How to Be Mortgage-Free in 4 Easy Steps

How to Be Mortgage-Free in 4 Easy Steps

Nov 23, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101

Can you imagine seeing your home loan balance diminish every month to the point that you now have no debt and no mortgage? Now enjoy a happier, less stressed lifestyle, knowing the major debt in your life has finally been paid off.

Imagine receiving the deeds to your home with just your name on it and not your bank, as previously they had joint custody of your home.

Just imagine what it would be like to not pay a mortgage, or better yet, to be well on your way to owning your investment property.

Putting you, and not your bank, in the driver’s seat of your financial life.

We give you the tools to own your home faster – the one big debt looming over your head.

I am often asked to examine potential clients’ home loans, as they want to know if they have the right home loan structure to help them reduce it quicker.

There are 4 steps to becoming mortgage free faster, and they are:

1. Set your goal
2. Get a coach – mortgage coach and financial & mindset coach
3. Learn how and what to do to achieve your goal of becoming debt-free sooner.
4. Create a plan and stick to it
5. Take action, do what others won’t do, and you will see the benefits of becoming debt-free sooner.

So I hear you saying, what can a coach do?

Firstly, there are two types of coaches when it comes to reducing your mortgage. The first is a mortgage coach, and the second is a financial and mindset coach.

1. The mortgage coach is the one who ensures your home loan is structured and set up correctly, utilising the latest strategies available to maximise the full debt reduction potential. The mortgage coach’s responsibility is to ensure they are working with you to understand your home loan so you can work towards paying it down as quickly as possible.
2. The financial and mindset coach is the one who works with you regularly to help you stay focused and on track towards achieving your financial goals. The financial and mindset coach ensures that when life suddenly throws you a curveball, as it often does – they are there, ensuring you have the tools and resources necessary to stay motivated and on track.

So let’s take a look at what it may cost you to not get a coach.

If you had a home loan of $400k with a 30-year term, this would cost you at the end of your loan around $733k. That’s an additional $333k of your hard-earned money going to the bank for the privilege of them loaning you the money.

Perth Mortgage Finance Broker - Karen G Adams

Now let’s take a look at a home loan that’s adopting the mortgage reduction strategy along with getting support from a coach.

When the mortgage coach got to work with this client, they were able to save over $210k in interest payments alone, not to mention over 11 years in the term of their mortgage.

It’s really possible to pay your home loan off faster with the right home loan structure, and the right coach on board can help you achieve this.

This is one of the strategies I teach in my course “How to Keto Your Money – 21 Kick Start Program”. You get coaching from me on how to pay your home loan down fast and get the support you need to stay on track.

This is also what I often talk about in building financial muscle and having money work to YOUR advantage and not to your bank or financial institution’s benefit.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Let me help you!

Get in touch with me today to see firsthand if you have the right loan structure and how my coaching style can support you to achieve your financial goals sooner.

Get in Touch with Karen G Adams

How to Help Someone With Financial Stress?

How to Help Someone With Financial Stress?

Sep 25, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Health, Financial Management 101, Home Loan, Mortgage, Saving Money, Self Development

Supporting someone with money stress can be challenging because they may be resistant to accepting help or discussing their financial difficulties with you. 

Often people don’t want you to know they are struggling because of judgement, but this is the time to be the friend or family member to support them. There is always a way out and often they can’t see that due to the stress they are experiencing.  

Sadly some people feel the only way out is to leave this earth and that only leaves the loved ones behind with sadness and more stress than ever before.

Simply checking in with someone, taking them out for coffee, and listening to how they are doing can go a long way toward helping and being the supportive person they need.

Here are some ways to help them while still giving them space to maintain their dignity:

LISTEN ACTIVELY

Start by being a good listener. Let them talk about their financial concerns and stress without offering advice or judgment. Sometimes, just having someone to vent to can relieve some of the emotional burden.

