Budget Tips for Homeowners.
We always recommend our clients write a budget. But where do you start?
Your budget should be based off your take home income, from your base pay–if you receive overtime or allowances try not to include this.
Being a homeowner, you'll now have new bills to pay that you’ve never had before. So, in your homeowner budget be sure to consider; internet, gas, electricity, council rates, body corporate fees, building insurance, transport costs (tolls, petrol, car service, rego) and the big one in these hard times…. FOOD!!
**We highly recommend going back to your living expenses you sited in your home loan application– remember, you planned for discretionary spending like clothing, personal care and entertainment**
Tweak your mortgage repayments to work for you.
a) Align it all!
Line your mortgage repayments to your pay cycle. Paid fortnightly? Divide your monthly mortgage payments into 2 lump sums and set up a Direct Debit to pay this amount fortnightly.
b) Know your accounts-ability …
Does your home loan come with an offset account, or multiple offset accounts? Set these up and ensure your bank has linked them to your mortgage allowing you to save on the interest expense from Day 1. Have a basic loan? Have extra funds paid directly into the home loan.
c) Food for thought!
Meal Planning can be a great way to save money, especially if you are cooking for 1 and avoiding food wastage. Get organised and buy what you need for all your food prep and make your work lunches at the beginning of the week.
Don’t be glamoured by the delivery dudes. UBER EATS, MENU LOG and DELIVEROO may be a great time saver, but it can also be more expensive than actually calling the store for pick up take away or even eating in! A few dollars here and there really can add up over the month! Consider the cost!
Most of all, stay wise. You've carefully chosen the best mortgage for your future now make your everyday money decisions from an informed and deliberate place too!