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Last year, the Financial Planning Association of Australia reported that “having financial freedom and independence” is a top priority for most Australians (Read more). However, the recently released Know Your Numbers Index reveals a large number of Australians don’t know key financial figures in their lives.

 
Financial ignorance is costing you money
 

According to the index, 86 percent Australians don’t know their monthly expenses. Only 20 percent Australians say they have full control over their finances while 59 percent admit they are stressed because of their current financial situation.

At a time when household debt in Australia is at its peak, having a simple household budget to track your expenses can help you understand your finances without feeling overwhelmed. Today, you can find several financial management tools online to keep track of your key financial numbers. However, at present, only 28 percent Australians use financial management/budgeting tools actively according to the report.


Ignorance is not bliss

Australians are losing thousands of dollars each month to ignorance, as 82 percent admit to not knowing their home loan rate accurately.

According to experts, a set and forget attitude towards your home loan could be an expensive mistake. You can stay on top of your mortgage by revisiting it regularly. By comparing your current rate with the best offers in the market, it is possible to find a home loan rate that is much cheaper than what you are paying currently. For example, if your mortgage rate is anything more than a figure that is three point something, chances are you are paying a hefty price for your laziness or ignorance, whatever you may choose to call it.

Take John’s example who was paying an interest rate of 4.20 percent per annum on a $450,000 loan with a 30-year term until recently. He happened to come across HashChing on Facebook and decided to check out a few home loan deals on the platform. Soon, he found a home loan that fit his requirements perfectly, and the best part, the interest rate was only 3.70 percent per annum. Switching to the deal was seamless. A HashChing verified broker filed all the paperwork on John’s behalf. Consequently, John’s monthly repayments reduced by $129.30, translating into savings of $46,549.38 over the life of the loan.

It is clear by John’s example that worrying about your finances is not enough. “If you want to save money and achieve financial freedom, it is essential to know what you are paying to your bank, insurer and utility providers to hunt for better deals in the market. Even if you subscribe to the best possible deal today, it is possible that your requirements are not the same six months down the line or a cheaper rate is available in the market. Thus, periodically revisiting your mortgage or insurance premium can help you control your finances better, and potentially save you money as well,” explains Nat, a mortgage broker.


Are you in control of your finances?

How you manage, spend, and invest your money today will have a significant impact on your future. However, most Australians fail to keep track of their monthly expenses accurately because they find it too hard to calculate their expenditure. Sure, tracking your expenses can sound like a lot of paperwork and calculations, but that’s not true anymore. With simple financial calculators and budgeting tools available online, it is easier than ever before to take control of your finances.

At HashChing, in addition to simplifying the process of financing your home, we have also created easy to use financial tools that will help you track and plan your expenditure as well as make informed decisions regarding your home loan. For example, you can use the to estimate how much money you can save by switching to another home loan. Or, if you are saving for a goal such as a home deposit, you can use the ‘Achieve My Savings Target’ calculator to plan your savings and create a budget to achieve your savings goal with our handy budget planner.

“Take control of your finances today to achieve financial freedom tomorrow. Time is money, and by spending a little time to understand and track your expenses, you can save a great deal of money on a regular basis,” says Nat. Read here for some simple hacks to save more money in 2018.

HashChing is Australia’s first online mortgage marketplace that allows users to compare broker-negotiated mortgage rates from over 60 lenders across Australia. Users can also post their home loan queries online to have them resolved by experts in a transparent manner, free of cost.

 

By Vidhu Bajaj,
HashChing Content Writer

 

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HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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