With interest rate increases, housing affordability issues and rising living costs, many Australian families are under financial stress.
Financial stress is a relatively common problem that many people face at one point or another. It is related to insufficient income, high expenses, and changing financial circumstances.
From petrol to groceries to rising mortgage repayments, it’s understandable that the financial impact is having a significant effect on many people’s lives. So how can you counteract the financial challenges we face?
That’s right. We’re starting by going back to basics.
Budgeting may be something that you usually don’t have to give much thought to if you have excess income for saving or discretionary spending. But with inflation and everyday things getting more and more expensive (and wages not keeping up), you may have to rejig your budget to ensure you can comfortably meet your living costs and contribute to your longer-term financial goals as well.
In a time of inflation and increased costs of living, many people stray away from their long-term financial goals like saving for a house, a holiday or retirement.
But with effective budgeting and cashflow management, you can be sure to meet your short and long term money goals!
#2: Find Ways to Save on Your Mortgage Repayments
With two recent interest rate rises already in 2022, like many people, you may have seen a significant increase in your monthly mortgage repayments.
While the monthly repayment may only be small this can throw a spanner in the works for your savings, budget or investments.
So how can you save on your mortgage repayments?
- If you don’t already have one explore opportunities for an offset account so you can pay off your home loan as quick as possible to save on interest but also still have the opportunity to redraw some money for emergencies/unexpected expenses.
- You may like to explore a refinance opportunity to get a better deal on your home loan and use the equity in your home.
- If you can, make your loan payments fortnightly, or weekly instead of monthly to save on interest over the long-term.
#3: Review Your Investments and Create New Income Streams
When financial circumstances change, it’s always a good idea to review your current investments. It’s not only important to review performance, but also if they are still aligned with your financial circumstances and goals.
You may be looking at taking some money out of your liquid investments to supplement everyday living costs. Alternatively, you may find that your current investments aren’t providing you with enough income as you would like which means it may be time to re-strategise – either by yourself or with a financial adviser.
Work with Cambio Group’s Financial Planners
At Cambio Group, our financial planners take a holistic approach to your finances. We can help you with budgeting, investing, paying off your home loan and achieving overall financial success.
Financial stress is common and can be hard to deal with at first. However, if you take small steps to address the problem, you will start to feel less stressed in the near future.
Communicate with your family or friends who can help you see things in a more positive light. Once you gain some resemblance of peace and stability in your life, you can start looking at financial problems and take steps to solve them.
If you require the assistance of a financial advisor on the Gold Coast, you can rely on Cambio Group. We offer financial advice ѕоurсеd by years of experience and professionalism.
Get in touch with us today to manage your finances properly.
Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.
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