Hearing the term “30 year mortgage” can seem very daunting. No one wants to have a debt hanging over them for 30 years! If you have a mortgage, you have probably wondered what you can do to pay it off early. This thought can seem like an unobtainable goal if you don’t have a lot of extra money to go around. With the right preparation, guidelines, and attitude, you CAN pay off your debt early! It is even possible to pay off your debt and save for the future at the same time. These helpful steps can get you started on the right track.
1.) Take advantage of large influxes of cash. If you know you have a large bonus or tax refund coming up, try not to get so excited that you just think of it as more money to spend. You can use that extra cash to put towards your more important long term goals. Take the time to take out at least some of the cash to put towards your highest interest debt or pay some extra on your mortgage payment.
2.) Set attainable goals for saving money. One of the easiest ways to NOT save money is to set a savings goal that isn’t realistic. If you do this, you will become discouraged and probably forget about that goal all together. Try to set goals that fit within your income and then increase them over time as you are able to meet those goals.
3.) Give yourself a budget. When we don’t have a plan for where our money is going, we typically find ourselves spending any extra cash and living paycheck to paycheck. If you want to save for the future, you have to take the time to map out your income and expenses. Once you have done this, it is much easier to allocate whatever cash is leftover for things like entertainment, groceries, and extra savings.
4.) Use other financial resources. There are many resources out there that can help you live by these guidelines. You can use money saving tools or budgeting apps to help you stay on track. You can also meet with a financial specialist to help you make a plan for the future. You don’t have to go it alone.
It is possible to save money and pay off your debt at the same time. They key is to stay consistent and always be aware of what money is coming in and where it is going out. Refinancing your mortgage might be another option that can help you along this path. Contact one of our mortgage professionals today to learn more about what a refinance could do for your financial situation!