Staying In Control Of Your Finances Via Mortgage Education
Women over 55 is the fastest growing demographic for homelessness – an incredibly sad and troubling statistic. With women taking time out to have children, being largely responsible for the bulk of the day-to-day tasks and simply leaving the finance arrangements to their partners, the vulnerability that comes with the loss of financial freedom has never been more real.
Whilst younger women are starting to become a little savvier about money and being in control, it is very easily lost as women get older. Below are some key points to keep in mind if financial freedom and independence is a long-term goal.
Start Early – Keep Your Eye On The Ball And Not On Social Media
We live in a world where we are bombarded with how we should look and what we should buy. We are also becoming a world of instant gratification. Women are particularly at risk of being lured into short term fulfilment that sees hard earned savings eroded into meaningless disposable items. Focus on what is going to provide you with security, freedom and independence for the long term, and keep that buffer in play to protect it.
Avoid Buy Now Pay Later Schemes
They are everywhere – and they have been designed for you to buy things that you can’t afford now, but you can own now. Data has also proven that people are more likely to spend 40% more via these delayed payment schemes, given that hard earned cash is not physically changing hands at the moment of purchase. They are a trap – think about it, if you really need it then you have factored it into your budget and you will pay for it in full straight away. If you can’t afford it, walk away… there are bigger things at play for you. Any Buy Now, Pay Later scheme will have a dramatic long-term effect on any future borrowings (like a home loan for example as banks frown on these schemes and penalise those who use them), so that short term gain, really does produce long term pain – even if the debt has been paid off.
Inflation Is Real – And It Is Cyclical. Be Ready For Downturns
If there is one lesson we have learned in the last 12 months, it is that the economy can change very quickly – and it has. We went from 12 years of blissful interest rate decreases to 12 months of hard knocks, with potentially more to come. Consumers are getting caught out at the quick change of events and some are under severe mortgage pressure. Living within your means has never been more important, but neither has mortgage education. If you have a home loan, understand the mechanics – understand how it works and what you can do to bring down your monthly repayments. It is the biggest household expense; doesn’t it make sense to understand every aspect about it and know that you have it under control?
Keep Your Own Finances Under Control, For You
This might be a hard one to hear, but relationships can be unpredictable. It is easy to get caught in the routine of sharing finances and that is completely fine – as long as you know that if something was to happen, you will be OK. Do your sums, work out how it might look if things did change unexpectedly. Seek out experts who can go through the numbers for you so that you know you can maintain your own financial independence. It is not something to be ashamed of, it is protecting yourself – and putting your relationship in a healthy, equal place. Keep a savings account, understand the bills, be aware of the liabilities and get educated about your home loan. These are all the things that will matter if anything does change.
There are resources available to anyone who wants to learn more about financial freedom and education, including podcasts and online articles. Reach out to those who are willing to help you on your journey – some will give free consultations – and put yourself in a position of confidence and comfort. We all work too hard to build a future, and not invest in protecting it!
About The Author
Adele Andrews is a qualified Accountant and Mortgage Broker, located in Melbourne. She has helped 100’s of homebuyers purchase their first – and next home, but also has a particularly strong passion for mortgage education and empowering clients via options and knowledge.
Her programs include “New Beginnings” which has been devised for women coming out of relationships and trying to navigate the challenges of taking on the family home and associated mortgage, as well as her “Home Loan Ready” program – which is tailored to any home buyer looking to successfully secure a home loan or mortgage. Her business, Australian Property Home Loans has a 100% approval rating when it comes to home loan application success, so if you are looking to buy, refinance or invest, Adele is well equipped to assist you.
To Find Out More Visit: