It is no secret that times right now are pretty tough. People are trying to buckle down, and eliminate any unneeded debt so they can keep as much of their income in their pocket instead of paying off interest. People who are already debt free are trying to find other ways to cut corners in order to apply more money to the principle on their mortgage in order to reduce their amortization period.
The biggest problem people have is trying to figure out which corners to cut to come up with the extra money. One of the easiest ways and most commonly overlooked is frugally purchasing all of your groceries and outside dining expenses. Reducing the cost of your grocery bill is often as easy as surfing the web and finding printable coupons. Almost all major distributors have some sort of special offers on their corporate web page that you can use when purchasing products at your local grocery store.
Personally, spending twenty minutes surfing my favorite food distributor’s web sites and printing out the available coupons has saved me as much as 40% on some of my grocery bills. If you have more than a couple people in your house, you are looking at potentially a few hundred dollars a month you could be saving and applying to your mortgage principle.
Lets do some quick math here!
If you apply $200 extra towards your principle per month over the course of 20 years, you will have reduced your total principle by $48000. $48K could knock five or more years off the amortization period of your mortgage!
Now, if hunting down coupons online sounds like a bit too much work, you can still save money simply by purchasing off brand products, taking advantage of current grocery store in store price reductions as well as random mail in rebates.
The bottom line is that there is a ton of money waiting to be used for more productive measures such as paying down your mortgage, all it takes is a little preemptive effort prior to hitting your local grocery store and you can tentatively save yourself $48,000 or more in the next twenty years.
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