Your 20s are an exciting time—full of new experiences, responsibilities, and opportunities. It’s also a crucial period to start building good financial habits that will set you up for long-term success. While managing money may seem overwhelming at first, taking control of your finances now can help you avoid stress later on. Here are some of the best financial tips to follow in your 20s.

1. Start Budgeting Early

Creating a budget is one of the most important financial skills you can develop in your 20s. A budget helps you track your income and expenses, ensuring that you don’t overspend and fall into debt. Start by listing all your sources of income, followed by your essential expenses—like rent, utilities, groceries, and transport. Whatever is left over can be allocated to savings, investments, or leisure.

Tip: Use budgeting apps or tools to make tracking your expenses easy and even a bit fun!

2. Build an Emergency Fund

Life is unpredictable, and having an emergency fund can save you from financial stress in tough times. Aim to save enough to cover at least 3-6 months’ worth of living expenses. This fund will act as a cushion in case of job loss, unexpected medical bills, or other emergencies.

Tip: Set up automatic transfers to a savings account to build your emergency fund without even thinking about it.

3. Avoid Credit Card Debt

It’s tempting to rely on credit cards when you're short on cash, but credit card debt can spiral out of control due to high-interest rates. Always try to pay off your balance in full each month to avoid interest charges and protect your credit score.

Tip: If you do need to use a credit card, only spend what you know you can pay off by the end of the billing cycle.

Final Thoughts

Your 20s are the perfect time to lay the groundwork for a financially stable future. By budgeting, saving, and investing wisely, you’ll set yourself up for success in the years to come. Remember, the small steps you take today can make a huge difference tomorrow—so start building good financial habits now!

Paying off your mortgage faster is a goal for many homeowners, and combining a credit card with an offset account can be a smart way to achieve this. Here’s how these two tools can work together to save you money and reduce your mortgage term.

What Is an Offset Account?

An offset account is a bank account linked to your home loan. The balance in this account offsets your mortgage balance, so you pay interest only on the difference. For example, if your mortgage is $400,000 and you have $50,000 in your offset account, you’ll only pay interest on $350,000. This reduces the amount of interest you pay over time, helping you pay off your loan faster.

How Does a Credit Card Fit In?

Using a credit card for your everyday expenses allows you to keep more money in your offset account for longer. Here’s the basic strategy:

1. Deposit Your Income into the Offset Account: As soon as you get paid, deposit your income into the offset account. The more money in the account, the less interest you pay on your mortgage.
2. Use Your Credit Card for Daily Purchases: Pay for groceries, bills, and other expenses with your credit card, keeping your cash in the offset account.
3. Pay Off the Credit Card in Full: Ensure you pay off your credit card balance in full each month to avoid interest charges. This way, you maximise your interest savings on your mortgage.

Benefits and Considerations

• Interest Savings: More money in your offset account means less interest on your mortgage, potentially saving you thousands.
• Faster Mortgage Repayment: With less interest, more of your payments go toward the principal, shortening your loan term.
• Discipline Required: To make this work, you must pay off your credit card in full each month and avoid unnecessary fees.

Is This Strategy Right for You?

If you’re disciplined with your spending and can manage your finances well, this strategy can be highly effective. However, if you’re unsure, a mortgage broker can help you decide if it’s the right approach for you.

By using a credit card and offset account wisely, you can pay off your mortgage faster.

If you have any questions or need personalised advice, get in touch. We're here to help you make the most of your mortgage and move closer to owning your home outright.

Did you know that changing how often you make your home loan repayments could save you thousands? Switching from monthly to fortnightly repayments is a simple change that can lead to paying off your home loan faster and saving thousands in interest.

Why Fortnightly Payments Work

Many people pay monthly on their home loan – they make 12 monthly payments each year. By switching to fortnightly payments, you make 26 smaller payments a year. This is like making one extra monthly payment annually, which helps you pay off your loan faster and reduces the interest you pay.

