Refinancing

Budgeting

For many people budgeting is a dirty word, but it seems in the current economic climate this is fast becoming more fashionable. Australian households are now saving more than ever, with the household savings ratio now well above 10 percent, which is the highest level in many years. This means that household budgets are being watched more closely and those budget worksheets are getting a good workout.

As far as we know a budget has never harmed anyone, in fact it can be quite beneficial to household finances, as it normally results in more careful financial management leading to longer term financial freedom, as opposed to short term credit card binges which can take years to pay off. Nevertheless if you have already had that credit card binge and now find yourself with a foul tasting debt overhang, you can get yourself out of trouble sooner by careful budgeting.

A budger planner can be a very handy tool in assisting with this process. One of the best budgeting tools available can be found online athttp://moneysmart.gov.au/tools-and-resources/calculators

This is a very useful tool as it can help you to break down the weekly, monthly and annual costs of all the various expenses and show you whether you are actually spending more or less than you think you are. It helps you track your money, and realise where you can save.

For further help with budgeting or any assistance with managing your financial situation give us a call.

Pay your loan off sooner

Most people know that by putting extra money into their home loan they will pay it off sooner, but few realise just what sort of a difference this can make. For example, on an average mortgage of $300,000, with an interest rate of 7% pa, if you put in an extra $25 per week you would save 4 1/2 years off the term of your mortgage and save yourself $74,190 in total.

Another way to ensure you are reducing your home loan as quickly as possible is to make sure you have the most competitive and suitable home loan for your circumstances. If you have not had a mortgage health check in the last 12 months, it is a good idea to contact us just to make sure you have the best product for your needs. With lenders now having abolished early exit fee’s, the cost of moving to a better deal is lower than ever before.