Every year when spring rolls around, we're inspired to refresh our home and our wardrobe. But what about our finances?
Take a look at these tips from MoneySmart on how to rejuvenate your finances too.
1. Freshen up your mortgage
Compare your home loan with other loans on the market to see if you can get a better deal. Find out what your current interest rate is and take note of the loan features you want to keep, such as an offset or redraw facility.
Catherine at Volare Home Loans can help you do this.
If you switch to a cheaper loan, stick with your current repayments to save interest and pay off your loan sooner.
2. Put a spring into your savings
Check the return you are getting on your savings and see if there are other financial institutions offering better rates.
Also reconsider the type of savings product you have. For example, if you have a term deposit that's about to mature and you find an at-call savings account that is paying higher interest, ask yourself whether a term deposit is the right account for you.
Alternatively, if you have money in an ordinary savings account but term deposits are paying higher interest, see if you can lock some savings away to get a better return on your money.
3. Reassess your home and contents insurance
We all buy items for our homes from time to time, like appliances, furniture, TVs and electronic equipment. How long since you estimated the cost of replacing the entire contents of your home? Is your current contents insurance enough to cover what you have?
4. Whip your personal insurance into shape
If you couldn't work for a long period of time due to illness or injury, would you still be able to cover all of your living expenses? If not, income protection insurance may help. Check if you already have income protection cover through your super fund or another insurer and see if it is enough.
5. Blow the cobwebs off your super
You might not see super as 'your' money because you can't access it until you retire, but the reality is that it is very much your money and it's going to come in pretty handy when you retire.
To get to know your super better, find your latest super statement (it could be hiding in your email inbox or in your filing cabinet) and have a good hard look at it. Here are some things to check:
6. Rejuvenate your budget
When you've finished giving the rest of your finances a good spring clean, it's a good idea to update your budget. Your income and expenses change over time, so keeping your budget up to date will allow you to track what you're spending and calculate how much you can save towards your goals. Use the budget planner to start creating your budget.
Work out where you money is going and how to make it stretch further.
You work hard for your money, so make it work hard for you. Look for low interest rates on your mortgage and high interest rates for your savings. Keep on top of your insurances and know where your money's going so you stay in control.
Message from CAtherine
Occasionally I come across an interesting article to do with Home Loans. I thought I'd share some of these with you here.