Money Saving Tips - Pay Off Your Loan Sooner!

Finance Seekers are all about helping you pay off your home loan sooner - here's some handy ideas to try.

One of the best ways to pay off your loan faster is to increase your loan repayments - but it doesn't always seem that this is possible. If you think you're already giving it all you've got you may be surprised exactly how much money can be squeezed out of almost everyone's budget!

Try this little exercise- for a week, keep a little notebook with you, and every time you spend money- no matter how small, or on what - write it down or keep the receipt. Stick to your normal spending - don't try to cut back, or you'll only be fooling yourself!
Now look through the list!!

Cross out all the things that are really essential - be a bit tough about what is really essential - and add up the costs of the non-essential "could do withouts". How much does this come to over a week - think about repeating this exercise for a month - what to you reckon this would add up to?

Next, think about other expenses that might be paid direct, or by credit card- are some of them really non-essentials? How much does all this add up to?

Add them together.

So... how much money could you manage to save and put into your loan each week, just from these little savings? Makes you rethink it, doesn't it?! You can cut years, and thousands of dollars off your loan, just by making small extra repayments.

Check out our free extra repayments calculator http://www.financeseekers.com.au/extra-repayments  to see how many years, and how much money, you could save by increasing your home loan repayments with your new found savings?

Some more simple tips to gain some extra money to put towards your loan:
• Take a packed lunch and snacks to work- buying food and drink every day can add up immensely!
• Cut back on the coffee shop - and stay out of the pub! Cutting back just one shop bought coffee a day can make a huge difference.
• Can you cut back on buying junk food- like chips, lollies, soft drinks, beers, biscuits etc- and do both your wallet and your health a favour?
• Cut out the takeaways! Plan your meals in advance, and make sure you have the right ingredients on hand, so you're less tempted to go for an easy solution.
• If you go out to the movies or any other outing, take your own snacks and drinks. Prices at those kind of places are almost criminal! And how about entering competitions to win movie tickets so you can go free!
• What free activities are available in your local area? Occasionally replace expensive outings wth free festivals and offers - there's almost always something on!
• Catching the bus to work may work out cheaper. Or walking, if you're close. Or why not see if anyone would like to carpool?
• Help the environment too, by using less resources- and paying lower bills! Turn lights off when not in the room, replace regular globes with power savers, don't leave electrical items on stand-by, have shorter showers (or share a shower with your partner). If you need to buy new equipment look for good energy efficiency rating, put more clothes on instead of running a heater, use a fan for cooling if it's not too hot instead of an air conditioner.
• Do you really need some of those regular charges such as a daily newspaper (is there one at work you could read, or an online news site) or Pay TV (watch free to air TV or do something more productive with your time)? There are some great new free to air chanels with some great old favourites.
• If you smoke or drink- STOP- Just think of how much you spend on these habits, and how many years sooner you could own your home if you put this money towards your home loan instead! And you might even live long enough to enjoy it!
• Do you have unwanted items you could sell? Consider a mega garage sale or ebay auction.
• Do you really need that latest gadget, new TV or car yet?
• Can you get a part time job, or work from home? Maybe pamphlet deliveries? Caring for pets or gardens while people are on holiday? Odd jobs? Typing up resumes or other documents?

Hopefully this gives you some ideas - start getting that loan paid off in record time!

FINAL NOTE - To see a real difference from small changes you have to keep doing them again and again - increase your loan repayments with the lender and watch that balance shrink. Ask us how to automate your savings.