I am writing this hub as a follow-up to Money Merge Account-Can It Be Beaten. In that hub, I worked an objective comparison between two homeowners; one using the Money Merge Account system and the other doing the mortgage acceleration themselves and applying the Money Merge Account fee to the principal of their first mortgage. Proponents of the "do it yourself" system swear that doing it yourself will beat the Money Merge Account system every time. Well, in the head-to-head, the Money Merge Account system beat the DIY process by 4.4 years and saved an additional $44,259.55.

Joseph Thomas then commented that he would like to see a comparison where an unexpected "life" event happens to the tune of $2500...I thought that would be a great comparison as well, so, here goes.

The Anti's in the first hub would have been those people who believe that the Money Merge Account system simply will not work as advertised, or, if it does work, certainly one could do better by simply working the mortgage acceleration themselves.

In this hub, with the new issue of the unexpected expense of $2500, I would surmise that the Anti's would  be those total believers in the Money Merge Account system who would say that non-users (the DIY crowd), simply would not be able to handle the calculations accurately themselves. 

The Pro's in the first hub would have been the Money Merge Account believers.

The Pro's in this hub would be the DIY folks who would certainly believe that they could handle the calculations themselves and could still beat the Money Merge Account system.  I absolutely side with this crowd and presume that we are capable of doing the calculations ourselves...whether it beats the Money Merge Account system...let's see.

To recap from the first hub, the two homeowners both have the same mortgage of $300,000 at 6% for 30 years and both have discretionary income of $500 per month.

When the unexpected $2500 expense occurs, both homeowners are able to pay it...homeowner number one pays cash, and then does not apply their $500 discretionary income to their mortgage principal so they can rebuild their savings. Homeowner number two puts the expense on their credit card at 12% interest and continues to use the Money Merge Account system and follow the software recommendations.

In this scenario, homeowner number one does an admirable job and pays off their mortgage in October of 2026. In the first hub, they paid off in 17.2 years and with this added expense, they pay off in 17.6 years...In the first hub they would pay $180,780.18 and in this scenario they will pay $187,219.60, so the unexpected $2500 expense costs them an extra 0.4 year and $6436.42 in mortgage interest also.

Homeowner number two uses the Money Merge Account system, and the expense has an impact for them also. In hub number one they paid their mortgage in 12.9 years and paid $136,524.59 in mortgage interest. With the unexpected $2500 expense, they will pay off their home in 13 years vice 12.9 and they will pay $139,608.03 in mortgage interest. So, the added expense costs homeowner number two an additional 0.1 year in time and $3083.44 in mortgage interest.

In scenario number two, with the unexpected expense, the Money Merge Account system beat the DIY system by 4.6 years and $47,611.57. That is a savings of an additional 0.2 year and $3355.98.

The indication is...as things come up in our financial lives, the Money Merge Account system actually increases in benefit.

I ask your forgiveness for all of the numbers, and, this is basically a mathematical comparison. If someone wants to emotionally deny that the Money Merge Account system will work or it can be beaten by doing it yourself, then that is an erroneous perspective.

It's ok to not use it, just don't do so in denial.

Everyone's financial situation is different. To see if the system will work for you, please click here.