Property Credit Logo

Budgeting tips following another rate rise

If we can speak on behalf of Australians everywhere right now — we’re officially done talking about rate rises. While it’s tempting to cover our ears and hum, it’s important we’re proactive with our finances right now. Plus, budgeting is always a good idea whenever, and whatever your financial circumstance. We’ve rounded up our top five budgeting tips to help better empower you through yet another rise in interest rates.

1. Prioritise
If you’ve started a budget in the past but never really seen it through, now is the time to get serious about money management. Remember, starting (and sticking to) a budget doesn’t have to come at the demise of your social and spending life.

Write down what’s important to you. Health is a key one for most, so that weekly charge from the gym (assuming you actually go) could be a non-negotiable.

Rank your priorities in order of importance, starting at the top and working your way down. So it might look like:

If you’re a parent, your bigger expenses might look like school fees, health cover, groceries and extra-curricular activities. If you’ve established health is most important to you, perhaps some of the extra-curricular activities can be put on the back burner for the time being — especially if some of those activities are being covered in a school day anyway.

These aren’t always easy decisions to make, but prioritising what matters most will help you see the bigger picture when it comes time to scaling back.  

2. Be realistic
Remember, you’re allowed to have fun and socialising often involves spending money. If you save your takeout or dining out for social and work catch ups, rather than say ordering Uber Eats mid-week, you’re going to notice a difference in your weekly balance.   

Takeaway coffee is another one of those seemingly small expenses that cost us big time. The average hipster coffee is around $5-6. Order one a day, over a Monday to Friday work week and you’re around $1,500 out of pocket a year. Sometimes it’s those little treats that keep us sane, but bringing your coffee from home just a few times a week will add up in the long run.

3. Practice money mindfulness
That little shot of dopamine you get when the cashier hands you your shopping bag is a high most of us know well.

Mindfulness might feel like a woo woo term straight outta Byron, but it’s an important tool for keeping our spending in check. Spending money for the sake of spending money is something most of us have done and we’re often unaware of it.

Have you ever walked into Aldi for some grapes and come out with two kilos of epsom salts and an air fryer? And forgot the grapes?

Retailers know what tempts our spending habits and thanks to product placement and clever visual merchandising, it’s difficult to walk down the aisles with our blinkers up.    

Simple tricks like shopping for groceries online helps you stick to your list. You’re less likely to grab things on an impulse and it’s easier to see what you’re spending with your receipt tallied as you go.

Really ask yourself why you’re purchasing something and if you’re unsure, pause and go back to it in a few days after you’ve had time to reflect. Will you still be happy with your purchase in a month, or a year? Are you buying it out of boredom, or will this item genuinely make your life better?

4. Research
Be proactive in checking (and re-checking!) that your bank is giving you the best bang for your buck — so, things like your mortgage interest rate and account keeping fees. Likewise check your insurance policies regularly to ensure you’re fully covered for what you need, at the best rate possible. Don’t be afraid to negotiate a better deal, and if your lender or insurer can’t offer it, be proactive in comparing their rates to their competitors. Comparison sites like Lendi and Compare the Market can help you there.

5. Remember
While it’s great to keep a budget, whatever your financial situation, a tight budget doesn’t usually mean forever. Set yourself a goal, and work towards that. So, it might be a family holiday, or just greater financial stability, but remember you’re working towards something bigger than just missing out on a takeaway coffee today. Look forwards and remember your long-term goal.

Visit property.credit for more information on our services or you can contact us on 1300 829 536 (au) or 03 668 2144 (nz).

This article is for general information purposes only and is not intended as financial product advice. Consider seeking independent financial advice that relates to your individual circumstances.

Buy and sell property on your terms

There's so much to consider when buying or selling. Below are just some of the opportunities equity release can offer over the course of a property sale. 

icon of a cabinet with a lamp and plant

Furniture & Home Staging

Cover the costs of furniture and home decor staging for your property for sale.
icon of a calendar and a house

Bridging Loans

Selling your property? Access up to 80% of its value with a Bridging loan.
icon showing a hand holding a house with a dollar symbol inside.

Buyer Deposit Facility

Fund your auction deposit using equity from the property you’re selling.
Icon of a house with a speech bubble that contains a dollar symbol inside.

Equity Release

Selling your property? Access up to 80% of its value.
Icon showing a megaphone with a starburst surronding.

Property Advertising

Fund up-front advertising costs when selling your property.
Icon showing a paint brush and a tin of paint

Pre-sale Improvements

Increase saleability with pre-sale improvements and staging.
Icon showing a house with a tool inside.

Investment Property Expenses

Cover costs related to your investment property and repay with rental income.
Icon showing a hand holding an invoice document with a dollar symbol and data table.

GST Loan

Need to fund the GST on your commercial property purchase? We've got you covered.

Related Articles

Equity Release vs Bridging Finance — What’s the Difference?

When it comes to accessing funds tied up in property, ‘bridging finance’ is a term you’ve probably heard of. It’s […]
Katherine
6 June 2024

Common Misconceptions about Bridging Loans

It’s no secret that bridging loans have surged in popularity in recent years. Offering speed and flexibility, bridging finance has […]
Katherine
16 May 2024

Tips for reducing financial stress over the holiday season

Tis’ the season for joy, celebration, time with loved ones, and…SPENDING! Between buying gifts, school holiday fun, entertaining and going […]
Katherine
6 December 2023

Why choose a non-bank lender?

It’s no secret that non-banks have gained major popularity over the years. Flexible lending criteria, specialised loan products and fast […]
Katherine
1 November 2023

Bypassing the ‘Subject to Sale’ Clause with Equity Release

When buying a house, having cash readily available can be a game changer, especially if you want to bypass the […]
Katherine
27 September 2023

Frequently Asked Questions

We’ve rounded up our most frequently asked questions all in one place. Something not covered? Contact us directly and one […]
Katherine
13 September 2023
crossmenuchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram