A SMALL SAVINGS ACCOUNT COULD KEEP YOU FROM LOSING YOUR HOME
✅It is important to save consistently to build up a buffer to get you ahead of your mortgage repayments.
✅Keep your savings in an offset account attached to your loan. It will save you on interest and be available in the case of an emergency.
Get in touch & we'll guide you through it
What's the emergency?
✅Earlier this year, ABC reported that nearly 50% of Aussies have less than $10K to get them through an emergency. And around 33% have less than $5K saved for tough times.
✅To put this into perspective: spending estimates of a single person are on average $2,500 per month. So if the primary bread winner suddenly lost their job, the average family would struggle to get through "a single month".
Unexpected loss
Corona virus, bush fires, or economic crashes - these losses are inevitably a BIG part of our future. It is best to build a safety net to at least pay your mortgage and keep the roof over your head. Simply methods only work if you put them into practice:
Direct transfer is the way to go!
✅Set up your savings to directly come out your wages, so it happens automatically each week.
✅Store these savings in an offset account to reap the benefits of compound interest and save thousands.
✅Remember the offset account is simply an everyday transnational account linked to your mortgage. You can access it just like a normal spending account.
Know your monthly living costs
✅mortgage
✅groceries
✅bills
✅clothes
✅medical
✅If you get stuck there is always the ASIC smart money budgeting tool to help.
✅Mortgage Broker Revesby will guide you through it.
Save a little each month
✅No need to go over board, but get in the habit of saving a little each week into your offset account. You may need it for a rainy day. And with so much economic uncertainty abounding, it could be sooner rather than later.
Automatic transfers
✅Just set and forget.
✅After a while your new normal will feel easy to manage.
✅Manual transfers are full of errors - like having chocolate cake in your fridge when you're on a diet. After a honeymoon period you'll be back to your old ways.
Lump sums
✅Tax returns and bonuses at work all need to go straight into the emergency offset account. ✅Remember compound interest will work in your favour. Over the life of your loan, it will save you thousands. Things appear to have changed with our economy, so stick to your plan & protect the roof over your head.
✅Can I encourage you to tighten the belt and be a little frugal for a while? Pay down your home loan debt, you'll be glad you did.
Contact us
I'm here if you need me.
No fee service.
Matthew Stack - mortgage broker Revesby
matthew@mortgagebroker.com.au
0423 237 242
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