100% Mortgage Free and Debt Free In Less Than 6 Years! How Did We Do It?
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- čas přidán 25. 08. 2024
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In this episode of "How Did We Do It?" Matthew Pillmore, President of VIP Financial Education, explains how we helped AG pay off all mortgage and non-mortgage debt in 5.5 years! Not only is he 100% debt free but we also saved him thousands in interest payments. With his higher monthly cash flow he can now invest in things like real estate. With proper coaching, you too could be debt free and enjoying financial freedom to invest in whatever you wish. Sign up for a free coaching session today and get started securing your very own Debt Weapon!
Want more actionable financial tips and tricks like this one? Check out our CZcams channel here / @vipfinancialed
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VIP Financial Education provides resources for educational purposes only. Our education is not a substitute for Legal, Tax, or Financial advice and results vary. VIP Financial Education encourages viewers to do their homework before taking any financial action. VIP Enterprises, LLC may from time to time earn commissions by recommending various products, services, and programs. Practice our education or don't at your own risk.
#MortgageFree #DebtFree #VIPFinancialEd
I watched the whole playlist in one day. These are awesome!
Dakota Feight, your Awesome! Appreciate you watching and enjoying the videos!
Debra Mclane
I am also digging in and using these techniques!! Already improved my cash flow situation!! Want to learn all I can!! Looking forward to my Phnoe conversation with you in Oct!!
That is so great Debra! Looking forward to our conversation too!
Good vid
Thanks!
Is there ever a scenario when someone has low credit that you recommend debt settlement or credit card modifications instead of just applying the cash flow to the cards?
Hi our bank says we have 37k available from or LOC. I believe its a PELOC, at 4% interest. Is that possible? given the very low rate for a unsecured loan? What other parameters should i be aware of. Btw its gonna be use to knock off principals of our newly acquired home.
I mapped out this whole channel for strategic watching. I'm about half way through and as I immerse myself and hear these topics repeated I'm becoming more and more comfortable with the process. I read Rich Dad 20 years ago and never took action on it. This channel takes that great philosophical book and made it literal and applicable. Thank you so much.
Thanks for checking out the channel! Appreciate your kind words!
Been using the majority of your techniques based solely on your videos with great success! It would be great to dig deeper. How do I sign up ?
Great to hear! You can sign up at www.freecoachingcalendar.com
Thanks, I figured it out and I’m scheduled for 1/23 !!
Learned a lot from your videos and with all things youtube their are many iterations and viewpoints. I am in the process of getting my HELOC approved, but went with speed equity system who is the originator of this system. I was able to get my free consultation within a week and the system is only $1900 vs $11000 for yours. If the only thing needed is to pay off debt/mortgage then his system is much more advantageous. I realize you offer investing also, but that is secondary to most people. I do enjoy your videos and information though.
So with lump sum every 6 six months, are we still making monthly mortgage payments in between? And what funds do we use payoff the debt weapon?
Charles Yes, you have to pay your monthly mortgage payments, but the lump sum payments are additional principal payments. You use your paychecks to park or pay down the debt weapon.
Awesome video Matt
I want to be debt free!
You can! Sign up for a free coaching session!
Stop spending more than you make. Simple concept.
@@iceman2921 true and/ir increase your income
Quick question: When you add the 13,044 as a lump sum payment to the mortgage through the debt weapon, the total payment amount for that months mortgage payment was 13808.14. That's incorrect as the lump sum is supposed to act as that months payment an not an additional payment on top of the regular monthly payment. This skews your overall numbers. Am I correct?
Hi Chris Hardin, the extra payment is accounted for in the loan calculator during every estimate, however it's just that...an estimate. As you know, these numbers can be better or worse depending on unexpected circumstances. Because we always estimate using the worst case our results tend to be ultra conservative and even if costs come up or income is suddenly less, we have prepared decisions for that possibility. Good question!
Can this be used to boost savings for a house down payment? (For someone with no mortgage and non mortgage debt) Thanks!!
Thank you Matthew, I got my 25k debt weapon. I am attacking my truck loan & on my way to paying it off in 13 months vs the remaining 54 months. Mtg is next!
Way to go Brad!
Brad Pierce sounds good, details would be helpful.
Phenomenal video!!!
DaveSincere, glad you enjoyed it and thanks for watching!
Matt, this was definitely an extremely great video. My free coaching session is 4/19
effrain vivanco, we're looking forward to your free session. By then your finances will finely tuned.
I have a question about paycheck parking. If it assumes you get paid at the beginning of the month and pay bills at the end, should I assume we’d need to find a way to pay the bills a month in advance? That might be tricky.
