Page 80 - Making It To The End Of The Month

MAKING IT TO THE END OF THE MONTH
need for borrowing. That latter can be achieved by saving. Aim to buy future consumer items with money saved for that purpose. The truth is that consumer debts are an external indication that we’ve been consuming more than we should, so also remember the decision you’ve made to be content and patient.
2. Mortgage
For many, a mortgage is the ‘necessary evil’ for purchasing a home. There is nothing wrong with this type of debt if we have the means to make repayments since it’s a long-term investment. However, we can, and should, aim to shorten the terms and repay as soon as possible. This way, we are in debt for a shorter period of time and, therefore, we pay less interest on the repayments. Imagine not having to make a mortgage payment each month – wouldn’t that make a big difference to your flow of money? This goal can be achieved by adding extra principal payments to your existing monthly mortgage amount. If it sounds impossible, the next chapter will help you. It differentiates between needs and wants, and this knowledge will empower you to focus on the areas where you can be disciplined to say ‘no’ to some wants in order to make extra payments towards your mortgage.
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