25 Apr Using Your Line of Credit to Eliminate Student Loans – Part 5
Use CashMap and Your Line of Credit to See Your Future!
Most of us know we should budget. Our challenge is we rarely see the impact of the choices we make today on our future. This includes both good and bad choices. Using CashMap, you’ll immediately see the impact. CashMap is designed to motivate you and help keep you focused. We want you to feel proud. So, let’s take a look at the impact of the three scenarios we made in my last post. of this series.
Outcomes of Three CashMap Line of Credit Scenarios.
Today you have $452 (your positive cash flow) left after you pay your bills. You plan to consistently save 45 percent of your positive cash flow each year. This year, this will be about $203. You believe your income will rise an average of three percent each year. You ask yourself, “Over the next fifteen years, what difference will it make if I don’t spend 25, 35 of 50 percent of of my positive cash flow?” You have three CashMap’s to review!
CashMap Showing 25% of Your Raise Not Spent: Your student loan will be paid in full in fifty-seven months, you’ll save $6,575 in interest and you’ll have savings totaling $185,574. Isn’t this encouraging! It can get even better.
CashMap Showing 35% of Your Raise Not Spent: Your student loan will be paid in full in fifty-six months, you’ll save $6,624 in interest and you’ll have savings totaling $199,866. You can still do better!
CashMap Showing 50% of Your Raise Not Spent: Your student loan will be paid in full in fifty-five months, you’ll save $6,696 in interest and you’ll have savings totaling $220,910. And yes, there’s room to improve your results!
We Found More Lazy Dollars!
You are making four student loans totaling $539 each month. We’ve created a solution to get rid of your largest loan payment of $378. So in each of our scenarios, we’re assuming you are continuing to spend the remaining $161. If you wanted, you could use your line of credit and pay these loans off too. This would boost your positive cash flow an additional $161 boosting your savings balance higher.
Similarly, once your largest loan is paid in full, CashMap assumes the unthinkable. You are going to allow 20 percent of your positive cash flow to sit in your checking account helping your bank generate profit at your expense. Eliminate this unnecessary waste and you’ve found another way to boost your savings.
Budgeting Using Your Line of Credit is Motivational!
If you’re like most people, when you see these results, the following thoughts went through your head.
You never thought you could get a line of credit.
You never thought it could be so easy;
You never thought that such small changes in your savings could make such a big difference.
You never thought you could get rid of your debt so quickly and;
You never thought you could save so much so quickly!
The power of compounding is powerful and the results are amazing! Are you ready to begin keeping your dollars working 24/7 and creating your own motivational story?
Thanks for joining me. I’d love to hear from you. Take advantage of our articles, interactive materials, videos and, e-books. Please send your questions, topics or suggestions to dennis@cashmapconsulting.com. You can also follow me on twitter at cash_map.
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