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What would you do with
an extra $500 a month?
Is there too much month left at the end of your paycheck? Does Paul pay Peter on a regular basis? For
most people, an additional paycheck each month would make the difference between living in the “red” to the
“black”. Instead of taking that vacation or buying that new piece of furniture, why not consider
focusing those “few hundred dollars” on making a radical change.
Two areas where “a little Gano money” could dramatically alter your finances are credit card debt and your home
mortgage.
Credit Card Debt
Typically, most North Americans hold a few or even several major credit cards with outstanding monthly
balances. By making only the minimum monthly payment, at 18 to 22% interest, it could literally mean years
before paying off that debt.
What if you could invest an additional $300 or even $500 per month into that debt? The remarkable thing about
paying down credit card balances is that it snowballs, freeing up more capital to pay down other debt.
Not only do you save on the interest charges, which can add up to several hundreds of dollars each year, but it
puts you back in charge. The money you save by not making payments on interest allows you the freedom to
realize your biggest dreams.
Remember to focus on paying down the cards with the highest interest rates first.
Home Mortgages
Making an extra payment on your home mortgage can save you literally tens of thousand of dollars as well as
shortening the life span of your loan.
By making substantial dents to the principal, you contribute to reducing the balance of your mortgage which in turn
reduces the amount charged out in interest.
Just how much can you save? On a $150,000, 25 year mortgage at 5%, prepaying $500 a month (for 6 years) will
save you $52,600 in interest and will pay out your mortgage almost 8 years sooner.
So what can a little Gano money do for you? If you focus on reducing your debt, whether it’s credit cards or
a home mortgage, you can save literally several thousands of dollars in interest.
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