Mortgage fast-tracking (a case study); Debt crack down; 34 ways to spend less; Start-up smarts; Love and taxes

By Amanda Morrall

A few years ago, one of my best mates, a single mother of two boys, decided she needed to pull up her socks financially. She's always been pretty good with money but she decided to get super serious and came up with a plan to knock off the mortgage by 55. She's well on her way and I have no doubt she'll meet her target by then, if not sooner. 

Being the exploitative journalist that I am, I plugged her for tips (which I'll share in my book). Like other readers who have shared their financial strategies with me, most of it is just common sense. I mocked her when she told me she cuts her own hair now (she also irons it as she refuses to buy a straightening iron.) I expect she'll have the last laugh. 

Here's a first person story of another gal who decided to bury the mortgage in three years. She used a variety of methods including a 20 + 20 pay back plan with the bank. Under the terms of her mortgage, she was allowed to increase her mortgage payments by 20% each year as well as paying an additional 20% of the original principle each year. Most banks allow some form of fast-tracking, but try to punish you for it so it's something to negotiate for at the start.

Are you mortgage free or close? If so, I'd love to know how you did it.

2) Debt is bad

I was talking to a financial planner the other day and she was lamenting how despite giving people advice for a living, most of them ignored it. It wasn't because they disagreed with the nature of the advice, only that they couldn't be bothered to implement the necessary changes. This disconnect between knowing what we should do, and taking action, is one of the biggest stumbling blocks in personal finance and why behavioural finance has exploded as a field of research. It's also why systems for managing your money, like diverting savings from pay into an account you can't touch, are so effective. 

This blog from thedebthmyth.com looks at some of the weak rationalisations people have for not getting out of debt.

3) Spend less to save

Saving isn't rocket science. You need to spend less than you earn. Simple as that. This blog by exconsumer.com shares 34 ways to find savings each month. Two suggestions I would add and which I have been contemplating myself are getting rid of the landline, if you don't need it and it won't add to your mobile expenses. Also, reviewing your insurances to see whether you can save there, either by increasing the excess you would pay on a claim (if that makes sense for you) or increasing the stand-down period on a potential a pay-out (also if that makes sense for you). 

4) Start-up right

Starting your own business? The road to riches is paved with potholes it would seem, but according to business consultants Bruce Gibney and Ken Howery, writing for the Harvard Business Review, there are four things you want to nail right from the start. 

They are as follows:

• The founding team
• The core values
• Where the company is located
• The initial investors (and their terms)

Having good mentors is another must. Just in case you haven't found yours here's a hub that you'll want connect with. 

5) Love and taxes

Facebook shares, which slid 19% yesterday, undoubtedly have nervous investors wringing their hands with worry (or regret) and analysts who went against the herd saying "I told ya so.'' The personal life of social network wonderkid Mark Zuckerberg is under no less scrutiny. I have to say, of all the post-IPO analysis, I enjoyed this one (speculating on Zuckerberg's choice for a wife) the most.  Mostly because it's funny.

To read other Take Fives by Amanda Morrall click here. You can also follow Amanda on Twitter@amandamorrall