If 2017 is the year you kick your spending habits and get on the road to saving, then read on. When it comes to saving money, making a few changes to old habits can result in significant savings. To get your finances off to a good start in 2017, we’re sharing our top tips for saving.
- Offset your mortgage
By offsetting the balance in your savings accounts against your home loan, you’ll only pay interest on the balance of your mortgage less the balance of your offset accounts. You could save thousands of dollars in interest repayments and shave years off your home loan.
- Transfer your debt
Moving your existing debt into a balance transfer account with a zero per cent interest rate for a fixed period dramatically lowers your interest repayments and ultimately saves you money. Compare your options, transfer your debt and get saving. Just make sure you pay off your existing debt before the interest free period ends and don’t be tempted to spend.
- Shop around online
Online shopping is the ultimate in shopping to save – it lets you research your options before you commit so you can be sure you’ve found the best deal available. And that goes for home loans too. Talk to your mortgage adviser or broker about refinancing your mortgage – with access to a number of lenders, they’ll shop around on your behalf to find the best finance solution to fit your needs.
- Track your spending
Every so often, it’s a good idea to track your spending to see exactly where your money is going. That $5 coffee every morning adds up to a lot of money over the course of a month or a year! There are a number of apps you could use to help you track where you spend your money and where you can cut back. Once you know where your money is going, it’s a lot easier to make changes to your spending habits.
- Make saving automatic
If you’re struggling to set aside an amount to save each month, try making your savings contributions automatic. Get your HR Department or your bank to automatically transfer a fixed amount into your savings account each month.
- Small change = small fortune
You’ll be amazed at how quickly your small change adds up without you even noticing. Whenever you pay for anything in cash, don’t spend the change. Instead, drop any small change into a jar. You could let it add up each month and use it towards a special treat, or if you’re self-disciplined enough until the end of the year.
Lastly, and probably most importantly, set a budget each month and stick to it. It’s not about depriving yourself of those little treats, but about taking control of your spending and saving. Budgeting is about making sure your money goes where you want it to go, and without your spending mapped out in a budget, it’s pretty difficult to figure out where you’re headed.
If you’d like advice about getting your spending and saving on track this year, with a view to either buying your first home or an investment property, get in touch with Mortgage Express.