Easy ways to improve your bottom line
- by David Naylor – Co-founder of Chan & Naylor Property Accounting & Wealth Advisory Group
Investors are constantly looking for ways to build their wealth and accumulate more assets. Here are some very simple strategies that could help you save and make money to achieve your financial goals.
Here are 7 easy ways to make money with very little personal effort:
1. Prepare a personal family budget and pay attention to the details:
Pay attention to what and how you have been spending your hard-earned cash. Put your pen and paper at work to know where your income is coming from and what your weekly and monthly expenses are.
2. Get a discount on your current mortgage rate:
Get in touch with various banks and ask for a discount on your current mortgage rates. Arm yourself with what their competitors’ rates are, which could force your current lender to be more competitive. This could save you thousands of dollars in repayments.
3. Be inclined to good debt rather than drowning in the bad:
Focus your efforts on reducing the bad debt that is not deductible and make sure your Investment loans are interest only facilities.
4. Pay your mortgages on a weekly or fortnightly basis - after all, the banks calculate their interest daily: Get in touch with your bank and put in a request to pay the repayments on a more regular basis. This will allow you to save thousands in interest over a loan period.
5. Maximise your cash flow by using your credit card sensibly and managing credit terms:
For example, if your credit card cycle is the 20th, defer processing a payment to a creditor till the 21st, which could give you a minimum of 30 days interest free before you have to settle the credit card balance in full in the following month.
6. Create an offset account:
Any surplus funds are offset against your mortgage to reduce and save the interest.
7. If you have any shares and investment properties that are negatively geared, arrange a PAYG variation at the beginning of each year:
Use the extra cash gained from PAYG variation to pay off the home loan or add to your investment portfolio.
This is general information, please seek tax advice from a specialist accountant and or wealth planner before making investment decisions.
Visit LJH.chan-naylor.com.au to get in touch with a Chan & Naylor Property Specialist Accountant in NSW, QLD, VIC and WA.