New Year – New Financial Goals

New Year – New Financial Goals

Jan 7, 2024 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Educational Series, Financial Health, Financial Management 101, Home Loan, Mortgage, Saving Money, Self Development

Smart Money Management and Mortgage Strategies for 2024

As we welcome the year 2024, it’s the perfect time to reflect on our financial journeys and set new goals. For many, this means re-thinking our money management habits and looking at our mortgage options. Let’s dive into some key strategies that can help you achieve financial success in the New Year.

Reviewing Your Budget for 2024

The foundation of effective money management is a solid budget. This year, take a fresh look at your income and expenses. Could you allocate more funds to savings or investments? Are there any expenses you could trim or cut back on? Consider using budgeting apps or tools to track your finances more efficiently. I do have an easy spreadsheet that calculates your net position, so feel free to download this and link is at the bottom of this post.  Remember, a budget isn’t just about restricting expenses; it’s about making your money work effectively for your goals.

Invest in Financial Education

Knowledge is power, especially when it comes to finances. Dedicate time this year to educate yourself about investment options, market trends, and updated mortgage products. Whether it’s through books or joining my Learning Hub to access the online courses, coaching, and live events, enhancing your financial knowledge can lead to more informed decisions and better outcomes. 

Review and Refinance Your Mortgage

Interest rates fluctuate, as do your financial circumstances. It might be a good idea to review your current mortgage this year. Could you possibly get a better deal? Are there better mortgage products available to meet your current needs? Consulting with a mortgage broker like myself can provide insights into refinancing options that could save you money in the long run. Mortgages are not set-and-forget product.. This year, it’s crucial to review your current mortgage terms in light of the changing economic landscape.

Embrace Technology in Money Management

Technology is transforming the way we manage money. There are numerous tools at your disposal, ranging from online banking to investment apps. Explore how technology can help you simplify your financial management this year, whether it is setting up automatic savings, tracking investments, or managing mortgage payments.

Set Clear Financial Goals

What are your financial goals for this year? Maybe it is paying off a certain amount of debt, saving for a large purchase, or investing in real estate. Set clear, achievable goals and create a plan to reach them. Remember, goals are more effective when they are specific, measurable, and time-bound.  Goal setting for some is not an easy task, so getting support and having someone that can keep you on track is important.  More information and support can be found in the Learning Hub to get you started.

Join the Learning Hub - Financial Management 101 by Karen G Adams

Work with Professionals

Finally, don’t hesitate to seek professional advice. Money management and mortgage broking are both complicated fields, and working with someone like myself and a financial advisor can provide tailored advice specific to your own situation.

In conclusion, 2024 presents a new chapter in your financial journey. By reevaluating your budget, enhancing your financial knowledge, optimising your home loan, embracing technology, setting clear goals, and seeking professional advice, you can take control of your finances and make informed decisions that pave the way to financial stability and success.  Let’s make this year your best financial year yet!

Mastering Your Money Mindset: How the Powerful Connection Between Managing Your Money and Unshakable Confidence Go Hand in Hand

Mastering Your Money Mindset: How the Powerful Connection Between Managing Your Money and Unshakable Confidence Go Hand in Hand

Nov 17, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Home Loan, Mindset, Mortgage, Relationships, Saving Money

How we handle money can have a big effect on how confident we feel, and the same is true in reverse.

Here are some ways that taking care of your money and having confidence are linked:

Financial success can boost confidence: Being able to manage our money and make money can make us feel good about ourselves and provide us with a sense of accomplishment. But having money problems can make us feel unsafe and lower our self-esteem.

Confidence can impact financial decisions: How confident we are can affect the choices we make about money. For example, if we are confident in our ability to make money, we may be willing to take more risks or start our own business. On the other hand, if we don’t feel confident, we might be more careful with our money and avoid taking risks.

Mastering Your Money Mindset: How the Powerful Connection Between Managing Your Money and Unshakeable Confidence Go Hand in Hand

How we think can have a huge effect on how well we do financially: With a growth mindset, we can learn and get better. This can help us solve problems with money and reach our goals. On the other hand, a fixed mindset can hold us back. This is when we think that our skills are fixed and can’t be improved.

Money can change how we feel about ourselves: How we deal with money can change how we feel about ourselves. If we judge ourselves by how much money we have, we might feel bad about ourselves if we don’t have as much as we think we should. If, on the other hand, we have a healthy relationship with money and see it as a tool to help us reach our goals, we can feel good about ourselves no matter what our financial situation is.

Managing your money, time, and confidence are all linked in the following ways:

Focus on what’s important:  When it comes to handling your money, you should pay attention to what’s most important to you. Figure out what you value and what’s most important to you, and make sure your financial choices reflect that.

