š Pay off your mortgage 3 years early. That would save you a total of nearly $30,000 in payments. (Assumption: $200,000 30-year mortgage at 6%). Just think of how nice it would be not to have to make a house payment every month.
š Drastically cut down your credit cards. Forget about paying the minimums; a $10,000 credit card at 18% would take 32 years to pay off that way. Instead, add $50 to your payment on that card, keep paying the same amount until it is gone, and you will pay it off in 4 years instead. You will be laughing all the way to the bank because you will have saved yourself over $10,000 worth of interest.
š Have more in your retirement account. After 30 years at about 10% a year, $50 a month turns into a pretty nice amount--$113,000 to be exact.
š Get in life insurance. Want a little peace of mind? Make sure you have enough coverage to protect your family in case something happens to you or your spouse. A healthy couple in their early thirties can get about $300,000 of total term coverage for $50 a month.
š Give it to charity. You know that for many families in poor countries, your $50 is the equivalent of several months’ income. However, please research your chosen charity carefully to beware of fraud. Bonus: You may be able to deduct the annual amount from your income for your federal tax return.
Want to see more customized numbers? Check out the calculator sections on www.bankrate.com.
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