The BorrowSMART Strategy #2 – Managing Your Cash Flow (Over Time)

How might our managing your mortgage and liabilities help increase your assets over time?  Let’s look at how most families spend their hard earned money.

Lifestyle Today vs. Lifestyle TomorrowManaging Cash Flow

Looking at the picture to the right, representing the average amounts families spend, you will see that committed expenses take up 52% of most family’s take-home pay.  These are fixed costs such as your mortgage payment, insurance, etc.  Discretionary expenses account for 46%.  These two categories add up to 98% of the average family’s take-home pay.  So what is left?  On average, only 2% is left over to save for your future!

This is why, at Aspire Mortgage Group, we ask the question, “What if we could help homeowners reduce their committed expenses over time to help them increase their savings for tomorrow?”

What if we could help homeowners reduce their committed expenses by only 4% over time?  Then, they would have the choice to either increase, or maintain what they spend on discretionary expenses or what they save for their “Lifestyle Tomorrow”!

What difference can $250 make?

 What if, through proper liability management, we were able to help a homeowner free up an additional $250 per month?  What could that mean to their future?  Looking at the graph, you can quickly see that $250 more per month toward a 30-year mortgage could pay it off in 18.5 years!  Or, if saved, could add up to nearly $305,000 over 30 years! 

$250 difference

*Assumes 30-year fixed mortgage, 7% interest rate. **Assumes 7% after-tax rate of return.

Whether it is $50 or $250 or $1,000 per month, we know that helping our clients manage their liabilities will help them improve their monthly cash flow over time, ultimately allowing them to save more for their future and create a better “Lifestyle Tomorrow”!

About Trevor Hammond

As a veteran of the mortgage industry, Trevor Hammond is the co-author of "Borrow Smart, Retire Rich," a Certified Mortgage Adviser and a founding Faculty Member and Contributor to the National Institute of Financial Education ( And he has provided thousands of homeowners with the clarity and confidence to make smarter decisions when it comes to their mortgages and money. In 2013 he launched an entirely new kind of mortgage company: Aspire Mortgage Group, which is committed to educating and empowering homeowners to increase savings, eliminate bad debt, and safely increase net worth. The specialized group of mortgage professionals at Aspire Mortgage Group have redefined what homeowners should expect from a mortgage company. To learn more about Trevor Hammond and our team of mortgage advisors please visit our website at or email Trevor directly: Aspire Mortgage is a Sierra Pacific Mortgage Partner.
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