10 Finance tips for 2020

By Matthew Andrews, General Manager, Pivotal Financial Australia

The finance world is a complex one, heavily regulated, with a vast array of lending products. So how does one choose a home loan? This is where a mortgage broker can help. Brokers are dedicated to understanding how to match you and your circumstances with a lender that suits you. There are so many factors to consider when making an application, and a competent broker will take the time to identify the factors that are the most important to you.

They will also guide you through the process of obtaining finance. No matter your circumstances, it’s always worth a phone call! In the meantime, here are 10 tips from our Pivotal brokers to consider:

– Set up an off-set account against your home loan account. That way you’ll see your savings grow and save interest on your loan at the same time. – Review your loan structure at least every 12 months.

A lot can happen in that time, and you may be losing money if you don’t keep abreast of the market. – Seek professional advice on how to structure your finances before making purchases. It’s the things that you are not aware of that can bite you later on. – Maintain separate business and personal bank accounts.

It keeps your transactions transparent and your accountant will love you at tax time. – Build your round table – seek out a team of trusted advisers and use them! – Seek professional advice before fixing your rate.

The rate may look great, but there can be heavy penalties if you break it. – Write a budget and keep it real. A budget is a tool to help you see where your money actually comes from and actually goes to, not a wish list of where you think it ‘should’ go. – Pay your credit cards in full every month. The interest you pay on a $20,000 credit card may be the equivalent of the interest on a $80,000 home loan.

Expensive! – Stability is built with three legs – maintain three separate accounts for saving, spending and emergencies. – Pay yourself first - Save 10% of all income into a separate savings account. Watch it grow!

For more tips, or to discuss your personal circumstances, contact us and make your next move your best move!

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