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Smaller savings that can add up in the long term

Not all forms of investment need to be involved in business or larger accounts. In our personal lives, too often we overlook the smaller individual opportunities which can pay off dividends later down the track. From grocery shopping to mortgage repayments, a clever understanding of these factors can end up saving us hundreds or even thousands a year.

So, where can we commonly save on this front?

The Big

The biggest savings are naturally born from the areas which might incur the heaviest cost. Mortgages, for most of us, are the biggest running cost playing a part in our lives. We tend to think of this as a fixed fee, in which we are locked into with static repayments.

What we need to keep in mind is that even this long-term cost can be addressed and mitigated. One of the more overlooked methods on this front is that of mortgage overpayments.

If you’re unfamiliar with this term, it simply refers to making an additional mortgage payment on top of your normal monthly mortgage payment. Even if we have a good financial month, we can overlook this as an option, but it can be a good idea to consider this route and its benefits.

It’s not just the mortgage itself that will see a reduction in the case of mortgage overpayment. What we tend to forget is that by making an additional payment we also reduce the debt which is constantly generating interest. This means that each time you make an overpayment you can reduce your future repayment amounts, as an extra bonus.

The unfortunate side of this is that figuring out exactly how much you can save can be difficult on your own. Fortunately, there are services like Trussle, which include a mortgage overpayment calculator that can do the hard work for you.

This general idea of an overpayment isn’t just strictly for mortgages either, as the same concept can be applied to any dense loan repayment. For cars, tech, and much more, consider an overpayment as a way of giving you more flexibility now and in the future.

The Small

How often have you gone to the supermarket, looked at the enormous containers on offer, and wondered who would ever buy that? The answer, as it turns out, is not just larger businesses.

Buying enormous quantities of a wide range of goods such as coffee, rice, or salt tends to give enormous savings over many smaller containers, yet we often overlook this option. For some reason, we accept lesser forms of this idea, yet there is an odd psychological threshold at a certain size of good which makes us uncomfortable.

Many supermarkets today will include price per 100g, so next time you go shopping measure these prices against each other, and you might be surprised at how much you could save. Just be sure to check the use-by dates first, as there is some food for which this approach is untenable.

Keeping Track

It can be difficult for us to pay more now to see advantages in the future. This is a simple part of how we operate, and it is something we need to understand and address. Planning ahead is the best way to save money and reduce stress, even if it means dropping a little more now.

For this reason, we recommend keeping track of how much these tips save you going forward. If you pay no attention, then it’s easy to write them off as unimportant. If you look back at the end of the year, however, we can guarantee you’ll see the advantages much more clearly.