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Definition and Abbreviation of ETF

admin — Thu, 09 Sep 2010 07:08:29 +0000

“E” stands for Exchange “T” stands Traded and “F” stands for Fund. ETF can be used as a stock, and also it can track the index. Exchange traded funds is like a stock and the price of the stock varies similar to that of a stock, a current political event, or current natural calamity, or current financial losses overall can affect the price of ETF. Investors who are buying ETF can buy or sell this stock and trade it in the day like a normal stock in a stock exchange the prices of ETF can be very fluctuating it varies from minute to minute and sometimes seconds to seconds like Intraday stocks. Clearly speaking buying ETF means buying a collection of stocks in the Index that can be traded in a stock exchange.

Benefits of Exchange Traded Funds

1. Lower Expense ratios, you do not have to spend much for trade commissions.

2. Compared to mutual funds ETF is more tax efficient.

3. Save money on brokerage you can buy a set of stocks at one time saves money on the commission. Lower operating cost will also reduce the transaction commission.

4. You cannot be cheated in ETF like mutual funds, because the set prices are determined before US stock market closes while in the mutual fund it is on the other way exposes for illegal activities.

There are more benefits attached to ETF. You can search about ETF in Google, Yahoo or Bing. I hope this article gives a basic idea and benefits about ETF and the benefits of ETF.

This article is for information purposes only.

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What is Supermarket loan? Questions about super market loan?

admin — Thu, 09 Sep 2010 04:31:28 +0000

Do you know that there is a loan called Supermarket loan. Super markets are also into the financial arena, the Big super markets like Spencer, Tesco are into financial business like a bank. It is true that Tesco, spencers are giving loans, issuing credit cards and Insurance like normal banks.

Giant supermarkets have not just contained themselves only with selling groceries. They are also providing you loans, credit cards and insurance policies. Many supermarkets such as Tesco or Spencer have their own credit cards and Insurance.

Can I lend a loan just like the bank ?

Yes , it has no difference to the bank, the same kind of procedures will be adopted in the lending process you can go fill the applications forms and lend a super market loan. Same procedures will be adopted like bank, good credit scores will be an important criteria for a successful loan .You can 100% trust super market loan.

When supermarket loan was started ?

Its there since 2000 almost 10 years, but it is becoming popular day by day as more people are aware now about supermarket loan ,because of big companies like Tesco and spencers jump into the financial business.

Difference between a normal loan and a super market loan

Super market loan offers you best Interest rates compared to the bank, this makes supermarket loan special and more people are attracted towards the loan.

Overall super market loan is just like a normal loan compare deals with super market loan and apply.

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Do not combine personal and business banking account

admin — Tue, 07 Sep 2010 21:28:11 +0000

Savings in whatever form are advisable, if you are a businessman, it is always better to have a personal and also a business banking account, or we call it as a current account. In personal accounts, you can put all your personal expenses, such as petrol, food & travel, etc ., In a business account you are going to obviously put all the transactions into it. However, never operate your business with one account ( Banking account ) . It can create many problems.

Three Important Harmful effects for combining both personal and business account

1. You cannot really find out the turnover of the business . You do not know how much you are spending as expenses and what is the exact profit you are getting out of business. This data will help you a lot when you want to expand your business.

2. You might spend for petrol, dress and other things, etc. these will sometimes mingle with your business account and will create more problems.

3. If you swipe the credit card on the internet for your business or when you go outside and use your credit card for your personal use will result in confusion when you need to submit a bank statement to the Chartered Accountant.

It is always better to operate from different accounts as it will be professional, and you will definitely improve in your business by knowing your expenses and incomes and you will have perfect control over your finance.

Even you are the single proprietor of your company it is better to allot a salary for your services and deposit it in your personal account and keep the rest in your current business account, which will give you more clarity, and you will really prosper in your business knowing what is the exact turnover, what are the expenses and you can have full control over your expenses both personal and in business.

This information is only amateur businessmen who really just started their business and want to grow in their business, who operates combining both personal banking account and business banking account.

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What is Business Building Insurance why we need it?

admin — Tue, 31 Aug 2010 09:15:58 +0000

Now after the warning of global warming, hurricanes, typhoons, earthquakes, Tsunamis and cyclones people started to think about insuring their building, which can reap money for them in the long run. Because of these natural calamities hit the people, they want to secure their building and protect the building that’s why everybody wants to insure their property, and they go and insure with Business/commercial building insurance. People living in US and UK are really intelligent and most of the businesses in US and UK are insured through Business building insurance.

