At RI Harbourside I have had the pleasure of helping many clients buy their first homes. With over 13 years experience in financial planning the top 5 cashflow tips I believe you should consider when purchasing your first house include:
- Pay bills first - set aside an amount from each pay into a bills bank account or pay some of your bills, such as electricity, in weekly instalments so you don’t get any big surprises
- Be wary of using credit cards
- If you added 1- 2% to your current interest rate could you still afford to make your loan repayment without dramatically altering your lifestyle? If you can’t then you may be overextending yourself or perhaps you should consider whether it is appropriate to fix part or all of your interest rate.
- Disaster planning – if your income was taken away how would you make your loan repayment? Talk to a financial adviser about how you can protect your income and claim a tax deduction for it.
- Seek advice - Talk to a financial planner that specialises in cashlfow management about what you can afford to buy and about strategies to get you debt free sooner. A financial adviser can help you develop a realistic spending plan that will balance your fun and fixed expenses as well as putting money aside for the future.
Importantly the above information does not constitute a recommendation or advice and is not intended to be relied upon for the purpose of making a decision in relation to a financial product. For personal financial advice you should consult a Financial Planner.