28 January 2015,
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Here are my top tips to help you achieve your financial goals this year. Follow them through and 2015 will be the year that makes a difference to your financial future!

 

Revisit or do a budget.

When did you last do a budget? It is something that scares a lot of people, but can be a very good exercise to identify where some of the leakage may be.

Email David Johnson – The Home Loan Guy for my budget organiser to help you make a start – Click here.

Review your insurances.

Take some time to have a look at your insurance, especially your home and contents insurance plus your car insurance. Just because your insurer says they are giving you a good deal does this mean that they are?

I have access to be able to quote on Allianz Insurance for my clients and it is amazing the difference from on insurer to the other. One of my clients had a variance of $1,000 from the highest to lowest insurance quote on his new car.

This does not take a lot of time but you can be sure you will save some money if you make the effort. (p.s. you can cancel a policy mid-way through if you find they is a far better option)

Save 10% of you earnings – invest in your self

Open a high interest account today click here for some high interest account comparisons.

Now set up an ‘Automated Savings Plan’ (automatic pay anyone transfer or direct debit) where you transfer money into that account regularly. If 10% sounds too much then start with $1 per day. You will not miss it, just start today it can be your share investment account.

Do this for the long term and you will see your portfolio grow and grow with the help of compounding interest & reinvesting your dividends.

If you make sure it is set it up as a regular direct debit it will avoid unnecessary and emotional spending temptations.

Make extra payments on your mortgage

It’s amazing how increasing the frequency of payments from monthly to fortnightly or even weekly will save on interest, provided you maintain the same total payment for the month. If you can afford more – even better!

To find how much you can save have a look at this useful calculator, or give me a call and I can let you know how much interest you could save over the lifetime of your loan. You’ll be amazed at what a difference it can make.

Pay off you ‘bad’ debt first

‘Good’ debt is used to purchase assets that are likely to earn income or increase in value over time – assets such as your house and investment properties.

‘Bad’ debt is used to buy goods that devalue, such as cars and TVs – this also includes your home.

If your current debt is mostly bad debt, then pay off the credit card or loan with the highest interest rate first. Once you have paid that off, allocate that payment amount to your next debt until it has been paid off.

Consolidate your debt

By transferring your debt into one easy payment, we can help you reduce your total repayments and help you work out a plan to eliminate your debt and get ahead financially.

 

For example, if you consolidate your debt into your mortgage as it will be at a much lower rate.

The trick however is to make extra repayments into the loan and pay it of quick, DO NOT pay it over the standard 30 years the banks gives you. This is good for the bank not you.

 

Buy an investment property

Buying an investment property is good debt (as it will earn more income & provides a tax deduction)

Experts predict property investment will remain a solid long term strategy for years to come. The earlier you can get onto the property ladder the earlier you can begin to grow wealth.

Click here to contact me to make an appointment to understand your borrowing potential & understand the costs involved.

Update your insurances: income protection and life insurance

In the event of illness, accident or accidental death, most families find themselves underinsured. Don’t let this happen to you. Call the office and we can guide you in the right direction.

Find ways of saving money or earning more money

There are only two ways to improve your financial situation – either earn more or spend less. If your budget is already cut to the minimum, think of ways to increase your income.

Get the best from your superannuation

Review your superannuation. Research any potential ‘lost’ super from previous employer contributions. Consider consolidating separate super accounts into one. Make sure your investment risk profile matches your current retirement timeline.

Teach your kids about money

There is an awesome book by Ashley Ormond called How to give your kids $1million Each! I use this book myself. It has an easy to follow step by step process. If you know nothing about investing I am sure you will learn something yourself.

 

Let me know what you think.

Cheers

David Johnson – The Home loan Guy

 

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