If you’re like most Aussies, the summer holidays are about hitting the beach and kicking back with friends and family. It’s also a time when spending increases.
Christmas presents, plus working out activities for the kids, takes its toll on the back pocket. And it’s no wonder people start to stress more about meeting mortgage repayments during this time.
If you need to take one action to relieve potential mortgage stress during the holiday break, it’s working out where your money is going. Here’s what you need to know.
Knowing what you’re able to spend over a given period will give you greater freedom and peace of mind during the holiday period. Yes, we’re talking about budgeting.
It may sound like a drag, but simply working out what you typically spend on bills, plus essentials like food shopping, will give you an idea of how much room you have to move.
If you haven’t done this already, sit down and work out what you’re spending week to week. Take a look at your bank statements online, if you don’t have receipts on hand.
Often, simply looking at where your money is going is a big eye opener. Perhaps your spending $10 a day on take away coffee, which adds up to $70 per week.
We’re not saying you need to give up your caffeine hit! But perhaps, cut it down to one a day, and then three per week.
This ‘low hanging fruit’ is a great way to save more on your mortgage repayments over the holiday break.
It may not sound like much, but these simple savings do add up. And, after the holiday break you’re more likely to continue saving in this way.
It may seem scary at first, but many people say that gaining awareness of where their money is being spent is empowering, and leads to greater savings in the long term.
There are some amazing budgeting apps available, which we recommend downloading to your smart phone.
Most apps sync automatically with your bank account, which means you don’t have to manually log purchases.
They also let you know when you’ve hit your budget for certain expenditure areas, and when you have a little extra room to spare.
Head here to find a budgeting app that is right for you.
Getting real about your budget extends to your finance. We recommend having your loan checked at least once per year, just to make sure more attractive rates and terms are not available.
A simple home loan health check will only take an hour or so. A broker will review your loan and compare it with hundreds of other home loan products on the market.
We’ll also work out whether your finance goals have changed, as this often happens over time. Then, we’ll make sure your current loan still aligns with your objectives.
If a more appropriate loan is available, we’ll organise the refinancing paperwork It’s easy, and the savings over the term of your loan can be in the thousands.
Contact us to get started.