| Made any New Year resolutions? How about | | | | not tax deductible. If you have any money |
| making some for your home? What of: 'I will | | | | left over from the re-modeling pay off your |
| boost my savings'? How about: 'I will look | | | | credit card! Have you ever worked out that |
| for economical ways to increase the value and | | | | interest rate? Scary! |
| livability of my home?' and the big one: 'I | | | | |
| will get my home finances in order'? | | | | There are ways that you can boost your |
| | | | savings. One of them is to try each year and |
| With regard to getting our home finances in | | | | make the full tax deductible contribution to |
| order, many of us have huge mortgages and at | | | | the tax-deferred retirement fund of your |
| the moment the mortgage rate is relatively | | | | choice. |
| low. If you have a sub prime and/or an | | | | |
| adjustable rate mortgage, you may be able to | | | | Depending on your salary and tax breaks, |
| reduce your financial risk now that there has | | | | nearly 40% of all homes would have saved on |
| been some legislative help in this area. | | | | average fourteen cents in the dollar, if they |
| | | | had invested in tax-deferred retirement |
| If your mortgage is long standing, go back to | | | | accounts rather than pay down their |
| your lender and ask if you can trade in on a | | | | mortgages. |
| better rate. If you have been lucky so far, | | | | |
| with a variable rate mortgage, consider | | | | Another way we waste money is to overpay our |
| whether now is the time to switch to a fixed | | | | income tax. The IRS keeps our extra money all |
| rate. This way you will know for sure how | | | | year and then gives it back to us with no |
| much to budget each month. | | | | interest. |
| | | | |
| Do you have a large amount of equity built up | | | | If you have a long list of things that need |
| in your home? If you have been paying your | | | | repairing in your home, then prioritize them |
| loan off for a few years, this fact, coupled | | | | in order of economics. For instance if you |
| with the property market increases now mean | | | | can't turn your hot tap right off, and it is |
| that you owe considerably less than when you | | | | always dripping slightly, you need to do it |
| started out. You can use this money to | | | | first. The cost of paying higher charges for |
| improve your home. | | | | hot water that you are not using is a |
| | | | complete waste of money. |
| If you need extra room in your home, rather | | | | |
| than risk moving house, you could take this | | | | Another way to prioritize is to write down |
| cash equity from the lender and use it to | | | | the jobs that need to be done early on so |
| re-model or to make an extra room. Moving | | | | that they do not gradually get worse. For |
| home is an expensive business, and you can | | | | instance a leaking roof that is not attended |
| easily spend 10% of your home's selling price | | | | to may develop into a collapsed ceiling as |
| on real estate commissions and various other | | | | well. A broken refrigerator seal will |
| settlement costs. | | | | increase your electricity bill. |
| | | | |
| The interest on the cash that you have used | | | | Now check the vacation brochures for ways to |
| for re-modeling is tax deductible. This is | | | | spend those savings. |
| better than using your credit card, which is | | | | |