A Quick Example

Let’s say you have a $500,000 home loan at 6% interest over 30 years:

• Monthly Payments: You’d pay $2,998 a month, with a total interest cost of $579,190.
• Fortnightly Payments: You’d pay $1,499 every two weeks, reducing your total interest to $498,564.

That’s a potential saving of around $80,626 in interest!

How Does It Save You Money?

Interest on home loans is usually calculated daily. By making repayments more often, you reduce your loan balance faster, meaning less interest accumulates over time.

Should You Make the Switch?

If you want to save on your home loan and pay off your mortgage sooner, switching to fortnightly repayments is something to definitely consider and easy to do.

The Bottom Line

If you want to pay your home loan down faster, switching to fortnightly repayments is an easy way to do so. It can save you thousands of dollars and help you own your property sooner. If you'd like to explore your options further, get in touch with us today! We're here to help you make the best choices for your financial future.

Paying off your mortgage faster is a fantastic way to save money and gain financial freedom sooner. Whether you're working with a mortgage broker or managing your home loan on your own, here are some simple, effective strategies to help you get there quicker.

1. Make Extra Payments

A little extra goes a long way. Consider making extra payments whenever possible:

• Fortnightly Payments: By paying half your monthly mortgage amount every two weeks, you end up making one extra payment each year. This can shave years off your loan.
• Round Up: Round up your monthly payment to the nearest $50 or $100. It’s a small change, but it can make a big difference over time.
• Lump-Sum Payments: Got a bonus or a tax refund? Put it towards your mortgage to knock down that principal faster.

2. Use an Offset Account

An offset account is a smart way to reduce the interest on your mortgage. Your savings in an offset account directly reduce the balance on which you pay interest. For example, if you have $20,000 in an offset account and a $300,000 mortgage, you’ll only pay interest on $280,000.

3. Stay on Top of Your Budget

Cutting back on small, unnecessary expenses can free up extra cash to put towards your mortgage. Whether it’s skipping a few takeaway coffees each week or reducing your subscription services, every little bit helps!

4. Speak to a Mortgage Broker

Refinancing to a lower rate can help you pay off your mortgage faster. A mortgage broker can help you find the best rates and guide you through the process to ensure it fits your budget.

Final Thoughts

Paying off your mortgage early doesn’t have to be complicated. By making extra payments, refinancing, and staying disciplined, you can save thousands and enjoy the peace of mind that comes with owning your home outright.

Get in touch with us to explore how we can help you manage your home loan more effectively and achieve your financial goals sooner.

Entering the property market can feel like a daunting task, especially for renters who are used to the flexibility and lower financial commitment of renting. However, with some planning and smart decisions, making the transition from renting to owning can be within reach. Here are some simple tips to help you enter the property market.

1. Understand Your Financial Position

Before considering buying a property, it's crucial to have a clear understanding of your financial situation. Review your income, savings, and existing debts. Prepare a budget to track your expenses and see how much you can realistically save each month. This will give you an idea of how much you can afford to spend on a home, including the deposit, ongoing mortgage repayments, and additional costs like stamp duty and legal fees.

2. Set a Realistic Savings Goal

Generally, you’ll need at least 5-20% of the property’s purchase price for a deposit. Setting a realistic savings goal is key. To do this, calculate how much you need for a deposit on the type of property you want to buy. Then, create a savings plan. Consider automating your savings by setting up a direct debit into a dedicated savings account each payday.

3. Consider Government Schemes and Grants

The Australian government offers several schemes to help first-home buyers. These include the First Home Owner Grant (FHOG), the First Home Super Saver Scheme (FHSSS), and various state-specific incentives. These grants can significantly reduce the financial burden of buying your first home.

4. Get Pre-Approval for a Loan

Before you start house hunting, it's wise to get pre-approval for a mortgage. Pre-approval gives you a clear picture of how much you can borrow and shows sellers that you're a serious buyer. It can also help you narrow down your property search to homes within your budget. Speak to a mortgage broker or your bank to understand the different loan options available and get a pre-approval that suits your financial situation.

