Today I am going to take a breath from the numbers and suggest something radical.
You don’t need MMA (you knew that). You don’t even need my spreadsheet.
Neither adds value, and really just wastes your time.
You need to follow the very simple process; (A) At the end of each month, send any extra money you have to your highest interest debt. (B) there is no ‘B’.
For the pennies to be gained by the HELOC shuffle (see last week’s post, it’s $5 per month using UFirst’s income/expense example) you are best off simply avoiding it, and merely going with my rule above.
I very much enjoy all the analogies, the MMA is like a (fill in the blank). My favorite is the GPS one. How often do you really have no idea where you are going? What if I told you I’d sell you a $3500 GPS whose volume could not be turned off and it announced exactly where you were every 30 seconds? And it bolted to your car so you could not leave it home. You couldn’t pay me to take such a device. MMA (and my spreadsheet) will let you obsessively track your exact balances every night and projected mortgage payoff with every cent you send to the bank. So what? There’s no value in that, just a waste of your time. What is your time worth? Instead of spending the time with MMA, have weekly/monthly family meetings, to discuss how you can spend more wisely. Don’t use the word budget, it’s has too many negative connotations.
Until next week,