Who needs Business Building Insurance?

Everyone who wants to make their business secured can apply for business building insurance. Those who want to mortgage their building need Building insurance, because strict rules are there if you want to mortgage your property in the bank you definitely need building insurance.Apart from that Business Building Insurance is very useful for people who have big buildings like shopping malls, theaters, auditoriums, hotels and restaurant. Anything can happen at any time, it is better that you insure the building and feel secured.

Business/Commercial Building Insurance coverage limits.

There are few companies that are providing this insurance, generally speaking these are the things a business building insurance will cover.

Complete protection from any damages happened through Fire or flood, if your building is caught up with fire or flood damage will be completely insured.
Building insurance also covers the contents inside the building, complete restoration of all the items like your furniture’s, other electronic items such as TV, washing machines, electronic items, etc., which have been damaged by natural calamities. Whatsoever you own inside the building will be covered.

These are general coverage and business building insurance coverage will vary according to each insurance company you need to check with the insurance company about exactly. What are the things you will be covered for the premium amount you are paying as insurance because some insurance companies offer two types of insurance one is partial and another is full risk coverage, if you would have paid for the full then it is assured that your contents inside the building are also covered? It’s better you study the insurance contract before you apply for business/commercial building insurance.

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What is an endowment policy?

admin — Tue, 24 Aug 2010 19:35:03 +0000

An endowment policy in simple terms a insurance policy ,where the insurer will have to apply for this policy for a certain number of years, He/she applying the policy has to pay a premium either quarterly, half-yearly or yearly. A bonded contract between insurance company and the insurer. We will now see and read on some of the advantages and disadvantages of an endowment policy.

Let us see about the advantages of Endowment Policy:

Advantages of taking up endowment policy

The money you invest on endowment policy is not going to be wasted, it is always a savings for you and also you protect yourself financially. it is going to help you when you require it in financial terms.

You get tax exemption on your investment on Endowment Policy.
You can surrender your endowment policy at any time, suppose if you need urgent cash and you are in a situation to take a loan, you can just surrender the policy at any time and you will get what you have invested so far during the policy period.
You are secured in the term of that policy, even when you die on accident or other illness, the money will safely go to your family.

Disadvantages of Endowment Policy

Different premium payment according to the premium payments available on to pay on quarterly, half yearly or annually.
If you discontinue the endowment policy on the half stage of the policy, you will just get money that you have invested.
All Endowment policies are for long term investment for at least 5 years to 25 years. Discontinue your posts might throw you some other problems, if you discontinue or surrendered a policy and then you need to continue a similar kind of policy next year, you might have to pay more premium than before.

Overall speaking, endowment policy is generally a good saving and it will help you when you are in crisis, having an endowment policy for the long term period, it is always good to have an endownment policy, finanacial safety and security guaranteed.

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Four Important Advantages of debt free living

admin — Mon, 02 Aug 2010 19:51:16 +0000

Out of 100 people one or two people will be financially free, they are blessed, let us not talk about that one or two people here and there, almost let us say 80% of the people living in the world, will be definitely got into financial trouble for at least a week. Uncontrollable expenses without proper planning, wrong investment ,a wrong decision can make anyone fall down from the richest to the poorest. Financial control brings you financial freedom, whatever situation it may be you can come out of it.

There are many credit card companies who offer credit for up to 2 months and encourage a person to somehow fall into the debt trap. But anything which is controllable is not a problem but that will never happen, you can see many credit card companies performing well, just because as money lender we are not proper and we do not keep up time, this weak point is really a strong point of many credit card companies. If you see a person fall into the trap of debt that is because of his/her inability to control financial expenses.

Some of the Important reasons of why a person fall into debt

Basically a person fall into the trap of debt because of different reasons, such as health problems to the person or his /her neighbors ,relatives. If a person doe s not have a insurance coverage then it is certain he/she needs to spend a lot of money on medical expenses, Due to lifestyle or living a life for others mainly intended to show status by spending lot of money on unworthy things or unnecessary things . Uncontrollable expenses and finally people who do not want to compromise the lifestyle will need money in the form of debt. There are many reasons attached to a person who want money

Four Advantages of Debt free living

Foremost benefit that you can say is peace of mind, no one can come and knock at the door, call you up and remind for the payments, you do not owe to anybody in this life, you can sleep and eat well add to health benefits.
Improvement in your career, if you are job seeker/ employer whoever it may be You will definitely excel in your career, because there is no one to question or disturb, your focus and concentration will become 100% and you can reach higher profits.
It helps many of your friends to follow you in terms of debt free life you will become a leading example.
In an emergency situation you can spend your own personal money rather than applying for a debt.

