“Paying one additional mortgage payment each year, whether in a lump sum or monthly increments, can lower a 25-year loan down to 15 years.

If you pay more than one extra payment, the number of years will decrease even more. Since this additional payment will be applied only to the principal and not the interest, you end up saving thousands and thousands of pounds on the Total Amount Repayable.”

Only do this if you can afford it. If you’re already short of cash, paying off your mortgage faster doesn’t make sense.

Do your budget planning and make sure you can handle the reduced disposable income before you go ahead.

If you have other debts that charge a higher interest, you are going to be better off by paying those off first.

At the moment I am snowballing an overdraft and 2 credit cards and I am not doing the 13th month until those 3 are cleared up. I use my 13th mortgage payment to actually pay these off faster. I use the monthly increment and add it to the snowball payment.

If you have all the money you need, then this is a great money saving tip.

“Budgeting” A Means to Fantastic Financial Management

When building a house from ground up, a carpenter will always use the design plans to ensure everything is done right. If he didn’t the bathroom might get overlooked altogether.

A Rocket Scientist would never begin to construct a new piece of equipment for the rocket without closely following the required precise design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all.

Not very smart of us, is it?

That is why we need to have a money management plan or ’budget’, to help us better reach our financial goals and to get out of any debt we may have.

People who do not have a financial plan often don’t even realize how much money they are spending and on what it is all going for.

It is advisable then, to create a budget and if you are married you need to work together with your spouse on all your personal finance goals. Sit down and figure out what your joint financial goals are, long term and short term.

Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget, that both of you and your spouse can live with.

A good budget is not like going on a harsh financial starvation diet. That won’t work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.

When saving the thing that really matters is consistency, because even a small amount can add up quickly and better help you reach your financial goals. You can find many budget forms on the internet. To find one on the internet you only need to type in “free budget forms” in your favorite search engine.

You will be able to see there are several choices to select from and should easily be able to find one that will work well for you. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with your new budget plan and feel like it’s something you can stick with.

Remember it was Bill Gates who said, “Patience is a key element of success”, and that is something to remember as you work on maintaining your new budget and ultimately reaching your financial goals.