If you took out a loan in 2011 or later you will have never seen an interest rate rise, there is a fair bit of shock now.
The consensus from economists is we expect to see a hold in the rates this afternoon, but that does little to comfort many people.
These interest rates are impacting 2 major parts of our community. Firstly, and most obviously, are the 35-44-year-olds that hold the most debt, and secondly is the under 35s who are generally renters. The debt holders are finding their repayments increasing and renters are finding property investors are passing on those costs to them. Whichever camp you find yourself in it isn’t an easy situation.
As such, it is time to go back to basics. It may be the first time people have had to start budgeting and consider debt management plans.
The absolute best way to ensure you can live as comfortably as possible is to set a budget and try your best to stick to it. Then add to the budget the best way to tackle the debt you have, i.e. good debt vs bad debt.
Most people think they only need to see a financial planner when they have money to invest or are looking to retire, but I can assure you we can help people in all stages of life and can be invaluable when life is tough. We are here to work with you through good and bad times.
When working through a budget with clients there always seems to be a surprise moment when we find money that is unaccounted for. This is the perfect opportunity to make that money work for you!
If you want to start the budgeting journey a good template can be found here – https://moneysmart.gov.au/budgeting/budget-planner – You will find an online template that can be downloaded as a Microsoft Excel (.xls) file to keep a copy of.
For any Financial Services assistance, please speak to a Financial Planner now at BW Private Wealth Financial Planning | Ballarat | Ararat | Surrounds
