children and pets well away, perform in close proximity to running water in case of spills, keep a window wide open for ventilation.

INGREDIENTS
1.25 litres of cheap blended vegetable oil (no name is perfect)
173 grams of caustic soda
450 mils of water


METHOD (please follow the method exactly in this order)


1. Place water into a very large plastic mixing bowl
2. Pour caustic soda very slowly into the water whilst stirring continually with a wooden or plastic spoon until dissolved
3. Add in vegetable oil slowly, stirring all the while with a wooden or plastic spoon
4. Mix with stick blender till a firm trace has occurred - must look like thick custard.
5. Place into large plastic flat-bottomed container - cover with an old towel.
6. Leave totally undisturbed for 24 - 48 hours

7. Remove from plastic container (twist the container slightly - turn upside down to pop out).
8. Cut into bars with the sharpest knife you have
9. Put bars away on a cooling rack in an airy place to cure for 6 weeks


I also use this recipe for my personal shaving soap.
It froths up perfectly.


This recipe will make about 12 bars of simple, frugal and lovely-to-use soap. 

Wendy over at My Abundant Life has had a shot at this recipe and you can see her extra notes on it HERE


Use any type of plastic container as a mold really.

If you have never made soap before, I dare you to give this a shot - it is easy as falling off a log.

If you are successful with this recipe, then you can progress to what I think is the most perfect plain soap recipe by Rhonda Hetzel HERE


Take care folks and stay nice.

Mr HM

Monday, 20 June 2016

Divide and Conquer AKA Dilute and Save

Two empty pump bottles, a bowl, whisk, spatula, funnel, towel and then shampoo
 and conditioner to dilute - let's do it.



Diluting products is now an unheard of household discipline.  Once upon a time, things were bought as concentrate to either dilute or to only use a tiny amount of, but now the concentrated versions of products get slathered around with wild abandon with ne'ery a second thought....that is coins down the proverbial gurgler in my book.

So many products are so concentrated that you can easily dilute them.  You will have to play around and see what percentage of dilution works for you, but here is a list of things that can be diluted.


Conditioner mixed with 50% water and still a thick mix



Dilute with water:
  •   Laundry liquid
  •   Liquid hand soap
  •   Dish-washing liquid
  •   Fabric softener
  •   Shampoo
  •   Conditioner
  •   Fruit juice (always way too strong)
  •   Disinfectant


C'mon - pour!


Some other types of 'dilution':
  •   Dilute butter with olive oil - whisk together for your own 'diary' spread  
  •   Dilute potting mix with your own compost
  •   Dilute apples with choko in apple pie
  •   Dilute liquid fertilisers to 1/2 the strength recommended  
  •   Shoe polish with paraffin oil
  •   Cordial with the syrup from canned fruit
  •   Cream and flour to scrambled eggs to 'stretch' the eggs.
  •   A teaspoon of stock powder to a cup of boiling water to double the 'cup-o-soup'
  •   Grated vegetables will stretch mince meat to nearly double.
  •   Very lightly whip pouring cream. This adds 1/3 the volume and is still pourable


Aha!  there it goes - glug, glug.
Use the spatula to get every last drop.


Adding a little water to the following to refresh or extend them:
  •   When the Vegemite gets hard and un-spreadable, add a little hot water and mix thoroughly
  •   To jars of mayonnaise, sweet chilli sauce (or any sauce), honey etc to get the last bits out of the bottle,
  •    A couple of drops of water into the empty toothpaste tube will produce another couple of 'goes' at it (massage it in with the lid on)
  •   Whipped egg whites can be extended with a couple of tablespoons of water usually


The family like the pump bottles.
They also tend to use less too.


I know that I have merged the concepts of dilution with the stretching of products using other ingredients, but I reckon you get the general idea.


Have fun with this one and experiment - you might be surprised just how much products can be diluted and still be totally effective.  Be wise however - you do not want the family complaining that things are watery, weak or bland.  If this happens, then it is an indication that you have been a little too liberal with the ol' H2O !


