One of the biggest struggles for most people and families is being able to set aside earnings into a savings account while paying off a mortgage loan and other debt. Instead, it can seem much easier to just charge any expenses above your income to credit cards and pay them later.
Yet, this is not the best approach because you are going further into debt. Not to mention, you will have all that added interest to pay back. It is better to create a savings plan to have access to cash when you need it, by using these tips:
- Create a budget. You need to know where your money is going each month.
- Reduce expenses. Look for expenses you can cut down, like dropping to a lower cell phone package, turning off cable, using coupons at the grocery store, and so on.
- Pay yourself first. You should make it habit to pay yourself between 5% and 10% of your take-home income each pay period. Put this money automatically into savings.
Using these three tips can help you save money while paying off debt. Any extra money you have left at the end of the month can either be put into your savings or used to pay down credit cards or other debts.
To learn more about different types of home loans to buy or refinance a home, and other money saving tips, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 today!