There is nothing more powerful than time when it comes to investing. Time allows for your investment to grow and the power of compound interest to take place. The same can also be said about paying off your mortgage quicker. Time can be your friend if you use it correctly.

Imagine being mortgage free two and a half years earlier than you expected…how would that change your life? Maybe you could:

·         Retire earlier

·         Pay for your children/grandchildren’s education

·         Go on an amazing vacation 

·         Work on your passion project

·         Invest in your community

·         Insert your dream here!

Now, you may have heard this example before, but it is true: something as simple as giving up a coffee a day can make such an impact. 

Here’s a quick breakdown:

A 400k Mortgage with 25 years remaining has a payment of $1,893/mo. 

A cup of fancy coffee is $5/day. 

If you put that toward your mortgage instead, you would reduce your mortgage from 25 years to 22 years and 6 months. The savings in interest would be over $20,000. 

There are many ways to set this up. 

You could take advantage of the pre-payment privileges with your current lender. This would mean increasing your mortgage payment by $147/mo. or $73.50 if you’re bi-weekly or semi-monthly. This would allow you to set it and forget it. 

You could also save the $5/day in an account and make a lump sum payment each month or year against your mortgage…but that has more moving parts and you’re more likely to forget. 

Another bonus, by increasing your mortgage payment, you are guaranteeing yourself a rate of return on your $147/mo. investment, and the best part, it’s a tax free investment. 

So, is this a good time for you to invest in a reliable, cost-effective at home coffee maker? Making your own coffee can be really fun and I definitely recommend it! You could also treat yourself with a latte occasionally instead of every day. 

Maybe giving up your fancy coffee or whatever beverage you indulge in isn’t an option and I get that. But the simple point is to show you how just $5/day can change your life. 

If you want to chat in more detail about this, please let me know.  I am always happy to help!

Warmest Regards,

Christina Pentilchuk