If you're like most people, you probably abandoned your New Year's resolution by the end of January. Fortunately, Australians have a second chance to get it right with the Financial New Year on July 1.
Making financially responsible decisions throughout the year is no easy feat, but working with a customer owned bank can help.
If you want to increase your savings…
The first step is setting a goal. You might want to save up for:
- A long term goal like your children's education
- A short term goal like a new electronic
- An emergency fund to fall back on
We can tell you 'don't get coffee out' or 'stop buying clothes,' but sustainable saving really comes down to making a budget of your income versus expenses and deciding what you can afford to put away.
You'll also need the right savings account. Want to buy that car? Then open a Notice of Withdrawl Savings Account that allows you to accrue high interest on money you don't need regular access to. You just need to give us either 7, 14 or 30 days notice before you need access to your funds. An Online Saver Account is perfect if you want to build up a fund you can use in emergencies.
No matter what, a savings account with a credit union is a great option because we have lower fees and higher interest on deposits than many major banks.
Our article on simple ways to save money https://t.co/vdVkhW44Vq
— MoneySmartTeam (@MoneySmartTeam) July 7, 2017
If you want to buy a home….
Make 2017-18 the year you get your foot on the property ladder or purchase your first investment property. Buying any property starts with the right loan. When shopping for loans, always ask yourself:
- Can I afford the repayments? Again, this comes down to an income versus expense budget.
- Do I understand all of the terms? If you don't, ask and if you don't trust the answer, continue looking.
- Does this loan fit with where i want to be in five, ten, twenty years? Mortgages last a long time, so consider the extended future.
Customer owned banks are better for home loans because we often have lower rates and fewer fees, as well as a higher level of service.
If you want to improve your credit…
Maybe you've been hit hard by medical expenses or other unexpected expenses. A poor credit rating isn't great, but it's also not the end of the world and there are things you can do to repair your score. There are little adjustments you can make to up your score marginally, but the real way to fix your credit is to pay your bills on time and not borrow money you can't afford to pay back.
This comes down to working with trusted lenders. The Big Four and other traditional banks are out there to make massive profits. That's why they'll lend you money at rates that are hugely advantageous to them but bad for you.
Because credit union profits are returned back to their members, we don't add extraneous fees and risky rates to our offering of home loans and other lending products.
Ready to make your Financial New Year's resolutions? Then come meet with the team at CAPE. We're glad to explain why making the switch to customer owned banking is the best resolution of all!