How Does Money Work

have you ever wondered how money really works now if you ask Google you get like over two point six billion answers doesn't that seem a little excessive now you've probably heard that you can work for money or money can work for you right but did you know that right now your own money is probably working against you and when money is working against you you get trapped on something I call the payment treadmill stick around and we'll explore how this whole money working against you thing works and how you can escape the payment treadmill once and for all if you're wondering how money works then there's a good chance it's probably not working for you instead you're the one doing all the working and you need to know how to turn this whole work thing around right now to make matters worse if you're like most folks and you have you know like mortgage payments car payments student loan payments or credit card payments then guess what while you're working for your money your money is working against you this is because while you're breaking your neck every day to bring on the bacon the interest on your payments is making it harder for you to get ahead in fact the interest on your debt is moving you backwards financially instead of forwards now here's what I mean in my book the debt-free millionaire I created something I call the debt dollar drain now the debt dollar drain is a way to determine if you're traveling forwards or backwards financially on what I call the payment treadmill the debt dollar drain is a formula that takes into consideration how much income you're generating how much you owe on all of your debt the interest rates you're being charged on all of that debt and how much you pay for income taxes what it calculates is how many dollars in gross income you have to generate in order to pay back every single dollar of debt you owe your principal balances when you're stuck on the payment treadmill for the sample family in my book they have to generate two dollars and ninety cents in gross income for every single dollar of debt that they owe that's like running forward on a treadmill at 1 mile per hour while the treadmill is set to 2.9 miles per hour if you'd like to know how to calculate your debt dollar drain you can download a step-by-step worksheet and find out how fast you have to run so you don't get launched off the payment treadmill the important thing to understand when it comes to the debt dollar drain is that its impact on your finances are the worst when you focus on making just the minimum payments making minimum payments keeps you on the payment treadmill indefinitely and the payment treadmill is where the banks want you because that's how they make their billions of dollars in revenue and while you keep running on the payment treadmill you know running to work running to the bank running to pay your bills months years are slipping by and losing time isn't the only thing you're losing you're also losing a small fortune think about the psychology your creditors manipulate you with that manipulation begins with what you're led to believe are your only payment options for instance when you look at your credit card statement you see the balance that you owe and then you see the minimum payment you're required to make and on average the minimum payment is usually only like three or four percent of the total balance so if you know two thousand dollars on a credit card the minimum payment is probably around seven bucks give or take I've given those two options what do you choose when it comes to the other payments like you know your mortgage car or student loan payments all you think about is the payment you agree to when you started those loans and this is how you're trapped on the payment treadmill it's too bad the payment treadmill won't burn calories like a regular treadmill can now in my video how to pay off that faster I show you how you can get off the payment treadmill by accelerating the elimination of all of your debt you just check it out but before you do make sure you download the debt dollar drain worksheet because it will help you discover why it seems so hard for you to get ahead financially and please let me know if you like this video by clicking the like button then share this video with those you care about and if you haven't subscribed to our channel please do we are committed to making sure you get off the payment treadmill once and for all thanks for watching and I'll see you next time [Applause]

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