A mortgage is a non-deductible expense that takes up a considerable proportion of the typical household budget. As such, it’s a type of debt that should be paid off as soon as possible. Homeowners can reduce the term of a 30-year mortgage by decades and save hundreds of thousands of dollars by managing their expenses and making more repayments. In the end, paying off a mortgage faster frees you to do more things with your money.
1. Use a budget
A budget sets a solid foundation for making extra repayments and managing expenses. Create a realistic budget, record your expenditure, and regularly review the budget. Check your weekly expenses to identify where you can save more money to divert to your mortgage.
Managing your finances is money management, that’s true, but is it as simple as it sounds, and if it is, then how should you go about it?
Concept of Money Management
The key to managing money is controlling expenses, according to News.com.au. We normally do not realize how much money we spend until we exhaust the complete paycheck, by the end of the month. Why does that happen? It happens simply because we do not segregate needs and wants and over-splurge. Continue reading
Financial advisors often recommend that their clients create personalised savings plans, and for good reason. A savings plan can help you to focus on your goals and motivate you to achieve them by encouraging you to manage your expenses more successfully. These step-by-step instructions outline the essential steps for creating a savings plan, whether you’re saving for a major item such as a deposit for a new house or a smaller expense such as an overseas holiday.
1. Identify the goal
Start by identifying what you want to buy or achieve. For example, you may want to grow your retirement funds, pay off your credit cards, or buy a new car. List all your goals and categorise them as ‘short term’ or ‘long term’. Define these goals in detail so you can accurately work out how much you’ll need.
The start of a new year is an excellent time to review your financial plan for the coming year and beyond. The secret to hitting the mark on your financial goals and resolutions is to take the time to plan a budget and to consult it regularly to track your progress. This guide shows you how to revitalise your financial situation and achieve your financial goals more quickly.
1. Learn budgeting basics
Good budgeting involves setting financial goals, tracking your expenses, reviewing them, working out what you can cut back on, and learning to manage your spending so you achieve your goals. Set up a budget and ensure that it is as detailed as possible. Then match your budget, including your spending and savings targets, to long-term goals such as buying a new house or car.
Stocks are ready to rebound, housing price is reaching all time highs and jobs are becoming scarce; this is the real condition of 2013 economic status in the USA, Paul J. Lim of CNN stated. What will be the economic condition in the coming year? People need to know about it, in order to build up a portfolio of their shares and bonds and also to decide about their other investment decisions. Continue reading
The new mortgage rules that will take effect from January 10, 2014 would certainly make it difficult for borrowers as far as exploring different choices are concerned. As per the new rule, banks should take care to ensure that the mortgage EMI’s are designed in such a way that they become affordable for the customers, states Les Christie of CNN Money. This is perhaps the result of the Dodd Frank Law that was passed in 2010. Very stringent penalties await those who do not follow this dictum. Continue reading
Though $ 177,000 inheritance that an average American might look good at first sight, it certainly compares very poorly with other developed countries in the world. According to Blake Ellis of CNN Money, they are ranked 6th in the list and are not so very well off, when compared to Australians who leave behind around $500,000 as inheritance for their next generation. The survey was conducted by HSBC and covered around 16,000 people in 15 countries. Continue reading
Knowing how much to borrow is crucial when it comes to buying or building a home. Before meeting with a lender or mortgage broker about getting a home loan, it’s important to know how much you can afford to borrow and repay.
The following looks at how much you can borrow:
Before you start looking for a home, you need to consider whether owning a home is financially viable for you by taking your income into account. By considering how much you earn, you can avoid choosing a house that you can’t afford in the long run. It will also help you determine the amount you can pay for the deposit and monthly repayments.
Even providing for basics such as food, housing, education and other needs is slowly but steadily becoming a big problem for many Californians, states Shan Li of LA Times. According to some figures just released by California Budget Project has highlighted some startling facts; for just surviving and meeting the basic needs a family of four with two children, a single working parent in California needs an annual income of around $61,000, which works out to around $29.00 per hour. This is much higher than the median wage of $19.00 per hour. Continue reading
Getting fast cash loans for unexpected bills and expenses that come up can solve your financial worries. If you have no credit, you may think of getting a payday loan, which has low fees. However, they have very high interest rates, such as at an 800% annual percentage rate (APR). You also have a higher risk of losing your car or property that was put up as collateral against the loan.
Here are some of the ways you can get a good fast cash loan:
Short-term loans have high interest rates and fees. If you can pay back the loan with your next pay cheque, you don’t have to pay much interest in the long term.