Richard Canfield explains how a large portion of consumer payments—particularly for cars and early mortgage years—go to interest, and proposes a mindset/strategy shift: capture the percent of payments currently lost to interest on living-expense loans and redirect (stack) that amount into savings over time.
Chapters
You can see that about 25% of every dollar paid out on cars is going to interest. We've got a massive component of every dollar on the housing for the mortgage. That's going on interest in that first five year period, because the bulk of it is all interest. Called the real truth in lending. And then you've got your living expenses. Well, that's going to be the credit cards, boat loans, like other types of loans that you might encourage. What Nelson's really helping us see in this scenario, if we can change our thinking and we can implement something different, what if we could take this savings block, percent of cost of interest that's going on all of our living expenses, transition that over over a period of time and stack it on top of our savings line?