The fresh start of the new year makes it a great time for everyone in Brampton and the GTA to review their finances and spending. Whether you are saving to buy a home or pay yours off, your money leaks can add up to some big bucks over time. Here are ways to find some of your missing money and help you save over the long term:
Spending strategies:
- Don’t spend unconsciously. Track your spending and consider your impulse buys at grocery, gas station, convenience and other stores. It’s best to always stick to a list, only grocery shop once a week and never when you are hungry!
- Use cash instead. It’s a lot easier to spend more than you intend when you use your credit card because you aren’t seeing the money. You might not be so liberal with your cash if you have to hand it over. Consider withdrawing a fixed amount for your weekly spending and try to stick to that amount.
- Review your bills. Take a good hard look at your monthly bills and go through them line by line. Some may be for services you don’t use or can live without. Even if the amount is small, why have it charged every month?
- It doesn’t hurt to ask. Whether you are signing up for internet or buying a car, ask “is this your best offer?” or “can you make it more affordable?” Do research in advance so you are prepared and knowledgeable on all things related to what you are purchasing.
Money-saving mortgage strategies:
- Know your early payout penalty. When choosing between mortgages, be sure to compare how the early payout penalty will be calculated. If you ever need to get out of your mortgage early, having the right mortgage could save you thousands in fees.
- Renovate vs relocate. The right renovation might be all it takes to turn your house into the home of your dreams. It is almost always less expensive to renovate than to relocate. I have great financing options for your 2020 renovation.
- Don’t sleepwalk through your mortgage renewal. When your lender sends you a letter with a renewal offer, get in touch for advice. This is your opportunity to negotiate the best possible deal and save big over the long term.
- Speed up paying down your mortgage. Change from monthly payments to weekly or biweekly payments. If you can, take any tax refund and bonus and put it against your mortgage principal. Your interest costs will go down with every dollar in principal reduction.
- Don’t leave money on the table. Take advantage of all incentives that are available to homebuyers and owners. First-time buyers can take advantage of the Home Buyer Tax Credit that provides up to $750 in federal tax relief. There are also local and provincial incentives available when you make energy saving investments in your home.
- Plug your biggest money leak – high interest. All the savings you make in lifestyle choices won’t mean much if you don’t put a plug on paying high interest every month If debt is choking your cash flow and you have enough equity in your home (20% equity required), you may be able to move that debt to a lower-rate mortgage and save thousands in interest. If you are not able to refinance, I have access to other financing options that can help.
If you are in Brampton and the GTA, I’m here to save you money in 2020 and throughout your mortgage term and beyond. Get in touch at any time! I look forward to hearing from you.