These are some of the main advantages of debt free living , there are more advantages for debt free living.

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Five tips to spend your sundays happily

admin — Mon, 02 Aug 2010 12:51:55 +0000

Value of Sunday

People who are sitting idle, who does not do any kind of work, or people who are lazy do not know the value of a Sunday.
Everyone goes to work, nowadays most of the people have a hard time at office, there is very little time to relax in office, even when they come to home, they have other responsibilities like looking after their children studies, make sure they do all the homework before they go to the next day. You relax a very little bit on the weekdays. Most of the companies do work on Saturdays also, you get only one day in a week i.e., sunday.

Tip #1

Just sleep little more than normal, if you normally wake up at 6 am daily , you sleep for at least another 1 to 2 hours more. This is just a psychology that, you feel fresh and warm when you wake up at 8 am. Remember to do some exercise that will improve the flexibility of the body.

Tip#2

Do the things which you like and love the most, like playing with your children, pets and eat a good healthy breakfast.

Tip #3

Read your favorite magazine and just go out for a short walk, if you are a soccer player or a cricket player just go to playground and play freely for about an hour, sweating will make you fresh and calm and then just chill out in your swimming pool or if you do not have a swimming pool, take a steam bath and it will make you fresh.

Tip #4

If you are married spend time with your wife , family, a nice chat and discussion will always create more attachment and love to your family. Once you finish lunch take your family to a place like theme parks, exhibitions, a cinema or shopping.

Tip #5

Make sure you go to religious place, like a church, mosque or a temple. If you do not have the practice of going to religious places just meditate heavily on one particular thing, cleanse your mind and body. Think about how you are going to perform your office work at the late night, Plan for the Monday and sleep on time.

These are general tips that i can give you on how to spend the sunday happily. It might not be applicable to all, I hope these tips will bring you joy and happiness on Sundays.

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Definition of green banking

admin — Sun, 14 Feb 2010 02:41:00 +0000

Green banking is like a normal bank, which considers all the social and environmental factors, it is also called as a ethical bank. Ethical banks have started with the aim of protecting the environment. These banks are like a normal bank which aims to protect the environment and it is controlled by same authorities as what a traditional banks do.

How do Green/Ethical banking differs from Normal banking?

There are many differences compared with normal banking, they give more weight to environmental factors, their aim is to provide good environmental and social business practice, they check all the factors before lending a loan, whether the project is environmental friendly and has any implications in the future, you will awarded a loan only when you follow all the environmental safety standards.

Benefits of Ethical/Green banking

Basically Ethical banking avoids as much as paper work, you get go green credit cards, go green mortgages and also all the transactions done through online.
Creating awareness to business people about environmental and social responsibility enabling them to do a environmental friendly business practice.
They follow environmental standards for lending, which is really a good idea and it will make business owners to change their business to environmental friendly which is good for our future generations.
When you are awarded with a loan, the interest of that loan is comparatively less with normal banks, because ethical banks give more importance to environmental friendly factors they do not operate with high interest rates.

Overall Green banking is really a good way for people to get more awareness about global warming,each businessman will contribute a lot to the environment and make this earth a better place to live. Thanks to green banking.

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How credit history stops you from refinancing

admin — Sat, 06 Feb 2010 14:19:44 +0000

You bought a loan and your business is not picking up fast and when you cannot pay the interest rate, the best way to escape from this problem is that you can go for refinancing your loan. Refinancing your loan has some notable advantages, basically refinancing helps you to save money, extends the duration of payment which gives you a relief about paying it back and also if you have any other balances to be paid like your credit card bills you can do it with the help of refinancing mortgage but if you do not have a good credit history this idea will become a failure because you need to pay high interest rates.

Flow Example of refinancing a loan

For example: suppose you lend $ 6,00,000 for your property and you pay interest and the principal amount and you have almost covered 3,00,000 $ in 2 years and you cannot pay the balance principal rate and also the interest rate, due to the pressure you go to refinancing mortgage and add 3,00,000$ which contributes not only to pay the existing loan but also you can pay other bills. A temporary relief can happen due to refinancing your loan because of duration and it saves money.

