financial advice, improve credit score,personal financial adviceMay the roof above us never fall in
And may we good companions beneath it never fall out.
~Irish Blessing

Bills are not fun. Paying bills is not fun. I can think of about a zillion things that are more fun than paying bills. But there is something extremely satisfying about paying off debt and being in control of our financial futures.

Girlfriend Guru and financial expert MIATA EDOGA shares her knowledge and insight about creating a solid financial plan and paying off your mortgage earlier than you might have planned. What is your best advice for a strong financial future, girlfriend?

You’re wondering why the title of this piece isn’t “Take Out a 15 Year Mortgage,” aren’t you? Why do I sometimes recommend a 30 year mortgage instead of 15? It’s simple: risk. Sadly, we never know when something financially crippling might happen. The main reason people lose their house isn’t because they’re a deadbeat and decide to stop paying their mortgage. It’s actually because they became disabled and could no longer afford the payment. A 30 year loan buys you the flexibility to lower your payment later and possibly save your home.

Here’s a safe path to paying your mortgage early:

1)      When you take out a mortgage, ask about a 30 year loan. In most markets, the interest rate is marginally higher. That’s the price you’re going to pay for safety. The great news is that in this market, a 30 year loan isn’t expensive. As I’m writing, the average rate is 3.64%, but that could fluctuate by the time you read this.

2)      Assuming the rate isn’t much different, ask about the payment difference. You’ll find that a 30 year loan (shocker) is about half the monthly out-of-pocket cost of the 15 year (if you have an escrow account to handle taxes and insurance, the total won’t come to exactly half, because these costs are based on the property value, not the mortgage amount).Miata Edoga

3)      Then, ask about the cost to pay the 15 year loan IF the rate were the same as the 30 year loan. This is a key point, because if you only make the 15 year payment, that slight difference in interest rates will be enough to cost you several extra payments at the end of the life of your mortgage.

4)      Ask about automatic payments to the mortgage. Most companies love automatic payments. You know why? The chance that you’ll forget to make your payment is greatly reduced if it automatically comes from your account. Good news: many banks give you a lower interest rate if you agree to use their auto-pay option.

5)      Assuming they accept automatic payments, sign up for automatic payments at the 15 year rate in step 3 above AS you sign for the mortgage. Don’t trust yourself to make bigger payments. Sign up for automatic payments to ensure you attack your debt.

There you have it. If you ever wind up in trouble (and hopefully nothing will happen, but you never know), you now have a safety valve AND you have automatic payments to ensure you take out the amount of the 15 year loan every month.

…and on that note…I think there may be a Step 6. Don’t mess up your own plan by coming up with excuses to only pay the 30 year loan! You don’t want a mortgage long term. That’s great cash flow you could have for yourself. That’s the freedom to travel, retire….do whatever you wish. Your goal is safety, not sabotage. Do not sabotage your plan, and you’ll have a great, flexible mortgage at an extremely low rate.

MIATA EDOGA is the President and Founder of Abundance Bound, a 10-year old company committed to utilizing humor, inspiration & lots of love to give individuals around the world the necessary tools to thrive financially, while keeping focus on the things they treasure most. Visit the Abundance Bound Facebook Page for your free copy of Financial Success for the Creative Soul!

Let’s make 2013 a special year – filled with friends and gratitude. Sounds like the winning combination for a wonderful new year!

By the way, we LOVE guest blogs here at Girlfriendology. Have a great girlfriend story to tell? Want to celebrate your fabulous female friends? SHARE! (And, we also have Girlfriend Gurus – check that out to be featured on Girlfriendology!) SIGN UP for our weekly newsletter and get our FREE eBook ‘30 Days / 30 Ways to Be a Better Friend- check it out! Don’t forget to make your girlfriends feel special with perfect birthday gifts for women!

