Archive for Money

3 ways to help prepare for interest rate rises

The latest news that all of the big four banks have lifted their interest rates on owner occupier home loans, and a number of non-major banks following suit, will see many Australians will now be facing an increase in mortgage repayments.

This will no doubt impact a lot of household budgets and to help you prepare here are three things you can do;

1. Do the Numbers

First work out how much your additional payments will be. Knowing exactly how much extra you will pay each month and year will help you prepare your budget.

To help you do the sums; you can use our mortgage calculator by inputting your exact mortgage details or speaking with your mortgage broker – they can run the numbers for you.

2. Set a new Budget Plan

There’s not a lot of point of working out how much extra you have to pay on your home loan if you don’t apply it to your household budget.

Write a new budget plan with your new mortgage repayments and assess how comfortably you can meet it. You may find that you are going to struggle financially, so take the time to look for areas where you can save money. It may be necessary to change your spending habits in order to adjust to the increased repayments.

The important thing is to plan straight away to avoid any nasty surprises down the track.

3. Consider your Options

An interest rate rise is something you need to prepare for, do your research and make the right, sometimes difficult choices.

Doing the numbers and setting a plan are two parts of the puzzle but in the end you still need to make your payments.

Have you looked into changing the frequency of your repayments? It might be easier to manage and less of a burden paying weekly or fortnightly repayments rather than monthly – or vice versa.

Maybe you have some savings and are able to make a lump sum payment? A lump sum payment could make a dent in your mortgage and could even help offset an interest rate rise by putting you ahead.

Is refinancing or fixing your interest rate an option? This is probably the hardest question to answer and requires a lot of research.

To get help you make the right choices with the research done for you, my advice would be to see your mortgage broker or let me know and I can put you in touch with my mortgage Guru!

Money for funeral or holidays? Neither…

I have been collecting coins for the last 4 to 5 years and any change I have I put in this large “piggy bank can”.

I have a can for each coin, $1 and $2 coins, a can for $0.50c, $0.20c another for $0.10c and one for $0.05c.

My husband also empties his pockets and distributes his change the cans.

I usually say: “this is funeral money. In case that I kick my boots and until the family get a hold of some cash this is the place to go in an emergency or it is also good for a holiday.”

Last week I had some coins to distribute around the cans and noticed that the can with $1 and $2 were full.

So we decided to count the money and I felt like the uncle Donald Duck counting all that gold.

The can weigh 14.5 kilos and it was a big surprise to find that the cans were holding $3000.

Maybe you can do that too. Just empty your pockets and forget about it, then voila! you have a free holiday ahead of you!

As I don’t need it for a funeral, just now I put it to good use: paid bills.

Sorry the story ending isn’t so exciting but I feel relieved getting rid of some of my bills.

Are you paying high rates on your mortgage? Talk to my Guru and save buckets of money!

Every time I learn something new I do some research on it and when I am sure of all the facts I like to share my knowledge and help everyone.

I am a slow learner… Even though I buy investment properties, I had always trusted someone else to look after me with my mortgage rates as I was too busy selling real estate… until not too long ago!

Just by accident, speaking with someone about rates I discovered that I could go directly to my bank and ask them “what can you do about dropping the interest rate that I am currently paying” And guess what? They did!

After more research I found out that I could ask my bank if they could drop to 4,65% as another “mob” was offering me that rate  and guess what? Yep, they did! Gosh! That was amazing!

So I told a friend of mine to do the same with her bank but her bank was not able to offer what mine did for me. Even when she asked them how much it will cost to discharge her mortgage so she could go elsewhere, her mortgage officer did not try to retain her by offering a better rate.

I cannot assure you that you can get 4.65% rate or better but I can direct you to the right person to find out how much you can be offered.

It will cost you nothing to ask. Its never too late! I learned now, still in time to get the benefit of what I learnt.

Call me and I will redirect you to my “Guru” to help you to save “buckets of money” like me!

Save water in your garden and keep the money in your pocket

Households are the biggest users of public water and approximately 44% of household water is used outside the home.

There are many ways you can plan and maintain your garden and outdoor areas so they use less water, but are still attractive and colourful places to be.

Following and using some of these tips can not only save water but can keep your water bills down and keep the money in your pocket.

Also reduce water wastage by checking all taps and pipes for leaks because remember, one leaking tap can waste more than 2,000 litres a month.

 

 

Here are the Water Corporation’s top 10 gardening tips:

  1. Apply a soil improver with a soil wetting agent
  2. Choose waterwise plants
  3. Hydrozone your garden – group plants with similar water requirements together
  4. Make your verge more water efficient by replacing surplus lawn
  5. Apply between 5-10cm of waterwise mulch to reduce evaporation
  6. Only water once on your rostered watering day
  7. Get a trigger nozzle for your hose or use a watering can
  8. Install a garden bore
  9. Use a pool cover
  10. Use products displaying the Waterwise Approved and Smart Approved WaterMark symbols.

If you have any tips or advice about how you save water and would like to share please let us know and we can all save water together.