Generally speaking, you go for mortgage for reducing the interest rate and by reducing it you save a lot of money on it. But if you do not have a good credit history, FICO is an organization which gives credit score for each mortgagable property, if you have a poor score you need to change it otherwise you have to give higher interest rate. Just check with your bank and pay back the balances to any creditors who have given the bad remarks about you, you can change it by paying the balance and also asking the creditors to erase the remarks. If you have bad remarks on credit history you will get a loan but with higher rate of interest, you need to correct all the bad history records before you go for a refinancing loan.

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Reasons of why people pay overdraft fees

admin — Fri, 05 Feb 2010 10:55:23 +0000

Many business people do not have the proper statistics about their income and expenses, due to that they caught up in paying up overdraft fees many banks have strictly condemn this unknown act by the customer, they charge a fee for the mistake. These are some of the reasons why people pay overdraft fees.

First of all, if you do a business, you need to have complete knowledge about the incomes and expenses. If you do not know what is the current bank balance, how can you write a check and give it to somebody, in Asian countries many business people cheat by writing a check with current date, I mean they use for instant relief from others.
Lack of planning is another important reason for paying overdraft fees, this happens when a person takes out the money from the bank without knowing the balance.
People who take loans from the bank or having a fixed deposit will have this problem of paying overdraft fees, they do not realize at times about the dues they are going to pay, they withdraw the funds .
Those who pay bills through Bank, like telephone bills, Phone bills etc will face this problem as the payment becomes automatic , if you are busy you have very less time to know about the current status of your checking account this might cause you to pay overdraft fees.

These are the above reasons why people pay overdraft fees, if you are cautiously and well planned you do not have to pay this fees, In business it is really black mark to give a bounced check , be careful with overdraft and protect yourself from overdraft fees.

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Why companies go for investment banking?

admin — Mon, 01 Feb 2010 06:15:36 +0000

Investment banking is the popular path for big companies, it is not like a normal bank where you put some money, and they will give you back interest on your money.

Why big companies go for Investment banking?

Investment banking is a mediator which performs important functions for companies, it act as a facilitator for the investment company.

Helping in Merging two companies for improvement or expansion. Investment bank act as a consultant between two companies .
Helping companies to buy stock, bond, etc. at the right time.
Helping companies to sell their stock around the world, for example, if a company wants to expand its operation, and they want to sell the stocks, Investment bank will help them to sell their stocks or bonds, they find buyers for the stock and they take all your burden of selling those stocks or bonds.
Give advice on what to invest and when to invest. for example: if it is best to invest on gold , an investment bank will suggest you to invest on gold.
Helps in raising equity and debt capital for companies.
Investment bank helps companies to invest on mutual funds, stock bonds, shares and other securities, etc.

Overall Investment banking is really a good option for companies because they help companies to raise capital through company stocks, shares,mutual funds, stock bonds and other securities. Companies want to expand an operation can rely upon an investment bank to sell their shares and bonds.

Investment banks do not make money on the deposits made by the bank, but they will make money on commissions of each transaction made by the company, many investment banks acts also as a commercial bank. If you want to expand your operations the safe way to do is through an Investment bank.

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Ideas to become Financially stronger after retirement

admin — Fri, 15 Jan 2010 05:36:44 +0000

If you are above the age of 35 years you have the duty to plan for your retirement life from now onwards. If you delay it, you will not have money to spend at retirement. Planning for a retirement is a long run process you need to have loads of money at the time of retirement.

Save money and invest in retirement pension plans many insurance companies are having retirement plans, where you need to invest some amount every month, and they will return the amount as pension after the age of 60 years. This is one way that you can plan for your retirement.
Buy a small property with a small investment, if you have money you can do that do not think to use that property at any situation do not sell that property at the age of 60 that property cost will become doubled or tripled you can sell at that time.
Save money on unnecessary expenses, quick ways to think about saving money is on electricity, on your petrol expenses and on buying things, which are less important making sure you take all possible ways to reduce your expenses and save it for future.
Try this formula it works in the long run. Every 100$ you spend to try to save 5$ in some way in this way you are telling yourself that you spend 100 $, and you save 5$ this 5$ will accumulate and it can give you a huge money at the time of retirement.
Try to make as much as possible money from the company, if you can do extra work make sure they pay you more and save all those money for the future.

These are some of the ideas and suggestions to make you financially stronger after retirement.

