The easiest way to make more money is to spend less of the money you already have. A $3 coffee a day costs you $1,000 per year before tax. An unused Gym membership, a poorly selected car insurance or medical insurance policy will erode what you have worked hard for. Have a look at these resources and see what you can save. Number 5 saved me a lot of money. The last one though is my favourite.
Ensure that you and your partner and children are registered as a family for the Medicare Safety Net, rather than as two individuals. This will lower your Medicare safety net threshold.
Shop around for your car insurance. The cost of a comprehensive insurance policy can vary by over one thousand dollars per annum!
Health insurance can be another great place to make savings; even a 10% saving on an average package policy premium would be more than $300 per annum.
Review your telecommunications contracts. There are hundreds of different telecommunications plans available. Review your Contracts periodically to ensure that it’s cost effective.
Review your electricity and gas options as well. Being on the wrong plan could be costing you. Also make small changes such as washing your laundry in cold water and drying clothes on the line. This website shows reductions in expenses of 38% on electricity and 25% on gas when signing up for a direct debit plan.
Combine this with a bill smoothing program where the post winter bill shock can be planned against.
Review your superannuation fund. A small difference in fees and/or return can make a big difference to your retirement nest egg. One in three working Australians have lost track of some of their superannuation, to the tune of around $18 billion. Track it down to potentially increase your retirement nest egg by thousands of dollars.
You may also have lost money sitting in bank accounts, company shares or life insurance policies. You can search for unclaimed money on ASIC’s consumer website.
Phone your bank and ask for a discount on your mortgage interest rate. Even a 0.15% discount could save thousands over the life of your loan!
Audit your bank accounts to ensure that you are not paying fees. If you are, there are plenty of fee-free options available.
If you owe money on your credit card, check what interest rate you are paying. Credit card interest rates can vary from less than 10% to more than 22% and on a $3,000 ongoing debt, that difference could save you more than $300 per annum. As a part of this consider using the balance transfer to temporarily stop all interest payments. This can be done by transferring the debt to another bank.
Mortgage Miser has a new system for working out where your money is going and using that money to pay off your debts and ultimately your home loan. We would like to hear from you. We would like to sit down with you and review your finances and show you how to pay your home loan off faster. In all cases we have been able to save years off a home loan.
Please discuss any of the above concepts with your Professional Advisor, Accountant or Financial Planner prior to making any changes to your particular situation.