Three financial New Year’s resolutions to tackle 2025 head-on:
- Schedule a home loan health check
Don’t let your mortgage cost you more than necessary. With average borrowers paying nearly $6,000 extra in interest for not refinancing in the past year, it’s crucial to review your home loan7. Contact a mortgage broker to assess if your current loan still meets your needs and explore potential savings. - Trim unnecessary expenses
Conduct a thorough expense audit to identify areas where you can cut back. Small changes can lead to significant savings. For example, switching from a daily $5 takeaway coffee to brewing at home could save you over $1,300 annually7. Review subscriptions, dining habits, and impulse purchases to optimize your budget. - Leverage your home equity
Put your home’s increased value to work. With the median home value in Australian state capitals rising by about $130,000 over the past two years, you may have more equity than you realize. This equity could potentially be used for:
- Investing in property (e.g., a 20% deposit on a $600,000-$650,000 investment property)
- Funding home renovations
- Achieving other financial goals
Consult with a financial advisor to explore how you can strategically use your home equity to advance your financial objectives in 2025.
By focusing on these resolutions, you can position yourself to better manage your finances and take advantage of opportunities in the coming year, regardless of economic conditions
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