Reducing Expenses - Tips

Here's tip that's worked for us, send an email to your mortgage provider/s requesting a rate review. I sent one to each of our home and IP mortgage providers on Friday, they both got back to me this morning with offers. Our home loan bank offered to cut our rate by 0.5% and the investment property lender offered a 1.5% cut.

So if you total up the three cuts the RBA made, our home loan will be 1.25% cheaper than last year while our IP loan will be 2.25%!!
 
mmm....shiney! said:
Here's tip that's worked for us, send an email to your mortgage provider/s requesting a rate review. I sent one to each of our home and IP mortgage providers on Friday, they both got back to me this morning with offers. Our home loan bank offered to cut our rate by 0.5% and the investment property lender offered a 1.5% cut.

So if you total up the three cuts the RBA made, our home loan will be 1.25% cheaper than last year while our IP loan will be 2.25%!!
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Good one, you should do this every year or so. If I can add to this, if you get your broker to do this for you the bank really know that if they don't give you the best deal your about to walk.

You can do this will all expenses a yearly double check on pricing across all your regular expenses is a brilliant tip.

Timmy
 
mmm....shiney! said:
Here's tip that's worked for us, send an email to your mortgage provider/s requesting a rate review. I sent one to each of our home and IP mortgage providers on Friday, they both got back to me this morning with offers. Our home loan bank offered to cut our rate by 0.5% and the investment property lender offered a 1.5% cut.

So if you total up the three cuts the RBA made, our home loan will be 1.25% cheaper than last year while our IP loan will be 2.25%!!
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that only works if you have a mortgage
 
Court Jester said:
that only works if you have a mortgage
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Love your style, Court Jester. I can see that you are no clown when it comes to important financial matters.

Yes, the best way to reduce your expenses is not to get a mortgage in the first place.
I thought that was a no-brainer, but not to some people it seems.

I purchased my sprawling country estate outright, no banksters involved, thank you very much.

The next best advice I can give anyone is to live within their means and not to try to keep up with the Joneses or anyone else.
Your health and mental well-being will love you for it.
 
Mr Hard Case said:
Yes, the best way to reduce your expenses is not to get a mortgage in the first place.
I thought that was a no-brainer, but not to some people it seems.
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Amazing how different people's brains can arrive at different conclusions based upon an understanding of their own financial situation and aspirations.
 
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Mr Hard Case said:
Love your style, Court Jester. I can see that you are no clown when it comes to important financial matters.

Yes, the best way to reduce your expenses is not to get a mortgage in the first place.
I thought that was a no-brainer, but not to some people it seems.

I purchased my sprawling country estate outright, no banksters involved, thank you very much.

The next best advice I can give anyone is to live within their means and not to try to keep up with the Joneses or anyone else.
Your health and mental well-being will love you for it.
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Absolutely!!!
Owner occupier is a liability.
 
betterinvestmentthanshare said:
Absolutely!!!
Owner occupier is a liability.
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One size doesn't fit all.

Rent is a liability unless it forms part of a deliberate financial strategy where the renter puts the difference between rent and mortgage repayments to work for them and that either involves leveraging or finding returns that generate an income stream and/or capital growth that outperforms an investment in housing. I'd say most renters don't do that.

Accumulating assets is the only legal path to wealth.
 
mmm....shiney! said:
One size doesn't fit all.

Rent is a liability unless it forms part of a deliberate financial strategy where the renter puts the difference between rent and mortgage repayments to work for them and that either involves leveraging or finding returns that generate an income stream and/or capital growth that outperforms an investment in housing. I'd say most renters don't do that.

Accumulating assets is the only legal path to wealth.
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who said anything about rent I own my house no mortgage ( was paid off in my 30's) rent money = dead money
 
Nothing wrong with having debt.

Why use my own money when I can use the banks, get a tax deduction and with the money I keep in my hand buy gold and silver as my insurance policy.

Timmy
 
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Back on topic - reducing expenses.

Car insurance, consider 3rd party if you drive something average. (I pay ruffly $250 per year for 3rd party though elders)
With the money you save (difference with full comp and 3rd party) put it away in an separate account for if and when you every need it.

Or better sill go buy some metal.

Timmy
 
Timmy88 said:
Nothing wrong with having debt.

Why use my own money when I can use the banks, get a tax deduction and with the money I keep in my hand buy gold and silver as my insurance policy.

Timmy
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it only makes sense to use debt if your return is going to be higher than the interest you pay buying silver on a cc and paying cc interest on that for example would make no financial sense.

but I dont know how you value it but I personally think its pretty valuable to have no debt at all, no credit card debt, no mortgage, no car loans etc nothing I own everything outright and owe nothing to no one I can walk away fro my job any time I want and not really have to worry about anything.
 
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Court Jester said:
it only makes sense to use debt if your return is going to be higher than the interest you pay buying silver on a cc and paying cc interest on that for example would make no financial sense.

but I dont know how you value it but I personally think its pretty valuable to have no debt at all, no credit card debt, no mortgage, no car loans etc nothing I own everything outright and owe nothing to no one I can walk away fro my job any time I want and not really have to worry about anything.
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Court Jester said:
it only makes sense to use debt if your return is going to be higher than the interest you pay buying silver on a cc and paying cc interest on that for example would make no financial sense.

but I don't know how you value it but I personally think its pretty valuable to have no debt at all, no credit card debt, no mortgage, no car loans etc nothing I own everything outright and owe nothing to no one I can walk away fro my job any time I want and not really have to worry about anything.
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Yes defiantly there is a level of comfort of owning it outright. I get it, I am like that with certain things, not with everything though.

No problem to pay 6% in interest and earning less than that back on your investment. Especially if its appreciating asset and tax deductible, so long as your comfortable with the $$ every month.

I think of debt like a lever.

Leverage is pretty powerful.

With a simple lever you can move something 100 times your strength, with out it, you and 10 mates cant move it a millimeter.

Debt is a lever - you can use it for good. But you can also get into a pickle with it.

Timmy
 
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