How To Retire with $1MIL in 30 Years with No special investment or extra money

How An Average Middle American Can Become A Millionaire within 30 Years and no major change in their monthly budget.

How An Average Middle American Can Become A Millionaire within 30 Years and no major change in their monthly budget. Sounds pretty incredible. In fact, it nearly sounds impossible. But if you stick with me through this article, you’ll find out it’s not magic.. just math!

All of this is so simple, this article or set of instructions will be very short.

The secret behind all of this is compound interest and understanding the rule of 72. To achieve the million dollars, all we need to do is invest approximately $1000 a month for about 18 years at around 10%, and you’ll have it.

I can hear you now! You’re probably saying, “But Joe, you don’t understand! I’m lucky to have $200 left over every month after paying all my bills. Where in heck to you think I’m going to come up with an extra $1000! And then, TEN percent? Again you gotta be kidding, Joe. Actually, if you have $1000 a month to commit to regularly, you’re not going to have a difficult time to find an investment with that average rate of return.

Well.... let’s all sit back and relax! The good news is that over 60% of you readers do have that $1000, but you just don’t know it or how to access it!

Are you ready?

Here’s where: YOUR MORTGAGE. OK, we are talking in terms of generalities. First I know not everyone has a mortgage, and for those of you who do, few have an exact $1000 mortgage (and lets only count the principal and interest).

OK... now I really have you confused.....You’re thinking “Joe, are you telling me to not to pay my mortgage but to invest it?”.... Well, not really. Stick with me.

What we are going to do is assume we have a 30 year mortgage and pay it off early. Like on average in 12 years, which leaves us that 18 years to invest. I mean, if your mortgage is paid off, and you’ve been used to writing that check out.. all we are going to do is take that money and start paying ourselves instead of the bank!

Let’s start by breaking down who might qualify and some really basic ideas.

Some of you are renters. Each month you write out the rent check, once it’s written, it’s gone. You kiss the money good bye forever. This has to stop right now. You need to invest in a residence that appreciates and essentially builds cash value. At minimum it HAS cash value, and you are going to own it so that in some time, you are never going to have another month to put house payment or living expenses into. If you are buying your first house, do so with as much money down as possible. A minimum would be 10%; 20% would be better. If you can’t come up with that for now, look into rent to buy options first, followed by interest only IF the market is appreciating.

Both of these options are viable in fall 2007 as the market is really at a bottom. Home prices are bound to rebound in the next two years. Many people are desperate and rather than lose a home or investment, they will accept a rent to buy offer and apply your rent to a down payment. You may have to ask; you may have to seek more than one real estate agent, but it’s worth it..

If you all ready have a mortgage, you have half of the step done.

Well, you might be saying (to yourself, at least).. all this is great theory, Mr. writer, but you still don’t understand: “I just don’t have any way in this world to pay my mortgage off early. I all ready told you I’m lucky to have $200 a month left over after my regular budgeted expenses, and if the kids surprise me with an orthodontist bill, or the college tuition went up, or the transmission just failed one month after the car was out of warranty.... Yep, we understand all those things.

But I wouldn’t write this article just for the fun of typing. This article is here to really help you.

Until fairly recently, there’s only been 3 ways to accelerate the paydown of a mortgage: 1) Make substantial payments to principal, 2) Refinance to a lower interest rate (while still making the same payments, or 3) Converting your mortgage to a bi weekly... which reduces the average 30 year mortgage by about 7 years.

While having some results that help, none are as efficient as new techniques.

These new techniques convert “stagnant” money to “working money” and teach you how to use other people’s money (in this case the bank’s) in an effective way that’s more effective than the current methods.

The first thing we need to do is get rid of that lazy or stagnant money. Many of us like to keep a “comfortable surplus” in our checking accounts. It makes us feel good to know we have money there. It sits there.. and a few of us are lucky or smart enough to have a checking account that pays interest. Big deal.. what... .5%? 1%? of what. Average daily balance. So let’s say we have a $1000 balance there. What’s the bank do with our money? Just put it in a cubbyhole with our name on it? You know better! They make loans with it! Some of them, like credit card loans earn them 18-20 and sometimes up to even 22%. How much did they pay you? 1%.

Let’s take your mortgage. By the 5th of the month you make a $1200 payment and $200 of that goes to principal.. and you’d think they would knock the balance of the principal down by the $200 within the first 5 days. After all, your payment was on time! But when to they make the adjustment to your principal, and thus the interest on the balance? On the last day of the mortgage payment cycle.. usually the 30th of the month. So they sat on your money for maybe 25 days! Did they pay you interest on that? Did they just cubbyhole your funds? You know better!

But there’s ways to get more of that principal knocked down and you do it using their money to pay them, only in an account where the interest and payments get credited in real time, not “bank time”. These times are critical, particularly if you are using their money and essentially there’s no way most of us can make these calculations accurately or manually.

The good news is... computers loaded with the right software can do this!

It’s said that knowledge is power... and there’s never been a better application of this saying.

There are at least three firms marketing this software nation wide. There are differences in prices and differences in product, so evaluate carefully as you do your search. Things to ask are “is this dynamic or static”... will it keep up with my changing monthly financial picture? Will it give me control and allow ME to control my money, or will it make the changes for me.. some of which I may not want? How long has the company been around? If it’s software, is there support? 24/7? From someone here in the USA I can easily understand? Does the developer have BOTH a strong financial background AND computer so they truly know what is needed and how money works... or have they just done a quick study and come up with the software. Are there independent third party references? Is there a satisfaction warranty with the software?

These are all good points. You also need to evaluate the program independently. Many people make the mistake of asking people who they think are authorities, but really are not. An example is consulting “my accountant”. With all due respects to the accounting profession, the main function of the accountant is to help you pay the lowest tax bill you can get away with while staying in compliance with the IRS! They are experts here, but they are not really trained in all the nuances of compound interest and banking procedures. You can be as expert as them with diligent study.

OK... it didn’t take a whole lot of words to explain how you can become a millionaire in 30 years tops. In recap, as you start, you are accustomed to putting out a certain amount of your income into your housing expense each month. If you rent, its sunk or lost money, but if you are buying, you are making an investment and putting money away so that some day your housing is paid for. I know.... you’ll still have SOME monthly expenses like taxes and insurance, but think just of the part that is going to principal and interest. As you own, you will reach a point where your house is paid for.

With the right mortgage and debt acceleration program, you can pay that 30 year mortgage off in 12-14 years. That first saves you a ton of money “on the back end”... all those last few years. You can do this with just the money you are currently putting in... if you know how.

Now when the mortgage is paid off, you keep the habit up of writing out that check, only now you write it out into your investment account. If you put that same $1000 or so a month into the right (and even conservative) investment, in the remaining15-18 years, it will grow to an amount in the million dollar range.

You can do it, and join the ranks of millionaires...just from your current expenditures. Augment this with your other retirement plan and you’ll be secure the rest of your life!

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