YOU CAN HELP WITHOUT GIVING MONEY. YOU CAN SHOW YOUR SUPPORT IN OTHER WAYS.

Offer your time, company, or help with things that do not cost money, like doing chores around the house, running errands, or giving emotional support during hard times.

PUT AN UPBEAT SPIN ON ANY DISCUSSION OF MONEY AND ALWAYS ASSUME THE BEST.

You could say, “I have been looking into some great financial resources that I think could help anyone, and I thought you might find them interesting,” instead of “You need help with your finances.”

RESPECT THEIR PRIVACY.

Give them space and privacy when it comes to their finances. Do not ask them too many questions or force them to talk more than they want to.

MAKE MONEY PROBLEMS MORE COMMON BY TELLING STORIES OR GIVING EXAMPLES OF PEOPLE WHO HAVE HAD MONEY PROBLEMS AND GOTTEN THROUGH THEM.

This can show them that many people have trouble with money and that asking for help is not a sign of weakness.

Know that it might take them some time to open up or accept help. Wait your turn and let them lead the conversation and decision-making.

BE PATIENT.

Know that it might take them some time to open up or accept help. Wait your turn and let them lead the conversation and decision-making. 

OFFER HELP WITHOUT BEING OBVIOUS.

If you find articles or financial resources that could help, share them in a quiet way. You can send them an article or a link instead of talking directly about their money.

SUGGEST PROFESSIONAL GUIDANCE.

If you believe they would benefit from professional financial advice, make a non-confrontational suggestion. You might say, “I know someone who is really knowledgeable in this area. Would you be interested in talking to them? It might give you some new insights.”

AVOID OFFERING FINANCIAL ASSITANCE.

Do not give them money directly unless you are sure it will not hurt your relationship or encourage them to act irresponsibly. Instead, focus on helping them feel better and giving them information.

Tell them you care about their well-being and are ready to help them in any way they feel comfortable.

EXPRESS YOUR CONCERN.

Tell them you care about their well-being and are ready to help them in any way they feel comfortable. Make it clear that you are not judging them, but that you care about their happiness and health as a whole.

STAY SUPPORTIVE.

Keep being there for them, even if they do not accept your help or ideas right away. Let them know that you will always be there for them.

It is important to give them their independence and let them decide for themselves what to do with their money. You can give them help and resources, but in the end, they have to be ready to take steps on their own to deal with their money stress. 

 Your patience, understanding, and willingness to not judge them can go a long way toward helping them get through their money problems.

The LEARNING HUB helps you gain more financial knowledge, while providing you with the support and help you and others need. Join now for only $79 USD per month.

JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101
Come on and join the challenge. You've got nothing to lose but a whole lot more to gain!

Which Comes First: Emergency Fund or Paying Off Debts?

Which Comes First: Emergency Fund or Paying Off Debts?

Sep 21, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Home Loan, Mindset, Mortgage, Saving Money, Self Development

When money is tight, it can be hard to pay down debt and build up an emergency savings fund at the same time. But it is still possible with careful budgeting and good money management. 

Here’s a step-by-step plan on how to do this:

1. ASSESS YOUR FINANCIAL SITUATION

Start by looking carefully at your money. Write down everything you earn and everything you owe, including the balances, interest rates, and minimum monthly payments.

2. MAKE A BARE-BONES BUDGET

Make a simple budget that covers only the most important costs, such as housing, utilities, groceries, transportation, and insurance. Cut back as much as you can on spending you do not have to.

3. PAY OFF HIGH-INTEREST DEBTS

Pay off your debts with the highest interest rates first, as this will save you money in the long run. All debts should have the minimum payment made, but any extra money should be put toward the debt with the highest interest rate.

4. SET REALISTIC GOALS

Find out how much you can afford to put toward debt repayment and savings each month. Be careful and make paying off debt your first priority.

