The Power of Paycheck Parking
Hello Cash Flow Community!
Today I wanted to share with you how Debt Weapons™ can be used in some magical ways - ways that will have you saving thousands of dollars of interest costs- meaning money that goes back into your pocket and not the bank’s. Now how does this magic happen? Well, my friend, with something we call Paycheck Parking.
In all my years of teaching financial education, the technique of Paycheck Parking has time and time again been one of the most powerful strategies when it comes to paying down debts in a fraction of the time.
Today, I wanted to share with you some of the details surrounding Paycheck Parking and why you need to implement this strategy into your own financial household so that you too can begin to create your own financial magic!
How Does It Work?
The main concept is based on the fact that banks have trained us to keep all of our cash flow in a savings or checking account that earns maybe a quarter of one percent or, if we’re lucky, up to one percent…
But is one percent even keeping up with the current 2-3% inflation rate?
My math shows it is NOT and this is what I consider to be the spell of financial voodoo banks put on us consumers. In other words, this behavior results in you losing money each and every day. To make matters worse, the banks are making a great return off of your money! Doesn’t seem fair right? Well, luckily, we can flip the script with the magic of Paycheck Parking.
For starters we are going to take that money - your money - that had previously sat idle in your savings and checking accounts and put it to good use. For example, instead of parking your net cash flow into those checking or savings accounts every month, we’re going to park it into an outstanding debt such as your mortgage.
This allows your money to be working for you and not the banks which is not only how you get further, faster, financially, but is where the real financial magic happens. Not only are you paying off your debt faster, which puts money back into your pocket, but you are also able to dramatically increase your credit score when using Paycheck Parking! I’ve put together a video showcasing step-by-step how this can be done in a safe and effective manner - be sure to check that out!
What About Emergency Savings?
I get it, security is important when it comes to your finances - security is important to me in my finances as well, but this is a topic that can be approached in a myriad of ways. I would encourage you to take a look at this quick video on my thoughts about this type of mindset and how it’s actually hurting you in the long run.
In other words, what if the emergency you are waiting for, with all that cash sitting idly in reserves, never comes?
What If You Completely Paid Off Your Mortgage In 5-7 Years Instead?
From my experience, living debt free while simultaneously building wealth in a safe and logical manner seems like a much better plan than playing the game the banks teach us. Wouldn’t you agree?
I hope you can see the financial magic that can happen by simply implementing this one technique of Paycheck Parking so you can begin achieving your financial dreams in a much shorter amount of time. Til next time...
Onward and Upward,
Matthew Pillmore and everyone at VIP Financial Education