With significant world uncertainties, inflation, rising interest rates, petrol prices and more, we know that plenty are reviewing their budget and making Plans A through to Z!
We reached out to our finance, accounting & sisters, for what they are seeing at the moment in the market, where we can seek out information to make decisions, what we should be asking for from lenders, how to manage budgets and spending, and what to think about with financial planning for the future.
In this article, you’ll hear from 8 of our amazing SAWers who’ve given so many great ideas on saving money as well as helping you feel like you’re in the driving seat with your finances.
And, *spoiler alert* – the final tip turns this whole conversation on its head!
Talitha Holme Mortgage Brokers
Mortgage Broker here – in regards to interest rates no one has a crystal ball.
There are a few sources to go to get some updated information on what banks are forecasting. Usually we attend trainings where the banks talk about their economic outlook. I have seen some banks increase their fixed rates but keep their variable rates lower.
The main thing is to make sure your financial goals are in line with what your current finances are doing. Keeping household debt levels down is also the key in managing any rate rises. Your Mortgage Broker, Financial Advisor and Accountant will be able to help you with your financial goals.
Facebook: Talitha Holme Mortgage Broker
Deb Purvis ~ Robinson Sewell
I’m a commercial finance broker, but the interest rate story is similar for home and business loans. Fixed rates are on the move upwards, and so are variable rates. We are seeing the spread between the two has increased quite a bit over the last few months. No one knows how it will play out over the next few years, but if looking at household budgets and business cash flows, I would be factoring in some increases to any interest payments.
Review your budgets and loans regularly, and if you are struggling to make repayments have the conversation with your lender early. Use a broker to shop around to make sure you are getting the best interest rates and make use of redraw facilities and offset accounts to reduce interest where you can.
My top saving tip is meal planning – by planning your meals for the week, you reduce your number of trips to the supermarket, so less spontaneous spending.
Emma Fabbro ~ Fusion Accountants
In our businesses we have two main ways to increase profits – one is to increase prices or consider diversifying services/products/offerings. If this isn’t possible the other is to decrease costs.
Both will result in higher profits – I love these conversations!
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Sharon Burton ~ Milestone Mortgages
I am a big believer that we control our finances and not our finances control us. With a little time and few simple changes to our lives, we can make significant difference to our expenditure and savings and our disposable income.
1. Know your spend
Until you know what you are spending, you cannot budget. So, get out the Excel spreadsheet, create your columns, go through your bank accounts and balance your accounts.
2. Set up your accounts
Have an account for Bills, Save, Spend. Record everything, even the 5 year renewal for your Driver’s Licences and kids’ education. Once you have worked out what you must spend in each area, divide it into how often you get paid and put that amount into your individual accounts each week/fortnight/month.
Also abolish the fees! Many banks charge $10 or $15 to have an account – but you do not need to pay to give the bank your money. Source a bank that has free banking and online management….
Facebook: Milestone Mortgages
Amanda Horne Concierge
My tip would be if you are not reviewing you Electricity, Gas, Mobile, Internet, Home, Car and Health Insurance EVERY year – you are paying more than you should. In the Essential Home Services Industry LOYALTY does not pay.
Facebook: Amanda Horne Concierge
Victoria Wallis-Smith ~ Nutshell Money
Money should be simple, but somewhere along the way, it got hard… Do you ever feel you should be doing better? Is a money a juggle? Does it cause you stress? It doesn’t have to be that way…
The first step? It might not seem like the most exciting step but it’s SO important… Schedule a recurring weekly appointment ‘money time’.
Why? Because sorting out your money stuff doesn’t just happen! Bills don’t pay themselves. Savings don’t just happen.
Don’t have the stress of ‘I need to look at that’ or ‘I need to sort that’… make it actually happen in your ‘money time’! I do it, still, after 20+ years… so start making your everyday money a priority and give it the attention it deserves.
Facebook: Nutshell Money
Anna Jeffries, Solutions Lead ~ Clevertar
My tip is to never buy straight away. If I want to make a purchase I make a note of it and sit on that thought for a while. I either recognise it was an impulse and didn’t need to buy or I decide I do need it and wait for a sale then buy.
Also buy nothing group is great. About a third of the time when I’ll put the word out for the thing I need and someone will have one to give away.
Jodi Facy ~ Facy & Co.
I challenge you to move from a focus on how to save money, to how to make money. The more you can diversify your income sources, the better.
Whether that is:
- Adding an extra revenue stream to your business that doesn’t require your direct time; e.g. e-books, pre-recorded courses or masterclasses, merchandise
- Adding an extra revenue stream that enables you to serve more people at once and leverage your time, e.g. paid speaking gigs, group workshops or masterclasses.
- Adding a premium priced, high-touch, VIP service offering to your business
- Increase your prices – if you haven’t increased them in the past 12 months, you need to do it; just look at inflation – life has become so much more expensive!
- Do some marketing – come up with a compelling offer and email it to your existing customers or email list – you’d be amazed at how effective this can be
- Looking at non-business income opportunities, e.g. hiring out your granny flat on Airbnb, selling unwanted goods online, investing in quality shares that pay dividends (and don’t forget compound interest to build wealth), joining Air Tasker and taking on occasional tasks. You would be amazed at the things you can be paid to do, be brave and ask for that payrise you KNOW you deserve.
I guarantee if you sat down and thought about it there is probably a way you could bring some reliable extra $$ into your lives that can really make an impact, without sending you nuts (I am not talking about getting a second or third job and working yourself to the ground here!).
We are all capable of earning money in so many ways and I feel like the narrative around living frugally to get ahead misses the mark in so many ways – quite often your average person is already doing all the things to cut costs, but they still find it hard to get ahead because they are only earning money from one source, and sometimes even that one source is unreliable.
And life is too short to deny yourself the occasional take away coffee or avocado on toast if that is what brings you joy!