....and the pasta sauce was simmering while I did all that.
Dinner's ready!


Take care folks - stay nice now!


Mr HM

Saturday, 18 June 2016

DIY Apple and Tea Vinegar


Delicious apple and tea vinegar made
from scratch


The apple and tea vinegar (above) happened quite by accident.

I started with a load of chopped up apples that were past their freshest-best and popped them into a large Vacola jar with sugary water to start a natural vinegar brew. It developed very, very slowly - way too slow for my levels of patience. So I thought I would use the same principles that I use with my Kombucha brewing and see if that would rev up the batch.  It did.


Ready to decant into a recycled
sterilised wine bottle

Always treat the vinegar mother gently using non-metallic utensils


I added small SCOBY (mother) from a recent Kombucha brew and 2 cups of black tea Kombucha to the apple vinegar mix.  It took off like a shot!  I later removed the apples pieces and left it undisturbed for 6 weeks and now we have the most delicious and unique tasting vinegar ever (it transforms the making of sauces and jus).


This vinegar mother grew like a flash


To be honest, the whole vinegar making thing was just an experiment that ended out exceptionally well.  I now have 4 litres of lovely apple and tea vinegar which I calculated cost me about 80 cents per litre.


Crumbed beef schnitzel with rosemary and butter baked
potato cubes and butter garlic fried beans

Take care folks - stay nice.

Mr HM

Thursday, 16 June 2016

A Bills-Free Month

Chicken stir-fry.  A healthy delicious meal in minutes


How often have I wished over the years.....(sigh) how nice it would be just to have no bills for a month in a bid to try and get 'ahead'.  I can remember saying this to an old friend of mine (Bob), who replied  "Well lad, you can .... listen up now"  - so I listened-up-now and here is how it works.  It is not a trick or a gimmick.  It truly works.

We gratefully received an unwanted
20 litre barrel of concentrated
laundry liquid! This will last
forever especially diluted.


How To Have A Bills-Free Month Every Year

  1.  Take your budget and work out what each and every bill costs you for a full year - write that down.  (E.g. If water rates cost you $200 per quarter, then that would be $800 per year)
  2. Take each bill's yearly cost and divide it by 48 (yes 48).  Write that down next to each bill - this is the weekly amount you need to pay/put away against each bill.
  3. After 11 months of paying these amounts uncompromisingly against each bill, you will have either paid a month in advance on each bill or have 1 month's worth of money set aside for each bill.

Pop your washer onto the quick-wash
setting for clothes only worn in
the office. Saves time and power.


Other benefits of this method are:
  • No more late fees  - ever.
  • The small amount weekly is not a burden  - hardly noticeable
  • You get your 12th month free of bills (either paid in advance or the money sitting there ready to pay them).
  • If you start in January - you will have a bills-free Christmas/Hanukkah/December
  • If you start in February - you will have a bills-free New Years/January
  • If you start 11 months before a major holiday .... no bills during your holiday/vacation period!
  • You could even decide just to continue the regime into the 12th month and pay the bill money entirely off the mortgage (for instance).

Stockpiling is running low on some non-food items...


So essentially what this method does is; instead of dividing the year's  bills by 52 to get an accurate weekly amount, it divides them by 48 instead which gives 4 weeks less thus adding to the weekly figure slightly to create a totally achievable weekly scenario where you sneak ahead bit by bit every week in your bills.


Use plain water for overnight soaking - works just fine.


This method might suit you for other reasons that are relevant entirely only to you - but gee, it's worth a shot! Lean into this one folks, it just might be the 'thing' that shifts a paradigm for you - who knows?

Clean jars awaiting relishes, jams, yoghurt, dried goods, Kombucha,
lemon butter, candles......


Take care folks - stay nice

Mr HM 


A selection of wines and oils sitting on top of the kitchen cupboards

Monday, 13 June 2016

Monday Musings and Frugal Tips


The girls having another 'meeting'


IT'S a long weekend in Australia and I have today (Monday) off.  Rather nice really.

