5 money saving habits of financially savvy people
Whether you’re just starting out with your first credit card, or you’ve been managing a mortgage for the past ten years, brushing up on good money habits is never a bad idea. To get you on the right track, here are 5 money savvy habits that frugal people live by, which you can add to your routine.
1. Making extra repayments on their mortgage. Your home loan is one of the biggest expenses you’ll probably ever have and minimising the interest you pay can make a huge difference to your bottom line. By making extra repayments, you can not only knock years off your loan and get debt free fast, you’ll save on interest as well.
2. Paying off their credit card bill in full. Cardholders who use their plastic responsibly can get away with never paying interest on their credit card. To do this, make sure you pay your entire bill off in full and on time each and every month - try setting up an automatic payment if you tend to forget.
3. Avoiding unnecessary bank fees. This one’s a no brainer - these days, there are so many fee free bank account options out there that there’s no excuse not to plug up those holes in your budget!
4. Making savings a priority. Having a savings buffer in case of emergency is vital for any money savvy Aussie. If you can, set up an automatic transfer into your savings account the day after you get paid to keep your stash on track.
5. Reviewing their finances regularly. Finally, the most money savvy people we know all make it a habit to give their finances a health check every so often to make sure they’re still getting the best deal, whether it’s on their rewards credit card, home loan or rainy day fund. Try setting a date every year to sit down and review your money set up to be sure you’re still on track.
Ready to start saving? Check out our Mozo Editor’s top product picks to help you kickstart your new frugal habits.
MAKE EXTRA HOME LOAN REPAYMENTS
UBank - UHomeLoan - Discount Offer
- 3.59% variable interest rate (3.66% comparison rate*)
- Free extra repayments and redraw facility
- $0 upfront or ongoing fees
With a 3.59% rate on loans over $7,000, the UBank UHomeLoan Discount Offer is easy on the hip pocket to begin with. Add in the option to make as many free additional repayments as you like, and it’s a real winner for frugal homebuyers. Plus with no upfront or ongoing fees, you can put every last cent towards paying off your loan.
loans.com.au - Essentials Variable 90
- 3.64% variable interest rate (3.66% comparison rate*)
- Fee-free extra repayments and redraw facility
- No application fee
Another great option if you want to make unlimited free extra repayments to whittle away your home loan debt quicker is the loans.com.au Essentials Variable 80 loan. With no application or ongoing service fees and loans available for up to $2 million, this one could be just the thing for financially savvy borrowers.
PAY YOUR CREDIT CARD BILL
Woolworths - Everyday Platinum Credit Card
- 0% interest balance transfer period for 14 months
- $0 annual fee in the first year ($49 after)
- 19.99% purchase rate
If you’re ready to commit to the habit of paying off your credit card bill each and every month but have a lingering balance you need to get rid of first, then check out the 14 months interest free balance transfer offer on the Woolworths Everyday Platinum. Plus, once you’ve cleared your debt, you can start earning Everyday Rewards on your spending.
American Express - Essential Credit Card
Keeping your credit card costs under control is much easier when you’ve got a budget friendly card in your wallet. The American Express Essentials card comes with no annual fee and up to 55 interest free days, plus if you do need to get rid of niggling debt, there’s a 12 month interest free balance transfer offer (3% BT fee).
AVOID BANK FEES
ING - Orange Everyday
- $0 account fee
- $75 cashback when you deposit $1k and make 5 card purchases in a month
- Free ATMs around the world when you deposit $1k and make 5 card purchases in a month
Not only can you have an ING Orange Everyday Account without paying a cent in account fees, but you’ll also get to use ATMs in Australia and overseas for free, plus snag a handy $75 cashback when you deposit $1,000 into your account and make 5 purchases using the linked debit card each month. Talk about value!
PRIORITISE SAVINGS
AMP Bank - AMP Saver Account
- 2.55% bonus interest for four months
- No monthly fees
- Unlimited free transactions from mobile app, online banking and over the phone
The AMP Saver Account will add to your savings stash, with a 2.55% bonus interest rate in the first four months, which reverts to an ongoing, no-strings rate of 2.10%. Plus you can make as many free transactions as you want via the app, online banking or over the phone, so there’s no excuse for not adding to your balance regularly!
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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