Use technology to your advantage:  Technology is a strong tool that can help you keep track of your money and save time. Use apps and online tools to automate your finances, keep track of how much you spend, and make smart decisions about your money.

Money and building confidence: Taking care of your money well can help you feel better about yourself and what you can do. 

Here are some practical ways to build trust by taking care of your money:

Learn about personal finance and investing: This will give you more faith in your ability to handle your money well. You can learn more about money by reading books, taking classes, and talking to financial experts like myself.

Take action: Taking action is one of the most important ways to build confidence. Start small by making financial goals that you can reach, like paying off debt or saving money for an emergency fund. As you reach each goal, you’ll feel better about yourself.

Learn about personal finance and investing

Keep track of your progress: Keeping track of your progress can help you feel more confident in your ability to manage your money. Join programs like my “know your money” program which starts with understanding where you are financially so you can build on from there.

Celebrate your financial wins: No matter how small, celebrating your financial wins can help you build confidence and energy. Give yourself a small reward for reaching your financial goals, and use that good feeling to keep going.

By implementing these practical tips, you can improve your ability to manage your money and build confidence. Remember that building these skills takes time and effort, but the payoff can be significant in terms of your financial and personal well-being.

The LEARNING HUB helps you gain more financial knowledge, while providing you with the support and help you and others need. Join now for only $79 USD per month.

JOIN THE LEARNING HUB AT FINANCIAL MANAGEMENT 101
Join the Learning Hub - Financial Management 101 by Karen G Adams

Flat Chat: Why Units Could Soon Become Hot Property

Flat Chat: Why Units Could Soon Become Hot Property

Oct 27, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Financial Health, Financial Management 101, Home Loan, Mindset, Mortgage, Self Development

Could a smaller dwelling be a solution for you, with apartments, units and townhouses widening their appeal in the property market? If you’re considering your options, reach out to discuss your situation today, there could be a rewarding solution for you!

Apartments stand out as an affordable choice when it comes to cracking the property market, not to mention downsizing. But a looming shortage may soon push unit values higher.

Apartments stand out as an affordable choice when it comes to cracking the property market, not to mention downsizing. But a looming shortage may soon push unit values higher.

For many of us, buying a house on its own block of land is the ‘great Australian dream’. While plenty of people achieve this goal, our property journey is often book-ended by apartment living.

For first home buyers, units can be an affordable choice, costing around 30% less than houses according to CoreLogic.

Then, as we head into our senior years, an apartment offers secure, low-maintenance living, often with a wealth of amenities right on the doorstep.

Apartment demand is outstripping supply

Apartments may be affordable today, but a lack of new apartment construction, coupled with rising immigration levels, points to a looming apartment shortage according to CoreLogic.  And that could push values higher.

Over the next few years, new apartment construction is forecast to be 40% lower in the 2010s, leading to a shortfall of over 100,000 homes by 2027. Close to 60% of the new home shortfall is expected to be in the apartment market.

On the demand side, CoreLogic says a stronger-than-expected level of migration into Australia has seen overall housing demand “skyrocket”. Historically, new migrants head to the high-density areas of our big cities, putting extra pressure on the unit market.

As CoreLogic explains, with interest rates potentially easing in 2024, greater demand and tight supply could fuel a “price boom” in the unit market.

Why more of us are choosing apartment living

Modern apartments are packed with the latest design and sustainability features, meaning they are no longer the poor relation of freestanding houses.

Across our major cities, apartments now account for 30% of all homes, up from 23% in 2010. And the appeal doesn’t just lie in affordability.

Today’s apartments usually come with a wealth of benefits, including:

Government Schemes: because apartments are generally cheaper than houses, they’re more often under the price caps for a range of government schemes, including the Home Guarantee Scheme, stamp duty concessions, and first home owner grants (usually for new builds). These schemes can be combined to potentially save you tens of thousands of dollars and get you into the property market years sooner.

Sought-after Locations: apartment living can be the difference between living close to work, or facing a long daily commute from the outer suburbs.

Lifestyle Advantages: the days of apartments being cramped and lacklustre are over. A variety of on-site amenities, from barbecue areas to pools, gyms and car-wash bays, make unit living convenient and relaxing.

Low maintenance Living: not interested in spending precious spare time mowing the lawns or cleaning the gutters? It turns out plenty of others aren’t either. Unlike houses, units require minimal upkeep, letting residents enjoy more quality time.

Improved Security: if you’re after a lock-and-leave lifestyle, modern apartments fit the bill. Advanced security features add up to a safe and secure living environment.

Modern apartments are packed with the latest design and sustainability features, meaning they are no longer the poor relation of freestanding houses.

Is now the time to take the leap?

Right now, apartments still present an affordable option for first-home buyers, downsizers and investors.

