Give yourself a raise!

Costs = income.

I think we have a funny way of looking at costs, like they are somehow independent of the income that we bring in. But, from the way I see it, every dollar you decrease in costs is a dollar that raises the amount you take home to the bank. That’s income!

Essentially, when you pay off your debt, you give yourself a raise each month in the amount you would have paid for the debt, and you are not paying the amount you would have paid in interest payments over the life of the loan (which is sometimes 2 to 3 times the principle amount!) If you really want to give yourself a long-term, permanent raise, pay off your mortgage. It’s like giving yourself a 1,500 a month raise. It’s permanent!

Tags: cutting costs, debt, income, interest, MoneyGab Sayings, mortgage, principle, raise