Monday, August 2, 2010

Post 2 from the challenge: Housing is being paid as quickly as possible

I guess this is sort of obvious, after living expenses, every sent goes into the house. We used to put all income into the loan and use the credit card, but we spent more than we should have. *blush* So we came up with the idea of a house keeping account. It really just an electronic envelope system. Pay goes in and automatically a set amount goes into a card account and that's housekeeping. It works very well for us. Sometimes we have money build up and then cam do some bulk buying and even fabric as the post below indicates ;o)

Have a play with home loan calculators and you'll be so shocked at what a difference a few extra dollars to each payment make. It's quite inspiring.

Something like this will get you going:


Kristine said...

We are trying to pay off at least one credit card right now. Like you mentioned for the housing payments it's amazing what a difference a few extra dollars can make. I recently found out that we can pay off our credit card in 3 years vs. 17 years by adding only 20 dollars to our monthly payments! WHOA! Not only will be get that monkey off our back far earlier but we will literally save thousands of dollars in interest!

Secret Hippie said...

Good on you Kristine! Nothing worse than debit sitting there. $20 extra is so minimal but what a huge difference!
Makes you want to add more just to watch it shrink even quicker! Sort of like acid on something nasty! LOL