Today’s tip is to save money on interest payments by paying a little extra off your loan each month. Because loans are usually large amounts spread out over many years, the savings can be significant. The longer the loan, the more you save.
Monthly payments Total interest paid You save
$115 $3,810 $0
$215 $1,640 $2,169
$315 $1,056 $2,754
$415 $782 $3,027
See for yourself: Calculate your own savings using this calculator.
Total saved: $0 to $200 per month
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Last thing to do
1. See other tips in the Save $1,000 in 30 Days Challenge
2. Leave a comment on this post describing how much you’re saving with this tip and any unusual techniques you use to make this tip work.
If you found this post helpful you’ll probably like my new Ultimate Guide to Personal Finance. This is an excellent place to learn more simple ways to improve your personal finance and money management.