The median apartment price across our state capitals is currently $637,593 – but if CoreLogic is correct, that figure could soon increase as demand outstrips supply.

So if you’d like help exploring your options to purchase your first property – for example, with just a 5% deposit via the Home Guarantee Scheme – then get in touch today to discover your borrowing power.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

GRAB A COPY OF MY "HOW TO KNOW IF YOU ARE HOME LOAN READY?" HANDOUT

How to Help Someone With Financial Stress?

How to Help Someone With Financial Stress?

Sep 25, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Health, Financial Management 101, Home Loan, Mortgage, Saving Money, Self Development

Supporting someone with money stress can be challenging because they may be resistant to accepting help or discussing their financial difficulties with you. 

Often people don’t want you to know they are struggling because of judgement, but this is the time to be the friend or family member to support them. There is always a way out and often they can’t see that due to the stress they are experiencing.  

Sadly some people feel the only way out is to leave this earth and that only leaves the loved ones behind with sadness and more stress than ever before.

Simply checking in with someone, taking them out for coffee, and listening to how they are doing can go a long way toward helping and being the supportive person they need.

Here are some ways to help them while still giving them space to maintain their dignity:

LISTEN ACTIVELY

Start by being a good listener. Let them talk about their financial concerns and stress without offering advice or judgment. Sometimes, just having someone to vent to can relieve some of the emotional burden.

YOU CAN HELP WITHOUT GIVING MONEY. YOU CAN SHOW YOUR SUPPORT IN OTHER WAYS.

Offer your time, company, or help with things that do not cost money, like doing chores around the house, running errands, or giving emotional support during hard times.

PUT AN UPBEAT SPIN ON ANY DISCUSSION OF MONEY AND ALWAYS ASSUME THE BEST.

You could say, “I have been looking into some great financial resources that I think could help anyone, and I thought you might find them interesting,” instead of “You need help with your finances.”

RESPECT THEIR PRIVACY.

Give them space and privacy when it comes to their finances. Do not ask them too many questions or force them to talk more than they want to.

MAKE MONEY PROBLEMS MORE COMMON BY TELLING STORIES OR GIVING EXAMPLES OF PEOPLE WHO HAVE HAD MONEY PROBLEMS AND GOTTEN THROUGH THEM.

This can show them that many people have trouble with money and that asking for help is not a sign of weakness.

Know that it might take them some time to open up or accept help. Wait your turn and let them lead the conversation and decision-making.

BE PATIENT.

Know that it might take them some time to open up or accept help. Wait your turn and let them lead the conversation and decision-making. 

OFFER HELP WITHOUT BEING OBVIOUS.

If you find articles or financial resources that could help, share them in a quiet way. You can send them an article or a link instead of talking directly about their money.

SUGGEST PROFESSIONAL GUIDANCE.

If you believe they would benefit from professional financial advice, make a non-confrontational suggestion. You might say, “I know someone who is really knowledgeable in this area. Would you be interested in talking to them? It might give you some new insights.”

AVOID OFFERING FINANCIAL ASSITANCE.

Do not give them money directly unless you are sure it will not hurt your relationship or encourage them to act irresponsibly. Instead, focus on helping them feel better and giving them information.

Tell them you care about their well-being and are ready to help them in any way they feel comfortable.

EXPRESS YOUR CONCERN.

Tell them you care about their well-being and are ready to help them in any way they feel comfortable. Make it clear that you are not judging them, but that you care about their happiness and health as a whole.

STAY SUPPORTIVE.

Keep being there for them, even if they do not accept your help or ideas right away. Let them know that you will always be there for them.

It is important to give them their independence and let them decide for themselves what to do with their money. You can give them help and resources, but in the end, they have to be ready to take steps on their own to deal with their money stress. 

 Your patience, understanding, and willingness to not judge them can go a long way toward helping them get through their money problems.

The LEARNING HUB helps you gain more financial knowledge, while providing you with the support and help you and others need. Join now for only $79 USD per month.

JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101
Come on and join the challenge. You've got nothing to lose but a whole lot more to gain!

Which Comes First: Emergency Fund or Paying Off Debts?

Which Comes First: Emergency Fund or Paying Off Debts?

Sep 21, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Home Loan, Mindset, Mortgage, Saving Money, Self Development

When money is tight, it can be hard to pay down debt and build up an emergency savings fund at the same time. But it is still possible with careful budgeting and good money management. 

Here’s a step-by-step plan on how to do this:

1. ASSESS YOUR FINANCIAL SITUATION

Start by looking carefully at your money. Write down everything you earn and everything you owe, including the balances, interest rates, and minimum monthly payments.

2. MAKE A BARE-BONES BUDGET

Make a simple budget that covers only the most important costs, such as housing, utilities, groceries, transportation, and insurance. Cut back as much as you can on spending you do not have to.

