Aussies are spending an average of $165 each month on items they deem unnecessary, according to a recent survey, which is costing mortgage payers significantly over the life of their home loan. The survey by Youi found that approximately half of all respondents wasted at least $100 each month, while a quarter pegged that amount at $200 or more. With 93% of Aussies conceding they wasted at least some cash each month, just how much of a difference could that extra money make to the average mortgage? Savvy analysis shows putting an extra $165 each month into a $400,000 mortgage at 6.50% p.a. could save you almost $62,000 and clear your debt more than three years ahead of schedule. Even $50 per month, or just one to two takeaway dinners, can shave close to $22,000 and seven months off the average home loan ($731,000).

“Making non-essential or convenience purchases shouldn’t need to be cut out entirely for most Australians to make a difference on their home loan,” Savvy mortgage broker Daniel Carter commented “With cost-of-living creep continuing to keep a tight grip on many Aussies’ finances, it’s important for many to treat themselves every once in a while. However, it’s still important to take stock of your spending habits and see where you can make life easier for your future self. Cutting back on takeaway or online shopping by half, a third or even a quarter each month where you’re able to do so mightn’t be exactly what you want, but it could deliver savings to the tune of tens of thousands across the life of your mortgage.”