Fifty yuan means something to many people.
You can use this money to buy a friend a drink, a family ticket to a movie, a week`s lunch, a few books, a bamboo cheese platter, a two-week takeaway coffee or a table-top boxing bag with a photo clip.
It`s also about Australia`s average full-time wage of $1570 a week, or $1, 30 a week, and if you take advantage of the $50, your future mortgage could be reduced by an extra $44000.
All you need is a plan.
Australia`s typical household loan is $ three hundred and fifty thousand, and anyone who gets an extra $50 a week can cut 25-year mortgage payments by more than four years and save themselves more than $44000 in interest.
All this is due to compound interest, which Einstein described as the eighth wonder of the world, because it was able to increase wealth by earning interest over the years.
With housing loans, extra payments may have a positive compound interest effect. The extra $50 a week reduces the principal of the interest-charged loan, so the next payment will be reduced even more and the cycle will resume.
If you keep doing this, 20 years later, the loan bye-bye! You`ve saved tens of thousands of dollars, so you can celebrate.
But saving an extra $50 a week is not an easy task. Most people get tired of being told that you can`t buy that, such as a working lunch, no coffee every day, or no going out or shopping at night.
Money is sometimes used to enjoy, is to spend money for a little luxury. If spending on something makes you happy, go ahead and do it-but be prepared to save money elsewhere.
There are a lot of small savings that you can quickly save up to $50 or more a week. Financial planners and budget experts can help, and the network is a valuable source of savings.
The following methods are used for reference: reduce the amount of your bill. From energy charges to communications charges to insurance, there is room to save money, as long as you are willing to take action. Call the supplier and ask for the same discount they offer to new customers.
Check your statement. We pay most of our money electronically, check the statements, and see where the money is spent. Spend an hour browsing the bank bill to see what you buy. Most people will find costs that they forget, or costs that are less important and have already been spent.
Shop wisely. In addition to mortgages, groceries are the highest cost on household bills, so watch out for unit prices and discounts when shopping in supermarkets. Choose the low-cost fuel cycle refueling can also save a lot of money every month.
You`ll be surprised how fast it is to save $50 a week, and how fast it can be. For a two-employee couple who can save $100 a week instead of $50 a week, their mortgage can save $73000 and the repayment period will be reduced by seven years.
Use the online mortgage repayment calculator to enter your personal loan data to see how the money works.
