There are no magic tricks, if you think it’s going to be easy it won’t.
There really isn’t any secret on what to do, it just takes patience, determination and discipline.
The best start is to shop around, get the best deal. Interest rates are at record lows. There are lots of options you can take advantage of including offset accounts or redraw facilities. The banks often charge more for the “bells and whistles” so you need to know what options suit your repayment needs.
One option for a couple on two incomes is for the couple to live on one income and put the entire second income onto your mortgage. Depending on circumstances that is a good way of easily finding discipline to save extra though of course that doesn’t suit everyone. If this isn’t for you then you will need a budget plan and make the rates repayments as great as you can.
Another easy win is to start paying fortnightly or weekly instead of monthly.
Ensure that every time you get a pay rise you put it directly onto your mortgage on a regular basis.
Ask your employer to make your mortgage repayments directly before you receive your net pay. If you don’t receive the money you tend not to spend it.
Make sure it is automatic, something you don’t have to worry about and you will reap the rewards. It is worth it!
If you have any questions or wish to set yourself up please let the staff at Ritchie Advice know we would be more than happy to sit down and work with you to determine exactly what the options are available and how you will achieve your dreams.
This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided in this article is general advice only.
Ritchie Advice Pty Ltd ABN 12 150 128 448, is a Corporate Authorised Representative 408050 of Dover Financial Advisers Pty Ltd, Australian Financial Services Licensee No. 307248.
Erin Gourlay
