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TRUMP UNIVERSITY WEALTH BUILDING 101

finish, you would have paid $10,665, rather than $2,500, because of all those

small, silent, sneaky monthly payments.
Now let’s look at the automobile industry. Say you’re a 25-year-old female
who leases a new car for $400 a month. You’re thrilled to hear from the nice
salesman that you can “rollover” your lease every two years and have a new
car. Do you have any idea how much money you will spend during the next
40 years if you drive a new automobile every two to three years on lease? A
whopping $417,867—for cars that you will never own. Don’t believe me? Do

the math: $400 a month for 40 years, with a car inflation index rate of 3.5 per-
cent per year, totals $417,867. Want to lease a fancy luxury sedan or sports
car? That $1,000-a-month lease will cost you more than $1 million!
Can you imagine paying more than $400,000 in small monthly car pay-
ments? It starts innocently enough, with an “offer” of a great rate or lease, but
these companies aren’t offering you the freedom to choose your lifestyle,
but a one-way ticket to perpetual bondage. Companies train their salespeople
so well that you slide into debt with a grateful smile on your face, and thank
them for the ride.
For many, owning their own home is the biggest burden. Banks promote
30-year loans, knowing that the typical family moves every seven years or so.
In the early years of the loan, most of the money paid goes to interest, not to
principal. The longer the loan term, the more the amortization schedule works
for the lender and against the consumer in the early years of the loan. For
example, after seven years paying on a 30-year loan, most people will have paid
down less than 7 percent of the principal on the house. Then it’s time to get a

new house or refinance and do it all again, if you follow the lender’s plan.
When many homeowners sell their homes, they fall into a bigger trap by
buying a bigger home, with a bigger mortgage, and start the whole “small pay-
ments” mentality all over again. My advice: Turn the amortization schedules in
your favor by reducing the term of the loan, and increase the amount that goes
toward paying off the principal. If you choose to pay off your mortgage over 15,
instead of 30 years, you’ll pay less interest from year one ($7,870 instead of
$7,953). Your monthly payment will be higher ($955.65 versus $771.82, an extra
$183.83 a month), but the average family can do it. It may sound incredible to
you, but you can pay off all of your debts, including your house, in three to seven
years. Don’t expect most banks to offer you this information.
If at this point you feel discouraged, that’s okay. You’ve worked on your
vision statement, and taken a hard look at some initial numbers. Don’t get hung
up on the past. Now we’re going to work together to improve what you are

doing right, and fix what is broken. You’ve got your vision. Focus on that, and we
will keep moving ahead. For more information, visit johnburley. com/trump .

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