Are you feeling the pressure of rising interest rates?

The last official interest rate rise by the RBA caught many off guard as most were expecting a pause. There are many home owners coming off low fixed rates this year, moving to a much higher interest rate. If you are in this situation, have you prepared yourself for the expected higher repayments? If not, reach out to your mortgage broker to have a look at your options.

It may be a good time to have a close look at your finances to see where you can find savings:

1. Paying off consumer debt such as personal loans and credit cards, frees up more of your disposable income and may allow you to put those funds away to start or grow your emergency fund. Having access to a few thousand dollars for that rainy day or unexpected event can alleviate stress if you suddenly find yourself in a situation you hadn't planned for.

2. Perhaps a debt consolidation is on the cards? If you have plenty of equity in your property, you may benefit from refinancing small personal debts into a split loan with a lower interest rate. You can still pay the same repayments you are paying now which could see you repay the loan quicker than you would have.

3. Look at where your funds are going with a budgeting tool or just examine your bank statements. How many subscriptions are you paying for that you do not actually use or get any real benefit from? What about your discretionary spending - could you cut back on dining out and invite friends over for a home cooked dinner instead?

Whatever your financial goal may be, you need to create a plan to meet that goal. Write up a budget or use this great tool (https://moneysmart.gov.au/budgeting/budget-planner) and try the 50:30:20 rule - 50% to your needs, 30% to your wants and 20% to your goals.

If your current income doesn't allow you to achieve your goal, can you take on a second job or make your hobby work for you?

If you would like to sit down and go through your situation and look at your options, pleases reach out.