Sharing a great financial tip...

(Written by a friend, but I thought it was a must share)

Today I have a non-real estate rip, and a short one... but it will save you money... a lot of it.

We all like to save money... we all hate paying interest... we all know money saved is money earned. So today I have a tip for you, one that will save $1000s in interest.

I bet most of you have a car loan. If you look at your bill, you are paying a lot of interest each month... early in the loan period a huge % of your payment is interest. So today I want you to focus on one thing...

Get 2-3 months ahead on your car payment, then keep making a monthly payment to stay ahead.

This will have a huge impact on your payment, in that almost all of it will go to principle instead. In essence, it is dropping your interest to an incredibly small number. If you have a $500 payment and are 3 months ahead, you will find $400 or more goes to principal, maybe even $450 depending on your rate.

So now, instead of paying your car off over a 72 month loan period, you will be paid off in 60 or less payments, saving a huge chunk of interest. I have done this, and my 72 month loan will be paid off in about 52 months... plus it will help you have equity if you want to trade the car in early.

This applies to many things... pay one extra mortgage payment a year and a 30 year mortgage is paid off in 21 years (9 years of payments saved). 2 extra payments drops it to a 15 year payoff.

Hope this tip helps... saving money, especially interest is a good thing.