Living Life for Free

Veggi Noodle Maker:

How’s it going everybody this is beat the bush today’s topic is about living for free and you’ll see why when i talk about mortgages but first let me catch you up on other random things i’ve been doing i have gathered all my cfl bulbs due to my newfound hatred for them and now i got to find something to do with them and you know today i’ve just been so busy with

My own personal business i hardly have time to even cook dinner but i still cook something and sometimes i find shortcuts to it this is the ultimate shortcut here because i have some chicken wings in the fridge i’m planning to make some korean fried chicken with it but this is much easier zucchini a veggie tini thing that i make noodles with this is the vegetable

Intake for dinner remember that bread machine i took out earlier i just want to emphasize that i do use those things regularly this piece of bread i made myself and it makes a loaf about you know eight to ten slices how easy it is to make your own fresh bread and it only costs about $1 in flour basically for bread you just mix in three cups of flour 1/4 teaspoon

Of salt it called for one teaspoon but because i can make my own i’m like i don’t want to add in that much salt so i put in 1/4 teaspoon 1 cup warm water 2 tbsp white sugar 1/4 ounce of yeast this is about 1/3 a packet of those normal ones that you see 2 tablespoon of butter and quarter cup vegetable oil now that’s not that many ingredients and i seriously think

It probably took me 2 or 3 minutes just to measure out everything and stick it in the bread machine after you do your press start and fresh bread comes out after 3 and a half hours yes you put in $1.00 of ingredients but three and a half hours later you get a brand-new fresh loaf of bread the bread machine what it does is after you mix in all the ingredients

There’s a mixer at the very bottom it goes in needs the dough and stuff and then after it finishes kneading it into a ball it just waits awhile and then it lets it rise by itself keeping it at a nice temperature and then after that that’s why it takes so long then it bakes it so all of this is just a one-step process and it goes to show how little it costs to mix

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Some of this bread which like 2 or 3 slices of it costs about 1/4 and then i just use some of this skinless boneless sardines in pure olive oil i just kind of mix it up into like a patient so instead of a tuna sandwich i’m making a sardine sandwich which is really good to me so these are dean’s of dollar $25 50 each so the whole meal it’s about under $2 now that’s

Not quite free but it’s really darn cheap and it’s really good to me now here’s an interesting thought where you save an amount of money not quite as much as your mortgage balance but something maybe half of it then what you do is use the gains or the dividends from this investment and use that to pay off your mortgage so what you essentially end up doing is you

Hold on to some amount of money that is less than your mortgage balance and then you’re using that to pay itself and if you hold any money more than that then you’re essentially paying yourself let me explain this a bit in more detail for example let’s say you have a $100,000 mortgage balance that you still have to pay in your home loan if you got a thirty-year

Fixed-rate mortgage these days is about 4% let’s call it 4% so every single year you’re gonna end up having to pay $4,000 of mortgage interest now the easy shortcut way of finding how much it actually costs you is really take off 25% of that it’s easy to take 25% off of 4% because that’s really 3% which means after your mortgage interest deductions you’re gonna

End up paying $3,000 out of pocket now let’s say you have $100,000 and you don’t quite go and pay off your mortgage because it’s not advisable if you have exactly the amount because you need some emergency savings you need a little bit of cushion because once you pay into the mortgage you can’t take it back out you could use that little trick of home equity line

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Of credit but i’m not gonna talk about that today let’s say you just have $100,000 and nothing more and you put this into pck which is a tax-free municipal bonds for california so if you see in california and you get the dividends from it you don’t have to pay tax on this there is no income tax on this dividend right now it’s about 5.7 percent or so but let’s just

Call it 6% of $100,000 it’s actually six thousand dollars a year this is more than the interest that you would be paying into your mortgage so instead of paying off your mortgage completely you can hold on to this fairly safe investment it’s not completely safe but municipal bonds do have a slight risk to there’s a little bit less risk than stocks but there is a

Risk nonetheless so as you’re holding on to this you can think of it as you have $3,000 of this dividend and you just go okay i’m gonna take this and put it into my mortgage as they need payments the rest of the $3,000 you can take it and pocket it and the principle amount you still have to pay principal amount into your mortgage could be thought of as you know

Kind of like a savings account you no longer have to pay interest anymore so just for holding onto this money and not giving it to the bank by paying it completely off you’re gonna get $3,000 a year just for doing nothing this is why i call this video living for free $3,000 means about $250 this is after-tax money here this will buy you a lot of skinless boneless

Sardines now let’s think of this another way you don’t have a hundred thousand dollars to put into your mortgage but let’s say you have fifty thousand dollars now you put $50,000 into your pck or i don’t really want to keep on recommending this there’s other bonds out there that you can get maybe a different bonds for your particular state that is also tax-free


Now six percent on fifty thousand dollars is actually three thousand dollars so this will also completely pay off your interest portion of your mortgage now when you have this money sitting there it’s kind of like okay it’s working itself against the mortgage here so over time you’re not actually taking your own money to pay into this mortgage we’ve all seen those

30-year mortgages where over time you’re essentially paying for close to twice the amount of the principal in this case just for holding that money into a fairly safe asset over here you can use this to fight off the interest that they’re charging you over here at the same time if you have a hard time of qualifying for itemized deductions then this ping of interest

Here might push you over there for pushing you into this position where things could be itemized i hope you guys enjoyed this thought of balancing out your mortgage interest with some investments take a little step further you can have a little bit more in there not quite the full amount of the mortgage but a little bit more enough to pay for the property tax as

Well so thanks for watching and don’t forget to give me a like on this video comment let me know if you’re doing something similar if you’re interested in supporting this channel i have an audible link down in the video description below where you can get a free audiobook and if you don’t like this audiobook you can cancel it before the subscription expires and

You can still keep this audio but can also help benefit this channel as well i also have a patreon link over here where i give perks to just help with your credit score or help with your finances and as always don’t forget to subscribe to my channel over here and click that bell icon next is a subscribe button so that you get a new notification whenever i upload

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Living Life for Free By BeatTheBush

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