Heading towards a destination is easier when you have a map, of equal weight is knowing where you sit currently. We all understand that paying a mortgage off faster will result in paying a mortgage of faster. The key is understanding where you are in terms of your cashflow. We are using some new tools to bring clarity to accelerating the journey of paying down home loans. Sample in the clip above.
Understand your current situation
A starting point can be tracking what you have been spending and categorize it. Also think about big spends – do you update your car every eight years, how much do you spend? You can take less regular expenses like overseas trips and break them down to an annual amount. This will ensure that there are less surprises.
Set a realistic budget
Sometimes we can be very harsh on the changes we want and demand too much from ourselves. Baby steps are ok, maybe there is a simple way to get a taste of what’s possible. And small improvements can lead to some results which can later drive further motivation. Things don’t have to be perfect from day one.
Use safe tools
Over commitment to home loans terms can result in issues. It is better to use flexible products like an offset or revolving credit home loan to maintain flexibility in repayments. Using a specialist financial adviser like ourselves can be vital. As it is important to track and review the progress, to keep the optimum blend of home loan products.