Securing financial stability is a key goal for many individuals, and one of the best ways to do this is by repaying your mortgage loan ahead of schedule. This can result in considerable savings; however, with cost-of-living expenses rising and interest rates fluctuating, it may be difficult to come up with extra funds.
Gaining fiscal control of your future may require some effort and dedication. If you take small but consistent steps, you’ll be able to reach your financial goals faster. To help get you on the right track, here are 8 tips to enhance your savings:
Tip 1: Make a plan you can stick to
For sustainable savings strategies, start by taking a look at small changes you can make in your lifestyle and spending habits. Cancelling unused streaming services, learning how to make restaurant-style meals at home, or turning to second-hand items or do-it-yourself projects rather than always buying brand new are all good ideas. These strategies won’t require you to make drastic life adjustments, but they can add up to meaningful savings over time.
Tip 2: Automate and separate
Automate your savings and extra mortgage payments to ensure that the money goes where it needs to go before any lapse in discipline or desire to spend it occurs. Putting aside funds in an offset account can also lead to a reduction in interest charges for an added benefit.
Tip 3: Get a home loan health check
Conducting an assessment of your home loan every two years may help you identify unused features or fees you can eliminate. We provide loan health checks and goal reviews that help our customers save money. We can also assist you in analysing all available options to ensure the best outcome.
Tip 4: Create a budget and check your progress regularly
Achieving your financial goals requires careful monitoring of your spending. Develop a system, such as a spreadsheet or budgeting app, to keep track of your expenditure and separate it into different categories. Take the time to check in with yourself each week – this will help you stay on track and develop positive habits. With an accurate picture of your finances, you’ll be able to save more effectively.
Tip 5: Find extra income streams
For those looking to supplement their savings, developing an additional revenue stream is a great option. Possibilities include pursuing a side hustle which could work hand in hand with your 9-5 job or monetizing unused assets such as belongings around the home. With enough effort, this can be a viable alternative to save more money and make lump sum payments.
Tip 6: Swap this for that
From a financial standpoint, there are many approaches to cutting costs without sacrificing too much in return. Consider alternatives that may cost less, such as modifying an expensive hobby or using cash instead of credit cards to better manage funds. You can also dispense with professional services by finding affordable DIY treatments at home. By taking these steps, you can still save money without feeling like a cheapskate.
Tip 7: Make lump sum payments
Instead of splurging with your tax return or annual bonus, consider making an extra payment to your mortgage. Although instant gratification may be tempting, it’s important to remind yourself that lump sum payments can greatly reduce the amount of time it takes to pay off your home loan and that you ultimately own the property.
Tip 8: Consider paying your mortgage weekly
Making the switch from monthly to weekly mortgage repayments could have a positive, long-term impact. This is because interest accrues daily; thus, making payments on a weekly basis helps reduce overall interest owed over time. It may not sound too significant, but this simple change can result in substantial savings on your home loan.
Ready to kickstart your savings plan and boost your mortgage repayments? Contact us today for professional advice about saving on your mortgage.
Original source from ScotPac. Edited with permission.
Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor to imply any recommendation or opinion about a financial product. It does not consider your personal situation and may not be relevant to circumstances. Before taking action, consider your circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.