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Eight simple tips to avoid before you fall into debt

admin — Sat, 09 Jan 2010 12:19:13 +0000

Living in a city like London or newyork is really a costly thing, as expenses are very high and if you do not plan your expenses then you are into big trouble of falling into debt. It is not a good thing to borrow, it can be your last thing but most of the people keep borrowing as a habit, they apply for the lot of loans to buy products for their home and also to maintain the lifestyle . Here are some tips, which can avoid you from falling into debt.

Eight simple tips to avoid before you fall into debt

Know about your income and expenses, just maintain your accounts accurately , this is the first most important step to avoid debt. You use a paper daily or a computer or a software it is very necessary to know about your income and expenses.
Record all transactions and keep a note of all your expenses you do daily and do not forget to see the balance of income daily.
If you are family head having two or more children, a lot money for each of them and tell them that you cannot spend more than the money allotted.
Do not spend your money or invest something, which is unnecessary.
Do not give any credit to your friends, unless you have enough money sometimes you will give some money to your friends at the end your money will be dried up.
Reduce your money on Petrol, Electricity and other unnecessary expenses, it does not mean that you have to switch off your electricity or do not use your car or any motor vehicles, just reduce the wastage.
Reduce your petrol by not taking the vehicle for walkable distance
Habit of saving and look for more opportunities to earn, you can work, and also you can earn part time through online and there are plenty of opportunities available for you earn money.

We are not going to take anything until the end, we need to enjoy as much as we can if we plan our expense and spend wisely you will always live peacefully with dignity.

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Tips to protect your debit card

admin — Thu, 07 Jan 2010 03:19:18 +0000

Usage of debit cards and credit cards has increased so much , banks are opening more and more ATM centers and almost 99% of all the stores accept debit and credit cards. You also need to be careful while using debit cards .

Do not give your debit card to your children younger than 15 years old, they do not know how to use it, and they may even misplace your credit card.
Do not tell your PIN number to anyone or write above the card this is a security number for processing money you need to protect this number.
Do not use your debit card in websites that does not have security certificate like Verisign or Thawte.
Check your bank account frequently whenever you withdraw immediately check and note the balance amount you have in your account.
Sometimes you might be busy, and you can ask your assistant to go and withdraw funds from an ATM center. You need to avoid this practice even though you trust heavily on your assistant, a requirement of money is for everyone he cannot be the same always he might take some more money and tell you that bank has charged , do not give a chance always you go personally and withdraw funds.
Debit cards can also be misused while shopping, while before swiping the card make sure the shop owner does not do it twice and also check the amount he is swiping for that product, you might be busy sometimes instead of 100$ , shop owner may swipe 150$ also just be careful while swiping the card in a shopping center.
Handle debit card with safety did not bend the debit card , keep it in a safe place avoid scratches on debit card,as it will create more problems when you enter it in the ATM, it will say your debit card is invalid to avoid these circumstances always keep the debit card safe.
Make sure when you go for shopping you take back the debit card as soon it has been swiped, if you misplace the card immediately call the bank and tell them that you have misplaced it and ask them block the card. I have heard many cases that in a one hour somebody has swiped huge amount in the debit card so when you misplace the card make sure you call the bank as soon as you know about it.

These are the basic tips to protect your debit card always keep it safe.

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Individual stocks vs Mutual funds

admin — Wed, 06 Jan 2010 05:02:43 +0000

If you are a financial expert you will have knowledge about what is individual stocks or mutual funds , but a normal individual does not know, but they know they can multiply their investment in stocks or mutual funds.

Before investing your money you need to know about these two, individual stocks are those which are offered by companies, and you have the freedom to choose any company stocks and invest it, remember you need to have 100% accurate knowledge about everyone company, you might invest now seeking for an improvement but suddenly that company policy changes or any climate and political issues cause the stock to go down you are solely responsible for your decision to be precise invest in individual stocks on your risk.

Individual stocks have got some attractive benefits your money might be doubled or even tripled in a week of time, that is also possible in investing your money in individual stocks.

Mutual funds are managed by an Investment company, but before investing in the mutual fund you need to go through their offer document , mutual funds are based on market fluctuation but obviously in comparison to Individual stocks investing in mutual funds is less risky. Investment Management company invests your money in various Individual stocks / bonds so the investment is diversified, and you will definitely have lesser risk and there is a higher chance of your investment getting doubled , It is always better to invest in long term mutual funds. If you want short term gain invest your money on Individual stocks.

