Recommended
More Related Content
What's hot
What's hot (16)
Viewers also liked
Similar to The Impact of Living Simply
Similar to The Impact of Living Simply (20)
Recently uploaded
Recently uploaded (20)
The Impact of Living Simply
- 1. How to Live Simply A Comparison of Two Families
- 2. The Jones vs. The Simpletons
- 3. The Lowdown Jones College Degrees Married at age 25 Both currently work Total annual income: $48,000 Monthly Income = $4,000 Simpletons College Degrees Married at age 25 Both currently work Total annual income: $48,000 Monthly Income = $4,000
- 4. The Houses Jones House Cost $200,000 20% Down = $40,000 Mortgage- $160,000 5% Rate for 30 Yrs. Bought House 1 year into marriage Monthly Payment = $858.91 Not including taxes & ins. Simpletons House Cost $125,000 20% Down = $25,000 Mortgage - $100,000 5% Rate for 30 Yrs. Bought House 3 years into marriage Monthly Payment = $536.82 Not including taxes & ins.
- 5. Transportation Jones Bought 2 new cars every 5 years 2 cars at $15k each = $30k $30k at 6% for 5 years $579.98 total monthly payment Simpletons Bought 2 used cars every 5 years 2 cars at $7k each = $14k $14k at 6% for 5 years $264 total monthly payment * Please note that I’m not advocating for car payments here, simply giving a comparison.
- 6. Eating Out Jones Dine out 8 times per month 4 times at an expensive restaurant Avg. meal = $100 2 times at moderate Avg. meal = $50 2 times at modest Avg. meal = $25 Total cost per month = $550 Simpletons Dine out 4 times per month 1 expensive restaurant = $100 1 moderate = $50 2 modest ($25 each) = $50 Total cost per month = $200
- 7. Vacations Jones One expensive vacation per year Average cost per year = $4,500 $4,500/12 = $375 per month Simpletons Two vacations per year One with family = $1500 One simple one= $500 $2,000/12 = $166.67 per month
- 8. Entertainment Jones Expanded Cable and Internet Package = $150 2 Movies Per Month = $30 Golf 2x Per Month = $100 Total Monthly = $280 Simpletons Simple Cable or No cable & Internet Package = $50 2 Movie Rentals per month = $5 Golf 1x per month = $50 Total Monthly = $105
- 9. Shopping Jones Clothing $50 Groceries - $500 Items for House - $50 Miscellaneous personal items = $200 Total Monthly = $700 Simpletons Clothing $20 Groceries - $300 Items for House - $20 Miscellaneous personal items = $60 Total Monthly = $400
- 10. The Comparison Joneses House: $858.91 Transportation:$579.9 8 Eating Out: $550 Vacations:$375 Entertainment:$280 Shopping:$300 Simpletons House: $536.82 Transportation:$264 Eating Out: $200 Vacations:$166.67 Entertainment:$105 Shopping:$400
- 11. The Comparison Simpletons Spend Less Each Month: House: $322.09 Less Transportation:$315.98 Less Eating Out: $350 Less Vacations:$208.33 Less Entertainment:$175 Less Shopping:$300 Less Total = $1,671.40
- 12. The Potential Impact • $1,721.40 Additional margin Save/Invest $1,000 per month At 6% in 10 years = $162K Paid an additional $200 towards mortgage each month Home is paid off in 17 years (13 years earlier) Gave rest to their church- $500 In 10 years they’ve given over $60,000 Doesn’t include paying cash for cars or education savings All by the age of 41
- 13. Savings Growth Over 30 Years $0.00 $200,000.00 $400,000.00 $600,000.00 $800,000.00 $1,000,000.00 $1,200,000.00 Year1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 *Plus a Paid Off House
- 14. The Key? It’s the small daily decisions to say no that allow you to live simply and stay free for the long haul.
- 15. Learn strategies like this and others by taking the Realign Class. Click HERE to start today.