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Girlfriend Guru MIATA EDOGA Shares Financial Advice for Women

Girlfriend Guru MIATA EDOGA Shares Financial Advice for Women

Don't you love having SMART girlfriends who give great advice? Well, we've got the go-to gal for financial advice for women. The President and Founder of Abundance Bound shares her insights in these guest blogs as a GIRLFRIEND GURU for Girlfriendology. (Thanks Miata!)

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    Rent or Buy? Home Decision Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Inspiration,...

    Rent or Buy? Home Decision Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Inspiration,...

    Be grateful for the home you have, knowing that at this moment, all you have is all you need. Sarah Ban Breathnach I'm so grateful for my home. It's where I live, work, spend time with my friends (and pets!).

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    There are times when I love making dinner. There are times when going out is the joy of getting together with wonderful people and catching up over a meal. There are times when there are no ingredients in the house (unless you count tomorrow's yogurt and a packet of ice tea mix as "ingredients").

  3. 3
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    Supermarket automatic doors open for me; therefore, I am. - Craig Bruce My friend Shari loves grocery shopping. She loves the bright fresh fruits and veggies and finding new varieties to try. She loves discovering new flavors and ingredients and spices-and she is a gifted cook who takes her inspirations and turns out delish dishes.

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    I admit it. I'm one of those people who likes to figure things out for myself. Over the last few (or maybe more than a few) years, I've worked hard to figure out where figuring things out for myself leads to positive self-esteem and where it just leads to stubbornness and frustration.

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    Pay Off Your 30 Year Mortgage in 15 Years | Financial Guru Miata Edoga | The New Girlfriendology | Be a Better Friend...

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    May the roof above us never fall in And may we good companions beneath it never fall out. ~Irish Blessing Bills are not fun. Paying bills is not fun. I can think of about a zillion things that are more fun than paying bills.

  6. 6
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    We dream of sending our children to college. When they are babies we dream of the academic/football/diving/debating/fill-in-the-blank scholarships they'll get. And then it turns out that they hate diving or love football but don't play at a level to earn a full ride.

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    It's that time again in my world. Time to think about acquiring a new vehicle. Ick. Sorry, that's all I can come up with. Ick. There are people who love car shopping-I am not one of them. It seems other people know so much more than I do about cars and financing.

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    Building Your Financial Plan | Financial Advice from Miata Edoga | The New Girlfriendology | Be a Better Friend | Ins...

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    There are times when it's fun to drive without a destination, to wander the roads watching the scenery without worrying about anything more than enjoying the ride-hopefully with a great girlfriend along to spend time together. There are times when we need to get somewhere specific (possibly on time).

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    Are You Overpaying For Investments? Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Fr...

    We all approach decision making differently. Some of us race in, getting past the decision point as quickly as possible, leaving it to the facts to catch up when they are ready. Some of us agonize over every possibility, getting so caught in the "what-ifs" that we become paralyzed with indecision.

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    Going Through a Divorce? Three Money Tips,Financial Advice from Miata Edoga | The New Girlfriendology | Be a Better F...

    Going Through a Divorce? Three Money Tips,Financial Advice from Miata Edoga | The New Girlfriendology | Be a Better F...

    "I couldn't believe how much I didn't know," a girlfriend recently told me. We were talking about the divorce she'd gone through three years ago. "Partly I just ignored all that financial stuff. I thought it was great that it was his responsibility-like putting out the garbage and fixing the leaky faucets.

  11. 11
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    Just Starting Out? Follow These Basics,Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better...

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    Every now and then it really pays to go back to the beginning. Even when we think we know something really well. Have you ever looked at a recipe you've been making from memory for years only to find out that there is an ingredient you'd forgotten or a different measure or...(this happens to me far more often than I care to admit).

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    Navigating a Home Refinance,Finance Advice from Girlfriend Guru Miata Edoga | The New Girlfriendology | Be a Better F...

    Sometimes we call a girlfriend for a silly, "fluff" conversation: how are ya' doin'? Guess what color I dyed my hair? Have you seen the latest episode of ...? Sometimes we call because we want something more substantial: philosophy or perspective or great girlfriend advice.

