You've spring-cleaned your home so how about your finances?
Written on the 26 August 2015 by Astra Financial
Spring is here! I love this time of year, as I sit in my garden thinking about the new life beginning, baby birds will start to appear, buds and new growth on trees and, of course, feeling so alive with the endless possibilities ahead!
It's also the start of a new financial year. How many people have the time to sit down and spring-clean their finances the same way they would clean their homes?
Some things to consider:
Over time, with busy working families, other debts can build up. Budgeting is vital but it's also about making the most of your outgoings each month. Recent clients of ours had a home loan, two credit cards near their limits, a car lease, car loan and a personal loan for an amazing family holiday they took a couple of years ago. Very common these days but, with some re-organising of their finances, we were able to reduce their outgoings by $1,600 per month! They are by no means unusual and their circumstance give you some idea of how things can be improved. What's more, they can use some of this saving to plough back into their home loan and have it paid off in a much shorter space of time than expected! Pay off your home loan in less time AND have spare cash at the end of the month? No-brainer!
Did you know that a typical credit card with a 21% interest rate and $10,000 balance being paid off with minimum payments of 2% of the balance per month would take nearly 80 years to pay off according to the ASIC's MoneySmart calculator? (https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/credit-card-calculator) Reorganising your finances and maintaining the same minimum payment could pay off that $10,000 in under five years!
Circumstances vary so it's important that everyone with debt has a financial health check at least every 12 months. You might think that nothing has changed in that time? Wouldn't it be good to know for sure?
Contact us for a free home loan health check or more infomation, you owe it to yourself!
Author: Astra Financial