Make one change at a time

#savings #Investment #Inspiration #Motivation #Planning
Maybe you don’t want “regular commitment.” Plan a weekly outing to look forward to. Visit a museum or a shop you have passed but have never gone into. Get your nails done. Do this with friends or go solo. Plan one outing and resist others, thus saving money.
Possibly you are at a stage in life where none of these work well for you. Perhaps you have children at home or an elderly parent who needs you most In this case, Get a little creative. Try genealogy or blogging. Set some personal goals. Resolve to read a certain number of books each month, for instance. If you like to cook, try a new recipe every week.
Most of all, be kind and gentle with yourself as you decide how you want to make changes. No need to rush. Making the decision to make a change is in itself a big step. Once you know you want something fresh in your life, you may be surprised at how many opportunities seem to come your way. Keep an open mind and enjoy the exploration as you re-energize your life!
For advice on how to save and for goals to better financial health, call Madhu 0425341086 or email at loans@financeandmortgage.com.au.

Do you carry good debt or bad debt

Everyone carries debt these days, be it a car loan, credit card debt or a mortgage. Good debt typically provides a greater return on investment than the interest being charged and tends to fit well within your bigger financial picture. #Mortgage #HomeLoan #GoodDebt #BadDebt

Home Mortgage is meant to be a good debt, because it allows you to leverage a home of greater worth than you can hope to save for and buy.

Similarly, a mortgage could be considered good debt because it benefits your family while a car loan may be necessary to provide transportation to and from work. A mortgage is considered a long term asset. A car loan must be carefully analysed to balance your needs and wants. You might want a sports car but realistically a family SUV might be more practical and economical.

You could also argue that a student loan is good debt because higher education is an investment in your earning power.

But there is a catch. When payments on good debt become unmanageable, they start to feel like bad debt — and it could rapidly become an ugly situation for you. For instance, student loan payments on a degree that didn’t boost your income, or mortgage or car payments that eat up too much of your take home salary, can rapidly lead you to rely on credit or loans to cover day-to-day expenses. Credit card debt tend to spiral out of control because of the higher interest rates.

The bottom line: Good debt only stays that way if it is part of a well-thought-out financial plan. Otherwise, you may be turning something that’s meant to be good into something that ends up being bad for your budget.

Call Madhu on 0425 341 086 to discuss your ideas and views.