Mortgage Advice. 5 Things You Can Do Now to Prepare for Financial Crises

If you’re afraid that the economic tailspin affecting governments around the world will affect your own financial stability, here is a little mortgage advice that can help you take positive steps to securing your financial future.  Solid planning starts with prioritizing your budget and deciding what’s important – and what’s expendable.

While we’ve largely escaped the financial crisis that has all but toppled America’s economy and threatens the economies of dozens of other countries, there are no guarantees.  If you haven’t yet formulated a financial survival plan, you should begin now.  Here’s mortgage advice you should follow:

• MORTGAGE ADVICE 1: Set aside enough cash to handle your day-to-day expenses for a minimum of 3-6 months.  If you can afford to, set aside even more.  While there may not be the same financial emergency in Canada, things can change in a hurry.  It doesn’t hurt to have a financial cushion nonetheless.  None of us ever expects to need the smoke detectors in our homes, but that doesn’t prevent us from having them – just in case.

• MORTGAGE ADVICE 2: If you can, make extra mortgage payments just in case.  You’ll save money and you’ll be ready if the unexpected happens.

• MORTGAGE ADVICE 3: Pay down unnecessary debt such as credit cards & personal loans.  Interest payments on these unsecured loans can get expensive; eliminating many of these expenses can free up money in your budget for other things – like food and gasoline.

• MORTGAGE ADVICE 4: Go through your budget and eliminate expenses you don’t need.  You may enjoy gourmet coffees and bagels every morning, but they can increase your budget by hundreds of dollars every month.

• MORTGAGE ADVICE 5: Have a yard sale and sell anything you don’t use and don’t need.  Most people have hundreds of dollars in untapped resources sitting in their garages or in cabinets throughout their houses.  Instead of continuing to allow it to take up space, put these hidden gems to work for you.  

Making use of these cost saving measures can be the difference between financial survival and becoming an economic statistic.  If the market experts are right and the Canadian economy survives unscathed, you’ll have saved yourself lots of money in interest charges.  However, if the experts are wrong, the preparations can be your own self-imposed financial rescue plan.

While your friends and neighbors are bemoaning their financial situations, you’ll be in fine shape.  You might even have the spare cash to splurge on fire sale discounts.  Now that’s mortgage advice you can take to the bank!

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