How to Refinance Your Life

This can be a great time to look at cutting monthly expenses. It may be easier to reduce our Starbucks expense, now that they are closing stores all across the country. In all seriousness, you may really need to get serious about your expenses during this rough economic time. It is time to sit down and start eliminating all of your unnecessary expenses. Look at all of the things that eat up your paycheck. It is not all about eliminating these expenses; it is about reducing them and/or finding alternatives.

How do you go about refinancing your life?  It is quite simple. There are new finances always accruing. It is important to pause and take a look at the expenses that have been accruing over time. There has never been a better time. Be realistic. You will not be able to reduce some of your expenses. Take a deep breath, you can cut out many of your expenses and you may need to change your lifestyle a bit.

You can start with the easy stuff. Can you pick up a newspaper at the store once or twice a week instead of having it delivered everyday? Can you cut back on eating out? You can use this as a great opportunity. You may find that eating healthier meals can actually save you money. Consider skipping out on steak and opt for chicken. Is your gym membership something that you are truly using? You can find alternative ways to exercise without using a gym membership. Just put some thought into your own lifestyle and your own expenses. It is not as hard as you may think to make improvements to your expenses each month.

Major expenses may require a bit more work. Pick one day each week that you will spend on cutting your large expenses. Contact some insurance companies and shop your rates again. Consider reducing or changing your coverage.

Your largest expense is most likely your payment on your mortgage. A refinance is not only a liability but it can also be used as a great financial tool. 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. Payoff credit cards with your mortgage. You may want to cash out of your home to payoff auto loans. 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 can spend some extra time to find a refi with no fees.

This will be much easier than you may initially think. You just have to commit some time and effort, plus make a few sacrifices. You may need to make some sacrifices but it will be worth it. You will feel as if a huge weight was taken off of your shoulders when your are done. What are you waiting for?