<\/p>\n
Canstar\u2019s Sally Tindall has found us a treasure trove of monthly savings.<\/p>\n
ANALYSIS<\/p>\n
Already feeling the effects of the RBA\u2019s February rate hike?<\/p>\n
You\u2019re not alone. Mortgage holders with a $500,000 loan balance face an average monthly increase of $79 to their repayments, while those with a $1m loan are staring down an average $157 extra per month, according to Compare the Market figures.<\/p>\n
Broken down, the extra repayments from the above loans range between $2 and $5 a day, which doesn\u2019t sound like a lot, but can actually be the straw that breaks the camel\u2019s back for those already stretched near capacity.<\/p>\n
But what if you could save up to 10 times that amount each month by making some tweaks to your spending habits?<\/p>\n
And if you compounded those savings by putting the money back into your mortgage, what would be the result?<\/p>\n
Canstar data insights director Sally Tindall went looking for some meaningful savings and unearthed quite the treasure trove.<\/p>\n
MORE: Uber Eats could cost you a mortgage<\/a><\/p>\n Is this really a smart way to spend your money?<\/p>\n In fact, she found eight measures that could save a total of $735 a month, for a dual income household.<\/p>\n \u201cSmall savings might feel like a drop in the ocean, but when directed into a mortgage, they can create a massive ripple effect,\u201d Ms Tindall said. \u201cEvery day those savings are in the mortgage, is a day you\u2019re not charged interest on that money, something banks calculate 365 times a year.\u201d<\/p>\n The biggest savings measure was to switch 50 per cent of the family supermarket shop to cheaper, or no-name brands. This measure would yield $202 a month saved.<\/p>\n An impressive $130 a month could also be saved by bringing lunch from home instead of spending $15 each, just one day a week.<\/p>\n Likewise, cutting out just two takeaway coffees each a week means another $87 saved.<\/p>\n \u201cFewer coffees a week doesn\u2019t pay off a home loan, but overtime, it can have a huge impact,\u201d Ms Tindall said. \u201cCutting out two takeaway coffees a week at $5 for a cup, over a year, that\u2019s $520 in extra contributions. If your partner does the same, you\u2019re looking at $1040 a year. After 10 years, that\u2019s $10,400. In the mortgage for the next 10 years, those extra contributions could save you as much as $3,627 in interest charges as well.\u201d<\/p>\n<\/p>\n