financial choices and the true cost of debt? unbelievable, but true!
TRANSCRIPT
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Life and choices
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If 40 years old = 10’971 days left?
Life and Choices
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Dependent
learn to earn
earn, live below
your income and
savelive on whatever
you saved
Inter-dependent In/dependent
Life and choices
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Life and choices
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Life and choices
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The cost of DEBT
list price: R800,000
deposit: R120,000
bond: R680,000
finance: 240 months
annual rate: 9.5%
payment: R6,338
total: R1,521,238
+ R120,000 (deposit)
= R1,641,238
interest: R841’238 (lost opportunity)
CUMULATIVE INTEREST: 123.7%
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purchase price R300’000
finance 60 months
rate 10%
payment R6,374 per month
The cost of DEBT
total R382,446
interest R82,446 (lost opportunity)
CUMULATIVE INTEREST : 27.5%
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R82,446
R132,780
R893,278
R344,397
R2,316,933
5yrs 10yrs 20yrs 30yrs 40yrs
10%pa
OPPORTUNITY COST
But I have to have a car
(And a house)
The True cost of DEBT
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“Destiny is no matter of chance.It is a matter of choice: It is not a thing to be waited for, it is a thing to be achieved.”- William Jennings Bryan