If you have read our article on rising interest rates then you would already know that the national median home loan is just under $600k. With a 2% interest rate rise on a mortgage of that size you will need to find a whopping $659.11 per month on top of your existing mortgage repayments to cover this increase.
That’s $152.10 PER WEEK! After tax.
Now before you start freaking out, it may take two years for rates to increase that much, so we don’t have to stress yet! However, we do need to plan.
I bet you think the first thing I’m going to do is use that ‘B’ word (Budget!)
The reality is, it’s really hard to write about saving and getting ahead without it, but let’s see what else we can come up with.
Having run a business for a while now, there are really only two ways to improve your cashflow position.
- Cut costs
- Increase income
Ways to cut costs…
We recommend you make small adjustments each month and you’ll be ready before you know it. You’ll be surprised what you can achieve with a little bit of discipline and willpower.
How many of these can you implement to improve your financial position?
Download our check list and add it all up.
Most of these are not about restricting your lifestyle to the extreme. It’s just good money management and financial discipline.