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5 Ways To Save Money Adding Principal Payments
Paying a little extra on your principal is a great way to save money over the life of your mortgage. You may be asking yourself: Times are tough, where am I going to get this extra money to pay on the mortgage? Easy, by holding on to the money you already have. Here are 5 ways to save money to add principal payments to your mortgage.
-The easiest is to budget. Picture a sieve and imagine instead of water seeping out, it’s your money. Find out how it’s getting out, and then plug the holes. You can use your bank statements, keep your receipts or try a budget program for your computer. You may be shocked when you see how all the little things like a daily cup of coffee can add up to big numbers over the course of the year.
-Energy costs can make up a large part of your budget. Little steps can add up. Try lowering the temperature of your water heater or freezer. You can also talk to experts on how to winterize your home; heat can escape through cracks that a few bucks in caulk can plug.
-Is the cost of keeping a car keeping you down? The money going toward the car can make a huge dent in your principal payments. Selling it and paying cash for more fuel-efficient model is only the beginning. Look at what you’re spending in fuel, insurance and taxes.
-Try coupons. Nowadays, coupons are online as well as in the paper and you can save on more than just groceries.
-Consolidate consumer debt. Your debt can be consolidated into one payment under a lower interest rate possibly saving you hundreds a month.
These are just a few ways you can save money to put toward your principal. All it takes is a little creativity and discipline.
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