Financial Advice from a Mom – Got a Raise? Here’s One Way to Put It to Work

Here’s a little financial advice from a mom.

If you recently received a raise at work and you were already comfortable living on your previous paycheque, don’t increase your spending, consider putting some or all of that extra money toward your mortgage.

Depending on your mortgage’s prepayment privileges, you may be able to increase your regular payments or make additional lump-sum payments. That extra money can go directly toward reducing your mortgage principal, which means you’re paying down what you owe faster and potentially saving money on interest over time.

The best part is that you were already used to living without that extra money. Instead of allowing your expenses to grow along with your income, putting even a portion of your raise toward your mortgage will make a noticeable difference over the years.

Paying down your mortgage isn’t necessarily the first priority for everyone. You’ll want to consider your overall finances, including things like higher-interest debt, emergency savings, and other financial goals. You should also check your mortgage agreement to understand exactly how much you’re allowed to prepay without a penalty.