The times may be tight, but that doesn’t mean they have to be tight for you. Finding ways to save just a little money here and there will give you the opportunity to pay off your mortgage or other debts in record time. Just making two extra payments on your mortgage each year will allow you to cut your term by 1/3.
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1. Tax Refunds – instead of spending your refund on something frivolous, put that money to work. Use it to make that extra payment (or two) on your mortgage.
2. Groceries – Keep a close record of what you are spending on groceries and work out a plan (using coupons and other techniques) to allow you to cut out $50 a month from your budget. Use your savings to make an extra payment on your mortgage.
3. Luxuries – pass on the manicures, expensive hair cuts or other special treats for just one full year. Use these savings to make a dent in your mortgage term.
4. Entertainment – utilize free and discount opportunities for family fun. Put aside the money that WOULD have been spent eating out, going to the movies and other things and use it to make an extra couple of payments on your mortgage or debt.
The money adds up quickly and the more you pay on your debt the faster it vanishes. The best part is that once the debt is gone then the savings will be available to spend in other (usually more enjoyable) directions.