holiday season | Financial Management 101

Navigating Your Mortgage in Your Prime Years

Jan 17, 2024 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Educational Series, Episodes, Financial Management 101, Mindset, Mortgage, Saving Money, Self Development

If you are between the ages of 35 and 50, chances are you have a mortgage. It is an important part of your financial picture, but it does not have to be overwhelming. Navigating your mortgage during these prime years can be both empowering and financially rewarding if you take the right approach.

UNDERSTANDING YOUR MORTGAGE

The first step in mastering your mortgage is understanding the terms of your loan – the interest rate, the type of rate (fixed or variable), the term, and any associated fees or penalties for early repayment. Knowledge is power, and understanding these basics is key.

2. CONSIDERING REFINANCING

The world of interest rates is ever-changing. If interest rates have fallen since you took out your mortgage, refinancing could save you a lot of money. But refinancing is not just about lower rates; it can also help you pay off your mortgage faster or free up cash for other investments.

3. EXTRA PAYMENTS: A LITTLE GOES A LONG WAY

Making extra mortgage payments can significantly reduce the amount of interest you pay over the life of the loan and shorten your payment term. Even small additional payments can add up over time.

4. BALANCING MORTGAGE WITH OTHER DEBTS

If you have other high-interest debts, such as credit cards or personal loans, it may be more advantageous to pay these off before making additional mortgage payments. It all comes down to prioritising your debts according to interest rates and financial impact.

5. UTILISING MORTGAGE OFFSET ACCOUNTS

Take advantage of any offset accounts that your mortgage may provide. Money in these accounts is used to offset the balance of your mortgage, lowering your interest payments while not committing to a longer repayment schedule.

6. EXPLORING MORTGAGE BREAK OPTIONS

Life can be unpredictable, and financial situations can change. Know your options for deferring mortgage payments if you ever need to, whether due to job loss, illness, or other major life events.

7. BE MORTGAGE-SAVVY WITH TAX

Learn how your mortgage affects your tax situation. There may be tax benefits associated with your mortgage for some people, particularly those who own investment properties.

8. SEEK PROFESSIONAL ADVICE

As a mortgage broker, we can be a valuable resource for you. We can provide tailored advice, assist you in understanding your options, and even assist you in obtaining a better mortgage deal.

9. PLAN FOR THE FUTURE

While you are focused on your current mortgage, do not forget to plan ahead. How will your financial situation look as you approach retirement? What role does your mortgage play in this picture?

10. CELEBRATE MILESTONES

Paying off your mortgage is a marathon, not a sprint. Celebrate the milestones, like reaching the halfway point or getting below a certain balance. It’s important to recognise and celebrate your financial achievements.

Managing your mortgage during your prime years requires a combination of strategy, knowledge, and foresight. You can transform your mortgage from a financial burden to a key component of your financial success by understanding your options and making informed decisions.

If you want to know whether your home loan is working effectively for you and your personal finances contact me at karen@harkenfinance.com for a chat.

Kickstart 2024 - Journey to a New You & New Year

JOIN NOW!

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

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.

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

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

LEARN MORE ABOUT "MASTERING BUDGET AND SAVINGS TECHNIQUES"

How To Build An Emergency Savings Fund

Sep 19, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Mortgage

Building an emergency savings fund is a crucial step in achieving financial security and peace of mind.

Here are some strategies to assist with building an emergency savings fund:

1. SET CLEAR GOALS

Determine how much you want to save in your emergency fund. It is often recommended to have at least three to six months’ worth of living expenses, but you can start with a smaller goal and work your way up.

2. CREATE A BUDGET

Develop a detailed monthly budget to track your income and expenses. This will help you identify areas where you can cut back and allocate more money to savings.

3. PAY YOURSELF FIRST

Think of the money you save for an emergency fund as a must-have expense. Set up transfers from your regular account, where your pay goes, to your savings account when you get paid. This makes sure that you always save.

4. REDUCE UNNECESSARY COSTS

Review how you spend your money and see if there are any expenses you can temporarily cut back on or stop. Put the money you save into your emergency fund.

Reviewing your monthly subscriptions is a wise financial habit that can help you save money over time.

5. INCREASE YOUR INCOME

Look for opportunities to boost your income, such as taking on a part-time job, freelancing, or selling items you no longer need around your home. All and any extra income can then be put into your emergency fund.

6. USE BONUSES AND UNEXPECTED MONEY/WINDFALLS

Any unexpected windfalls, such as tax refunds, work bonuses, or cash gifts, can be a great way to jumpstart your emergency fund. Instead of spending this money, save it.

Remember that building an emergency savings fund takes time, and it is fine to start small. The key is to develop a consistent savings habit and stick to your plan over time.<br />

7. OPEN A SEPARATE SAVINGS ACCOUNT

Consider opening a separate savings account specifically for your emergency fund. Look for a savings account that offers a better interest rate than a regular savings account, allowing your money to grow faster.

8. BUILD GRADUALLY

Do not feel like you have to hit your savings goal right away. It takes time to build up an emergency fund. Celebrate small steps along the way to stay motivated.

9. AVOID USING THE FUND FOR NON-EMERGENCIES

Define what you think of as an emergency and promise to only use your emergency fund for real emergencies, like medical bills, car repairs you did not plan for, or losing your job.

10. REVIEW AND ADJUST

Check in on your budget and savings progress. Change your savings goals and how much you put in as your finances change.

11. CONSIDER THE WINDFALL STRATEGY

If you get a big bonus, like an inheritance or money from a legal settlement, you might want to put some of it in your emergency fund to save money faster.

12. SEEK PROFESSIONAL ADVICE AND HELP

If you’re struggling to save or need some help, consider consulting a financial advisor or financial educator who can help you create a savings plan tailored to your specific situation.

Check in on your budget and savings progress. Change your savings goals and how much you put in as your finances change.

Remember that building an emergency savings fund takes time, and it is fine to start small. The key is to develop a consistent savings habit and stick to your plan over time.

Having an emergency fund can give you peace of mind and financial security when unplanned expenses come up.

Interested to learn more? Then head over to the LEARNING HUB and take the 5 Day Challenge or the 21 Day Kick Start program to help you get on your way.

JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101