5. BUILD A SMALL EMERGENCY FUND

Even though it is important to pay down debt, having a small emergency fund can help you avoid going deeper into debt if you have to pay for something unexpected. Start with a small goal, like $500 or $1,000, and slowly raise it as time goes on.

Having a small emergency fund can help you avoid going deeper into debt if you have to pay for something unexpected.

6. USE WINDFALLS/UNEXPECTED MONEY WISELY

If you get money you did not expect, like a tax refund or a bonus, put some of it toward paying off debt and some into an emergency fund. This helps you move forward in both areas.

7. SAVE AND PAY OFF DEBTS AUTOMATICALLY

Set up automatic transfers to your emergency fund and to your debt payments whenever you can. This makes sure that you always move closer to both goals.

8. LOOK FOR WAYS TO MAKE MORE MONEY

Look for ways to make more money, like part-time work, freelance gigs, or selling things you do not use. The extra money can be used to pay off debts and save money.

Talk with your creditors about your money situation. In some cases, you may be able to negotiate lower interest rates, lower minimum payments, or a delay in payments to make it easier to handle your debt.<br />

    9. TALK WITH YOUR CREDITORS

    Talk with your creditors about your money situation. In some cases, you may be able to negotiate lower interest rates, lower minimum payments, or a delay in payments to make it easier to handle your debt.

    10. REVIEW AND ADJUST REGULARLY

    Check in on your budget and financial goals every so often. Change how you pay off debt and save money when your income and expenses change.

    11. CELEBRATE MILESTONES

    Celebrate your successes, no matter how small they are. Every dollar you save in an emergency fund or pay off of a debt is a step toward financial stability.

    Remember that building an emergency fund and paying off debt are long-term goals. It’s okay to progress slowly if your income is limited.

     The important thing is to keep working toward both goals, even if progress is slow. Your money situation will get better over time, and you will have a stronger financial base.

    At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire.  Join our LEARNING HUB today!

    JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101
    Join the Learning Hub - Financial Management 101 by Karen G Adams

    How to Start Reducing Your Debt Today and Two Ways to Do This

    How to Start Reducing Your Debt Today and Two Ways to Do This

    Sep 18, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Financial Management 101, Mindset, Mortgage, Saving Money, Self Development

    You can immediately begin decreasing what you owe and increasing what you own by following the information below.

    There a several commonly recommended strategies for paying off debt efficiently, including the “Debt Snowball” or the “Debt Avalanche” method.

    Here’s an explanation of both strategies:

    DEBT SNOWBALL METHOD

    How It Works: This method involves paying off debts from the smallest to the largest balance, regardless of interest rates. The idea is to gain momentum and motivation by quickly eliminating smaller debts.

    Steps for the Debt Snowball Method:

          • List all debts, starting with the smallest balance and ending with the largest.
          • Pay the minimum on all debts except the smallest one.
          • Allocate any extra money in your budget toward paying off the smallest debt as quickly as possible.
          • Once the smallest debt is paid off, roll the money you were using for that debt into paying off the next smallest debt.
          • Repeat this process until all debts are paid off.

    Advantages: This method can provide a psychological boost as you see smaller debts disappear quickly, which can motivate you to keep going.

    DEBT AVALANCHE METHOD

    How It Works: This method involves paying off debts in order of highest to lowest interest rates. You focus on paying off the debt with the highest interest rate first to save the most on interest charges over time.

    Steps for the Debt Avalanche Method:

          • List all debts, starting with the one carrying the highest interest rate and ending with the lowest.
          • Pay the minimum on all debts except the one with the highest interest rate.
          • Allocate any extra money in your budget toward paying off the debt with the highest interest rate as quickly as possible.
          • Once the highest-interest debt is paid off, roll the money you were using for that debt into paying off the debt with the next highest interest rate.
          • Continue this process until all debts are paid off.

    Advantages: This method saves you the most money on interest charges over time, as you tackle high-interest debts first.

