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23/04/2020

Now’s as good a time as any for a financial health-check.

In times of uncertainty we should all be taking stock. Review loans, consolidate debt, buy or sell, opportunities are everywhere – even during crazy global events such as what we are all going through now with COVID-19.

We recently sent out a letter to everyone in the Pillar community identifying some of the things you ought to be considering at times of uncertainty (really, this should be something to look at every 12-18 months regardless).

Reduced interest rate

Australians are currently experiencing record low interest rates. Yet we are still seeing many of our clients with prehistoric mortgage products paying ridiculous amounts of interest.

A 1% reduction on a $400,000 home loan could save you as much as $4,000 a year in interest repayments.

You can either call your bank yourself and have the conversation or contact us and we’ll have a representative from our Finance partners act on your behalf.

Refinancing with a different lender.

On top of the money you could save with a reduced interest rate, many lenders are also offering financial incentives to encourage people to ‘jump ship’. In some instances, as much as $4,000. When combined with the interest in savings, that’s a whopping $8,000 back in your pocket in the first 12 months.

Many of our clients who are electing to grow their investment portfolio are finding that the savings in refinancing alone cover the costs of owning an additional investment property.

Pay your car registration quarterly.

Many people don’t realise that you can pay your car registration on a quarterly basis on-line. Whilst this may not necessarily save you money over a 12-month period, it’s especially useful for managing cashflow. Particularly for families who may have more than one vehicle. You can find out more here: https://www.vicroads.vic.gov.au/i-want-to

Pay your insurances monthly.

If you’re still waiting for your annual insurance bill to hit your mail box, perhaps now is a good time to look at making monthly, rather than yearly payments. Whilst it’s true many insurers offer incentives for you to pay your annual premium in one go, this helps their cashflow not necessarily yours. You may also want to consider packaging your insurance needs with the one insurer. This can save you hundreds in premiums and streamline your insurance payments.

Pay all your bills monthly.

Just like with your insurances, you can make monthly (or for that matter, weekly or fortnightly) payments towards all your other bills as well. By contributing a few dollars on a regular basis to things like phones, electricity, gas, water and rates, you can avoid the constant yo-yo effect of major bills hitting your cashflow.