Mortgage Reduction: The power of one dollar

?I can resist everything but temptation.?
Oscar Wilde

Let's say you earn $5,000 a month, and each month you spend $4,999, so the crumb that's left behind is one dollar. What happens with that stray dollar? If you're like most people, you'll spend it.

You wouldn't write a check for one dollar to pay off your mortgage. In other words, the easiest thing to do is to either spend the money or leave it in your account. The easiest path is not to pull out your check book, write a check for a dollar and walk off to the bank and deposit it into your mortgage. This system then, is obviously not going to be the most conducive to putting excess cash into your mortgage.

If you can figure out how to structure a system which most effectively captures the extra dollars then a lot of other things will take care of themselves.

?Success always comes when preparation meets opportunity.?
Henry Hartman

Imagine the same scenario - a $5,000 salary with one dollar left at the end of the month. Instead of putting it into your bank account it goes straight into your mortgage. You spend your $4,999, and the spare dollar is now automatically in your house. It automatically goes into your mortgage because the structure lent itself to that.

Having the right structure in place can mean the difference between success and failure. The most effective way to reduce your mortgage is to make extra repayments, more frequently, so a structure which lends itself to doing this most effectively is going to help you succeed.