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$30,000 of Savings in Two Days Through Vigilance

How much effort do you spend to earn $30,000? For most of us there is large commitment of time and effort to receive that cash. Yesterday I realized I had just saved over $30,000 through a little vigilance and some effort. A couple of months ago I signed up for a $161k loan against a 4-plex I own in order to have the down payment for another property. The payment on the loan is $820 per month. Two days ago I analyzed the loan and realized I could pay off 44.5 months of payments for a $10k payment against principal. So, for $10,000 I could eliminate $36,490 of payments. $10k of that went against principal the remaining $26,490 was interest that I would avoid. I borrowed on a home Equity loan the $10k at 3.99% interest. I will have that paid off in three months (by selling another small asset) at an interest cost of ~$99.75. So, for an interest cost of $99.75 I will avoid $26,490 of interest for a net savings of $26,390.25. That was well worth the hour of time I spent making the decision, transferring money from my home equity line to my check book and writing a check to the mortgage company. It was vigilance and analysis that lead me to make that $10k payment. As I looked at it I decided that a little vigilance and analysis had just made me $26,390.25 in one hour. Not a bad return on my effort. The same day I noticed that my monthly garbage service charge for Apartments I manage had increased over the last year from $148 per month to $221 per month. I suppose Waste Management of Utah thought I wouldn’t notice. However, I’m vigilant about what is happening to my expenses and I push back. When I called the company they refused to do anything about it and offered no explanation for the rate hike. Within a day I found two other garbage companies that were willing to perform the same service for less money. I signed a contract with one of them for $60 per month and terminated Waste Management of Utah. My first year savings will be $1,932. I had invested two hours in this effort for an operating expense savings of $966 per hour of my time. It pays to be vigilant. Meanwhile during the same week I received bills for insurance on several properties I manage. All of them had gone up considerably over the year. I called one of the insurance agents and said, “Drop my premium back to last year’s cost and guarantee the same coverage or lose my business.” Two hours later he called me back and told me he had been able to do so. I saved ~$400 in premium costs for the new year. It took 20 minutes to do so. Another insurance company had decided to increase the valuation on my building by $200,000 even though I had not ask them to do so for insurance purposes. The building has decreased in value and in replacement cost. They promised to drop the cost by $200. Property taxes on a single building that I manage have soared by 24%, $3,800 in a single year. I have appealed that tax increase over the last two days. Although I don’t yet have a commitment from the county, I expect that I will get some relief. These efforts lead me to take additional actions with other service providers that yielded another $1,100 in savings over the coming year. All in all it was a good two days of effort and vigilance that yielded a total of $30,022 in savings. As we enter a time of ultra high monetary inflation you can expect prices to rise rapidly. To offset these price increases and maintain profits you will need to do two things: 1) Raise your prices even faster 2) Resist, question, and push back against price increases you are receiving 3) Play one supplier off against another 4) Recognize that monetary inflation comes because of a collusion between the Federal Reserve and the U.S. Government that prints money to finance increasing deficits. Fight against government deficit spending or expect price to continue to escalate. See these related articles: The Dollar is a Trade Item, Not a Store of Wealth: https://www.area-info.net/articles/show.php?cty=Parker&st=Colorado&article_id=2296 Will the Dollar Drop to the Value of an Indian Rupee: https://www.area-info.net/articles/show.php?cty=Salt%20Lake%20City&st=Utah&article_id=951 Why Buy Silver and Gold: https://www.area-info.net/articles/show.php?cty=Salt%20Lake%20City&st=Utah&article_id=737 A Republic Limits Government; A Democracy Gives Unlimited Government: https://www.area-info.net/articles/show.php?cty=Layton&st=Utah&article_id=1917 Disclaimer: Investing in real estate, stocks, bonds, and precious metals is risky and could result in losing money. I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence and study before making any decision to invest. I am not an investment adviser. Precious metals is not for everyone. I am a precious metals broker and sell precious metals. You should do your own due diligence when making investment decisions of any kind. You should consult your own financial advisers before making any investment decision. I make no guarantees that by following any advice or suggestion I make that you will realize any return or that you will not see losses. Beware, all commodity markets and other markets carry risk of loss.

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