Book of the Week | Financial Management 101

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.

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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!

How to Be Mortgage-Free in 4 Easy Steps

Nov 23, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101

Can you imagine seeing your home loan balance diminish every month to the point that you now have no debt and no mortgage? Now enjoy a happier, less stressed lifestyle, knowing the major debt in your life has finally been paid off.

Imagine receiving the deeds to your home with just your name on it and not your bank, as previously they had joint custody of your home.

Just imagine what it would be like to not pay a mortgage, or better yet, to be well on your way to owning your investment property.

Putting you, and not your bank, in the driver’s seat of your financial life.

We give you the tools to own your home faster – the one big debt looming over your head.

I am often asked to examine potential clients’ home loans, as they want to know if they have the right home loan structure to help them reduce it quicker.

There are 4 steps to becoming mortgage free faster, and they are:

1. Set your goal
2. Get a coach – mortgage coach and financial & mindset coach
3. Learn how and what to do to achieve your goal of becoming debt-free sooner.
4. Create a plan and stick to it
5. Take action, do what others won’t do, and you will see the benefits of becoming debt-free sooner.

So I hear you saying, what can a coach do?

Firstly, there are two types of coaches when it comes to reducing your mortgage. The first is a mortgage coach, and the second is a financial and mindset coach.

1. The mortgage coach is the one who ensures your home loan is structured and set up correctly, utilising the latest strategies available to maximise the full debt reduction potential. The mortgage coach’s responsibility is to ensure they are working with you to understand your home loan so you can work towards paying it down as quickly as possible.
2. The financial and mindset coach is the one who works with you regularly to help you stay focused and on track towards achieving your financial goals. The financial and mindset coach ensures that when life suddenly throws you a curveball, as it often does – they are there, ensuring you have the tools and resources necessary to stay motivated and on track.

So let’s take a look at what it may cost you to not get a coach.

If you had a home loan of $400k with a 30-year term, this would cost you at the end of your loan around $733k. That’s an additional $333k of your hard-earned money going to the bank for the privilege of them loaning you the money.

Perth Mortgage Finance Broker - Karen G Adams

Now let’s take a look at a home loan that’s adopting the mortgage reduction strategy along with getting support from a coach.

When the mortgage coach got to work with this client, they were able to save over $210k in interest payments alone, not to mention over 11 years in the term of their mortgage.

It’s really possible to pay your home loan off faster with the right home loan structure, and the right coach on board can help you achieve this.

This is one of the strategies I teach in my course “How to Keto Your Money – 21 Kick Start Program”. You get coaching from me on how to pay your home loan down fast and get the support you need to stay on track.

This is also what I often talk about in building financial muscle and having money work to YOUR advantage and not to your bank or financial institution’s benefit.

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.

Let me help you!

Get in touch with me today to see firsthand if you have the right loan structure and how my coaching style can support you to achieve your financial goals sooner.

Get in Touch with Karen G Adams

Struggling with the high cost of living?

Oct 31, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Financial Health, Financial Management 101, Mindset, Mortgage, Relationships, Saving Money, Self Development

Here are 9 ways to make your dollar go further and relieve some stress.

If you are looking for ways to tackle the rising cost of living, here are some things you can do TODAY to put money back into your pocket. Every dollar saved can make a difference!

As life changes, you need to review the major expenses in your household and see if you’re paying for things that you needed years ago but don’t now.

1. Take a look at your major costs.

When times are tight, it can make a world of difference to take a look at your subscriptions, recurring payments, gym memberships, and even your home, car, and health insurance. We recently went through the process of reviewing all our insurance policies, and we were actually surprised that we were able to save money and cut down on areas where we were over insured. As life changes, you need to review the major expenses in your household and see if you’re paying for things that you needed years ago but don’t now.

2. Look at how you’re paying for things.

You could save money in the short term by switching some of your subscriptions or payments from monthly to yearly, or you could temporarily reduce your spending by putting these items on hold to free up some cash in the short term. Once you have more surplus cash, go back to yearly payments for subscriptions, as you can get a deal or save by paying for the full year.

3. Check your home loan rate.

If you want to save money, your home loan is a great place to start. Now is the time to review your home loan if you haven’t already. There are many features within your home loan that can make a BIG difference to the interest portion your bank or lending institution charges at the end of the month. One example is that if you have an offset or redraw facility, learn how to maximise to take full advantage of how using these can save you money on your regular mortgage repayments.

4. Review your online streaming services.

I often review my online streaming services to see if we’re using them as often as we think and a month back cancelled those that I barely used. There are so many out there, and do you really need them all? By cutting down on one or two, you could save up to $20 – $30 per month, and that’s a big saving when money is tight. So think about canceling subscriptions to some of the streaming services you no longer regularly use.

By cutting down on one or two subscriptions, you could save up to $20 - $30 per month, and that’s a big saving when money is tight.

5. Cut down on take-away food

One of the biggest expenses for most households is buying takeout. Take away food outlets are a time saver for busy people, but they are one of the biggest expenses in many households. By saving $50 – $100 per month and not buying takeaway food, this can make a huge difference to your bank balance and can be used to pay down potential credit cards or other debt, which in the end will enable you to have more cash flow.

6. Plan your meals and think outside the box.

Sorry to be the bearers of bad news, but it is true: sticking to a reasonable meal plan can save you dollars at the checkout. Make a week long menu with everything from breakfast to dessert planned out, and include the family in what they’d like to eat. By getting them involved in the process, they are more likely to enjoy the food you’re cooking. Make it a family event and teach your kids the power of saving by preparing and cooking meals the whole family will enjoy. Cook a little extra and freeze it, so on the days when you don’t feel like cooking and want to order take away, you can grab what you cooked the week earlier for dinner or lunch.

7. Shop for groceries online.

You can stick to your budget and meal plan when you shop for groceries online. Wednesday is a good day to shop at the supermarket because that is when many stores update their weekly specials.

8. Look at separate spending and savings accounts.

With your regular bills, put aside a set amount for your ongoing expenses into a separate account and have them directly debited from that account so they are paid automatically without you having to think about it. All you need to do then is put regular money into that account at payday to ensure the amount is in there when the bills are due.

By having a separate spending account for bills, this stops you regularly dipping into your savings for non-essentials

I have more information on how to manage your spending and savings and you can find this in the “Learning Hub” at financialmanagment101.com.au

9. Compare petrol prices

And last but not least, the costs of fuel today are so high that it’s sucking every dollar from you just to fill up your tank today!

There are apps that you can get on your smart phone to check daily fuel prices, so I would encourage you to do this when your tank is around ¼ – ½ left to go, so you don’t fill up at the last minute and have to pay a higher price.

Want more help managing your money? Then check out this course that helps you budget and save your hard earned money.

Use apps that you can get on your smart phone to check daily fuel prices.

Mastering Budget and Savings Techniques by Karen G Adams - Financial Management 101

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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.

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.

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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.

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.

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.

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