You are now tuning in to Discover Your Potential. So listen, participate, be inspired, know that you can Discover Your Potential. Welcome to Discover Your Potential. Well, first of all, thank you, Anna. Thank you, Dan. I appreciate being here today. But this all started a while ago. I've been doing this for 19 years. But when I was working as a firefighter for 17 years, I was like everybody else trying to pay off debt. And I didn't realize at the time that I have Asperger's, or Autism Spectrum Disorder, and ADD. And that's why I struggled in school. I didn't realize that until I was an adult. But in trying to pay off our debt, I looked at an amortization schedule and said, well, why is it this way? So my wife's car was $400 a month. I said, well, if they're charging me interest daily on the unpaid balance, why don't I just pay them 100 bucks a week? Now, it won't work for a mortgage. It does work for car payments. And only if the bank or the credit union software will allow it. But if you can pay weekly the same $400, then they only have a chance to charge you one week's worth of interest on the original unpaid balance. And now you give them some money. And now that brings the balance down. So they can't possibly charge you the same amount of interest in the second week as they did the first week. The same $400, we paid off that car two years early. Because every month, they would send us a notice that said, oh, you don't owe the whole payment now. You only owe this much until they told us, oh, you don't owe a payment for one month or two months or three months just because more of our money was going towards principal, less towards interest, out of the same payment. That's when I discovered interest cancellation. So if you understand interest cancellation, you can actually pay off a credit card or a car loan faster with just the minimum payment. So does that also works with credit cards as well? Because I've noticed too, even with credit cards, if you just pay the minimum, you're going to be paying for 20, 30 years or more, depending on what your balance is. So let me, I can give you a scenario. Now, our program doesn't work like this. I just use these examples to let people know that what you need to manipulate is the interest cost with the money that you have. So let's pretend I have a credit card with a $10,000 balance. And I don't care what the interest rate is. So I got a credit card with a $10,000 balance, but I pay most of my bills by check through my bank. But those same companies that take my check also take my credit card for payment. So if I'm making $5,000 a month, why can't I take my $5,000 and place it on my $10,000 balance on my credit card instead of putting it in my checking account that pays me no money? So now, at least for a time, I'm paying interest on $5,000 instead of $10,000. As I start to pay my bills, my balance starts to creep back up. But it wasn't $10,000 for the entire month. So I'm still making my regular minimum payment on my credit card. But because my interest cost that month is lower, because I placed my income on the credit card and paid my bills from there, now my minimum payment more of my money goes to principal, less goes to interest. And all I did was put my income as a deposit on my credit card, but my credit card company looked at it as a payment. Today's episode is brought to you by Acorns. I've been hosting Discover Your Potential for a little more than a year. And what I love about our guests and their advice are the simple takeaways that make a big impact. I think this is a great way to look at growing financial freedom. Now, I fully admit when it comes to investing money, I wish I knew a lot more. If you're feeling intimidated about where to begin, I have a great tip. Acorns makes it easy to start automatically saving and investing for your future. You don't need a lot of money or expertise to invest with Acorns. In fact, you can get started with just your spare change. Acorns recommends an expert-built portfolio that fits you and your money goals, then automatically invest your money for you. Making small changes over time has given me so much more financial freedom. And that's why Acorns is one of the best ways to give your money a chance to grow. Head to acorns.com slash dyp or download the Acorns app to start saving and investing for your future today. Paid non-client endorsement compensation provides incentive to positively promote Acorns. Investing involves risk. Acorns advisors LLC and SEC registered investment advisor. View important disclosures at acorns.com slash dyp. OK, so if I can put some things on the screen, OK? Absolutely. And we're going to put, you know who I'm talking about. I do, I do. So I'm not going to ask you to cut up your credit cards. I'm going to ask you to learn how to use your credit cards more efficiently, OK? This is the interest payment on that card. $15,000 is $250 at 20%. You're following me? Mm-hmm. OK, so if you pay this card off tomorrow, congratulations. You just saved yourself $250. Has anybody ever explained it to you that way? No. OK, so now I'm looking at my mortgage because if I am looking at the debt snowball, I'm going to pay off the smaller debt first so that I can take my minimum payment and put it towards another debt. OK, well, if I did that, then I could take, look at this. Look at my, this is $400,000 at 7%. Look at my principal amount. Look at my interest amount. OK, now you won't get this on your amortization schedule. So this is something that's online. The guy's name is Brett Whistle, B-R-E-T, W-H-I-S-S-N-S-S-N-S-E-L. Anybody can do their own amortization schedule, but you're going to get two extra columns, cumulative principal and cumulative interest. So at the end of one year, I know I paid this loan down by $4,063. That's all my principal payment added up, and $27,000 in interest. That's all the interest payments added up. But understanding prepayment of principal, that's the P in pill method. Understanding prepayment of principal, it is this easy. This is why most people don't understand it. If I make my first payment on this loan, $327.88 in schools to principal, this is how much is taken out for interest. Let's say we start in January. My February principal payment is $329.79. Does that make sense? If I'm in January, do I have to wait to February to give the bank this $329? Gotcha. If I have it, could I give it to them in January as well? Yes. If I did, I'm paid down to line two in January. So my February payment is calculated on this number, not this number. Gotcha. This number gives me these two numbers on line three. So for $329 paid early, I eliminate line two