I am striving to live a debt free life. I am focusing on getting my mortgage paid off while balancing expected and unexpected debt that pops it ugly head in our lives. The one thing that has helped us. I pay extra on my mortgage, always have. This is one of the more important suggestions I can make to all folks who want to pay off their mortgage faster.
I am blessed that we can almost survive off one income and have the second income at our disposal. I said ALMOST!!!
In May, we refinanced our 11 year 1st (6.0%) 2nd (6.25%) mortgages into our 7 year 4.25% first mortgage. Our monthly payment went up of course but that is 4 YEARS! Worth of savings to us. This ended up saving us roughly $25,392. WOW!
I am paying any extra I can to help get this debt down to 5 years. I am paying at minimum to the next $1,000. Meaning if my principal payment is $727 for the month of November I am paying at minimum $273 worth of extra principal.
Every time I think I figure out this game of debt I get an unexpected twisted. Little Farmer at the age of 7 is having some orthodontic problems. At least this debt is interest free.
To keep our finances in check, I have a weekly budget. I only have a few categories which include Groceries, gas, lunches, fun, babysitter, and household goods. If there is any left over from the week before it automatically goes to the savings account.
I also use coupons for groceries and household goods. I am better at shopping the sales than using coupons but I do use them. I am contentious about what we spent too. If we don’t have a use for it, we do not buy it.
What do you do that helps you save money?