Top-5 things to do

Saving money on your mortgage?

Here is a short list of things to do with the money you've saved!

Thing 1:

Thing 1 to do:
Pay off other bills - Great, now I sound really old... but it's the responsible thing to do! You've spent a lot of time accumulating debt. You can use the money you save by lowering your mortgage rate to just simply pay off those other debts that have been hanging over your head. Pay off smaller balances first, try to use every little bit you've saved to pay off other loans one by one, and keep rolling money saved into the next loan. Get it to a more manageable level, if not paid off outright!

Thing 2:

Thing 2 to do:
(did you pay off your bills?) If you've used some of your extra savings from a lower rate mortgage to pay off the higher interest bills, then you need to start developing your nest egg! Save Money! This is the next best thing you can do after paying off higher interest loans, is to start to develop a savings plan!

Thing 3:

Thing 3 to do:
(have some savings built up?)
Are you starting to get comfortable with your savings? Do you think you can handle an emergency? If you lost your job RIGHT NOW, have you saved enough money to live off of for 3 months while you recuperate? If you have to say "NO" then you need to go back to thing 2...

Now, if you think you have saved enough, you need to develop an investment strategy. There are many different ways to invest extra money, but only EXTRA money should be invested. Ever!

Thing 4:

Thing 4 to do:
Home Improvements
If you have taken care of the many other facets of responsible home ownership, it might be time to look at potential home improvements you could be making. Home improvements can also be a smart investment, and if you are enjoying a better mortgage interest rate, you will be increasing your home's value and ultimately paying less for your loan when it comes time to sell the property, if you make that decision. It took quite some time, but I spent only 500 on a nice retaining wall in my backyard landscaping which ultimately made everything not only LOOK nicer, but raised my appraisal by 8000!!! I did all the work myself.

Thing 5:

Thing 5 to do:
BUY STUFF!
Holy CR*P! Saving money is hard! You've done a great job if you have done 1-4 above.Take a breather and think about something you would really, REALLY like.

This is so irresponsible and the financial gurus are rolling their eyes by now.

But the way I see it, I earned a break, and yes, it was worth every penny and every hardship! I saved first, then bought a new TV and a laptop. You deserve a reward if you're saving money the right way!

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