8/4/2019 How is This Possible, Fishers vs Burks

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Howisthispossible?Fishersv.Burks

Housing

Fishers

•  Housecost=$195K(3X

salary)

•  20%down=39K

•  Mortgage=156K@5%for

30yrs.

•  Assumemarriedatage25

 –  Boughthouseatage26(oneyearintomarriage)

•  Monthlypayment=$837.44

Burks

•  Housecost=$130K(2X

salary)

•  20%down=26K

•  Mortgage=104K@5%for

30yrs.

•  Assumemarriedatage25

 –  Boughthouseatage28(threeyearsintomarriage)

•  Monthlypayment=$558.29

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Fishersv.Burks

TransportaRonFishers

•  Bought2newcarsevery5

years

•  2cars@$15Keach=$30K

 –  $30Kat6%for5yrs –  $579.98totalpymt/month

Burks

•  Bought2goodusedcars

every5years

•  2cars@$7Keach=$14K

 –  $14Kat6%for5yrs –  $264totalpymt/month

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Fishersv.Burks

DiningOutFishers

•  Diningout4Rmesper

monthatexpensive

restaurants

•  Averagepermeal=$100

•  Totalcostpermonth=$400

Burks

•  Diningout4Rmesper

month

 –  1fancy=$100 –  1moderate=$60

 –  2modest($30ea)=$60

•  Totalcostpermonth=$220

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Fishersv.Burks

VacaRonFishers

•  Oneexpensiveforeign

vacaRoneachyear

•  Averagecostperyear=

$4500

•  $4500/12=$375/month

Burks

•  TwovacaRonseachyear

 –  Onewithfamily=$1500

 –  Onecamping=$750

 –  Averagetotalcost/yr=$2250•  $2250/12=$187.50/month

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Fisherv.Burk

Analysis•  Burksspendlesspermonth:

 – Mortgage:$279.15less

 – Carpayments:$315.98less

 – Diningout:$180less – VacaRon:$187.50less – Total:$962.63lesspermonth

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Fisherv.Burk

BurksMargin

•  $962.63addiRonalmargin

 – Save/Invest$795/month@4%

•  A\er10yrs=117Kinsavings! – Gavetheresttotheirchurch

•  A\er10yrs>$20KgiventoadvancetheKingdom

•  Thisdoesnottakeintoaccount – Usingsavingstopaycashforcars – Acceleratehousepayments,etc.

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EffectsofMarginGrowOverTime

BurkesconRnuetosave$795/monthfornext30yearsat4%.

Endingvalue>425K,andpaidoffhouse

Peaceofmind:Priceless