Scour your budget to see if you can implement any of these tips to increase your cash surplus: What about the money you spend at the big box store simply because you find items you like or because you find a “good deal”? Or frequent fast-food drive-thru trips or restaurant takeout meals. However, the truth of the matter is that most everyone spends money each month on at least some things they don’t need. When you read that line you may be thinking “I don’t have any place I can trim my current budget.”Īnd maybe you don’t. Trim Your BudgetĪn additional way to earn more cash to put toward your mortgage payoff is to trim your current budget. Do what you need to do to gather up extra money for your cash surplus, then start socking that money toward extra principal payments on your mortgage. Or you can combine several ideas to make extra money each month. You can scour your storage areas for items to sell. Money from selling items you already ownĪs you can by this list, you can actually create “found money” if you want to.“Found money” is any money you never expected to have in the first place such as: However, if you use other surprise or “found” money to make even bigger principal payments each month, you’ll really knock that mortgage out quickly. Your mortgage balance will likely drop pretty quickly if you use most or all of your monthly cash surplus to make extra principal payments on your mortgage. Use “Found Money” To Speed Up the Process Note: Have you found that there isn’t any cash surplus after you’ve created your budget? These next two tips will help you find some. When the mortgage is gone, you can go right back to spending that cash on other stuff. Keep in mind that using your budget surplus to pay down your mortgage is only temporary. While you may be hemming and hawing at not having as much money to blow right now, I promise you’ll appreciate your own sacrifice when that mortgage is gone. Instead of using that monthly cash surplus to do something “fun,” use it to pay down your mortgage faster. This money is called your monthly cash surplus.Īnd it’s the ticket to mortgage payoff success. Now that you’ve created a working budget, look at the amount of money that’s left over after you pay your expenses. Then you’ll find the extra cash you need to pay off that mortgage ASAP. Use it to get a good handle on your monthly income and expenses. The budgeting method you use isn’t as important as ensuring that you are, in fact, using a budget. In fact, I still write my budget out on a piece of notebook paper every month. There are budgeting apps you can use as well, but I’m a big fan of a simple budget spreadsheet. Use the Clark Method to Creating a Monthly Budget and determine your monthly expenses vs. The more control you have over how you manage your money, the more extra cash you’ll find to whittle that mortgage balance down. Create a Personalized BudgetĪ good mortgage payoff plan always starts with a personalized budget. I’ll get to the in-depth stuff too, but these first steps are just as important. I’m going to start from scratch here, just in case there are people reading who are new to the wonderful world of budgeting and saving. If you’ve decided you want to pay off your mortgage early, you’ve come to the right place. It’s great to be able to be a homeowner, but wouldn’t it be even better to live without that mortgage hanging over your head? Paying your mortgage: something you do every month for decades of your life.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |