Well it’s possible to do just that without sinking to the depths of deprivation, according to RateCity.com.au data published on Property Update.
They’ve done the sums on cutting out some of life’s little luxuries to show how small, additional mortgage repayments can make a massive difference over the life of your loan.
We’re not saying these tips are for everyone. But we note the avocado-lovers have been spared further public shaming.
The research is particularly timely, given a landmark court decision which found banks could exercise some leeway in assessing loan applicants’ spending habits, because it was possible for mortgage holders to give up “wagyu beef, cavier and fine wine” if their repayments required it, reports businessinsider.com.au.
Without going to those lengths, here are some simpler savings tips based on a $300,000 mortgage over 30 years with an average rate of 4.31 per cent:
- give up one coffee a day and put the money into your mortgage and save $71,891
- swap drinking $3 bottled water everyday for tap water and save $62,266
- give up one $20 bottle of wine and save $59,482
- take public transport once a week instead of an Uber and save $48,185
- have breakfast in bed instead of eating out once a week and save $59,482
- cut out a six pack of beer and save $59,482
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