Velocity Banking Makes Finances FUN! #Finance

hello and welcome back to my channel I’m Christy van with vantastic Finances and on this channel I talk about velocity banking a lot so we’re just going

to take him through the first six months just so that he can see what the next six months looks like and not overwhelm him and his family with everything that’s going to happen to pay off his Debt completely but it will give them an idea of how quickly things are going to

move once we start moving in the right direction there’s not going to be any additional Income added in there’s no Savings added in here we are only working with his Income the numbers he actually has at this point and he has a USAA

card that we’re going to be using as our line of Credit he can transfer in and draw out as needed out of this account which is beautiful you also know what happens when we do Income transfers into a line of Credit whatever the amount of

payment due on a line of Credit because that transfer going in wipes that payment out because it does satisfy the amount they are asking for for for that month that $225 just became Cash Flow so we’re going to start with the 17238 balance because that is our

line of Credit and we do need to get that down so that we can start working to pay off the other Debt in month one his Income will go in 3650 if you notice I’m doing this by-weekly because he is paid bi-weekly I just wanted to make it as

simple as possible because when you are busy doing live working you don’t have time to sit down and figure out what you need to do so I’m figuring it out for them so so his bi-weekly Income went in at 3650 month one bringing his balance down his expenses will then come

out the 5347 they come out slowly through the month then his second check for the month with 3650 will go into the account bringing his balance down to 15285 I’m going to get questions I did add interest but it’s going to be at the third month okay I did forget it in the first three but

I’ve made it up here so don’t send me any emails saying you forgot to add the interest in month two his bi-weekly Income will go in his expenses will come out and then the second bi-weekly check will come into the account bringing it to 13332 the third month the first

Income for the month will go in the expenses at 5347 will come out and then his second bi-weekly paycheck will go in at 5650 bringing that balance down to 11379 here’s the interest added in so is 431 month one 382 for month two and 334 for month three I did that on the

highest interest at 30% because I’m not sure what his card is but I wanted to cover all bases and leave a little room for error so that interest is probably a little higher than it’s going to actually be so adding the interest in brought his balance up to 12,526 and month four a

bi-weekly paycheck goes in his expenses will come out again and then the next bi-weekly paycheck will go in for month four bringing his balance to 10,573 I did add the interest this time at 265 and the balance will be 10838 now at the beginning of month five he is going to pay off four of his

Debts we’re going to pay off the tires the furniture Sam’s Master Card and Sam’s store card so I have added each total in here bringing him to a balance of 13912 he will then make his month five bi-weekly payment of 3650 bringing it down to 10,000 62 so since he

is going to pay off these four Debts of course the payments of 100 100 150 and 100 will be added back into our Cash Flow right so now $450 come off of the expenses and now it’s only $48.97 coming out for expenses in month five then the second bi-weekly

paycheck goes in bringing his balance to 11509 now that means that by the end of six months he’s paid off almost $111,000 in Debt he didn’t get another job his wife didn’t get another job they didn’t get Frugal and cut expenses all they did was started

putting their money in the accounts that serve them the way they need to be used where it serves them okay so that’s what we’re learning here this is six months Income in expenses out pay off bills in a timely manner depending on the limit of this card you know he could

pay off anything he wants to when he wants to in the event he has the Credit in the card but we’re going to take it slow for for him since he doesn’t have time to think about bills where he’s at right now we’ll think about it for him if you have any

questions or comments please leave them below I’m excited to do this for our military I’m just thankful they’re out serving I’ll be glad to serve them by helping them to understand their Debt and how to quickly get out of it when he starts approaching the

end of the six months we will rerun his numbers again see where he’s actually at and then see what Debt he’s going to wipe off next so thank you so much for joining me today I look forward to seeing you guys in the next CashNews.co