5. Start Small

If the thought of buying your dream home seems overwhelming, consider starting small. Purchasing a more affordable property, such as a unit or a home in a less expensive area, can be a stepping stone to your ideal home. This approach allows you to enter the market sooner, build equity, and eventually sell or upgrade to a larger property as your financial situation improves.

6. Seek Professional Advice

Investing in professional advice can save you money in the long run and make the process of buying your first home smoother and less stressful.

Your dream of owning a home could be closer than you think.

Purchasing a home is one of the most significant financial commitments you'll ever make, and securing a home loan is a crucial step in this journey. Whether you're a first-time buyer or looking to upgrade, understanding the key considerations before applying for a home loan can help you make informed decisions and ensure a smoother process. Here are three essential factors to keep in mind:

1. Your Financial Position

• Credit Score and History: Your credit score is a critical determinant in the home loan approval process. Check your credit report for errors and address any discrepancies before applying.
• Savings/deposits: Having a substantial deposit can significantly improve your loan application. Most Australian lenders require a minimum deposit of 20% of the property's value to avoid paying Lenders Mortgage Insurance (LMI). The more you can save for a deposit, the less you'll need to borrow.
• Income and Employment Stability: Lenders prefer borrowers with a stable and consistent income. If you're self-employed, be prepared to provide additional proof of income, such as business tax returns.

2. Understanding Loan Types and Features

• Fixed vs Variable Interest Rates: Deciding between a fixed or variable interest rate is a crucial decision. A fixed-rate loan offers stability with consistent repayments, shielding you from interest rate fluctuations. In contrast, a variable rate loan might offer more flexibility and potentially lower rates but comes with the risk of interest rate increases.
• Loan Term and Repayment Structure: The loan term affects your monthly repayments and the total interest paid over the life of the loan. While a longer term can mean lower monthly payments, it results in more interest paid overall. Conversely, a shorter term increases monthly repayments but reduces the total interest cost. Consider your financial situation and future plans when choosing a loan term.
• Additional Features and Fees: Home loans come with various features, such as offset accounts, redraw facilities, and the ability to make extra repayments. While these can provide flexibility and potential savings, they often come at an additional cost. Evaluate the fees associated with each loan product.

3. Market Conditions and Property Considerations

• Current Interest Rates and Economic Climate: Interest rates in Australia can fluctuate based on economic conditions and Reserve Bank of Australia (RBA) decisions. Stay informed about the current interest rate environment.
• Property Location and Value: The location and value of the property you intend to purchase play a significant role in the loan approval process. Lenders assess the property's market value to ensure it aligns with the loan amount.
• Future Financial Plans: Consider how the home loan fits into your broader financial plans. Are you planning to start a family, change jobs, or make other significant financial commitments in the near future? Ensure the home loan you choose is flexible enough to accommodate these potential changes without causing financial strain.

Applying for a home loan is a complex process that requires careful consideration of your financial health, loan options, and market conditions. By thoroughly evaluating these three key areas, you can make informed decisions that align with your financial goals and increase your chances of securing a favourable home loan.

Do you find that when you do the groceries you always shocked at how much the bill comes to? You look at the trolley and think how does all that cost so much!  

Well here are 3 simple ways to help you reduce your grocery bill next time you go shopping

Always shop on a full stomach

How many times have you gone grocery shopping on an empty stomach and bought things you do not need? I know I have! Shopping on an empty stomach will prevent you from buying unnecessary things.

Set a budget and stick to it

This is my favourite as I know it works if you do it. Every time I set budget for groceries; I walk out not spending more than that. By setting a budget you force yourself not to buy things that you don’t need. Take a calculator with you if you need to. Theses your phone will do the job anyway.

Buy homemade brands

If you're not loyal to a particular brand, try the homemade brands. I know for some things I will only buy the brands that I like. However, for other things I am happy to buy the homemade brand. For example, I am very particular when it comes to honey and therefore, I will only buy my favourite brand. However, when it comes to butter, the homemade brand suits me just right. Buying the homemade brands will help cut the bill.

Next time you go shopping try the above things and let me know if your grocery bill has reduced as a result.