When my mother had a massive stroke, I remember arriving in the emergency room and being asked a dozen questions about her medical history. My father was out of it, in shock, I think, and although my mother had been taken to the hospital she gone to for almost 40 years, they were still asking the standard questions. What medications is she on? What are their names, dosages and frequencies? How long has she been taking this medication? What surgeries and illnesses has she had in the past and when? What types of medical conditions does she have? And I was clueless.
Like many adult children, I had enquired after my aging parents' health in vague ways. And like so many parents of adult children, my parents always said, "Oh, we're fine. Don't worry about us, honey." If either of them had a medical procedure or illness, me and my siblings would hear about it after the fact. They didn't want to worry us. That strategy of keeping us in ignorant bliss didn't pay off. I know that my parents intended good and there were equal parts of me that thought "Well, they're my parents so they know best what to tell me and what to do" and "I don't know what I'd do if they said they were sick anyway and if I did, how would I convince them of what to do if they didn't want to do it?"
The truth behind what truly prevented my parents and others out there like them from sharing this information with their children is two-fold. One, they just didn't want to deal with the fact that they were aging and didn't want to have to confront their own mortality. Two, they also didn't want to admit that they might not be able to handle situations on their own as they occurred. Loss of independence is a common fear for people as they get older. Unfortunately, these fears and their desire to not have me worry ended up hurting them and me in the long run. I wonder if I had known more about my mother's condition prior to the stroke whether or not it could have been prevented.
I have come to believe that no matter how old or young you are, no matter if you are single or married, with children or without, perfectly healthy or managing an illness or injury---somebody other than you better know important information about you and where to access it in an emergency.
Now, you're either on one side of this equation or perhaps you're even both ends of this situation. Your first task is to fully ensure your own well-being as much as possible. Make the appointment for that full medical exam, write that will, buy the insurance with long-term care options. Sit down with your significant others (don't just tell one person-what if they are in the same car accident you are?) and let them know where the information is and what your wishes are. You never know when the emergency will happen and when it does, you won't be able to tell anyone anything.
The next thing you should do is check in with your parents and/or your adult children and go through the same stuff. If they don't want to include you in their plans, make sure that they share this information with someone they trust. Underline that their desire to decrease your concern is really just like burying one's head in the sand. It's the not knowing that is truly damaging in the end because you can't do anything if it's too late and if you don't have the right information. A lot of people put off doing things like this because they think fear the information. The reality is that information is power and keeping yourself ignorant only removes choices and your ability to respond.
Copyright 2006 Vivian Banta
What We Dont Know
Knowing where every cent goes and having every expense accounted for is one of the keys to gaining wealth. One tool any real estate investor or homeowner can use to find out where his money is going is the monthly payment table, which is also known as an amortization table, schedule or spreadsheet.
What a monthly payment table says
In a monthly payment table, the mortgage payment is shown as two parts, or separate payments. One part is the principal paid. This amount of money goes directly toward the amount borrowed.
For instance, if a person borrows $100,000 and pays $1,000 toward principal, he will need to make 99 more principal payments of an equal amount to pay off the mortgage.
The other part of the payment the table shows the interest paid on that payment. In the early stages of a mortgage, this amount is usually far higher than the principal part of the payment. When a person pays interest, it is money he has lost.
Interest is time value of money
By looking at a monthly payment table, you can look ahead to the next payment after the one just paid. Here, you can see what the principal and interest parts on the next payment are and pay just the principal part of this payment.
By doing so, you'll avoid having to ever pay the interest part, which would be due if you waited until the payment's due date. This is one way where monthly payment tables can be very helpful to anyone who is looking to save, or even make money.
The interest part of the payment shows the time value of money. So, by not using the allotted time to make a payment, the borrower will avoid paying the time value of the amount due on the loan, which is the interest. This is very beneficial because sometimes the interest payments in the first year of a mortgage are 10 times what the principal payments are.
Pay a little, save a lot
Saving the interest part of a payment by paying the 1/10 as big principal part is an example of leverage. This is an important point because leverage is the key to wealth building.
Leverage is used when a property owner uses the rent he has received from a tenant to pay the mortgage on that property. In this case, if the price of the property being rented increases in value, it is the person paying the mortgage, not the person paying the rent who is the beneficiary.
Until someone looks at his mortgage payment, or amortization table, he has no idea where the money is going or how he can use the leverage small principal payments give him.
It is amazing to see the looks on people's faces when they see their monthly payment table for the first time. People who, in many cases, are very smart and well versed in math are shocked when they see how much money goes toward interest in the early stages of their mortgages.
Knowledge is king
Being familiar with monthly payment tables can help borrowers save thousands, and sometimes even hundreds of thousands of dollars, because they will know how much leverage they will have when they make relatively small principal payments upfront.
For this reason, it is very important any potential borrower has a monthly payment table printed out for him right at the beginning of that mortgage's term. This way, the borrower is awakened to the fact most of the mortgage payments will go toward interest.
They say ignorance is bliss. Because of this so many people, who don't know where their mortgage payment money is going, pay without giving it a second thought. Those to do know however, usually work very hard to make upfront small principal payments and avoid paying larger amounts of money toward interest; which is simply wasted money.
Both Vivian Banta & Ed Lathrop are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Vivian Banta has sinced written about articles on various topics from Blood Pressure, Self Improvement and Motivation and Family. Vivian Banta (MBA/Coach U CTP Grad) is a life and transition coach who works with people who want to fully engage in their lives or who are experiencing changes such as relocation, career shifts, and personal relationship changes. To find out more, visit. Vivian Banta's top article generates over 18100 views. to your Favourites.
Ed Lathrop has sinced written about articles on various topics from Wedding Photography, Mortgage and Adware. Ed Lathrop is a successful real estate investor. He has developed EzCalculator, a mortgage calculator that shows you how to save $100,000 on your mortgage. Come visit this free site at. Ed Lathrop's top article generates over 14800 views. to your Favourites.
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