Planning for the 'what if'
With poor sentiment in the economy at the moment and a lot of industries reporting less than favourable profits, Aussies are generally worried about their money. We’ve noticed a lot more people calling us because they are reviewing their finances and looking to save money on their home and investment loans.
It appears that now more than ever families are trying to plan for the ‘what if’ scenarios, and trying to work out ways to cut down their spending and put some money away for a rainy day. What if rates rise? What if I can’t afford the increased cost of living? What if I lose my job tomorrow?
The best way to mitigate these risks is to have some cash spare. Do a budget – see where you can save money. Maybe it’s something small like eating at home more, or buying less take away coffee. Maybe you’ve got some bigger expenses that are discretionary, that you can live without.
Here are 5 tips to save money:
1. Understand what you are spending your money on
2. Set savings goals
3. Stop spending on small things that add up
4. Get a competitive rate on your home loan!
5. Pay off your credit cards
Along with improved budgeting, we’ve also seen an increase in people taking out insurance policies that cover you if you lose your job. In these times, people want financial security, and are really looking at putting a plan into action to cover themselves.
Is there a light at the end of the tunnel? I definitely think so. In my opinion we are just in the middle of a cycle, but only time will tell how long this cycle will last so it’s really important to try and protect yourself for any ‘what if’ scenarios now.
The smartest thing to do is to batten down the hatches and make sure that you are ready for the unexpected. Whether it be switching finance companies to save money, adjusting your spending habits or insuring yourself for the ‘what if’ scenarios, it’s important that you take control. Taking control will prepare you for the unpredictable.
By Marie Mortimer. You can follow Marie on Google+
Image credit: Jan Willem Geertsma