Fareed Zakaria (CNN) talks to Michael Lewis (Liar’s Poker) about the economic crisis and Wall Street’s future

Have a look at this video:
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Back to Basics: Paying Mortgage MONTHLY Vs. Paying Mortgage FORTNIGHTLY

Previously in the “Back to Basics” series, I wrote about:

Today let’s look at the difference between paying off your mortgage monthly versus paying off your mortgage fortnightly.

This concept can also work in the receiving money context (i.e. when you receive rental payments as a property investor, salary, and etc.). Read on and you’ll understand.

First question. Do you think that there’s any difference at all between paying once a month and paying every two weeks? There is a difference. A huge difference actually. Changing your payment method to the fortnightly basis payment method can pretty much change your life.

This little “strategy” is something that is often overlooked by many. It is in fact a proven method to reduce your mortgage faster by cheating yourself without feeling much pain in the pockets. Of course, this depends on the individuals as well. If the person is still very much unable to control his/her financial situation (i.e. struggling with having to set aside money for savings and investments), then there’s no point also.

Anyway, back to the discussion. Say your mortgage repayments every single month is $100.

If you pay the repayments once a month, by the end of the year, the total sum for 12 payments is $1,200, am I right?

However, if you adopt the pay-every-fortnight method, that means, instead of paying $100 per month, you are now paying $50 for every two weeks.

What’s the difference you ask?

Ok, how many months are there in a year? 12.

How many fortnights are there in a year? 26.

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