The Money Management Mistakes Not to Make This New Financial Year
We are well and truly now into the 2021 Financial Year. Hopefully, you have made some new year’s resolutions to manage your money better to help reach your financial and wealth creation goals. There are however easy mistakes that trip some mortgage holders up that we do not want to see you make.
Here is a list of the top common mistakes often made when it comes to your mortgage and your money:
Not Using Your Offset Account Effectively
Your offset account is one of the best tools to have in your financial arsenal and you are doing yourself and your finances a disservice if you do not use it to its optimum. Ensure you keep as much money in this account to realise the benefits to be gained through interest savings. If you don’t already do so, use your credit card to pay for your day-to-day expenses so your salary sits in the account for longer, and clear the card at the end of the month before any interest is incurred.
Not Sticking to a Weekly Budget
It is important to know where your money is going every week if you are serious about wealth creation and paying off debt sooner. By tracking your spending, you can determine the areas which could use some adjustment. Make sure you have a clear plan and know where your money is going.
Choosing a Home Loan Based on Interest Rate Alone
Whether you are looking to purchase a new owner occupied or investment property, or to secure a better deal on an existing facility, it’s prudent to adopt a holistic approach to your finances. Just because an advertised rate looks seductive, there could be hidden fees attached, it may not be suitable for your requirements or you simply may not qualify for it. Let your Mortgage Broker guide you in selecting the most suitable product that’s right for you.
Not Reviewing a Loan for Several Years
We cannot stress enough how important it is to review your loan on a regular basis. The past few years have been particularly volatile in the lending market and the savvier mortgage holders ensure they check in with their Mortgage Broker annually to ensure their rate and product remains competitive.
Going Direct to the Bank for Your Home Loan
The motivation of a bank is to sell you their own home loans. You may have been a customer with them since childhood but that is no guarantee they will have your best interest at heart. It makes sense to see a Mortgage Broker instead as they have access to up to 40 Lenders and hundreds of home loans, so you can be sure they are providing you with options reflective of the greater market.
Make sure you are an active player in the management of your money so you can kick goals this financial year instead of sitting on the bench and let your finances take care of themselves, because they won’t and they don’t.