It’s a brand new financial year and there’s only 6 months to go until we deck the halls with boughs of holly, so the best time to reassess your financial situation and start afresh is – now!
To help you ring in the new financial year, we’ve created these 6 mid year money tactics:
1. Set a clear budget for the lead up to Xmas
Before Santa squeezes down the chimney sweep, set out a financial plan and decide how much you will spend and save. Include all your expenses in your budget, such as your rent or home loan repayments and utility and household bills to get an idea of where your money goes and what’s left over for the Xmas gifts. Use Mozo’s budget calculator here.
2. Build your nest egg with a high interest savings account
Don’t let your hard earned cash sit in an average savings account accruing a measly interest rate under 3%. Instead search the savings account market for an account with an interest rate above 4%. Then set up automatic deposits to make saving a no brainer!
Check out these savings account gems:
UBank USaver with Ultra – 4.37% special interest rate if you link your USaver account to a UBank Ultra Transaction account and deposit at least $2,000 into either the USaver or Ultra from an external source.
ING DIRECT Savings Maximiser – 4.35% intro rate for the first 4 months on balances up to $250,000 and must link to a standard transaction account but doesn’t have to be with ING Direct.
3. Save on your home loan
The wrong home loan could be costing you thousands over the life of the loan. For example, on a 25 year $300,000 loan, if you switched from the average variable rate at 5.27% to the best variable rate at 4.54% you would save yourself $38,090 in interest. That’s a new family car!
Check out these home loans with rates under 5%:
loans.com.au Dream Home Loan Variable – 4.54% variable interest rate, no ongoing service fee and $520 upfront fee.
HSBC Fixed Rate Loan – 4.58% 2 year fixed interest rate, no ongoing service fee and $852.50 upfront fee.
4. Cut your insurance costs
Are your premiums increasing every year? Chances are you’re paying a premium for being loyal, as many insurers offer big discounts to new customers. So review your insurance every new financial year to ensure you’re always signed up with the most competitive policy out there to suit your lifestyle. Compare policies from car insurance to life and income protection in Mozo’s insurance hub here.
5. Clear credit card debt
If you want to dump debt take up one of the 0% balance transfer offers available now. Keep in mind the balance transfer rate often reverts to the higher cash rate. So once the balance transfer period ends search the credit card market and switch to plastic with a low interest rate and no annual fee.
Check out these credit card stunners:
Westpac Low Rate – 0% balance transfer rate for 14 months and a 13.49% purchase rate.
Community First’s McGrath Pink Visa – 4.74% intro rate for 9 months and the lowest purchase rate in the market at 8.99%.
6. Take a look at your utility bills
Have you been stung with a high phone or electricity bill recently? The fact is the account you signed up for a few years ago may not be the best in the market today. By comparing phone and electricity providers online you could save yourself hundreds.
Dusting off your old products and re-evaluating your financial situation, will allow you to confidently ring in the 2015 NYE, a wealthier you. What are your tips for getting ahead this new financial year?