10 genius ways TO CASH IN

SIMPLE STEPS TO HELP GET YOUR FINANCES IN CHECK

- Andrea Black

We all have dreams of making changes in life – improvements to our health, careers, and happiness. According to financial adviser and author Helen Baker, we should also make improving our finances a priority.

“Given the pandemic shake-up we’ve all endured, I suggest financial health should be top priority in 2022,” she says. But how do we do that? Try Helen’s easy tips to do money differently and make a positive change.

REVISIT EVERYDAY FINANCES

A budget (I prefer the term ‘spending and investment plan’) is one of the five foundations on which financial security and independence are built. But things change over time, so it needs regular updates. Incomes change with promotions, new jobs, bonuses or redundancies. Spending can change with marriage, divorce, growing your family, moving house and more. Adjust your plan to your new reality. If costs have risen, look for savings elsewhere. If your income grows, you may have more to save or invest.

CONSIDER REFINANCING

Interest rates are at record lows, but is your mortgage rate? Lenders won’t offer discounts unless you ask. Given recent property value gains, you should have more equity in your home as leverage. If possible, keep your loan-to-value ratio (LVR) below 80 per cent (i.e., your total loan amount is less than 80 per cent of your property’s current value). This will put you in a stronger negotiating position.

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