In today’s volatile financial environment, higher interest rates & economic uncertainty have made keeping your home (with its accompanying mortgage) a top priority for many. Whether it’s the roof over your family’s head, the place your kids are growing up, or the anchor for your social circle, your home represents more than bricks & mortar; it’s your life. But if holding onto it feels like an uphill battle, let’s rethink the game plan.
Step 1: Keep your Home, eliminate the unnecessary
To keep your house, the first step is tackling your lifestyle choices. Are you living within your means, or holding onto status symbols that no longer serve you? Let’s get real:
- Time to rethink your ride: Amputate the Audi, minimize the Mercedes, or banish the Beamer. Selling or downsizing your vehicle isn’t a failure; it’s a smart move when the second-hand car market provides excellent options. Got multiple vehicles or recreational toys like boats, caravans, or jet skis? Let them go. There’ll be another time for luxuries.
- Trinkets, subscriptions, & done-for-you extras: Audit your spending. Ask yourself: Do I really need dog grooming services, a cleaner, sports club memberships, or a storage unit? Cancel anything that’s nice-to-have but isn’t a need-to-have. This isn’t forever; it’s just for now.
- Credit Card detox: Can you imagine life without a credit card? You should. The points are a trap & they’re funded by those less fortunate than you. Switch to a debit card, rebuild your discipline, & you’ll discover new financial freedom.
Step 2: Get Proactive & Intentional
Saving your home means operating with focus & collaboration:
- Partner alignment: You & your spouse need to be on the same page. Sit down, review the numbers & create a unified approach. Leave blame, built & shame at the door. You love each other & you’re in this together.
- Bank negotiations: Pick up the phone & call your lender. Renegotiate your rate, ask about better terms, & advocate for yourself. A simple conversation (with some bad hold music thrown in) can save you thousands.
- No New Debt: When you’re in a hole, stop digging. Delay upgrades & unnecessary purchases. Even interest-free deals add monthly burdens.
Step 3: Build your Financial Foundations
Saving your home also provides the capacity to set yourself up for long-term stability.
- Kill non-housing debt: Credit cards, personal loans, & car payments need to go. Direct any extra cash you have or can generate toward wiping out these liabilities.
- Emergency Savings: After the non-housing debt is gone, it’s time to build your fully loaded emergency savings account. This should equate to 3 months of essential expenses. Essential expenses are (i) Food, (ii) Utilities, (iii) Housing Security, & (iv) Transport. Keep it in a separate account & build it in that order. Emergency Savings provide both a psychological & financial safety net against unexpected expenses.
- Intentional Spending: It’s ok to spend on what you value most. Just ensure it’s high-quality spending; meaning that it aligns with your priorities & goals.
Step 4: Kill the Mortgage for good
Once you’ve stabilised your situation, it’s time to eliminate your mortgage & secure financial freedom.
- Change your relationship with Debt: Shift from seeing debt as a normal part of life to viewing it as a temporary tool. Your goal is bigger than having your name on the title (with the Bank looking over your shoulder), it’s to own outright the place your family calls ‘Home’.
- Attack your principal: Use a portion of your freed-up cash (such as your former car payment) to make additional payments toward your mortgage. Even small extra payments can shave years & tens of thousands off the life of your loan.
- Invest the difference: You don’t need to wait until your Mortgage is eliminated in full to accelerate your investment portfolio. Start building as soon as you can with the remaining portion of your freed-up cash. Time is your biggest ally & it will help your portfolio to grow exponentially.
A stronger you
The steps above aren’t easy, but they’re worth it. By trimming unnecessary expenses, aligning your financial habits with your goals, & staying focused, you can navigate this challenging season & emerge stronger.
The journey doesn’t stop with keeping your home. It continues with killing the mortgage & building the life you’ve always envisioned.
It’s time to make your home a blessing, not a burden. Let’s keep it, kill the debt, & create a future free of financial stress.
Your Invitation
Are you ready to align your finances with the life you truly want?
As an Executive Financial Coach, I specialise in helping professionals & business owners like you move beyond financial uncertainty & unlock your full potential. Together, we’ll create clarity, confidence, & a sense of control over your financial future that enables you to live with intention & purpose.
This is more than coaching – it’s a partnership. It’s about ensuring your strong income works for you, not against you. It’s about making intentional decisions that reflect your values, aspirations, & most important goals.
Consider this your invitation to transform your finances. Let’s work together to build a life that aligns with what matters most to you.
Ready to begin? Let’s have an initial chat.
