Do a budget
It may seem an obvious place to start, but many people still don't have one. By itemising your expenditure, you may be able to see where you can start to save.
A budget template is provided for your use here.
If you're lucky enough to get a windfall, don't go on a spending spree. Put it towards paying off a personal loan or make a one-off payment on your mortgage.
Get the best loan for you
Are you on the best rate? Also look at options such as a loan repayment 'holiday', restructuring or refinancing. At John Alam & Partners we have an accredited MFAA broker who can assist you with all aspects of securing the most suitable loan for your individual circumstances.
Even minor reductions can help ease financial pressure, whether it's taking a packed lunch to work a couple of times a week or forgoing your weekly takeaway dinner.
Don't borrow too much
If you haven't yet entered the property market, wait until you've saved a sufficient deposit before buying a house. That'll mean you can buy a nicer place and / or have to borrow less. In the long run this will save you a fortune in interest. Try not to put yourself under too much pressure with a loan that you can't really afford to repay.
Prioritise your debts
Some debts, such as borrowings for investments, are 'better' than others because they are tax deductible. Pay off 'bad debt' - borrowings for consumption - first, starting with the debt with the highest interest rate.
Try to avoid bad debt
Try to get into the habit of paying for things with cash rather than credit. You will not only stop your debt growing, you can save money in interest and fees.
Think about consolidating your debt
If you have several loans, you could arrange a new loan to pay off the others. You can save money doing this if the interest and fees on the new loan are less than the interest and fees on your old loans. But check the period of the new loan first; you may end up paying more over the long term.
Seek advice from John Alam & Partners
If you're not sure whether your debt is structured correctly, whether you are accessing all the tax benefits available, or even how to set up a new budget in order to reach your financial goals, please contact John Alam & Partners on (02) 9520 4433 or at email@example.com.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.