How to Address Some of Your Monthly Money Woes
It is said that money makes the world go around, and while it may be true, money can certainly present problems for the average Australian household from time to time. One of the biggest monetary obstacles in any family's life is often a mortgage, and this can represent a sizeable part of any monthly budget. If you despair when you think about those monthly repayments that never end, how can you be proactive and take some steps to reduce this stress?
Pay Early When Possible
Obviously, whenever you buy a home on credit, you understand that it will take quite a long time to pay this off, and much of the monthly payment will be represented by interest. To make the situation better, try to pay the principal amount as expeditiously as you can, as this will reduce the overall number of payments that you have to make.
Try Different Payment Options
For example, if you get a windfall of any kind or perhaps a tax refund after you submit your return, don't spend this, but apply it directly to your home loan. You could be even more creative and decide to pay half of your monthly mortgage payment every fortnight instead. This is quite a subtle approach, and you may not notice a difference, but remember that there are effectively 13 months in the year if you were to divide it up in this way. You will have paid back an extra month without really feeling it.
Develop New Habits
If you change some habits, it's amazing what this can do. Are you used to stopping at your favourite coffee shop on the way to work each morning? Why don't you forego this habit and brew something up when you get into the office instead? However, when you do this, get into another habit of putting the money saved into a pot. Once again, this will add up quickly, and you should apply your new "windfall" to your mortgage payments.
Revise Your Structure
If it's been some time since you took out your mortgage and it's possible for you to do so, think about revising the policy to get rid of some possible penalties. Perhaps you can consolidate it into another loan with better interest rates.
Keep on Thinking
These are only some of the creative ways to help with your mortgage. Talk with your accountant so that you can come up with some other solutions to help you alleviate your burden.