Mortgage Killer Accelerator

Strategy 50 of 107

Sell baked goods or preserves from your kitchen under your state's cottage food law

Depends on people or program rulesFrom new cash flow, not your paycheck

What it is

Read your state's cottage food rules: which foods are allowed, labeling, sales limits and whether a license is required.

Steps

  1. Read your state's cottage food rules: which foods are allowed, labeling, sales limits and whether a license is required.
  2. Sell at farmers markets, to neighbors or online where allowed.
  3. Send the net to principal.

Repeat: Weekly or seasonal.

Measure: Net monthly income after ingredients and fees.

Try it in the calculator Enter its amount in "Monthly non-income amount to principal". Add a payoff goal of 5 years to see what is still needed.

Risks

  • Rules differ by state; some foods need a licensed kitchen.
  • Food safety liability.
  • The income is taxable.

Who it fits

Grandmas and grandpas (62 and over), Single, Married couples, No high school diploma, No college degree, Average household, Newlyweds

Needs

Any homeowner with a mortgage.

How predictable

Depends on people or program rules (tenants, family, IRS records, lenders)

A worked example (hypothetical, not guaranteed)

Picture a hypothetical household (grandmas and grandpas (62 and over)). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.

They follow the steps: read your state's cottage food rules: which foods are allowed, labeling, sales limits and whether a license is required.

Suppose it brings $600 a month on principal from this strategy, not from the paycheck. The loan would be paid off in 16 years 3 months instead of 30 years, saving about $196,219 in interest. To finish in five years, they would still need about $3,374 a month more from other strategies. That is why the five-year sequences stack several at once.

The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.

Sequences that use it

  • Sharing-economy stack: Small, steady side income from things and skills you already have. Track the net, pay the tax, send the rest to principal.

Sources and more information

Where to get help

Related strategies

Back to top