Jellyman Investing - Personal Finance for Australians
Business:Investing
https://www.patreon.com/Jellyman_Investing
Once your accounts are set up and put into autopilot, its time to get efficient. You'll come to understand that when it comes to investing, it's not necessarily the amount you earn or the amount you invest, it's the time you stay invested.
Before I get on with this episode, a reminder that I have a Patreon page where you can read articles, download spreadsheets, get internet resources, watch tutorial videos and even chat with me. It's free to join so sign up today. The link is:
Patreon.com/Jellyman_Investing
Also, a disclaimer, that I am not a financial advisor, please consult with a professional before making any financial decisions. On with the episode.
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To illustrate the impact of extra repayments on a home loan, consider a $500k house purchased with a 100% bank loan, a 30-year term, and a 5% interest rate. Monthly repayments are about $2,700, totaling $466k in interest over 30 years, nearly doubling the house's cost.
Adding an extra $200 per month reduces the loan term by nearly 5 years and saves about $80k in interest. Increasing the extra payment to $500 monthly saves $150k in interest and cuts almost 10 years off the loan.
Building wealth isn't about sudden windfalls or high salaries; it involves small, consistent habits over time. Making minor lifestyle adjustments can significantly affect loan repayments. For example:
1. Reducing utility bills and switching to energy-saving bulbs.
2. Being more efficient with food consumption.
3. Using an electric scooter for short trips.
4. Making coffee at home.
5. Choosing a bank with no account fees.
6. Reducing streaming services and Uber Eats usage.
These savings, potentially totaling $300 monthly, can accelerate mortgage repayment, increase savings, or build an emergency fund. Additional income sources, like tax returns, bonuses, or side jobs, further contribute to this strategy.
Managing small amounts effectively prepares for handling larger sums. The same principles apply whether dealing with $50 or $50,000. It's about developing a mindset from the ground up. Wealth often accumulates subtly, and how one manages small savings can influence their overall financial growth and ability to build wealth sustainably.
S01_E20 - Basic Principals of Investing in Individual Companies
S01_E19 - Variable vs Fixed Mortgage Structures
S01_E18 - Understanding the Role of a Broker in First-Time Property Purchases
S01_E17 - Building 6-12 Months of Savings and Buying your First Home
S01_E16 - Understanding the Tax System for Financial Independence
S01_E15 - The Biggest Money Fears and What to do about them
S01_E14 - How Much Do I Need to Retire - Part 2
S01_E13 - How Much Do I Need To Retire - Part 1
S01_E12 - Retirement Planning - Superannuation as a Back Up
S01_E11 - A 9-5 Job will never make you rich
S01_E10 - Building a Wealth Strategy - Debt, Housing, Investing, Economy
S01_E09 - Welcome to my Patreon
S01_E08 - Good Debt and Bad Debt
S01_E07 - The Gold at the End of the Rainbow
S01_E06 - Understanding Compound Interest
S01_E04 - Willpower and Structuring your Accounts
S01_E03 - Debt, Credit Cards and Personal Loans
S01_E02 - Developing your Money Mindset and Forgiving your Past Self
S01_E01 - Welcome to Jellyman Investing
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