Did you know your home could be your secret weapon to growing wealth?

It's more than just a place to live—it can be a money-making machine! If you’re ready to stop simply paying your mortgage and start using your home to build financial freedom, these 7 money-saving strategies are for you. Homeowners are finding smart ways to save thousands, pay off debt faster, and even generate passive income. Let's dive in and see how these simple hacks can help you grow rich.

Refinance Your Mortgage to Lower Your Payments

Refinancing your mortgage means replacing your current mortgage with a new one—usually at a lower interest rate. Interest rates might have dropped since you first bought your home, and refinancing can help you take advantage of those lower rates.

Say you owe $400,000 on your mortgage at a 5% interest rate. If you refinance to a 4% rate, your monthly payment could drop by around $400. That’s $4,800 in savings every year—money you can invest, save, or put toward paying off other debts. Over 10 years, that’s $48,000 you could pocket!

Quick Tip: Refinancing usually comes with closing costs around 2-5% of the loan amount, so be sure your savings from refinancing are higher than the costs.

Use Your Home Equity to Pay Off Debt Faster

Home equity is simply the difference between what your home is worth and what you owe on it. Over time, as your mortgage decreases and your property value increases, you build equity. You can tap into this equity through a home equity loan or HELOC to pay off high-interest debt.

Imagine your home is worth $400,000, and you owe $250,000. That gives you $150,000 in equity. If you borrow $50,000 from that equity to pay off high-interest credit card debt, you could save a lot of money on interest.

Credit card companies usually charge you 2.5% of the balance each month as a minimum payment. On a $50,000 balance, that’s about $1,250 per month just in interest. But with a home equity loan, you might save $600-$800 a month, which adds up to $7,200 to $9,600 annually.

Using your home equity to pay down debt is like freeing up cash that you can use to grow your wealth, invest, or save for the future.

Rent Out Extra Space for Passive Income

Got a spare bedroom, basement, or even an extra parking spot? Renting out unused space in your home is an easy way to generate passive income.

If you rent out a room for $800 per month, that’s $9,600 a year in extra cash—enough to pay down your mortgage or invest for the future. If you’re in a bustling city or tourist area, platforms like Airbnb could help you earn even more.

Pro Tip: Check with your local zoning laws to make sure renting out part of your home is allowed. Some areas have restrictions or requirements.

Cut Utility Costs with Energy-Efficient Upgrades

Energy bills might not seem like a big deal, but over time they can really add up. The good news? Small energy-efficient upgrades can save you hundreds every year.

Here are a few upgrades that pay off:

• LED bulbs: Save about $75 a year

• Smart thermostat: Cuts your heating/cooling costs by around $180 per year

• Sealing drafts: Save $200 annually by stopping warm or cool air from escaping your home.

Even if you spend $1,000 to make these changes, you’ll start saving $500-$700 per year, which means you could make back your investment in just a couple of years. In the long run, that could total up to $6,000 over 10 years if you save $600 a year.

Increase Your Home’s Value with Low-Cost Upgrades

Want to boost your home’s value without breaking the bank? Small, budget-friendly upgrades can make a big difference.

Repainting a room can cost just $300, but it might increase your home’s value by $1,500 or more.

Adding new landscaping or building a deck might cost $2,000, but could add $5,000 to your home’s value.

Let’s say you spend $3,000 on these types of improvements, and your home’s value increases by $10,000. That’s a $7,000 return on investment, and it makes your home more attractive to potential buyers when it’s time to sell.

These upgrades not only increase your home’s value but also improve its appeal and make it easier to sell. If your home value increases by $10,000, that’s $10,000 you can invest or use toward your next home.

Create a Home Budget and Stick to It

Understanding where your money is going is the first step in building wealth. Creating a budget lets you track your income and expenses, so you can identify areas where you can cut back.

Let’s say you’re spending $200 per month on things like dining out or unnecessary subscriptions. Cutting that by half could save you $1,200 per year. Reinvest that into your savings or investments, and you’re already growing your wealth without making any huge lifestyle changes.

Automate Your Savings and Investments

One of the easiest ways to build wealth is by automating your savings and investments. Set up automatic transfers from your checking account to your savings or investment accounts, and watch your wealth grow over time.

For instance, if you automatically transfer $200 per month into a retirement account, that’s $2,400 saved each year. But if you invest that money in a stock market index fund with an average return of 7% per year, you could end up with over $34,000 in 10 years—all thanks to the magic of compound interest.

Setting up automated savings is a no-brainer—it's a simple way to grow your wealth steadily, without you having to think about it.

7 Money Hacks For Homeowners to Save $146,500

By putting these 7 money hacks into action, you could save a significant amount each year. Refinancing your mortgage could save you $4,800 annually. Using your home equity to pay off $50,000 in high-interest credit card debt could save you between $7,200 and $9,600 per year. Renting out extra space in your home could generate $9,600 annually, and energy-efficient upgrades could cut your utility costs by $600 a year.

Low-cost home improvements might increase your home’s value by $10,000, while sticking to a budget and cutting unnecessary spending could save you $1,200 per year. Automating your savings and investments could lead to $3,400 in growth every year.

Altogether, these strategies could save you between $27,500 to $29,300 each year. In 5 years, that’s between $137,500 and $146,500—a powerful boost to your finances! By using these money hacks, you’re turning your home from a place to live into a cornerstone of wealth-building.

Start using these strategies today, and watch your wealth grow year after year.