What is Debt Recycling? // HOW IT WORKS // Pay off Mortgage FAST and INVEST!

Debt Recycling is a strategy to help you pay off your mortgage fast. It's a process of switching a non-tax deductible debt to a tax deductible debt.

Peter Thornhill's Motivated Money: https://amzn.to/2R1YJcz

I talk about 'what is debt recycling' and how it will work for us. I explain how it allows you to pay off your mortgage faster and invest in the stock market at the same time. Of course this type of investing strategy depends on your risk tolerance.

I chat about how mortgage interest rates impact the effectiveness of this strategy and I share a mortgage calculator that allows you to put in different annual lump sum payments.

I work out how it will work for us with a mortgage of $375,000 at an interest rate of 3%, annual savings of $30,000 and an estimated investment rate of return of 7%. The strategy also involves investing in Listed Investment Companies or LICs as recommended by Peter Thornhill. I think if I was to implement this strategy, I would also buy exchange traded funds (ETFs).

I share with you the results and the yearly breakdown of debt recycling. Debt recycling allows us to pay off our home in 7.5 years. If we didn't debt recycle it would take another 19 years for us to pay off our mortgage. Where the magic starts to happens is in those 7.5 years after the mortgage is paid off because of the extra cash flow.

I was very surprised by the results and this has motivated me to sort out our home loan and refinance to a different provider that allows loan splits.
My YouTube Channel is called Family Finance where I chat all things personal finance and in particular family finances, how to save money, investing, budgeting and how to stay on track with your financial goals. Our goal is to build our passive income to reach financial independence, also know as FI.

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Other videos you might enjoy ...

BORROWING TO INVEST: https://www.youtube.com/watch?v=d-BExQZMXGg&t=110s

PAY MORTGAGE OR INVEST: https://www.youtube.com/watch?v=7Bnf3EAnwc8&t=4s

CONVINCING MY HUSBAND TO INVEST: https://www.youtube.com/watch?v=Mdg0wIrY21A&t=102s

#debtrecycling #mortgage #investingstrategy

BOOKS TO READ
The Simple Path to Wealth: https://amzn.to/327vpYz
Your Money or Your Life: https://amzn.to/3jZm3o3
I Will Teach You To be Rich: https://amzn.to/35gvv2g
Mindful Money: https://amzn.to/3h2kKTm
The Barefoot Investor: https://amzn.to/336AKP5
Money Made Simple by Noel Whittaker: https://amzn.to/327Elxa
Atomic Habits: https://amzn.to/32cCh7j
The 5am Club: Own Your Morning, Elevate Your Life: https://amzn.to/3h7PZwc

HOW I MAKE MY VIDEOS
I use Keynote to make my slides using images and text for from Canva:
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I then use iMovie to link my audio with the Keynote slides.

Please note: some of these links are affiliate links where I'll earn a small commission if you make a purchase at no additional cost to you.

Disclaimer:
The information on this YouTube channel and the links provided are for entertainment and general information only and should not be taken as constituting professional advice. I am not a financial advisor. The information on this channel is personal to my situation and does not take into account your personal circumstances. You should do your own research and if necessary consider seeking independent financial advice that is related to your unique circumstances.

Видео What is Debt Recycling? // HOW IT WORKS // Pay off Mortgage FAST and INVEST! канала Family Finance