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Kick Your Coffee Habit and Pay Off Your Mortgage

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Kick Your Coffee Habit and Pay Off Your Mortgage


    The following is guest post by Charles LaReaux. He is a partner at the Las Vegas, NV real estate firm, Hakans & LaReaux. He specializes in real estate for the entertainment industry and enjoys finding creative ways to help his clients save money.

    Do you wake up in the morning looking forward to your trip to Starbucks, Caribou Coffee, or your local coffee shop on the way to work? Do you have a mortgage that you’re working to pay off?

    If so, you have an amazing opportunity to make a healthy habit change and save thousands of dollars on interest on your home mortgage and pay it off sooner!

    The Health Impacts of Coffee and Caffeine

    The experts have trouble agreeing on whether coffee is bad or good for you.

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    Livestrong.com discusses the dangers of caffeine overuse in this article. Here are some of the side-effects of heavy caffeine use (500+ mg per day) mentioned by the author:

    • Restlessness
    • Rapid heart rate
    • Nausea
    • Muscle tremors
    • Insomnia

    The article also addresses the concern with addiction and mood. Caffeine addiction can actually lead to anxiety and irritability – not something we need more of in our world.

    On the other hand, this article from WebMD notes several health benefits associated with coffee including reduced risk for Type 2 Diabetes, certain cancers, and Parkinson’s disease.

    However, the article also acknowledges some of the downsides of caffeine including the fact that it is a diuretic and can cause heartburn.

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    Aside from the dangers associated with caffeine, if you get one of those fancy lattes or caramel macchiatos, your coffee is also loaded with empty calories and sugar.

    In fact, a “tall” (8 oz) Caramel Macchiato at Starbucks packs 180 calories and 23 grams of sugar! If you’re an average-sized woman, that’s close to 10% of your daily recommended calorie intake and close to your recommended allotment of sugar (100 calories or 6 tsp).

    And coming from a slightly different angle, Lifehack contributor Tucker Cummings suggests that drinking too much coffee will sabotage your productivity!

    Ultimately, you don’t need coffee. It doesn’t add any nutritional benefits that you can’t gain from other sources, and it can actually be detrimental to your health and productivity.

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    How to Save Thousands by Cutting Out Coffee

    Here’s the kicker. Let’s say you spend $3 for your coffee, five times per week (this is not unusual!). That is $15 per week or $780 per year.

    Further, let’s say you have a $200,000, 30-year mortgage with a 4% interest rate starting at the beginning of this year.

    If you put your coffee money toward an annual prepayment on your principal loan, you will save over $18,000 over the course of the life of your mortgage. You will also stop making house payments more than three years sooner!! Can you say early retirement??

    To see exactly how much you will save, check out this awesome mortgage amortization calculator (click on “What If I Pay More Every Month?).

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    How to Kick the Caffeine Habit

    “That’s all fine and dandy,” you say. “But I’m addicted!”

    Don’t worry, there are steps you can follow to kick your caffeine habit:

    • Start slow. Going cold turkey is not going to feel good.
    • Take a magnesium supplement (read more about why and how here).
    • When ready, switch from coffee to black tea for a week.
    • Then move from black tea to herbal teas. You’re now caffeine free!

    Feeling sluggish after kicking your coffee habit? Try taking a brisk walk for 30 minutes every day. It’s free and it will save you a lot of health costs down the road.

    Here’s to paying off that mortgage — while improving your health!

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    (Photo credit: Too Many Sugars via Shutterstock)

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    Last Updated on July 20, 2021

    Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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    Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

    Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

    Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

    Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

    In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

    Break Free of Your Finances

    Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

    When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

    Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

    Though it seems hard to believe, it is really very simple to get financial freedom.

    To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

    While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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    Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

    1. Stop Unnecessary Spending

    We often spend money inwardly, instead of objectively.

    For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

    To stop this habitual spending, log down all your spending over the course of a month.

    Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

    This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

    2. Plan a Monthly Budget

    This is a great opportunity to get serious.

    Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

    Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

    3. Cut-up Credit Cards

    Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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    If not, you may want to consider ridding your life of the burden that credit cards bring.

    Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

    Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

    4. Increase Savings

    There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

    It’s good practice to save up to 15% of your income.

    Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

    Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

    5. Invest Wisely

    Consider investing in funds.

    Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

    To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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    Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

    6. Invest in Gold

    There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

    You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

    Another way to invest in gold is through ETFs (Exchange Traded Funds).

    These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

    With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

    7. Stash Emergency Funds

    Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

    If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

    Make it hard to get your cash.

    Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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    8. Find Fabulous Mentors

    Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

    If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

    There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

    9. Be Extra Patient

    Patience is the key of financial success.

    Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

    So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

    Financial Freedom for All

    Anyone can achieve financial freedom, regardless of their financial circumstance.

    Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

    Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

    Featured photo credit: rawpixel via unsplash.com

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    Reference

    [1] Hartford Gold Group: IRA Retirement Accounts

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