Homeowners! Follow these 4 steps and save big bucks!
We’re all feeling the effects of growing inflation, skyrocketing petrol and energy costs, and of course, rising interest rates. That’s why there has never been a better time to knuckle down on saving money – especially when it comes to the cost of running a home.
At Kitty & Miles, we will help you gain control of your finances so you can pay off your mortgage more quickly. Follow these 4 simple steps and get ready to watch your savings account flourish!
Reduce your home loan
Let’s start with your largest household expense: your home loan. If you’re paying money towards your loan out of the household budget, you should start thinking about refinancing. It doesn’t hurt to see what other banks and lenders have to offer. You could get a better rate that will save you a tonne of money in the long run!
If you’re ready to make a change, why not have an offset account where any savings will count towards your repayments, helping you to reduce the balance of your loan way faster than before? It might not sound like much, but even an extra $20 a month can make a huge difference!
Think about it. By opting to engage with a lender who can offer a lower rate, homeowners with a home loan of $500,000 could potentially save $2000 a year on their loan, which equates to $50,000 over the typical 25-year life of the loan.
I encourage you to start looking around approximately 8 weeks prior to the expiry of your fixed-rate loan, so that you can avoid the automatic shift from a fixed-rate loan to a variable that could cost you tens of thousands of dollars in the end.
Minimise your big bills
Are you loyal to a particular energy company or broadband service? Well, you know what, guys? It doesn’t hurt to give them a call and ask them for a better deal.
Avoid complaining about their service, and instead tell them how happy you have been with their product/s, but that you cannot justify staying with their brand at the set price. Ask for a better deal! It cannot hurt, and you might be surprised by how much they want to keep your business.
Want to enjoy instant savings? Minimise your energy bill by using a jumper or coat to keep you warm during those cold mornings rather than relying on the air conditioner. Likewise, switch off all appliances when you’re out of the house, as every kilowatt matters. It’s simple actions like these that can really add up in the long term!
Home maintenance is a must
Noticed a crack in the wall? A gap between the door and frame that wasn’t there before? A few loose tiles? Get on top of these ‘minor issues’ as soon as possible to avoid an even bigger, costlier maintenance issue in the future.
Cracks and gaps can lead to a draughty home, and you don’t want to waste precious money on wasted heating or cooling! So it is better to nip concerns like these in the bud while the problem is still manageable.
Don’t mind getting your hands dirty? If you’re in need of some renovations but want to spend as little as possible on the tradespeople, try your hand at painting those walls or removing old carpet yourself. It may take a little elbow grease but DIY can not only save you significant $$, but it feels rewarding, too!
Be frugal and stick to a budget
Uber Eats is fabulous, there’s no denying it. But is it essential?
Instead of spending $50+ on your weekly, bi-weekly or *gulp* nightly fast food, create a menu of meals you’re able to cook for yourself, and then shop for the ingredients.
I suggest shopping weekly or fortnightly, depending on how much space you have in your freezer, because shopping frequently often leads to higher temptation to buy treats off the shelf, therefore increasing your spending.
Got a subscription service? Whether it’s Spotify for music or Netflix for your binge viewing, it’s important to know what you’re paying for each month. I suggest saving the direct debit dates to your calendar so you can visualise your expenses, and you’ll also have a reminder each month telling you to pay… or unsubscribe!
Don’t use your subscription often? Cancel it! It’s that simple. Say “goodbye” to unnecessary expenses and “hello” to increased savings.
With simple tips and reminders such as these, together we can navigate this crazy moment in time where inflation and interest rates are cause for concern. Avoid unnecessary spending, haggle for a better price where possible, shop around for a lender that will offer you a lower interest rate and voila! You’re on your way to a brighter financial future.