Top Ten Tips for Saving for Loan Repayments
If like other Australians, you have some healthy debt in the form of a mortgage, car loans, or fast loans, you may be wondering about the easiest way to pay off your loan and to maximise your net worth. Here are the top ten tips for making the extra dollars go further by making changes to simple, everyday habits and effortlessly paying off your loan.
1. Budget and Set Realistic Goals
Studies show that if you don't have a clearly set goal, you're much less likely to reach your intended destination. Setting a budget is the best way to creating a clear picture of your financial goals and motivating yourself to meet them. Take stock of your income and expenditure. Set weekly, monthly, and annual savings and spending targets and commit to achieving them in your mind - your commitment to a goal is essential for its achievement.
Remember to set realistic goals, or you might become demotivated when you find it too hard to reach your milestones. Keep your budget in a place where you can look at it regularly (at least once a week) to stay motivated and mark your weekly achievements.
2. Get Educated About Financial Management
There are many Internet communities and seminars on financial management. Joining an Internet community will help you stay motivated while giving you access to many tips on saving, financial products, investment, tax, and even using cash loans for a well-deserved reward or investment purposes. Meeting like-minded people in real life through seminars provides additional motivation.
3. Get Tax Advice
Check out how you can make legal deductions from your tax obligations. The Tax Office provides free booklets and information seminars on tax compliance, so be sure to make use of these.
4. Eat at Home
Limit yourself to one or two takeaway or restaurant meals a week. Home cooked food is usually more nutritious and you can use leftovers to pack a healthy lunch.
5. Buying Habits
Something a simple and easy as adjusting your buying habits can help you exponentially increase your savings balance and pay off your loans more quickly.
· Buy Online - buying online is usually much cheaper than in stores, even after accounting for postage costs.
· Buy Generic - generic brands or home brands are often as good as the branded product for a fraction of the price.
· Buy in Bulk - buying in bulk and freezing is another great way to maximising your savings.
· Use Coupons and Specials - there are many sites offering daily special purchases and coupons. Go through your junk mail and you can find great savings.
Transport is a major expense but with simple changes, you can get fit and make huge savings. Car pool whenever you can to split petrol costs and bike everywhere when possible.
7. Bundle Your Telecommunications
The major telecommunications companies offer simple bundle plans. Make use of them to get cheaper internet, mobile phone, and home phone services. You can also use Google Talk or VoIP phone services like Skype to make free or cheap local and international calls.
8. Bank Smart
Everyday banking fees may be a thing of the past. Some of the big banks have introduced completely free accounts with unlimited withdrawals and excellent savings accounts with high interest rates. Shop around and see which one suits your needs and commit to making a fortnightly or monthly saving deposit.
9. Rent and Borrow
Rent and borrow DVDs, books, and music from the library or friends whenever you can.
10. Cut Down on the Little Things
Daily Coffee - a daily $4 workday coffee costs you $1040 a year. A healthy cup of green tea costs around 10 cents to make. Energy and Water - shorter showers and turning off appliances and lights can save you hundreds of dollars a year.