My local realtor sends out monthly letters on a variety of “value” topics. She believes that the information contained in these letters are things her customers should be aware of for their own benefit. I have seen articles on health insurance plans, home improvements that pay good returns, and, now, sound financial management. Meanwhile, of course, the articles she forwards also serve to remind us of her availability to service our real estate needs, along with those of our family or friends.

This month’s “value” subject is about sound financial management and possibly paying down your mortgage. The article first asks that you consider the following:

Begin your future planning by paying off credit cards with a large balance and high interest rate.

Be prepared for the unexpected costs. Have emergency funds set aside that you can handle whatever comes your way.

Always make retirement plan contributions. This is the best way to plan ahead while growing your assets.

Be sure to plan ahead for major expenses, such as college tuition or new business ventures. Be financially prepared for these events.

Once debt has been reduced and future expenses have been allotted for, it is time to work towards paying off your mortgage. Here are a few different ways to approach this goal:

Biweekly payments result in 26 payments per year. This extra annual payment will help reduce your mortgage debt.

You can transfer your biweekly payment into a separate account and then withdraw your monthly payment from that account. Gradually, you will accrue an additional monthly payment, plus you will be receiving interest on these funds.

Any additional money you receive during the year (tax refund or job bonus) should also be set aside. Be certain to specify that the money should be applied to principal.

Every small contribution towards your mortgage debt brings you closer to your goal. If you pay an additional $20 per month on a $100,000 loan at 6.5%, your savings will be $13,000 over the life of the loan. Wise financial planning can help you reach your goal.