MONEY SHORT-TAKES

Here's a Clue About Loan Payments

Paying one additional mortgage loan payment each year, whether in a lump sum or monthly increments, can lower a 30-year loan down to 18 years. If you pay more than one extra payment, the amount saved increases even more. Since this additional payment will be applied only to the principal and not the interest, you end up saving thousands and thousands of dollars over the life of the loan. Note that this also works with installment loans (such as for automobiles) and student loans.

Convenience Store Traps!

Just how much convenience do you really need? Suppose you go to a convenience store every day. You buy cigarettes, a super gigantic size soft drink, and a snack. That's five bucks. That's $1,825, which is what one visit per day, every day, costs you for a year. Even if you buy a less expensive brand of cigarettes, your total is still $1,500 a year. Just 1 large fountain soft drink a day for 1 year, is enough money to buy an entire month's worth of groceries for a family of 4! Make your own snacks and drinks and kick the cigarette habit & save BIG PILES of money.