I have been busy all weekend with one thing or another - setting up nesting boxes for the chooks to start laying in (start laying already OK girls!), sorting out the laundry room, entertaining guests, turning over the compost heap which is rotting down nicely, researching how to make my own potting mix, blogging a little, revamping the budget a bit, cooking from scratch, ensuring the sunny days were graced with my line-dried washing, reading, cups of tea......perfectly delicious LWE. I have managed to avoid going out for three full days -  just stayed put at home.  I do love being at home.


Little bun' makes the best composting material.
.
I have been thinking about some of the weird and wonderful little things I do around the place and thought I would just jot a couple down here for everyone's enjoyment  and frugal experimentation:


 FRUGAL TIPS:

  •  A couple of drops of eucalyptus oil onto a tissue, then sucked up into your vacuum cleaner will keep the house smelling great whilst vacuuming
  •  A fresh teabag in the dish washing water will ensure glass wear comes out sparkling
  •  Only put the exact amount of water you need to boil into the kettle - saves power.
  •  Soak clothes in plain water over night - it works just as well as expensive soaker
  •  If you really must use your clothes dryer, pop an old dry towel in with the load to decrease the drying time.
  •  When serving a meal, put out your lunch containers for the next day and serve them up at the same time - it's amazing how a cooked meal will seem to stretch and this takes care of tomorrow's lunch for no extra cost.
  •  Cook double batches of meals.  Eat half immediately and freeze the other half for another time. Do this a couple of times a week to slowly create a stockpile of frozen meals.
  •  Keep your credit and debit cards at home - if you do not have them on you, you simply cannot use them.
  •  Keep butter wrappers.  They make excellent baking paper.
  •  Throw weeds and/or lawn clippings in a container of water and let it 'brew' for 2-3 weeks (yep, it will stink).  Dilute and use as garden fertiliser. 100% free.

The solar panels and the back tank.
Free power and free water.


Hope this gets some frugal thoughts generating!

Take care and stay nice folks

Mr HM


Catching the winter sun outside our bedroom window.
Self watering veggie boxes are dead easy to care for.




Sunday, 12 June 2016

$5 Debt Elimination Method



Cooking from scratch needs celebrating with enthusiasm


WELL it’s all very nice for me to post about what it would be like to be living without debt here, but what about some practical tips on how that can actually work?

Here is my favourite way to tackle debt – it sure works great for me.


  THE $5 DEBT ELIMINATION METHOD

All you need to do is find $5 per week.  Maybe that is making a huge (!) sacrifice of 1 less large coffee per week, or maybe a couple less cans of soda weekly, or even maybe not buying your lunch for just one day a week….whichever way you choose you will need to come up with an extra $5 a week to use as leverage towards your debt elimination.


A hot pot of curried pumpkin soup - can you smell it?


OK, here’s how:

1.       Make a list of your debts – be honest.  Make sure you list every one of them.
2.       Make a total list of each debt amount owing.
3.       Organise from smallest to largest debt
4.       Next list the minimum payment for each noting if it is weekly, fortnightly or monthly.
5.       Then make note of your pay day and its frequency- weekly, fortnightly or monthly.
6.       Make a Table of all these facts

Here is an example of  what your basic work table should look like

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00
$50.00


$100.00
Myer Card
$500.00


$15.00
$7.50
Credit Card 1
$2,500.00


$50.00
$25.00
Credit Card 2
$5,700.00


$114.00
$62.00
Car Loan
$12,400.00

$96.00

$96.00
Mortgage
$300,000.00


$1,700.00
$850.00
Total Debt
$321,300.00



$1,140.50

Next add $5 per week to the SMALLEST debt’s minimum payment, like so….