Do you provide this service in Canada
Sribavan Gopalapillai, yes we do as there are many members from Canada we serve. Hope that helps and thanks for watching!
Why wouldn't you pay the $2,174.62 to the principle every month on the mortgage instead of waiting every six months to pay $13,044? Isn't the interest going accumulating higher every six months rather than every month?
By going about it this way, we can make that monthly net cash flow do more for us both in paying off the mortgage faster and in making investments for the future. We are all about finding and applying situations where we can have a WIN WIN for short and long term financial goals.
Look at the 27:20 mark
Where can I find a good line of credit? I don't even know where to start with a LOC
Your bank is a good place to start. Credit Unions are usually more flexible and have better options for personal lines of credit.
@ Morisa Larson Were you able to find good LOC's?
@@IamharmlesS were you able to find loc's?
great job guys!
Thanks Chloe!
By paying the DW's off so quickly, do lenders frown on giving additional lines of credit since they are not getting all the interest that they were planning on?
gabriel0352, in my opinion there's positives and negatives for the lender. The negative is they make less money when you repay the loan because they have less interest income. The positive is they have a reliable borrower and there's less risk to them. I wouldn't worry too much about the lender though. Odds are they're doing just fine.
LOC variable plus prime and rising. With rates only going up is this really a good move as opposed to having locked in at 3?
Great points, evelyn m,...we agree and always support locked interest rates. This is why we seldom EVER encourage first lien position HELOC's which are often discussed here on CZcams.
Great educational Video. I am about to buy a $600K house on a 30 year Mtg. I would like to learn how to pay it off in 7 years without putting anymore money in . I do have access to LOC of $100K . Please help me out to achieve my coal. Thanks in advance .
I would love to use your spreadsheet plus can we get your IG more clear thanks 🙏.. Great Job in this video!!! Definitely love what you doing and will follow up with call after Cov19
Mr CQP, your very welcome and thanks for watching my friend! Look forward to chatting with you in the future.
Great video! Question, do I apply the initial lump sum payment to the monthly mortgage payment as an additional payment and make the regular monthly payment? Or do I just make a direct payment using the debit weapon, which including the monthly payment. For example, if my debt weapon is 10k and my monthly mortgage payment is 2k. Do I make the the 2k payment and add the remaining 8k to the principal? Thanks in advance.
Hello Johnson...either way works.
Hey Mathew i have a question... How do you pick 25k dollar debt weapon... I mean Doesn't a debt weapon look at income to qualify for that amount? I guess what im trying to ask is Why would A bank or cc company give a person 25k if they make roughly 30k in income like i do. Or are these on the business side.. Knowing that those cards and loans offer higher balances? Thanks for everything im learning a ton going thru all the videos on the channel
Raver, Debt Weapons are determined on a case-by-case basis. Many variables are considered when selecting the most appropriate for both the purpose, and the borrower. That's why we provide the 1:1 guidance through a customized coaching session. It prevents risky mistakes.
Great video and channel! Just wondering if your information and coaching applies to someone living in New Zealand?
Willis Hsu, If they use amortized loans it should apply. Thanks for watching and commenting.
Which is Better? Overpaying Lump Sums vs Overpaying every month vs Getting a mortgage on shorter term (years) ?
Although lump sums are fastest, whatever you stay consistent with is best. 30 Year is best as it gives the most choices.
Personally I think it is better to have a longer term with the option of overpaying without penalty. That way if you need to you can drop back down to the minimum payment.
I have a HELOC which is higher than what I owe on my mortgage. Would you recommend paying off the entire mortgage all at once with the HELOC or paying it off in smaller chunks($10-20K)? I also have the opportunity to use 0% APR credit card checks. What is the best option?
In order to really dig into this from all angles and provide a more well rounded answer, I'd need to get you in a one on one coaching session. We do offer the first one for free and you can sign up at www.FreeCoachingCalendar.com - there you'll see two options - the free session and a coaching membership. If you'd like an expert coach to walk alongside you in bettering your financial picture and meeting your short and long term financial objectives the coaching membership may be the best fit for you. I hope to chat with you soon!
I didn't catch it. How do you get the Debt Weapons?
First...strong credit. From there, knowing what purpose you're working to accelerate, then which tool will help you do so, then who's providing the tool, then when to apply for it. Because those questions result in many variables, typically it's best to have help. www.FreeCoachingCalendar.com
Wow, this is great!
Thanks Brian!
What for example you have a credit card with limit 10k but untouched for few months. Can you use that as a debt weapon to pay off mortgage.
