The fresh start of the new year makes it a great time to review your finances and particularly your spending. Whether you are saving to buy a home or pay one off, your “money leaks” can add up to some big bucks over time. Here are ten ways to find some of your missing money or help you save over the long term:
- Watch unconscious spending. Track your spending and consider your impulse buys at grocery, gas station, convenience and other stores, or your brand name buying when generic will do. If impulse buying is a big culprit, always make a list and stick to it, only grocery shop once a week and never on an empty stomach!
- Know your prepayment penalty. When choosing between mortgages, be sure to compare how the early payout penalty will be calculated. If you ever need to get out of your mortgage early, having the right mortgage could save you thousands.
- Convenience costs. It’s a lot easier to spend more than you intend to when you exclusively use your credit cards because you aren’t seeing the money. You might not be so liberal with your money if you actually had to hand it over. Consider withdrawing a fixed amount of cash for your spending every week.
- Renovate over relocate. The right renovation might be all it takes to turn the house you are in into the home of your dreams. It is almost always less expensive to renovate than to relocate. We have great renovation financing solutions for 2020.
- Examine your bills. Take a good hard look at your monthly bills and go through them line by line. Some of them may be for services you don’t use or can live without, or perhaps don’t remember requesting. Or they could be for services that you can actually live without. Even if the amount is small, why have it charged every month?
- Renew with your eyes open. When your lender sends out a letter suggesting you renew your mortgage at their current offer, get advice. Don’t renew with your eyes closed. This is your opportunity to negotiate the best possible deal and saving big over the long term.
- It doesn’t hurt to ask. Whether you are signing up for internet or buying a car, ask “is this the best you can do?” or “can you make it more affordable?” Do research in advance so you are prepared and knowledgeable on all things related to what you are buying.
- Speed up your mortgage pay down. Change from monthly payments to weekly or biweekly payments. Or take your tax refund and put it against your mortgage principal. Your interest costs will go down with every dollar you reduce on your principal.
- Don’t leave money on the table. Take advantage of all incentives that are available to homeowners. First-time buyers can take advantage of the Home Buyer Tax Credit that provides up to $750 in federal tax relief. There are also many incentives available when you make energy saving investments in your home.
- Plug your biggest money leak: high interest. All of the savings you make in lifestyle choices mean nothing if you don’t put a plug on paying high interest If debt is choking your cash flow and you have enough equity in your home, you may be able to move that debt to your lower-rate mortgage and save thousands. Using home equity to pay down debt is one of our specialties.
We’re here to save you money in 2020 and throughout your mortgage years. Get in touch with the team MiMortgage.ca at any time!
