Take a look at this really cool infographic from Dave Savage of Mortgage Coach.
This shows how much money you would save over the life of your home loan if you skipped buying your morning coffee and bagel at the local coffee shop.
Let’s say you had a 30-year fixed home loan of $132,000 and were paying 4.25% interest. If you skipped the morning routine of coffee and a bagel (costing $5 a day), you would wind up saving $39,000 over the life of the loan. AND, instead of paying off the loan in 30 years, you’d be done in 22.3–that’s 7.7 years earlier!
Now of course, some of you are saying, “But wait, I don’t eat bagels.” “I don’t drink coffee.” “You didn’t factor in that if I eat at home, I’m still spending money.” Yes, yes, I know. You are right. Please indulge me for a moment though and think about other areas of your life where you could shave off $5 a day. I know for me, one less trip to Target and I’d knock out a month’s worth of $5-a-day in one shot!
For a total cost analysis of the coffee/bagel example, click here.
Have a great weekend!