Saving just $1 per day might not sound like a lot, but you might be surprised at how saving just $1 per day can really add up. In the book, Rick says that our biggest problem today is saving. There is plenty of money out there. The problem is, there are so many cool gadgets and gizmos that constantly tempt us to spend money. If you can learn how to save, even just a little bit, you will be surprised. Let’s take a look at a very simple model that shows how money builds up. There are a lot of benefits to saving money. First. you’ll have the actual money savings in hand. Look at how nicely saving $1 per day adds up.
$1/day → $7/week → $30/month → $365/year
That’s not too shabby! But now let’s be Prudent. Look at what happens to that money when you put it to work for you by paying off mortgage debt.
Paying Off Your Mortgage with just $1/day
Now let’s look at a practical example of paying off your mortgage early. Landon and Kate are buying a home. They will be getting a mortgage for $190,000 over 30 years. Making extra payments to your mortgage is a fantastic way to save money. Instead of just saving $1/day, let’s suppose that Landon and Kate decide to pay off their mortgage early with their savings. Look what happens:
By simply paying an extra $30/month, Landon and Kate would save over 1.8 years of mortgage payments, and they would save a lot of interest as well. When it comes to your mortgage, saving just $1/day makes a very big difference.