Easy Tips for Paying Your Mortgage
Paying down your mortgage can seem like a never-ending process. You want to eliminate the debt as soon as possible, but a mortgage is something that you'll need to work on paying off for 30 years at least, right?
These suggestions can help you navigate through the process so that you pay down your mortgage as quickly as you can, freeing up your finances for other areas in life.
Consider Taking on a Second Job
Taking on a second job is something many people have done when they need money quickly. If you are trying to pay your mortgage off as fast as you can, an easy second job might be the best solution for your needs. Your second job should be something that you can schedule around the rest of your life.
Possible ideas could include delivering pizza, babysitting, pet sitting, or anything else that won't prevent you from going to your regular 9-5, but can still be a useful way to earn money. Once you figure out your needs, you can determine what type of job will fit your schedule.
Set Up a Budget To See Where Your Money Goes
Do you know where all of your money is currently going? If you don't have a budget, now is a good time to create one. You should include your mortgage within your budget, but don't forget about everything else.
The list can vary based on your lifestyle, your family size, and your needs. Once you make a list of items you spend on, develop a budget. You might have to cut back on certain areas, such as entertainment, because you need more money for additional expenses, like child care, or additional monthly payments toward your mortgage.
Determine Which Method You Want To Use for Paying Down Debt
There are different methods you can use for paying down debt. One is the snowball method, which involves paying down the smallest debt first, and then moving on to the next smallest debt. The other method is known as the debt avalanche, where you pay off the loan with the highest interest rate first, and then work on the next loan that has the highest interest rate. With both methods, you keep paying off the debt until everything is gone.
In this case, it helps to make a list of your loans and determine which ones have the highest interest rates. If you used a car buying service, for example, you might want to focus on that over your mortgage first.
Utilize Unexpected Money for Your Mortgage
If you have unexpected money come into your life, such as through lottery winnings, someone passing away and leaving you money, or tax refunds, it can be helpful to put those toward your mortgage. If you weren't expecting or depending on those funds, you likely won't miss them in the event that they are gone. This is a good time to use that money to go toward paying off as much of the principal as possible on your mortgage.
If you choose to do this, make sure you discuss it with your partner, since not everyone has the same views on what to do with unexpected money. You want to ensure you are all on the same page when dealing with situations like this.
There are many ways that you can work to get your mortgage paid down and become financially free. You can take a second job so you are putting all your extra money into your mortgage. If you haven't developed a budget already, this is a good time to do so. You'll see where your money is going and where you need to make changes.
You can also use the debt snowball or debt avalanche method to focus on your mortgage, depending on what other expenses are. Using unexpected money, like tax refunds, to go toward your mortgage can help you with your overall goals also.