    The Debt Avalanche Method is my preferred method and the one that I teach in my programs, as I want to save you as much money, as you can.

    Seeking guidance from a financial advisor can provide valuable insights and personalised strategies to help you get out of debt faster

    Choosing between the Debt Snowball and Debt Avalanche methods depends on your personal preference and financial situation.

    The Debt Snowball may provide quicker wins and motivate you, while the Debt Avalanche can save you more money in the long run. Whichever method you choose, it’s essential to stick to a budget, avoid taking on new debt, and consider increasing your income, if possible, to accelerate your debt payoff efforts.

    Additionally, seeking guidance from a financial advisor can provide valuable insights and personalised strategies to help you get out of debt faster.

     

    At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire.  Join our LEARNING HUB today!

    JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101
    Join the Learning Hub - Financial Management 101 by Karen G Adams

    What are 5 ways to Deal with the Top 5 Money Stresses?

    What are 5 ways to Deal with the Top 5 Money Stresses?

    Sep 15, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Saving Money, Self Development

    To deal with the top five money worries, you need to learn about money, plan ahead, and use practical solutions.

    Here are five ways to help yourself or someone you know who is under a lot of financial stress:

    1. DEBT MANAGEMENT

       ◼️   Debt Consolidation: Look into your options for turning high-interest debts into loans or credit cards with lower rates.

       ◼️   Budgeting: If you know how to budget well, you can put money toward paying off debt in a planned way. If you do not know how to budget well, you can get help from experts who can teach you how to do it.

       ◼️   Financial Counseling: Talk to a financial counselor or advisor who can help you come up with a plan to deal with your debts.

    2. EMERGENCY FUND BUILDING

       ◼️  Automated Savings: Set up automatic transfers to a separate savings account where you can build up an emergency fund.

       ◼️  Changes to your Budget: Look for places in your budget where you can cut back on spending you do not have in order to save money.

       ◼️  Side Income: Look into part-time jobs, freelancing, and the “gig economy” as ways to earn extra money to add to your emergency fund.

    3. SAVING FOR FUTURE GOALS

       ◼️  Goal Setting: Set specific financial goals, like saving for retirement, buying a home, or paying for your child’s education.

       ◼️  Financial Literacy: Learning about the various investment vehicles available and the advantages of investing over the long term to build wealth.

       ◼️  Automated Savings: Consider setting up recurring payments to your retirement account or other investment fund to ensure regular savings.

    Saving Money for Future Goals<br /> Set specific financial goals, like saving for retirement, buying a home, or paying for your child's education.

    4. JOB SECURITY AND INCOME STABILITY

       ◼️  Skills Development: Look for ways to improve your skills and keep learning to make yourself more employable.

       ◼️  Networking: Build and keep up a professional network, which can be helpful for getting job referrals and opportunities.

       ◼️  Backup Plan: Have a backup way to make additional income, like freelance work or a side business, as a way to supplement your current income, or, just in case you lose your job.

    5. MANAGING LIVING EXPENSES

       ◼️  Expense Tracking: There are budgeting apps and tools that can assist with tracking your daily expenses and help identify areas where you may need to look at cutting costs.

        ◼️  Shop Around: Look around for the best deals on things you need, like groceries, insurance, and utilities.

       ◼️  Housing Options: Consider downsizing, renting a room, or getting a lower interest rate on your home loan, are all viable options for lowering monthly housing costs.

    There are budgeting apps and tools that can assist with tracking your daily expenses and help identify areas where you may need to look at cutting costs.

    Remember that financial stress relief often requires time and persistence.

    Seek professional financial advice as needed, and look for ongoing support and accountability to assist you in effectively implementing these strategies.

    Also, learning about money can give you the power to make smart financial decisions and reduce money-related stress over time, that’s where the LEARNING HUB helps you gain more financial knowledge, while providing you with the support and help you need.

    JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101
    Join the Learning Hub - Financial Management 101 by Karen G Adams