3. PAY OFF HIGH-INTEREST DEBTS

Pay off your debts with the highest interest rates first, as this will save you money in the long run. All debts should have the minimum payment made, but any extra money should be put toward the debt with the highest interest rate.

4. SET REALISTIC GOALS

Find out how much you can afford to put toward debt repayment and savings each month. Be careful and make paying off debt your first priority.

5. BUILD A SMALL EMERGENCY FUND

Even though it is important to pay down debt, having a small emergency fund can help you avoid going deeper into debt if you have to pay for something unexpected. Start with a small goal, like $500 or $1,000, and slowly raise it as time goes on.

Having a small emergency fund can help you avoid going deeper into debt if you have to pay for something unexpected.

6. USE WINDFALLS/UNEXPECTED MONEY WISELY

If you get money you did not expect, like a tax refund or a bonus, put some of it toward paying off debt and some into an emergency fund. This helps you move forward in both areas.

7. SAVE AND PAY OFF DEBTS AUTOMATICALLY

Set up automatic transfers to your emergency fund and to your debt payments whenever you can. This makes sure that you always move closer to both goals.

8. LOOK FOR WAYS TO MAKE MORE MONEY

Look for ways to make more money, like part-time work, freelance gigs, or selling things you do not use. The extra money can be used to pay off debts and save money.

Talk with your creditors about your money situation. In some cases, you may be able to negotiate lower interest rates, lower minimum payments, or a delay in payments to make it easier to handle your debt.<br />

    9. TALK WITH YOUR CREDITORS

    Talk with your creditors about your money situation. In some cases, you may be able to negotiate lower interest rates, lower minimum payments, or a delay in payments to make it easier to handle your debt.

    10. REVIEW AND ADJUST REGULARLY

    Check in on your budget and financial goals every so often. Change how you pay off debt and save money when your income and expenses change.

    11. CELEBRATE MILESTONES

    Celebrate your successes, no matter how small they are. Every dollar you save in an emergency fund or pay off of a debt is a step toward financial stability.

    Remember that building an emergency fund and paying off debt are long-term goals. It’s okay to progress slowly if your income is limited.

     The important thing is to keep working toward both goals, even if progress is slow. Your money situation will get better over time, and you will have a stronger financial base.

    At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire.  Join our LEARNING HUB today!

    JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101
    Join the Learning Hub - Financial Management 101 by Karen G Adams

    To Switch or Not to Switch Your Home Loan?

    To Switch or Not to Switch Your Home Loan?

    Aug 11, 2023 | Financial Management 101, Home Loan, Mortgage

    1.  Firstly, look at the reason why you want to switch your home loan

    2.  Lower interest rate

    3.  What is the new lender offering that is worth switching

    4.  Consider the features you’re looking for in your new home loan

    5.  Weigh up the pros versus cons of switching

    6.  Look at the costs of switching home loans

    Deciding whether to switch your home loan to another lender is an important financial decision. 

    Here are some factors to consider when making that decision:

    1. INTEREST RATES

    Compare the interest rates offered by your current lender with those offered by other lenders. If you find significantly lower rates elsewhere, switching may be beneficial. However, consider any additional costs associated with the switch, such as application fees, exit fees, or ongoing charges.

    2. LOAN FEATURES

    Assess the features and benefits of your current loan and compare them to what other lenders are offering. Look for features like flexible repayment options, offset accounts, redraw facilities, or the ability to make additional repayments. Switching to a loan with better features could save money or provide more financial flexibility.

    To switch or not to switch your home loan

    3. LOAN TERM

    Consider the remaining term of your current loan. If you’re already several years into your mortgage, switching to a new lender could potentially reset the loan term, resulting in a longer repayment period. This may not be ideal if your goal is to pay off your mortgage faster.

    4. COSTS AND FEES

    Determine the costs associated with switching lenders. These may include discharge fees from your current lender, application fees for the new loan, valuation fees, and legal costs. Calculate whether the potential savings from switching outweigh the expenses involved.

    5. CUSTOMER SERVICE

    Assess the level of customer service offered by your current lender and potential new lenders. Read reviews and talk to others who have experience with the lenders you’re considering. Good customer service can make a significant difference in your overall experience.

    6. OVERALL SAVINGS

    Calculate the potential savings over the life of the loan by switching to a new lender. Consider factors such as interest rate differentials, ongoing fees, and loan term changes. If the savings are substantial, it may be worth considering the switch.

    Remember, before making any decisions, it’s essential to seek advice from a qualified mortgage broker or financial advisor who can provide personalised guidance based on your specific circumstances. They can help you analyse the costs and benefits and determine whether switching lenders is the right choice for you.

    At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire.  Join our LEARNING HUB today!

    JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101

    Pin It on Pinterest