Conducting a cost vs. savings check can be eye-opening, revealing hidden drains on your finances. ‘Bill-shock’ isn’t just about surprise charges; it can also come from regular fees or higher-than-expected interest rates.
Here are some tips on how to save money in three key personal finance areas: credit cards, savings accounts, and home loans.
Credit Card Costs
Credit cards are convenient, especially for traveling, but they come with costs. Annual fees can range widely, and interest rates on purchases can be steep. For example, an annual fee of $90 and an interest rate of 21% are not uncommon. However, lower fees and interest rates are available; some credit cards even offer no annual fee, and interest rates under 15% are attainable. It’s essential to compare different options and check for hidden costs or terms.
Savings Account Costs
Savings accounts can have unexpected costs, such as ‘account keeping fees.’ Additionally, failing to meet certain account conditions, like required monthly deposits, can significantly reduce the interest rate. For instance, missing a deposit could drop the earning rate from 5% to below 1%. Choosing the right savings account can avoid these pitfalls. Vantage Financial offers tools to compare the best savings accounts on the market.
Home Loan Costs
Home loans represent a significant portion of personal finances, and without features like an offset account, borrowers can lose out. An offset account reduces the interest charged on the overall loan amount. Additionally, better interest rates are available, which can result in substantial savings.
Consider the following example: A 6.60% interest rate on a $500,000 home loan over 25 years results in a monthly repayment of $3,407. A slightly lower rate of 6% reduces the monthly repayment to $3,222. Over the life of the loan, this difference amounts to about $55,750 in savings, according to the Vantage Financial home loan calculator.
Conclusion
Small tweaks in managing credit cards, savings accounts, and home loans can lead to significant savings.
Ready to make some smart financial moves? Contact Vantage Financial today to explore your options and start saving! Visit Vantage Financial or call us at 1800 595 500
For more personalized advice, feel free to reach out directly to our experts at Vantage Financial.
