It can sometimes be hard to keep track of your finances. Fortunately, we have some tips to help you review your financial situation and plug unwanted money leaks!
- Be Wary of Impulse Spending: While it can be easy to think that picking up a few extra items here and there won’t affect your overall budget, it does. When you make a purchase of $10 here or $8 dollars there, it all starts to add up! This is why it is so important to track your spending at grocery and convenience stores or gas stations. Make a list or be aware of what you intend to purchase – and stick to it.
- Carry Cash: It can be way too easy to spend money unintentionally or over budget when you’re simply swiping your credit card. For some, taking spending money out as cash is a much easier way to manage your budget and know when you have used up your weekly funds!
- Examine Your Bills: As money leaks go, the best way to avoid spending extra funds or paying too much for a service is by examining your bills. Perhaps there are some that you can get rid of entirely or some you can reduce (by changing your phone plan, for example).
- Ask The Question: If you’re making a new purchase (whether a new internet bundle or car), it is a good idea to always ask “is this the best you can do”? In some cases, you may get a further discount. In addition, be sure to always do your research before any large purchases.
- Manage High-Interest: One of the biggest places you will find financial leaks are with high-interest rates. If debt is getting in the way of your cash flow (and you still have equity in your home), you may be able to refinance your mortgage and consolidate your debt for one easy monthly payment and a better rate.
- Renew With Confidence: When you receive the letter from your lender about your mortgage renewal, consider shopping the market or reaching out directly to your mortgage expert before signing the renewal. You may be able to get a lower interest rate or better mortgage terms.
- Renovate vs Relocate: If you’re finding yourself falling out of love with your home, consider a renovation! It is much more cost-effective than moving and can be a great way to breathe new life into your spaces.
- Don’t Leave Money on the Table: Be sure to take advantage of rebates and incentives at your disposal! From first-time homebuyer tax credits to energy rebates, there are plenty of opportunities.
- Change Your Mortgage Payments: Depending on your monthly cash flow situation, you might also want to consider switching up your mortgage payments. Moving from weekly to biweekly can help you reduce your overall monthly bills. If you have extra income, moving to a weekly or accelerated biweekly payment schedule can help you pay off your mortgage faster.
- Know Your Pre-Payment Penalties: Avoid spending unnecessary money on your mortgage by knowing your pre-payment terms and penalties! If you ever find yourself needing to get out of your mortgage early, you’ll want the option of pre-payment.
If you’re looking to plug money leaks in your finances, reach out to us to discuss your mortgage payments, debt consolidation and more.