Spring is most definitely here – the weather this week! Bring. It. On.
As soon as there’s a hint of warmer weather in the air, my thoughts turn to giving things a spring clean, and freshening up the outside area ready for summer.
The good news is that spring cleaning can lead to some bonus savings – it’s a win-win.
Here’s some simple steps that I’ve been working on to spring clean my finances:
Spring tip #1: Ask for a rate review on your home loan
Thank goodness interest rates stayed stable but even with that news, who wouldn’t like to reduce their home loan repayments?
Well, a better deal might just be a phone call away – and just the stress-buster you need.
The Nutshell house has a split loan, and the fixed rate has a while to go (thank goodness). But the variable rate – it doesn’t look so good.
So, time to call the bank and ask for a rate review – you don’t ask, you don’t get!
Asking your bank, or mortgage broker, for a rate review is quick and simple. It was a 5-10min exercise and the result? A 0.25% reduction. #winning
Shaving 0.25%pa off your interest rate might not sound like a lot. But on a home loan of $500,000 that’s a saving of $1,250pa (or just over a hundred dollars each month). It’s probably the most lucrative phone call you’ll make all year.
(This is where a relationship with a broker can be a great asset – they’re across the market and can discuss options to suit your needs – maybe you need more than a rate review).
Spring tip #2: Time for a cashflow update
While you’re on a roll with your banking, it’s worth taking a little time to look at your spending habits.
By simply taking the time to run through your statement, you can identify areas where you may be spending more than you realise.
I like to pull out the highlighters to flag items of interest – lunches and coffee are a small cost but when you see how often they occur, it can be a real eye opener. Once you’ve identified your areas of weakness, it’s easier to find ways to cut back.
For example, have a look at that 'quick' lunch. With so many costs going up, lunch and coffee is rarely change from $20… have a think about how much that adds up over a week (it’s $100)… and over a month… and I know you don’t want to think about what it would come to over a year!
We’ve been taking leftovers into work for a while now, and while it does save money, it’s also a really quick option, it’s more about being quick, healthy, and reducing waste.
Whatever your reason, when you make some small cutbacks, it’s usually a good move on multiple fronts.
Mindful spending might sound a bit ‘new age’ but it’s just taking a moment to consider:
“Is this the best way to spend my money?” or,
“Would I rather have the money to put towards my goal?”
Spring tip #3: Cash in your unwanted goods
Yes, you can kill two birds with one stone – combine the clean out of your spare room, garage or shed with your financial spring clean!
Online marketplaces have made selling your unwanted stuff easier than ever – and it’s another great way to support recycling and re-using.
We’ve eyed up a few things that will not only free up valuable space but are easy money. Full disclosure, our kids love it too (with our help posting etc).
Our 12year old sold a Beyblades stadium that had been gathering dust under his bed for the princely sum of $10 – I’ll leave you to google what it is. When the 8year old rocked up with his mum to buy it, you’ve never seen two happier boys. A lesson in money management 101.
So, grab your phone and take a serious look at bikes the kids have outgrown, unused camping gear in the shed… hell, maybe you’ve even got a electric drum set looking for a new home (yep, that’s us!).
With a smartphone in hand, it takes a matter of minutes to get your gear online and then wait for the offers to come in.
More quick wins?
There’s lots more you can do to improve your money management – and every little bit helps.
If you’d like a fresh set of eyes on your approach – whether it’s boosting your savings, reigning in expenses, or mindful spending that align with your goals – working with a money coach helps you get the results you want, faster.
Schedule a complimentary call using the link below, and we can discuss if Nutshell Money is the right fit for you.