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00
$55.00


$110.00
Myer Card
$500.00


$15.00
$7.50
Credit Card 1
$2,500.00


$50.00
$25.00
Credit Card 2
$5,700.00


$114.00
$62.00
Car Loan
$12,400.00

$96.00

$96.00
Mortgage
$300,000.00


$1,700.00
$850.00
Total Debt
$321,300.00



$1,150.50

When that debt is paid add $5 PLUS the minimum payment of the debt you have just paid off to the next debt.  Like so…

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00



PAID
Myer Card
$500.00


$15.00
$117.50
Credit Card 1
$2,500.00


$50.00
$25.00
Credit Card 2
$5,700.00


$114.00
$62.00
Car Loan
$12,400.00

$96.00

$96.00
Mortgage
$300,000.00


$1,700.00
$850.00
Total Debt
$321,300.00



$1,150.50

Repeat the same concept on the next debt by adding the $5, minimum payment 1 and 2 to this minimum payment too – repeat this with all your repayments one by one like so...

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00



PAID
Myer Card
$500.00



PAID
Credit Card 1
$2,500.00


$50.00
$142.50
Credit Card 2
$5,700.00


$114.00
$62.00
Car Loan
$12,400.00

$96.00

$96.00
Mortgage
$300,000.00


$1,700.00
$850.00
Total Debt
$321,300.00



$1,150.50

Then...

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00



PAID
Myer Card
$500.00



PAID
Credit Card 1
$2,500.00



PAID
Credit Card 2
$5,700.00


$114.00
$204.50
Car Loan
$12,400.00

$96.00

$96.00
Mortgage
$300,000.00


$1,700.00
$850.00
Total Debt
$321,300.00



$1,150.50

Then....

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00



PAID
Myer Card
$500.00



PAID
Credit Card 1
$2,500.00



PAID
Credit Card 2
$5,700.00



PAID
Car Loan
$12,400.00

$96.00

$300.50
Mortgage
$300,000.00


$1,700.00
$850.00
Total Debt
$321,300.00



$1,150.50

Then....

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00



PAID
Myer Card
$500.00



PAID
Credit Card 1
$2,500.00



PAID
Credit Card 2
$5,700.00



PAID
Car Loan
$12,400.00



PAID
Mortgage
$300,000.00


$1,700.00
$1,150.50
Total Debt
$321,300.00



$1,150.50

Then finally.....

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00



PAID
Myer Card
$500.00



PAID
Credit Card 1
$2,500.00



PAID
Credit Card 2
$5,700.00



PAID
Car Loan
$12,400.00



PAID
Mortgage
$300,000.00



PAID
Total Debt
$321,300.00



PAID


The last step is the MOST important – after your debt is paid, continue to pay the exact same final fortnightly payment amount into an online savings account for just 1 year.  Here is the result….Not only are you debt free, but you now have a nice nest egg happening. See!?

Debt Name
Debt Amount
Weekly
Fortnightly
Monthly
My Paycycle
Fortnightly
Owe Mum
$200.00



PAID
Myer Card
$500.00



PAID
Credit Card 1
$2,500.00



PAID
Credit Card 2
$5,700.00



PAID
Car Loan
$12,400.00



PAID
Mortgage
$300,000.00



PAID
Total Debt
$321,300.00



PAID
ANNUAL SAVING
$29,913.00



$1,150.50


THE BENEFITS OF THIS METHOD

1.       It attacks your debt at an emotionally encouraging level and exponentially raises your likelihood of success.
2.       It stops you spending each paid-off debt’s minimum payment and applies it to the next debt
3.       You only ever pay your minimum payments plus $5  through the whole process
4.       It sets up a clear repetitive plan for your entire debt life
5.       It reduces the overall payment time on your debt enormously


Chilli and cheese scones to go with the soup



Mathematically, this is not the most accurate way to attack debt as pure math would dictate that we attack the highest interest rate debt first, however, we rarely go into debt for mathematical reasons….we usually go into debt for emotional reasons, thus we need to fight back with a counter emotional plan to succeed otherwise we will go straight back into debt.


Spend an extra five minutes
making meal time special
yes, even with soup and scones.


Really hope this have given everyone some courage to start TODAY.

Take care folks - stay nice

Mr HM
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