Hope you are all enjoying this glorious summer. I thought I’d give you five super basic steps to get your money in a mankini and under an umbrella.
Firstly, be sure to think of all the amazing summer things you can do with the savings from these five steps. It’s easy to make these steps when you know how much more fun you’ll have when you’ve saved it. And why not spend that money on something that will make you truly happ, right? It makes tons of cents.
1. Transferring just $50 each week to a high interest savings account can add up to $2,600 plus interest in one year. ING has a rate of 1.35% as of today!
2. Keep your longer term savings like bonds and GICs in a Tax-Free Savings Account. It will help you save the most tax on income producing products like GICs or bonds. You’ll save the amount you would have paid in tax! You normally will get a higher rate in a TFSA or RRSP too.
3. Change your payments to accelerated weekly and save over $14,351 in interest and shave years off your mortgage. Based on a $200,000 mortgage at 3.59% annual percentage rate on a fixed term over 25 years.
4. Make higher payments than the regular payment. Interest rates are low right now and the easiest 1% increase will add $126 a month on a $200,000 mortgage. If rates don’t rise that quickly you’ll be paying down your mortgage faster.
5. Decrease the amortization your mortgage from 25 to 20 years and it’ll save you $22,474 on the same $200,000 mortgage at 3.59 %. That is only an extra $162 a month!
Have an awesome super saving summer!