This is a guest post from Mr. CBB at Canadian Budget Binder
Paying off your mortgage early is a lofty goal, but it can be done. My wife and I are in our mid 30â€™s and enjoy each day as it comes our way. Like most people, we went to school (in fact, both of us graduated twice in different fields).
I moved to Canada in 2007 from the UK and although I often think of what I miss (mainly family, proper yogurt, cheese and fish & chips), I’m grateful for the opportunities given to me here in Canada.
I was very cautious with my money from a young age, as my parents taught me that I had to work for what I desired. Success was only a part of what I wanted out of life and this is when I began to understand the meaning of “paving the way”.
I bought my first home at a very young age with money I had saved, then went on to purchase a second and third home. In Canada, I ventured into coupons. We are stocked up on almost all “essential to us” non-food items for a good few years (some will likely last up to 5 years).
Canadian coupon savings were part of our “pay down the mortgage” plan, and the savings will continue to fund other adventures in our life.
Living a minimalistic life to save money for your future (or to achieve your goals, such as becoming mortgage free) is not a bad idea, as long as you balance it with the present.
Enjoy your life now because money isnâ€™t everything, unless you plan to be buried in it. In order for our budget to balance, my wife and I both work together to make sure we spend less than we earn.
I save my allowance if I want beer or coffee, and pay cash for tools and gadgets we need (okay, I need). We both enjoy shopping for bargains and will jump at the chance to get something free, but we also like to give back to those in need.
My best financial tip to pay off your mortgage early is to budget – but this is only part of an overall umbrella of personal finance.
These are the top ways we paid off our mortgage early:
Set up a budget so you know where your money is going, and always pay yourself first.
Use coupons whenever you can to save money. Use that money to pay down your mortgage.
Extra Mortgage Payments
Dump extra money on your mortgage or make extra payments each month or year. Pay your mortgage weekly or bi-weekly.
Making Extra Money
Participate in focus groups, online surveys and rewards programs. Sell things. Do what ever you can to pocket some extra cash. Make money online or outside the home.
Cook From Scratch
Buy less convenience type foods, grow a garden if you can and cook homemade meals. Even freezer cooking has helped many families save money.
Spend Less Than You Earn
Hang out with like-minded people and donâ€™t spend money you havenâ€™t yet earned. This is very important, especially if you are easily swayed into spending money you donâ€™t yet have or simply spending because you want to be â€śjust like everyone elseâ€ť.
We are in the process of paying our mortgage off early right now and are thankful everyday for the frugal living lifestyle we choose to live.
So, although you may think that you will never pay your mortgage or debt off early, take a moment to educate yourself, set goals, get organized and start a budget today.
Anything is possible.
Mr. CBB is the voice behind the blog at Canadian Budget Binder. He can be serious, passionate and a bit quirky, but loves his fans and helping others save money. You may also find him whipping up a meal or treat in the kitchen or posting his shops in The Grocery Game Challenge. Join him daily on Facebook, Twitter and Pinterest.