whatmakesyouhappy | Financial Management 101

The Joy of Frugal Living: Luxury in Simplicity

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

For those in their mid-30s to 50s, frugal living doesn’t mean cutting back on life’s pleasures. It is about finding the luxury in simplicity and making wise decisions that improve your life without breaking the bank. Let us look at how to live both luxuriously and frugally.

1. REDEFINING LUXURY

Luxury is often associated with high-end brands and lavish spending. However, true luxury is defined by high-quality experiences and moments. It is about appreciating what you have and seeing value in simplicity.

2. TRAVEL SMART

Travel does not have to involve expensive hotels and first-class flights. Consider low-cost options such as off-season travel, home exchanges, or staycations. Plan and book ahead of time to get the best deals and experience luxury for a fraction of the price.

3. GOURMET COOKING AT HOME

Dining at high-end restaurants is enjoyable, but recreating those experiences at home can be equally rewarding. Invest in new cooking skills, experiment with different recipes, and enjoy gourmet meals in the comfort of your own home.

4. SMART SHOPPING

Take a mindful approach to shopping. Put quality ahead of quantity. It’s better to have a few well-made items than a closet full of things you hardly use. Look for sales, discount outlets, and thrift stores to get high-quality items at lower prices.

Teach your children about money management, saving, and investing.

5. DIY HOME DECOR

You can create a luxurious home environment without spending a lot of money on decorations. DIY projects, upcycling, and a little creativity can help you transform your space elegantly and affordably.

6. INVESTING IN EXPERIENCES

Instead of material possessions, invest in experiences that create lasting memories. Concerts, art classes, local festivals, and outdoor adventures often offer more fulfillment than material goods.

7. SELF-CARE ON A BUDGET

Luxury is more than just material possessions; it is also about self-care. Instead of paying for expensive spa treatments, create your own at-home spa experience. Practice yoga, meditation, or have a relaxing bath – affordable yet luxurious ways to care for yourself.

8. SIMPLIFY YOUR LIFE

Remove clutter and simplify your living space. This not only makes your home more comfortable and manageable, but it also allows you to focus on what is truly important.

9. GROW YOUR GREEN THUMB

Gardening can be a relaxing and rewarding way to experience luxury. Plant your own herbs, vegetables, or beautiful flowers. This not only improves the ambience of your home, but it can also provide you with fresh organic produce.

10. EMBRACE COMMUNITY RESOURCES

Take advantage of community resources such as libraries, parks, and free local events. These can provide free entertainment, education, and the opportunity to connect with others.

Frugal living means appreciating and enjoying life’s simple pleasures. It’s a mindset that values experiences and quality over price tags, leading to a more sustainable, fulfilling lifestyle. Take this approach to uncovering the hidden luxuries in everyday life.

Learning about money can give you the power to make smart financial decisions and reduce money-related stress over time. That’s where the LEARNING HUB helps you gain more financial knowledge, while providing you with the support and help you need.

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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.

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

10 Tips on How I Help My Clients Get a Home Loan as a Mortgage Broker

Nov 22, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Financial Health, Financial Management 101, Mortgage, Saving Money, Self Development

1. Evaluate your financial situation:

Before you start the application process, we need to assess your financial situation to ensure you are eligible for a home loan.

2. Determine your affordability:

What I do next is work out your borrowing potential and calculate how much you can afford to borrow.

3. Find the right lender:

Depending on your own financial situation, credit score, and other factors, I research the extensive list of lenders on my panel to find YOU the right lender.

4. Pre-qualifying you for a home loan:

Pre-qualifying you can help understand how much you can afford and make the process smoother.

5. Explain the different types of loans and features available:

Part of my role is to ensure you know the various types of home loans available and help you decide which one is best based on your individual financial circumstances.

6. Assist with the paperwork:

As a mortgage broker, I work with you to help gather all the necessary paperwork and documents required for your home loan application that a lender requires.

7. Guide you through the application process:

Walking you through the application process and explaining the various steps involved are all part of the process.

8. Communicate with the lender:

As the intermediary between you and the lender, I handle all communication with the lender on your behalf to ensure the process moves smoothly and provide any additional information the lender may require.

9. Staying up-to-date on mortgage rules and regulations:

As a mortgage broker, it’s essential that I stay informed about changes to mortgage rules and laws that may affect you.

10. Provide ongoing support:

Even after your home loan is approved and long after your new loan has settled, I will continue to offer support and guidance to help you manage your home loan and navigate any issues that may arise.

Want to have a chat about refinancing or obtaining a new home loan? Reach out to me at karen@harkenfinance.com to see how I may assist you.

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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Buying your first home is a BIG and important step in your life. This guide is here to help you in becoming home loan-ready before applying for a home loan. Get your free copy today!

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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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