Entries for archive: 2009-06

Found 2 entries.

Spending Your Way Out of a Recession

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I know people were talking about this a few months ago but finally I found some common sense. By a bank of all things.

Earlier this year, I saw people interviewed on the TV and they said things like:

I'm spending our way out of the recession

or

Yeah, it [the recession] is not affecting me. I just keep spending

And I would think "wow, these people have no idea".

Trying to Change the World One Person at a Time

Sometimes, changing the world one person at a time can work but pretending that your spending will help us get out of the recession is a bit silly.

The amount of money that you are in control of is such a tiny fraction of what is required, you'd need the whole world to think and act similarly.

Instead, you should be worried about your future, have an emergency fund and be a little more sensible with your money.

Because you never know what's down the road.



    

    

    

    

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Inserted: 2009-06-18 22:57 (2 years, 7 months ago)


    
    
Paying off my Mortgage in the Current Economic Climate

        

    
        
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At the moment, the economy doesn't seem to be too great. Of course, many people are saying that they haven't felt any impact at all ... but these are the lucky ones who's jobs are relatively stable.


So far, I'd say that I was one of the lucky ones. To me all of four things has happened in the past year:


  1. I got a pay-rise
  2. I cut my spending
  3. there has been tax cuts
  4. there has been interest rate cuts


Therefore, with all these things going on, I am able to pay off more of my mortgage since I am currently on a floating rate.


The Plan


Since I have split my mortgage into a revolving and a repayment mortgage, I am able to pay a little more on both at the present moment. There will be no penalties since they are both on floating rates.


The overall plan is to eventually fix the larger of the two amounts (the repayment part) and keep paying a little extra on that. I shall also keep adding as much as I can afford to my  revolving mortgage since that also acts as my emergency fund.


Attacking on Both Counts on Both Mortgages


By attacking both mortgages I am able to start bringing down the principal a lot faster than I ever have and because some of it is my revolving mortgage, I don't have to worry about having it disappear since that acts as my emergency fund.


I'm also attacking the larger of my mortgages on two counts too, since my interest has come down and I've upped my repayments.


All in all, I'm currently on track to repay my home loan in just less than 8 years. That would take me to a total of 11 years since the mortgage started.


Not a bad saving on all that extra interest I'd otherwise have to pay.



    

    

    

    

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        planning,
    
        repaying
    
    


    
Inserted: 2009-06-16 21:22 (2 years, 7 months ago)