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    Negotiating a Raise at Work, Financial Advice from Girlfriend Guru Miata Edoga | The New Girlfriendology | Be a Bette...

    Some things seem easy when you listen to someone else or watch a sitcom (where both sides of the dialog are scripted out). Talking about money is one of those things that-for many of us-is much harder in real life than it is in our head.

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    Going Phishing - Protect Your Financial Information, Advice from Girlfriend Guru Miata Edoga | The New Girlfriendolog...

    Going Phishing - Protect Your Financial Information, Advice from Girlfriend Guru Miata Edoga | The New Girlfriendolog...

    There is a difference between fishing and phishing. Not just the spelling, but the harm it can do to your identity and finances. In one, actual fish are the goal; in the other, it's our money (or us, depending on how you look at these things).

  15. 15
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    More 401k Mail? Don't Throw This One Out! Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Bet...

    More 401k Mail? Don't Throw This One Out! Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Bet...

    If you want something, it will elude you. If you do not want something, you will get ten of it in the mail. ~Anna Quindlen Girlfriend guru and financial wiz MIATA EDOGA tells us not to immediately toss all that boring retirement stuff in the recycling bin. At least not right away.

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    Saving Money on Back-To-School, Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend...

    I like a teacher who gives you something to take home to think about besides homework. ~Lily Tomlin as Edith Ann It's also a great time to pick up supplies for school, work, or just around your home. We love the one-cent sales. We love them so much, they sometimes lead to overstocking on things.

  17. 17
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    5 Steps to Buying Big Ticket Items, Financial Advice from Miata Edoga | The New Girlfriendology | Be a Better Friend ...

    5 Steps to Buying Big Ticket Items, Financial Advice from Miata Edoga | The New Girlfriendology | Be a Better Friend ...

    Some things are so easy to purchase. Other things represent more of a challenge. My favorite way to deal with big purchases is to put someone else in charge. Of course, once they make a final suggestion I usually want to weigh in on the decision, so that doesn't work out to well in the end.

  18. 18
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    Are You Too Worried About Risk? Guru Advice from Girlfriend Miata Edoga | The New Girlfriendology | Be a Better Frien...

    Are You Too Worried About Risk? Guru Advice from Girlfriend Miata Edoga | The New Girlfriendology | Be a Better Frien...

    "If you risk nothing, then you risk everything." Geena Davis What if you don't like me? What if I vote differently? Dress strangely? Talk with an accent, have a diverse background or live a different lifestyle? Will you still be my friend? Friendship comes with risks ...

  19. 19
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    Choosing Retirement Investments, Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Frien...

    Choosing Retirement Investments, Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Frien...

    The trouble with retirement is that you never get a day off. Abe Lemons For some of us (OK, for most of us), retirement seems far away. Maybe it's that we're young (or young at heart). Maybe it's that we haven't saved enough for retirement.

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    We're watching the Olympics in my house (big surprise, right?) so the arguments these days are generally either with the television ("That was SO not a penalty!") or among ourselves about which of the zillion channels we should be watching. These are easily ignored, quickly forgotten non-arguments.

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    Low Interest Rates,Girlfriend Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Inspirati...

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    A bank is a place that will lend you money if you can prove that you don't need it. ~Bob Hope I was having lunch with a group of girlfriends recently and we were joking about a ridiculously expensive purchase. "Ah, who needs money?" joked Sammi. Every hand at the table went up.

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    Understanding Your Credit Score | Financial Advice from Girlfriend Guru Miata Edoga | The New Girlfriendology | Be a ...

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    A person's credit report is one of the most important tools consumers can use to maintain their financial security and credit rating, but for so long many did not know how to obtain one, or what to do with the information it provided. Ruben Hinojosa It's easy to do.

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    The little money I have - that is my wealth, but the things I have for which I would not take money, that is my treasure. ~Robert Brault Friends are such a valuable treasure. And friends who share helpful girlfriend advice on things we often need to know, are invaluable as well.

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