How to Live SimplyA Comparison of Two Families

The Jones vs. The Simpletons

The Lowdown

Jones

College Degrees

Married at age 25

Both currently work

Total annual income: $48,000

Monthly Income =$4,000

Simpletons

College Degrees

Married at age 25

Both currently work

Total annual income: $48,000

Monthly Income =$4,000

The Houses

Jones House Cost $200,000

20% Down = $40,000

Mortgage- $160,000

5% Rate for 30 Yrs.

Bought House 1 year into marriage

Monthly Payment = $858.91 Not including taxes &

ins.

Simpletons

House Cost $125,000

20% Down = $25,000

Mortgage - $100,000

5% Rate for 30 Yrs.

Bought House 3 years into marriage

Monthly Payment = $536.82 Not including taxes &

ins.

Transportation

Jones

Bought 2 new cars every 5 years

2 cars at $15k each = $30k

$30k at 6% for 5 years

$579.98 total monthly payment

Simpletons

Bought 2 used cars every 5 years

2 cars at $7k each = $14k

$14k at 6% for 5 years

$264 total monthly payment

* Please note that I’m not advocating for car payments here, simply giving a comparison.

Eating Out

Jones Dine out 8 times per month

4 times at an expensive restaurant Avg. meal = $100

2 times at moderate Avg. meal = $50

2 times at modest Avg. meal = $25

Total cost per month = $550

Simpletons Dine out 4 times per

month 1 expensive restaurant

= $100

1 moderate = $50

2 modest ($25 each) = $50

Total cost per month = $200

Vacations

Jones

One expensive vacation per year

Average cost per year = $4,500

$4,500/12 = $375 per month

Simpletons

Two vacations per year

One with family = $1500

One simple one= $500

$2,000/12 = $166.67 per month

Entertainment

Jones

Expanded Cable and Internet Package = $150

2 Movies Per Month = $30

Golf 2x Per Month = $100

Total Monthly = $280

Simpletons

Simple Cable or No cable & Internet Package = $50

2 Movie Rentals per month = $5

Golf 1x per month = $50

Total Monthly = $105

Shopping

Jones

Clothing $50

Groceries - $500

Items for House - $50

Miscellaneous personal items = $200

Total Monthly = $700

Simpletons

Clothing $20

Groceries - $300

Items for House - $20

Miscellaneous personal items = $60

Total Monthly = $400

The Comparison

Joneses

House: $858.91

Transportation:$579.98

Eating Out: $550

Vacations:$375

Entertainment:$280

Shopping:$300

Simpletons

House: $536.82

Transportation:$264

Eating Out: $200

Vacations:$166.67

Entertainment:$105

Shopping:$400

The Comparison

Simpletons Spend Less Each Month: House: $322.09 Less

Transportation:$315.98 Less

Eating Out: $350 Less

Vacations:$208.33 Less

Entertainment:$175 Less

Shopping:$300 Less

Total = $1,671.40

The Potential Impact

• $1,721.40 Additional margin Save/Invest $1,000 per month

At 6% in 10 years = $162K

Paid an additional $200 towards mortgage each month

Home is paid off in 17 years (13 years earlier)

Gave rest to their church- $500

In 10 years they’ve given over $60,000

Doesn’t include paying cash for cars or education savings

All by the age of 41

Savings Growth Over 30 Years

$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

*Plus a Paid Off House

The Key?

It’s the small daily decisions to say no that allow you to live simply and stay free for

the long haul.

Learn strategies like this and others by taking the Realign Class.

Click HERE to start today.