Let’s talk about your minimum monthly payments again. Earlier this month I encouraged you to calculate your minimum monthly debt payments (not including your house). I asked you to start dreaming about a life without debt. What would that look like for you?
I have several 1:1 clients who want to get out of debt so they will be in a good position to invest. They want to be debt-free to maximize their investment potential. What if you paid off all your debt (except your house) and just invested those minimum payments? How much money would you have in 20 or 30 years?
Example:
If your minimum payments equal $1,000 per month and you invested that money at 7% (conservative rate) for 30 years you would have $1,133,529. If you invested the same amount for 20 years you would have $491,945. When it comes to investing time is your friend!
Now I want you to think about how much your minimum payments are costing you. Car payments, credit card payments, personal loans, and student loans are potentially costing you millions of dollars. You can change this though! You just need a plan to get out of debt so you can invest those minimum payments each month!
What if you invested your minimum payments? How would that change your finances?
