Your mortgage is often the cheapest source of debt you have but it could still make sense to overpay on your monthly payments. First and foremost, all of the higher interest debt that can be settled should be done so first, before considering this option. Basically, any money that is considered for overpayment should be money that would otherwise go into a savings or an investment account, meaning that all other budget categories are fully funded for the time being.

Debt elimination is the key to financial freedom because as long as you owe money you can’t consider yourself financially free. If you don’t eliminate debt your future earnings do not belong to you but to your creditors. While there are a number of steps involved in becoming financially free the need to get out of debt first is paramount.

In the first few months, it’s essential to review account statements regularly and see exactly how much was spent on various expenses. These figures should be compared to the amount set up in your budget and any adjustments should be made to reflect the reality of your life. This is the best and easiest way for your budget to remain relevant in your financial life.