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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.