from this amortization schedule. Payment number one is now touching payment number three. And what happened to this $2,331.42 worth of interest on line two? Wow. You just see. It's eliminated. It's truly eliminated. So let me just ask, because I've got to bring it down to the lowest common understanding right here. Is this what people do when they make two payments a month and pay their loan off early, essentially? Absolutely not. Oh, OK. Good. Then let me just, I'm asking the bonehead questions so that we can get to the real truth of this. OK. What you just explained was a bi-weekly payment. Yes. So a bi-weekly payment works like this. I cut my mortgage payment in half. I pay half on the first and the second half about the 15th. Knowing your background, if I pay half my money on the first, am I saving any interest or any time by paying half on the first? The answer is no, I'm not. Because mortgages only take full payments. OK. So when I pay on the 15th, that's when the money is applied to the mortgage. So, Don, how does a bi-weekly payment save me between 4.9 years and 7 years max on my mortgage? Here's how. OK. Every six months, you have an extra week. So you're going to make a payment on the first, on the 15th, and around the 30th. It is that third payment that month that saves you interest, because that money is applied to principal directly. OK. You're going to save at most seven years, taking a 30-year loan and changing it into 23. With the pill method and what we're teaching, most of our clients pay off that mortgage in seven years, saving 23 years, not the other way around. But when, even with us, even with the pill method, when you're talking with us and we bring you into a consultation, do not be afraid to ask the hard questions and make us prove it with numbers. People lie. Attention. OK. So when I focused on, told them how their parents are paying for the mortgages, they looked at that and said, that's ridiculous. Look at all that money that's not being used for the purpose in which the parents wanted to, that is not going to pay off the house. It's going to interest. So I gave them, I said, what do you want to buy? What do you want to purchase? They said, everybody wants to purchase Jordan. So they said, OK, we want to purchase some Jordan. So I said, OK, $200 for the Jordans. So I had $20 bills. I gave the students the $20 bills. OK? Wow. OK. So they had $20 bills, $200 worth. So I said, now I loaned you the money. And based on how your parents pay for the mortgage, I need you to now make a payment on the Jordans, $100 a month. So I gave them $200. I said, now. I said, students, come over here, the ones that are holding their $20 bills. So five of them came over to pay the $100. I said, you, with this $20, you stay here because your $20 is actually going on the shoes. You with the other four go over there, graders, clamoring for my book because my book is written at that level. So good to hear this. Brilliant. And you know, you want, in the end, we want our kids to love their parents. We want to reconcile that relationship. And you know, I'm proud of my middle schooler who could get this in a heartbeat. And you know, I applaud you because I think I know where this legacy is going for you. And folks, he wouldn't be invited to schools if he was just another salesperson. So. Can you imagine? They all received my book, Autographed by Me. And some of me asked for more than one. I said, no, thank you. Only one to a customer. Can you imagine eighth graders asking for a book on finance? I think it's. No, it's incredible. It's that's what I'm saying. You should be in every school. You would just be. It's amazing. And actually, in high school, they even have, you know, finances, finance classes. They're not teaching them this. The most ubiquitous financial tool on the planet is the interest bearing loan. And we know virtually nothing about how it works. This is the purpose I have on this planet. The reason why we're putting all this data up and as as incredulous as this sounds to you. Somebody's going to pick up this mantle after I'm gone. It passed that on to my kids because I think that's really important. But the work that you're doing is incredible. And thank you. But thank you. You can find my book on Amazon. Just you can put in my name or you can put in the pill method and everything. That's our branding pill method, PIL method. You can Google pill method. And I hope this is OK to say. But when you Google pill method, birth control is actually on page two. At the top. Right where it belongs. So listen, so we so go to Amazon and you can get the book there. And you can go to our YouTube channel and watch our long form videos. We have short form videos, reels on Instagram where I'm actually answering questions from people who call in. And we answer those questions. And then we actually show the math when we're answering a question so people can get our business. But unless we give away enough information, people will never pull the trigger and say, you know what? I am tired of this. I want to do something different. So they can go to pill method.com. Find a button that says get a savings and earnings report. That report is actually free. When you fill that information out, somebody on my staff will give you a call and confirm your numbers. Once your numbers are confirmed, then we can send you out a savings report. Now we want all of the data. We want all of the debt. The more debt, the better. The average family has 13 different debts. And they're paying 35 to 39 percent of their take home pay just on interest. And these are well to do families. So when we have that, we can show you that most of our clients are out of debt and an average of seven to nine years. And they don't have to sacrifice lifestyle to do it. Because our program tells you exactly what to do and when with monies that are left over after all the bills are paid. And your family is one of those bills. Beautiful. And we make sure of that. All right. So we don't want little Johnny to come up and have some money trauma. My parents always told me we can't afford it. Does money grow on trees? But I don't know my handles right up. But if you go to Instagram and just search pill method, it'll be there. All right. Everything is under pill method. The same thing with YouTube. I just go to YouTube and go to pill method. But you can find everything at ice 10 K dot com. Ice stands for interest cancellation expert. I see the number 10, the letter K dot com. This is Cindy Gilman and you're listening to discover your potential. So until next time, do something nice for yourself, but do something nice for someone else.
