What did it really cost you?
Think about the last time you went out to eat . . .
What did you spend?
It’s amazing how fast it can add up – and what it can do to you.
I was reminded of this thought when I came across an article in Inc. magazine with quick bits of financial advice from successful entrepreneurs.
Daymond John, Shark Tank investor and Fabu founder says . . .
“When I was 22 years old, a guy who owned a little bodega in my neighborhood told me, ‘If you really want to start a company, you better dig under your couch for a couple of extra dollars, stop going out to dinner four times a month, trade in your car for a cheaper one, and raise that $40,000 or $30,000, if you can, by yourself.’ “
The part about “stop going out to dinner four times a month” caught my attention . . .
I have taught that advice for years, and live it as well . . .
It’s amazing to me watching how many people spend so much money eating out . . .
When I think about how much that adds up to on a weekly or monthly basis and what that money could do for a person’s financial freedom . . .
I am amazed how people can act in such foolish ways financially . . .
Think about it . . .
It’s hard any more to go to any basic restaurant for less than $10 per person, or even $15, or more . . .
If a family of four people does that, even at $10 per person, it’s $40.
Then when I ask people how often they go out to eat, it’s often at least once a week.
Turn that into $160 per month – minimum!
Add to that what many people spend for lunch at work.
You can’t really do that for $5 any more, it’s probably more like $10 – or more.
Take that times 5 days a week and you have $50 per week . . .
Then times 4 weeks in a month, and it’s $200.
Add that on to the once a week for the family of four and you’re now at $360 per month.
And this is a minimum.
Being part of the 5% of people who succeed is all about thinking and acting with long-term goals in mind, not living for the short-term.
People who are spending at minimum this kind of money, $360 per month, many spending much more, to go out to eat, are living for the short-term.
How did Daymond John become wealthy and get into a position to be a Shark Tank investor? He understood this reality.
For example, if you were to take that $360 per month and just simply add it to a mortgage payment every month, here’s what can happen . . .
You could potentially shorten a 30 year mortgage by 12 years, and save $65,000 in interest! (I used a $200,000 loan at 4% to calculate this example.)
So, if you spend that $360 per month eating out, it actually costs you $142,000 – that’s $660 per month!
But it gets worse.
Here’s the second part of the formula that I teach as a real mortgage consultant to become part of the 5% of people who succeed financially . . .
Take the same money you were wasting on loan payments (in this case loan payments and eating out) and invest to become wealthy.
Once that mortgage is paid off in 18 years, simply by applying the money that could have been wasted eating out, take the regular mortgage payment, plus the eating out money, invest that in simple safe investments and it could equal $275,000 (at a 6% return) in the same time you would have normally paid off a 30 year mortgage – this is costing you $765 per month!
Here is a summary of the two choices . . .
Keep wasting $360 month eating out and keep making regular payments on your mortgage.
If you’re lucky, you paid off your mortgage in 30 years.
You paid $129,600 eating out and $80,000 in interest on the mortgage – your total cost equals $209,600.
No money in the bank – just a paid off house if you’re lucky.
Or take that $360 per month and add it to your mortgage payment every month.
Pay off your mortgage in 18 years, then invest the same money for 12 years for the total years of your original mortgage.
You paid $15,000 interest on the mortgage.
$275,000 in investments, plus the value of your house, $200,000+, for a total wealth of $475,000 or more!
And that’s just for doing one simple thing . . .
Redirect the money you would normally waste going out to eat.
That $360 you spend every month really becomes $660 per month, or even $765 per month.
Spend the money on going out to eat and you fill your stomach – that’s it.
Redirect that money to becoming financially free and you potentially pay off your house in 18 years and end up with $275 in investments in the same time you would have normally paid off your mortgage.
And it can be even better than that, because I have given you only one example of a real significant choice you can make.
(Of course, this is a simplified example. You do need to buy groceries and prepare your own food. The principle still applies, and it’s worth it!)
It’s a simple choice, but most people never think of it that way, because the culture teaches something totally different.
The culture is teaching you how to become a financial failure because it benefits them.
A real mortgage consultant like me will teach you how to become a financial success so that you benefit.
Why would I, or any real mortgage consultant, do that?
Because we’ve been there and we understand how important this is. See more about the heart of a real mortgage consultant here.
And we know that by helping you, we help ourselves . . .
Let us help you too.