Refi Your Life

The economy is struggling.  Home prices have been falling for several years now.  Foreclosures are increasing monthly.  Gas prices are through the roof.  The dollar is decreasing steadily.  Everything we buy has increased in price.  Unemployment numbers are going up monthly.  It does sound bad, but this can be a great chance to refi your life.  Have you made the changes necessary to ride the wave of an upcoming recession?

There are many ways that we can all reduce our monthly expenses.  It may be easier to reduce our Starbucks expense, now that they are closing stores all across the country.  All kidding aside, reducing expenses will allow your family to get through these tough times.  This is a great time to sit down at the kitchen table and go through your monthly expenses.  List everything that you spend money on each month.  It is not all about eliminating these expenses; it is about reducing them and/or finding alternatives.

So what is meant by refi your life?  It is quite simple.  Our finances accrue and change over time.  Many of us never pause to look at all of the expenses that have been adding up.  Now is a great time to do so.  Be realistic.  Some expenses cannot be avoided or reduced.  However, many of our expenses can be eliminated with a little bit of sacrifice.

Start small.  Do you really need the newspaper delivered everyday?  Can you cut back on eating out?  Use this life refi to your advantage.  You may be able to change your eating habits towards a healthier lifestyle, while also reducing grocery costs.  Chicken instead of steak for example.  Do you use your gym membership?  There are many ways to exercise without going to the gym.  Just put some thought into your own lifestyle and your own expenses.  You will find that if you are willing to make some simple sacrifices you can dramatically reduce your monthly expenses.

Major expenses may require a bit more work.  Spend one day a week working with your major expenses.  Contact some insurance companies and shop your rates again.  You may be able to increase your deductible a bit or find a company that can offer you a fair amount of savings on your insurance.

Your mortgage payment is most likely your biggest expense.  There are many ways to reduce your mortgage payment or get into a loan program that makes more sense for your lifestyle than the mortgage that you are currently paying.  You can use the equity in your home to pay off high interest credit card debt.  Consider rolling your auto loans into your mortgage, this can drastically reduce your monthly expenses.  This may even allow you to make the same payments that you’re making right now, and go from a 30 year fixed mortgage into a 15 year fixed mortgage.

You may be surprised how easily you can turn your finances around.  You just have to commit some time and effort, plus make a few sacrifices.  We often get caught up in our expenses, without considering our alternatives.  The feeling that you will have when you’re finished with your life refi should be enough for motivation.  What are you waiting for?