Page 37 - Smart Money

Smart Money

You will learn how to ensure you get the right loan to start with, so that
you get what you actually need, instead of borrowing more money and
getting into more debt.

We’ll discuss how to finance for investment and expansion, so taking out
your mortgage now, but planning for later when you might want to buy
an investment property. You are not just organising for today; you have a
strategy in place.

I will show you how to plan and protect your financial future, by
encouraging you to see a financial planner so that if something happens,
like you lose your job or your partner dies, you are covered and things
will be okay.

Key Point
You should talk to the right people before you do anything. Go and
see a mortgage broker before you buy a house. But even before that,
instead of putting the money into the bank and using your credit card,
try actually living on the money in your wallet. It makes you more
accountable for what you are spending. It makes you aware of the
amount you are actually spending. Because once it’s gone, it’s gone.

You might think having a budget is this big, daunting exercise. Write
down everything you spend in a month – put it on a piece of paper and
really look at it and see how much you actually spend. That is part of
having a budget, but a lot of people don’t ever write down what they
actually spend in a month. At the end of the month, go to your bank or
credit card statement and marry the numbers up, and find out how much
you really did spend on all those areas. It might be a big eye opener.

The other thing you should do is open a separate bank account. Everyone
can get to their internet banking online these days, but open a separate
bank account and put money into it every month, before you get paid.
I recommend budgeting yourself $100 a week for spending. Also, shop
online, because generally you can grab a bargain.