The 10 things you could cut out of your budget to pay out your mortgage in under 10 years!
This week another client paid out their home loan! Out came the Moèt and the team gathered around to celebrate the victory.
Why this was so special is this young couple are in their mid 30’s. 35 and 37 to be exact. It was also special because we are assessing them for the purchase of their 3rd investment property! Talk about kicking goals.
These dynamo’s have been clients for just over 3 years. They started with a dream of reducing their mortgage debt while managing to maintain their lifestyle with 2 young daughters, and they are blown away by the results.
When I asked what they felt we had taught them that made the most difference and accelerated their amazing results – the answer was ‘reducing the leakage and wastage without reducing our lifestyle.’
Let’s face it – most of us live from pay day to pay day. It doesn’t have to be that way.
Here are 10 things that you could cut out of your budget that can make a difference to your debt reduction without limiting your lifestyle.
- Pay TV – There are lots of free and low cost ways to get your inner lounge lizard catered for without blowing the budget - $90-$140 x 12 = $1,600
- Bottled Water – Australia has brilliant water, get your own bottle and fill up from the tap. Put some in the freezer and have it ultra-cold all day! $2 x 3 x 52= $312 p.a.
- Take Away Coffee – I know! It’s good!! But, how many coffees would it take to buy your own machine at home – then do takeaways from home! Saves a fortune. $5 x 5 x 52 =$1,300 - 3 a day = $3,900
- Buying Lunch – This alone could save you a fortune. In fact, you can fund a great holiday every year for less than most people spend on lunches. $15x5x52= $3900
- Wasted Groceries – Once you start to manage the groceries, most families save between $50-$150 per week! That could be a massive $8,000 a year!
- Take away – Most of us are guilty of doing this too often, a bit of extra meal planning means a great healthy precooked meal in the fridge or freezer will save buying takeaway because you are tired or time poor. $30 x 52 = $1,560
- Lawn Care – Not getting the mower out usually sets us back about $60 x 26 = $1,560
- Unused memberships – Gym memberships, app monthly renewals and magazine subscriptions can add up too. $600
- Interest on Credit cards – By paying out your credit card on time each month and paying no interest can save a bundle. $150 x 12 $1,800
- Dining out – I am all for socialising, and love love love dining out. Replace one of these a month for a great time with friends at a beach BBQ area or a trip to a waterfall and you could reduce your expenses enormously. $150 x 12= $1,800
These few changes could have put a whopping $25,000 extra in your pocket or off your mortgage.
This is only 10! Imagine if you also look at all the leakage and wastage in your life!
Our clients usually reduce their mortgages between $30k and $90k per year and pay their homes off in 5- 7 years or quicker AND increase their lifestyle! In fact, an analysis of 100 clients over the past year found a reduction of $5,200,000 on their mortgage debt. That is an average of $52k per person.
This could be you! How much did you pay off your mortgage in the last 12 months? If you aren’t kicking some big numbers off your mortgage, it might be time to come in and see what we can do to help.
We offer a free wealth coaching session – so you have nothing to lose and everything to gain.
Call us today.