No, we do not use credit cards to attack mortgage balances. We use more liquid accounts that are still revolving (like a credit card) but do not penalize us for taking cash to invest or attack debts.
VIPFinancialEd isn't credit card a liquid cash that acts as a debt weapon where money can be withdrawn.
I have a mortgage on my real estate which I have split into revolving account and fixed.
I have 10k (limit) sitting on my personal account in separate a bank.
Can't I use my credit card to withdraw $10k and deposit it into my revolving account.
Or can I withdraw 10k and deposit into fixed account (depending on limit) on six monthly basis and pay credit card using my cash flow.
VIP Financial Education
What about credit cards offer for example: with good credit I can get
$ 6000.00 with rate 3% for 8 months
I have to pay back $6180.00 within 8 months. After that period regular rates apply.
$772.50 per month
Question from a self-employed business owner. Let's say I use the paycheck parking method to pay down my personal HELOC by 50K. Would I need to take that 50 Grand as income?
Hello Stacy, yes...managing this process very carefully for tax purposes is key. Great question.
VIPFinancialEd so maybe this isn't the best thing to do. I have the ability to almost pay off my HELOC using thus method this year! However, I thought using borrowed money wasn't taxable.
paying down / off debt is almost ALWAYS better than holding it for tax benefits. However, that really isn't the point I was wanting to make sure I get across most...the key is proper management of the cash flow so the balance between paying as little interest and paying as little in taxes is being navigated properly. Have you reserved a free coaching session yet? Sounds like you have a number of moving pieces worth looking at closely. Cheers!
Stacy Michelle how come you can’t have a holdings company own your company and your are a member manger or president of the company that pays you distributions and that’s tax free or am I wrong.
Trying to sign up for your coaching session but no matter which category I choose I get an error message. Please let me know where to contact you
Thanks
Steven, please email ContactUs@VIPFinancialEducation.com with your direct contact number and we will reach out to assist. Cheers, friend!
Do you always recommend student loans be paid off before attacking the mortgage? Thank you for all this wonderful content. We've added 25K to our debt weapon arsenal this year in the form of a HELOC and CC.
That's awesome, fits your username!! :)
Nothing is an absolute rule, just rule of thumb. Everybody has a different plan tailored to their circumstances. We would have to learn more during a free coaching session to determine what direction is best for you. www.FreeCoachingCalendar.com
you're the man
Thanks for watching!
I signed up and my schedule is in November but I never received this spreadsheet. How can I get this spreadsheet?
Thanks for signing up (and for your patience - sorry we're booked so far out)! You can get the spreadsheet in this video free of charge by visiting www.CashFlowCruncher.com
Looking forward to speaking with you in November - if you want to get started immediately, but are unsure if its the right fit for you, we do offer a full refund back to you if during that introductory call either of us finds our coaching isn't a good fit for you. Either way, I look forward to talking with you and appreciate your viewership here on our CZcams channel!
Amazing
Thanks Madalen!
Your content it’s amazing ! Wow baby steps are ok but this information it’s in a whole new level ! If someone does want to build a massive savings account so they can feel safe all the have to do is transfer a lump some to the savings and do the pay check Parking ? Sounds good but then it will feel if I was paying interest for me to save money instead of saving is this correct ?
cesar lopez, it's not recommended to transfer a lump sum from a credit line to a savings account. You will lose money on the interest expense. The lump sum payment should be applied to a mortgage or other long term debt. The Lump sum draw from the line of credit should be paid back with monthly net cash flow. Paycheck parking will help you to reduce interest expense while repaying the line of credit. I hope that helps. Thanks for your comments and viewership.
This stuff is awesome! I've been doing research before diving in and the part I still don't understand is the additional payment on the mortgage. Are you still paying the minimum payment of the mortgage and then every six months adding an additional payment? How is this different than paying more than the minimum every month (this is what I currently do. Min. Is $1004, I pay $1404 every month) Thanks for the great content!
Great question, Ryan.
This is the most common question we get.
On one hand the numbers are different, but not by much.
When you calculate the difference, to the penny, it's hundreds, even thousands different.
However, ask 1000 people if they are aware that they can apply extra money each month to a mortgage and pay it off early to save interest. 1000 people will say, 'yes'.
Yet, of the thousands of people we speak with how many do? So because we as humans are the variable in an otherwise mathematically perfect system, there are both psychological AND financial benefits behind the more strategic liquidity of Debt Weapons. Psychologically this specific approach is easy to stay consistent with. More organized and precise. Organization, structure, consistency and precision are KEY to safely getting results.
