When you decide to buy a house with a mortgage, of course you have set a monthly budget to pay it off. A good preparation will surely help you to manage your fiance.
In order for your other needs not to disturb the monthly budget for the mortgage, you must be wise in managing finances. Avoid debt or buying goods or services for non-urgent matters since it can only make your finances collapsed. Furthermore, when your income cannot be improved, you will find it very difficult to deal with this mortgage.
Here are some ways that you can do in order to pay off your mortgage early:
Identify the sources of income
Calculating the source of family income is very important to determine your financial ability. Find it whether the income is derived from the salary of the husband only or from the wife’s as well. In addition to the monthly salary, you also need to consider other income sources, such as your business, and so on.
Make a list of monthly expenses
You can record up neatly and details about how much money you spend monthly. The expenses can be classified on the basic expenses and secondary expense. Basic expenses may include monthly spending, home loan installments, school fees, kitchen stuff, bills and so forth. While the secondary expense may include the cost of the holiday, the cost of eating out and so on.
Calculate the amount of debt
Record all debt and repayments you pay per month, such as the payments for credit card, house, car, and so forth. It is very important to know the amount of debt that you pay each month. That way you would be wiser to take another debt.
Calculate the financial plan
Recalculate your income, expenses and a number of other debt. Re-plan every effort to pay off debts and expenses each month. You can prioritize paying off the debt.
Being careful in spending money is a necessary thing you should do, moreover when your income is smaller than the debt you need to pay off. Stop unnecessary spending, use the money wisely as needed, not to get everything that you want.
Develop a household budget neatly
Humans tend to be forgetful. Thus, it would be safer to note neatly all your household budget. We recommend that you record it with the computer, because you can easily monitor the amount of income and expenses properly.
With all the planning, implementation and structured recording, your financial agenda will be easier to learn. Do not let your other expenses seize the funds that have been prepared for mortgage payment. That way, you can pay off the mortgage earlier than you think.
Image credit: montagemortgage.com