This week I wanted to share another money tip that I’ve been employing! It’s still the new year, so I figured we could start off on the right foot and begin some new habits!
Bill Round Up:
This is exactly what it sounds like, rounding up your bills! Not like a rodeo, but rounding up how much you owe.
I’ll use myself as an example. Here are some of my bills each month:
- Student Loan #1-$178.55
- Student Loan #2-$55.03
- Perkins Loan- $40
- Credit #1 – $25
- Credit #2- $38
- Car- $191
I hope your credit card usage doesn’t look like mine, but we did have to buy a lawn mower and groceries when we moved into the house and I’m still paying them off.
Anyway, if you look at those amounts, they aren’t very even. I personally choose to round up to the nearest 10, but if you don’t have as much wiggle room, round up to the nearest 5.
Here’s what I pay each month with rounding
- Student Loan #1-$180
- Student Loan #2-$60
- Perkins Loan- $40
- Credit #1 – $30
- Credit #2- $40
- Car- $200
That means each month I add an extra $22.42 to my bills. At the end of the year that’s $269.04. That means those cards and loans are that much lower and I wasn’t charged interest on the extra I paid. I have no idea how to calculate the saved interest, but I imagine it’s in the ballpark of $50-$100. So with $23 a month I save myself almost $400 in interest, stress and principal left to be paid.
I’ve gotten into this habit so much that I don’t even realize I’m doing it. My bills are just even numbers. I realize that $23 a month would buy us more food, but I also know that if we pay down our debt, we’ll actually have more money to buy food, plus I’m saving us from having to pay more in interest. It really is a sound investment.
This has really worked for me so far, give it a shot! You would be surprised how much difference you make!
#1 TIP! If you do this nowhere else, do it with your house payment! Or even round up to the nearest $25 or $50 with your payment and you’ll save hundreds, possibly thousands over the life or your mortgage! You may even pay it off a few years early.
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