This information is for information purposes only.

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How to minimize Interest from credit cards

admin — Wed, 06 Jan 2010 04:17:02 +0000

Proper usage of credit cards is the key to save money using credit cards, at times people use it wrongly, they swipe the credit card without knowing whether they can pay on time, credit card is just an alternative in case of any emergency when your funds are locked using it wisely is really an important thing. All credit card companies enjoying profit because of many people do not pay off on time , earning from the interest is the key for credit card companies.

Money saving tips using credit cards

1. Foremost suggestion is to payoff your credit card bills on time avoid no interest if you do not do this then the whole process of talking about saving money using credit cards is defeated.

2. 10 out of 9 fall to interest rates and they pay more for the purchase they have made through credit cards, it is all because of the busy schedule, I have one solution for this, open a savings account in another bank , whenever you get the money put that money into that savings account and in the time of due date you can do a wire transfer from that savings bank to the company where you have credit card.

3. Pay off your credit card bills completely, everybody do this mistake of making a part payment of the amount they have swiped this will cause a huge problem later always payoff your credit card bills completely.

4. Before selecting a credit card make sure you will get some benefits on swiping the card, without that do not go for any credit card. You would have heard about Cash back credit cards, Reward credit cards try to purchase a credit card try to purchase a credit card which gives you back something.

5. Rotation of credit cards is also a great trick , but you need to do it carefully, If you two credit cards A and B you can swipe B and pay the bills on time to A card, this way you avoid paying high interest to the credit card company. But remember if you fail to you need to pay interest for both the cards.

If you can follow these tips, using credit cards is going to be a wise decision.

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What is 529 Plan and benefits of 529 plan

admin — Tue, 05 Jan 2010 04:02:11 +0000

If you have kids at home who are studying it is the duty of the parents to ensure they get good education, clean manners and habits. As far as higher education is concerned to be frank with you it is very costly, most of the parents struggle to pay the fees , they take loans and further complicate their financial situation. It is necessary for parents to financially plan to meet the challenges after say 10 years or 15 years from now. There are many programs available for students one of which is 529 Plan.

What is 529 plan?

This plan is a state sponsored program specifically started for students enabling parents to save money for their kids higher education / college education, it is basically a savings for future education of your kids and it is popularly known as Qualified Tution plan ( QTP).

Key benefits of 529 plan

You are exempted from tax for all the savings you make through this 529 plan.
You can ask your relative , or friends to help the fund going on, there is no necessity that the parents should put the money into it anyone can contribute to the savings plan.
If in some cases your child got a scholarship or something which defuse the savings plan you can get back the savings money and also if the money is not used you have the option to divert the savings to your another child in the family.

Types of 529 Plans

Savings 529 Plan – Which will grow according to the market situation.
Prepaid 529 Plan – This plan enables you to purchase tuition credits in advance in current rate, this will automatically increase and you can use it after 10 years also.

This article is for information purposes only.

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Pay off your Mortgage loans in no time

admin — Sun, 03 Jan 2010 05:31:47 +0000

We apply for mortgage loan for urgent needs, it is important to repay the mortgage on time, it is always nice to pay the mortgage loan on time makes you feel secure. If you do not pay off your mortgage debts on time you will have to pay more interest rates, in the end if you calculate you would have lost lot of money in paying off the interest it is highly important that you pay off the principal amount of mortgage loan quickly. You should understand there are many benefits of paying off mortgage loan in time. The Interest rate will be reduced you will feel debt free soon.

Three ideas to payoff your mortgage loan faster

Get Organized: You need to get organized each and every month in paying off the mortgage loan. You need to know about your expenses and income. Make a practice that your first expense will be to pay off your loan. Because if you take that lighter and pay it last you might end up in not paying the amount, your first expenditure should be paying off your mortgage loan.

Pay More: it is a “out of the box” idea to pay each month more, if you can afford to do it please do it. Remember if you pay more you are about to pay off your principal amount faster, that will make you soon debt free. It is not that you need to pay it monthly, if you have extra money you can pay it once every two weeks, you need to talk to the bank about this, I’m sure they will agree to your point, if they agree, you can pay the loan once in every two weeks instead of a month.

Check your Statements: Make sure that all your payments are utilized for minimizing the principal amount if they take your entire extra amount and allot it for interest then your efforts of paying more idea is defeated. Make sure you check the statements.