Financially, the vehicles we call Debt Weapons have a great deal of potential. Literally both sides of the balance sheet can be simultaneously optimized...all the while increasing safety. Growing your assets by leveraging other people's money strategically following the "Rich Dad" concept of income producing asset acquisition, then consciously paying down the leverage exponentially faster is simply logical. But surprisingly not common and for many quite difficult. All we do is demonstrate new strategies to bank far more aggressively without losing liquidity to invest and grow multiple income streams. Without a 'dog in the race' we aren't in favor of one approach vs. another. Fighting over a healthier eating plan or another isn't the point because analysis paralysis is expensive.
Step one...take action.
Thanks again for the question, Ryan!
VIPFinancialEd Got it! I had to sit down with an amortization sheet and play with the numbers. I think I've got it and found a good way to save quickly, but I went ahead and scheduled a consultation in April to see what advice you can give. Looking forward to it!
Would you continue to look for debt weapons if your debt free
Level Up, that depends on your goals and what you plan to accomplish. If you put all your money into investments that are not liquid then you should have debt weapons, like a line of credit, for emergency purposes. If you have cash reserves and liquid assets with no plan to use leverage for investing then debt weapons might not be needed.
Anyone know how much it cost to get start?
czcams.com/video/HbVLmCvFjoI/video.html
Hey I live in Canada. How much do you charge for your hands on help 🙂
Akshit Singh Dutt, please see this video. czcams.com/video/HbVLmCvFjoI/video.html
VIPFinancialEd do you charge when coaching?
Sounds doable but my cash flow has either been 0 or negative for years and thats with me doing all the tricks to save money and never going out or buying things unless its an emergency. Like realizing I only have 3 pairs of underwear without holes and I wash clothes every 7 days. 2 more years to go and Ill have an extra $600 a month that Im not paying in child support that I can use to pay off credit cards. BTW I had 770 credit score umtil 2 months ago when my card payment bounced twice in two days over the weekend before i could get to the bank on monday to make a deposit. that cost me $400 in fees between the bank and the card company and a $6k drop in my credit line and a huge hit to my score.
David Bowden sometimes your credit has to match your income to get the big $$ LOC
How bout dem interest rates?!! Lol, no but really, how about them?
3rdJose, well they are historically low, that's for sure!
Not sure where else to ask this: When I changed the values in the cash flow cruncher loan calc tab it changed everything to (#NAME?) Any idea how to fix this. I opened it in google sheets if that helps.
Sometimes when you use Google Sheets for this tool it compromises those fields, Chris. Send an email to ContactUs@VIPFinancialEducation.com and I'll have Brandon send you over a fresh spreadsheet.
I want to learn more I hope you can help me out. I've been wanting to purchase a home but I want to learn more about debt weapons in order to move on with this process. I would like to pay you, to have a few coaching session because I all the free coaching sessions are not available until December and I want to buy a house next month how can I conact you? Thank you
Hi Jorge! Thank you for reaching out on our channel - I'd love to work with you one on one to help with your short and long term goals.
Please email me at matt (at) vipfinancialeducation (dot) com - write "Paid Coaching Session Sign Up Question" in the email description and we'll find a way to get you signed up. Talk soon!
This is my plan now thank you for sharing.
I learn with you guys how to manage my money and no buy more liabilities until I can afford them, your help with how to bank and how to follow my spends (Mint), help me every single day. Look forward to having a session with you guys. I am currently working on getting my 800 USD (500 cash flow + 300 VIP membership) cash flow and 750 credit score.
Great stuff, Average Consumer. Thanks for checking out all our vids!
I don’t get it maybe it’s the terminology he’s using!
Zeke M, we have many videos on this topic. Continue to watch and and hopefully one of the videos makes sense. Thanks for watching.
VIPFinancialEd I know you’d busy and thank you. I have minimal expectation but make 125 a year no CC debt, one more year on my truck payment and my mortgage only to pay and would love to pay off my mortgage in 6 years! I need to get on your free consult list and will continue to watch more videos until then. Thx again.
Zeke M, this is one of our early and longer videos. Hopefully it's helpful. czcams.com/video/RvInyQggMXU/video.html
Different vehicles for different situations. Enough said. One sentence does trick. Next point. Only so many ways to say a thing before driving people out of their minds.
Wtf did I just watch? Is this even a thing?
Anardo Cuello, I'm not sure what you're asking. Is paying off debt a thing? Yes. Is paying it off strategically in a way that reduces interest expense a thing? Yes.