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.