“Review your loan structure at least every 12 months. A lot can happen in that time…”
1. Set up an off-set account against your home loan account. That way you’ll see your savings grow and save interest on your loan at the same time.
2. Set aside 10% of all income into a separate off-set account as soon as it comes in. Then when GST is due, you’ll have the money ready, and you will have saved interest on your loan in the meantime.
3. Review your loan structure at least every 12 months. A lot can happen in that time, and you may be losing money if you don’t keep abreast of the market.
4. Know your limit – knowing your borrowing capacity may open up new opportunities for you.
5. Release equity whenever you can. Opportunities can only become reality when you have the power to act on them.
6. Seek professional advice on how to structure your finances before making purchases. It’s the things that you are not aware of that can bite you later on.
7. Maintain separate business and personal bank accounts. It keeps your transactions transparent and your accountant will love you at tax time.
8. Build your round table – seek out a team of trusted advisers and use them!
9. Seek professional advice before fixing your rate. The rate may look great, but there can be heavy penalties if you break it.
10. Write a budget and keep it real. A budget is a tool to help you see where your money actually comes from and actually goes to, not a wish list of where you think it ‘should’ go.
11. Keep money in a separate ‘buffer account’ for emergencies. Don’t touch it.
12. Review your loan structure before you get a car loan. The monthly repayments on a car loan can dramatically reduce your borrowing capacity for other things.
By Kelly O’Brien, My Finance Boutique