Paying off your mortgage in 7-10 years? How? That can't be right!?

As always I spent my holiday seeking interesting books and Podcasts and I discovered The Money Mentor, Graeme Holm.
Pay off your mortgage in 7-10 years
Graeme says you can do it. Just by changing your habits and your mind set. He has a new podcast every week with his clients telling their story. He doesn't even need to sell what he's doing - his clients do it for him.
How can I live on $350 a week?
I could not wrap my head around how a family of 5, living in Sydney, could survive on just $350 per week, so I had to find out more - I bought the book through Apple Books - well worth the read.
What is Discretionary Spending?
These are purchases that typically fall into the wants category. Some examples:
Alcohol
Hobbies
Take Aways
Clothes
Gifts
Personal Items
Holidays
Some items are a need but you still have discretion over how much you spend and where. Items such as:
Groceries
Fuel (you can choose how often you use your car - plan out your trips)
What about the Bills?
Ah yes. You should still try to minimise these where you can - does your child really need a private education? (I've decided mine do, but that could change if their grades don't improve). Review your insurances every year, pay things on time so you don't get penalised, but don't pay in advance - you will save far more off your mortgage interest by holding onto it until it's due.
How do I start?
With a budget!!! How many of you hate that word? How many of you actually have one?
Graeme says to print out the last month of your bank statement and start highlighting things you could have gone without.
Then what?
Redirect your pay to your offset & set up an automatic transfer from your offset to your spendings account for what you have budgeted above as your weekly discretionary spending. Be fierce. The 1st year is supposed to be the hardest.
It's only Wednesday and I've run out of Money!
Now you remember when you were a Uni student or an apprentice with nothing? Couch surfing and living on 2 minute noodles? But now you've got kids and responsibilities? This is when it's hardest - you have to change your mindset or it won't work.
Some suggestions:
Instead of eating out with friends suggest hosting where everyone brings a themed dish.
Have a picnic on the living room rug with the kids and watch a movie instead of going to the cinemas.
Keep an eye out for events and specials so you don't pay full price.
Plan ahead (spur of the moment is always the most expensive!)
Hey - my mortgage was higher at the end of this month!
Not every month is going to reduce your mortgage. Annual insurance, half yearly rates - these will make some months look like you're going nowhere. Keep an eye on your growing offset balance though - this is how you know if you're really making a difference.
Should I apply this methodology to my investment property?
There are a lot of different types of loans and a lot of different circumstances. If you need to discuss what you have going on, feel free to reach out and we can have a chat.
You've told me everything - why would I ring them?
Graeme's team is unique. They all have an amazing set of skills. There are buyers agents, mortgage brokers, insurance brokers, financial planners and other professionals who will assist you every step of the way to ensure that you were able to stay within your discretionary budget and also help you with your decision making when you think that you need to make a larger purchase, such as a car or your next investment property. I strongly suggest you look into this if you are serious about taking control of your finances and becoming rich before you reach the age of 80.
More information
To discuss any of the above further, you can ring our office on 4021 2801.
'' You either master money or, on some level, money masters you." - Tony Robbins