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