You don’t have to be a financial genius to secure your financial future, writes Nicole Pedersen-McKinnon. You just have to know a few tips and tricks… and adopt the right attitude. money personalfinance
You don’t have to be a financial genius to secure your financial future. You just have to know a few tips and tricks… and adopt the right attitude.Remaining ignorant to money saving opportunities will hurt your financial future.While the average big-four bank undiscounted variable mortgage rate remains at 3.45 per cent – despite an emergency coronavirus-induced official interest-rate setting of just 0.1 per cent – the best available rates in market are about 2 per cent.
Better still, do what I call “up stumps but still stump up.” You have been living without that $297 and, if you can continue paying it into the new mortgage, you would save a whopping $110,000 in loan interest and shave 4.5 years off your home loan term.The rates on savings accounts are typically at least one percentage point below the rate on your mortgage. So, by putting your money against your home loan rather than in the bank, you will save more than you would earn in bank interest.
And that is the final piece of this puzzle: your savings are safest when placed in a mortgage offset account that runs alongside your home loan, rather than being deposited directly into the loan account itself.at the beginning of lockdowns? That is what can happen if you pay directly into your loan and either a bank recalculates what you owe or you get into financial trouble.
If the answer is “no”, this account is simply a redraw facility in disguise – your money is not quarantined from your lender and the above situation could happen to you.If you carry over a balance from month-to-month on a regular credit card, you need to stop.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Call for parental leave changes to ease burden for mums of premmie babiesMothers of preterm babies have higher out-of-pocket health costs, spend longer out of the workforce and earn less money for up to five years | niltiac
Read more »
Five injured in mass stabbing at supermarket in DunedinBREAKING: Employees and shoppers are among those reportedly injured in a stabbing incident at a New Zealand supermarket.
Read more »
With NSW mega councils bleeding red ink, give communities a say on breaking up mergersOpinion: Five years on after the Coalition broke its long standing promise of not merging NSW councils, amalgamations are failing to deliver
Read more »
The government has more money to play with than it expected — so who gets the cash?The government is delivering a budget that looks much better than it expected, and the spending to recover from the pandemic isn't letting up yet. Here are some of the new measures in this year's federal budget.
Read more »
'Not just more money': Budget promises aged care reform with $18 billion in spendingAged care staff will have to spend more than three hours a day with each resident by 2023 and 80,000 extra home care packages will be provided as part of reforms promised in the budget.
Read more »