Welcome to the latest series on this wildly popular website. With this series, I will be sharing how you can use some of the calculators from the "

TOOLS" page to take your financial plan to the next level.

A mortgage or real estate loan is really the only type of debt that I can tolerate (barely), so here is another FREE tool from the "TOOLS" section of the web site.

To calculate your principal and interest mortgage payment (does NOT include any escrow such as PMI, property taxes, HOA Fees, or hazard insurance), you will need to know three things.

1. Interest Rate
2. Mortgage Period
3. Mortgaged Amount

If you want to calculate the monthly principal & interest payment for a fixed-rate 5.750%, thirty-year $125,000 mortgage, pull up the "

Text is Mortgage Payment Calculator and Link is http://www.josephsangl.com/wp-content/uploads/Tools/Calculator%20Mortgage%20Payment%202007-02-21.htm

Mortgage Payment Calculator".



Suppose you want to understand what the P&I payment would be for the same mortgage, but for a 15-year term. Change the mortgage period to 180 months.



The payment goes up $309/month, but one will become debt-free FIFTEEN years sooner!

One could also use this calculator when considering refinancing.

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Welcome to the latest series on this wildly popular website. With this series, I will be sharing how you can use some of the calculators from the "

TOOLS" page to take your financial plan to the next level.

I remember the first day that I put together my "

Text is Sangl Family Home Pay-Off Spectacular and Link is http://www.josephsangl.com/?cat=16

Sangl Family Home Pay-Off Spectacular". I realized just how little of my home I actually owned! When the question was asked of me, "Are you a homeowner?", I could no longer answer, "Yes." Wells Fargo was my homeowner!

With that realization, I decided to pay off my mortgage early. And, God-willing and if the creek doesn't rise, Jenn and I will pay off our house in two years and nine months. How do I know that? Because of another FREE tool on this wildly popular website!

The tool is called the "

Text is Early Pay-Off Calculator and Link is http://www.josephsangl.com/wp-content/uploads/Tools/Calculator%20Debt%20Pay-Off%20Calculator%202007-11-28.htm

Early Pay-Off Calculator".

Here is how it works. You need to know three things to use this calculator.

1. Mortgage interest rate
2. Mortgage balance
3. Amount of principal & interest payment that you will be paying (don't include the escrow!)

Let's say that one has a thirty-year mortgage with a $150,000 balance and a 6.125% fixed interest rate and a $911/month principal & interest payment.

Suppose you want to know what a monthly principal & interest payment of $1,000 will accomplish. Use the "

Text is Early Pay-Off Calculator and Link is http://www.josephsangl.com/wp-content/uploads/Tools/Calculator%20Debt%20Pay-Off%20Calculator%202007-11-28.htm

Early Pay-Off Calculator" to calculate it for you!



Just by paying $89/month extra, the thirty-year mortgage will pay off 6.3 YEARS sooner! How awesome is that?!

One item to note is to designate all extra money to be applied to "principal reduction"! Some of the sly mortgage companies will attempt to apply it to "prepaid interest". That would be a bank error in their favor! Make sure that all extra money is applied to your mortgage principal.

What if the above mortgage holder wanted to pay off their mortgage in five years? You can use the calculator to find out how much would need to be sent each month.



For the low-low price of $2,900 each month, the mortgage will leave in just FIVE years! Can you do that?

Let me ask you another question, if you were debt-free except for the house, could you do this? It is amazing what you can accomplish when you are not bound up in debt!

How early will you pay off your mortgage?

Oh, by the way, you can use this calculate to calculate the early pay-off of ANY type of loan!

In the next part of this series, I will be sharing how you can calculate your mortgage payment.

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Welcome to the latest series on this wildly popular website. With this series, I will be sharing how you can use some of the calculators from the "

TOOLS" page to take your financial plan to the next level.

In the

Text is last post and Link is http://iwasbroke.savingadvice.com/2008/03/18/tools-calculate-amount-needed-for-retire_36770/

last post, I shared how you can calculate the amount you need to save for retirement.

For many people, the number revealed by completing the retirement nest-egg calculation leads to an "Oh Crap" Moment, but it is usually easier to achieve than one would initially think.

Introducing another great tool available via the "TOOLS" link at the top of the page … the

Text is Investment Value Calculator and Link is http://www.josephsangl.com/wp-content/uploads/Tools/Calculator%20Investment%20Value%202007-02-21.htm

Investment Value Calculator.

In the previous post, I calculated that one would need $3,699,458 to receive the equivalent of $75,000 per year upon retirement in 35 years.

The immediate next question is "How much do I need to invest each month to achieve $3,699,458 in 35 years?"

Using the

Text is Investment Value Calculator and Link is http://www.josephsangl.com/wp-content/uploads/Tools/Calculator%20Investment%20Value%202007-02-21.htm

Investment Value Calculator, I can quickly calculate the number.



If one has not started investing, then $575 needs to be invested every single month with an annual return of 12% to achieve the goal.

Isn't that cool? I LOVE this stuff! For just $6,900 per year, one can ensure a secure non-Social Security-reliance retirement!

What is your number?

In the next post, I will be sharing about another tool that shows you how extra money toward your mortgage each month reduces the life of that mortgage!

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My first book, "I Was Broke. Now I'm Not.", was released on January 20th. It is available via

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PAYPAL or

Text is AMAZON and Link is http://www.amazon.com/dp/1605301906?tag=wwwjosephsang-20&camp=0&creative=0&linkCode=as1&creativeASIN=1605301906&adid=0204PMQZ57FG83VXGHMA&

AMAZON.

Welcome to the latest series on this wildly popular website. With this series, I will be sharing how you can use some of the calculators from the "TOOLS" page to take your financial plan to the next level.

One of the things that I do as part of both of the classes that I teach is to have people calculate how much they will need to retire well.

The calculation usually yields what I call an "Oh crap!" Moment with the majority of folks responding with "YIKES!" and "Oh no!".

I have people calculate this number for the following reasons:

1. Most people have never seen how much they will need to retire well.
2. When people realize how large the number is, it helps them realize how important it is to have a solid plan.
3. It hammers home the point that investing needs to start early and often.

So, how much DO you need for retirement? Well, it is really simple to calculate with the

Retirement Nest-Egg Required Calculator.

Here are couple of things to note about this retirement calculator

1. This calculation assumes that you will never touch the principal.
2. This calculation assumes that you will give your nest-egg a "cost-of-living-raise" of 4% each year.
3. This calculator adjusts the "annual amount you want" for average annual inflation of 4%.

Below is a calculation I ran for an "annual amount I want" of $75,000.



Note that the calculator shows that with 4% annual inflation, I will need $295,957 per year in 35 years to have the same purchasing power that $75,000 has today.

If I expect my retirement nest-egg to grow at an annual rate of 8%, then I will need $7,398,917 when I retire. If I expect my retirement nest-egg to grow at an annual rate of 12%, then I will only need $3,699,458.

So … What's your number?

In the next post, I will share a tool that helps you determine the amount you need to save each month to fully-fund your nest-egg.

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