20 Jul Top 6 Money Leaks and How to Plug Them
BudgetNet’s Top 6 Money Leaks and How to Plug Them
If you’re like me you like convenience, however it is likely costing you money, here are our top 6 money leaks that you can plug.
The mortgage is one of the largest leaks and is quite easy to fix. On a standard 300,000 home loan. An interest rate 0.5% higher will cost you an extra $1,500 p.a in interest every year! It’s not difficult to review or move your mortgage and can significant amounts of money.
How to plug: Talk to your broker, ask your bank for a discount, or contact BudgetNet to put you in touch with someone.
Insurances are something most of us just pay as the bill arrives. We don’t often check if our renewal price is competitive or we are being taken for a ride.
How to plug: Comparison sites can be a great source of information, compare how your product or renewal stacks up in the marketplace. If needed contact your insurer to review pricing or follow up one of the quotes. When speaking to your insurer a lot will offer discounts for bundling so it could be worthwhile to ask.
3) Impulse buying
We are all prone to impulse purchases. These small purchases add up over time. These can be things such online stores, app store, google play, chocolates or even larger things such as extras on cars or other large purchases.
How to plug: When you go to buy an item, think do I really need this? Or would I prefer to put this money towards my goal? This won’t work every time but it puts in place a good test to start removing those really bad impulse purchases.
4) Unused subscriptions:
These can add up, quite often we forget to cancel the services and end up paying for additional months that we no longer use. Good examples are TV streaming services, Gym Memberships, online subscriptions, magazines subscriptions etc.
How to plug: look over your bank statement and find out what subscriptions you are paying for, is there any you no longer use or want? Call the service provider and cancel the subscription.
5) Credit Cards:
Australia’s credit card debt is 32 Billion with the average card holder with 4,300 in debt. Interest rates can be as high as 25%. If you’re a credit card holder it could be paying hundreds in unnecessary interest.
How to plug: Look to do a balance transfer to a card with a lower rate. A lot of banks will offer low balance transfer rates between 0-5 percent. You also need to fix the cause of the debt and that’s by putting in place a budget and sticking to it. This could save you on a 4,000 credit card debt at 20% up to $800 a year in interest.
6) Excess Fees
These are any fees that are avoidable for paying on time or with better management. E.g. late fees, overdue fees, overdrawn fees, invoicing fees. If you use a toll road, go online and pay it, some utilities companies will offer pay on time discounts.
How to plug:Take the time to read your invoices and bank statement to understand what you are paying for. By improving how you manage your money you could save hundreds per year in excess fees.
Working through these tips will help put thousands in your pocket every year. If you’re not sure where to start contact BudgetNet today on 1300 402 568 and get back on track.