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Kick Your Coffee Habit and Pay Off Your Mortgage

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!

    (Photo credit: Too Many Sugars via Shutterstock)

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    Last Updated on January 21, 2020

    How to Develop a Millionaire Mindset in 6 Simple Steps

    How to Develop a Millionaire Mindset in 6 Simple Steps

    We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

    It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

    How do you go about developing that millionaire mindset? By following these simple steps:

    1. Focus On What You Want – And Take It!

    So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

    Millionaires play to win, not to avoid defeat.

    This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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    2. Become Goal-Orientated

    It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

    Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

    Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

    Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

    You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

    If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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    If you are to become a millionaire, you need to start accumulating money.

    Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

    3. Don’t Spend Your Money – Invest It

    The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

    Stop working for your money and make your money work for you.

    Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

    There’s not just the stock market — there’s also property, and your own education.

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    4. Never Stop Learning

    The best thing you can invest in is yourself.

    Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

    Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

    Learn everything you can about how economics works, how the stocks markets work, how they trend.

    Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

    Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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    5. Think Big

    While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

    There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

    Aim for the stars, if you fail you’ll still be over the moon.

    6. Enjoy the Attention

    To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

    Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

    If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

    Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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    Featured photo credit: Austin Distel via unsplash.com

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