Style: June 02, 2017
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STYLE | finance 83<br />
REALISE YOUR MORTGAGE IS NOT SET IN STONE<br />
The contract between you and your lender isn’t a rigid one and<br />
mortgages should reflect the best aspects of your financial situation<br />
and interest rates, bank lending and your goals changes.<br />
Ultimately, the goal is to pay your mortgage off quickly, meaning<br />
you’ll repay less over time. Split your mortgage into manageable<br />
chunks to achieve a series of short-term goals. A five-per-cent<br />
chunk sits aside from the total and can have current best interest<br />
rates applied to it – it’s an easy way to make a dent in your debt.<br />
USE INVESTMENTS TO CREATE CASH FLOW<br />
Allocating some money to investments (which can be made on<br />
your behalf by a funds manager) can give you enough returns to pay<br />
off another debt. Cash flow can also be created from a property<br />
you’ve bought and rented out.<br />
MAKE TINY SACRIFICES NOW TO SAVE EXPONENTIALLY<br />
LATER<br />
For your mortgage, by making an increase in payments of around<br />
the price of a flat white a day, you could reduce your mortgage<br />
term by more than four years. That’s a huge saving when you<br />
consider that the average total repayment is more than two and<br />
half times the original loan amount.<br />
WORK ON YOUR FINANCIAL LITERACY<br />
Stop thinking you’re just one of those people that is “bad with<br />
money”. You can change that.<br />
There are a vast number of books and online resources that can<br />
help, but in New Zealand most financial advisors will give you free<br />
financial advice – you’ve just got to ask.<br />
GET INSURANCE EARLY AND LEVEL YOUR PREMIUMS<br />
Your health and ability to earn an income are your biggest assets.<br />
To lose either would be a major financial set-back, which could put<br />
your life goals out of reach.<br />
The younger you sign up for health insurance, trauma, life and<br />
income protection, the more likely you’re to be covered without<br />
exclusions and the cheaper your premiums will be if you level them.<br />
By levelling the premium (whereby you pay a higher amount initially<br />
but the amount stays the same and doesn’t escalate with age), you’ll<br />
save tens of thousands over a lifetime.<br />
WHAT IS A ‘MILLENIAL’?<br />
Someone born in the 1980s to early<br />
2000s, reaching adulthood in the 21st<br />
century.<br />
JUNE 30 - JULY 2<br />
HORNCASTLE ARENA<br />
10AM - 5PM<br />
Adults $8, under 12’s free<br />
starhomeshow.kiwi<br />
Star Media Event<br />
Star Media is proud to be sponsoring Canterbury’s first ever Playhouse Challenge<br />
Live Auction Saturday July 1 at 4pm<br />
Proceeds to charity - Birthright Canterbury and Tenants Protection Association
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