12 January 2024
Colette Machado
Financial Education
In Take Control of Your Finances part 1, we talked about setting goals, budgeting and saving. If you haven’t read that one, have a look at it here.
DEBTS
If you find yourself in debt, you probably didn’t get there overnight. Debts usually accumulate over time and have a way of sneaking up on us. You might have started off with one loan or credit card, then you had two… then three… then four…
No matter how you ended up in debt, the key now is to set a plan to get yourself out. With a good plan in place, your debts will decrease over time and money will be freed up which can then be put towards improving your financial future – whether that be adding to your retirement fund, making sure your family is properly protected, or saving toward your goals.
Action Step:
Make a list of each of your debts – no matter how small they might be. List the creditor, interest rate, balance, monthly amount paid, etc. Then make a plan to start clearing them. You can do this on your own, and many people do, however, knowing which debt to tackle first could be tricky and it will be difficult to work out exactly when you will finally be debt free.
If you want someone to help you with this process, book an appointment with your Genistar representative who will be able to teach you a concept called Debt Stacking. Through Genistar’s complimentary Financial Game Plan, we can show most people how to become debt-free many years earlier than they expect.
‘A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.’ – Alexa von Tobel
RETIREMENT
How much money do you want to have when you retire? How much money do you need to have in retirement in order to live comfortably? It’s very likely that you might not know the answer to either of these questions.
If you are in your 20s or 30s, you probably haven’t thought much about retirement yet. However, it’s never too early to take control of your finances and start planning. The earlier you begin the better.
If you are in your 40s or 50s, you are probably thinking more seriously about your retirement. So when is the best time to start investing? The answer is NOW. You can’t go back, but you can begin to make your future better today.
‘You will either learn to manage money or the lack of it will manage you.’ – Dave Ramsey
Action Step:
Decide how you are going to start planning for your retirement. Are you in a position to put away money on a monthly basis for your retirement? If yes, how much?
Do you think you could live on £1,000 a month if you had no mortgage or debts to pay – just living expenses? Or would it need to be more than that? The amount of your monthly living expenses has a direct impact on how big your retirement fund needs to be.
With banks paying very low-interest rates, you may want to consider a vehicle that gives you a better return on your money so that your money works harder for you. However, do your research so that you are clear on any risks involved and you can make informed decisions. See The Rule of 72 video and this article about investing for retirement.
Book an appointment with your Genistar representative for a complimentary Financial Game Plan which will help you see what you need to do in order to have a comfortable retirement regardless of your state or company pension.
MORTGAGE
Did you know that it is simple and easy to cut years off the term of your mortgage and potentially save thousands of pounds in interest? Below are two ideas to help you pay off your mortgage more quickly.
Add to your monthly payment: One way you can accelerate your mortgage is by adding an additional sum to your monthly mortgage payment. You need to check with your mortgage provider to find out the minimum or maximum amount that you can add each month to prepay your mortgage.
Fortnightly payments: Another simple way to save interest and pay off your mortgage sooner is by making fortnightly payments. This basically means that you pay half of your regular mortgage payment every two weeks. By doing this you will make 26 half payments per year, and because you are paying upfront, more of your payment is credited to the capital instead of going to interest. Making fortnightly payments means that you’ll be paying 13 full payments over a 12-month period and accelerating the payoff of your loan. This strategy can provide significant savings in total interest over the life of the loan.
Many people with mortgages don’t know about these options because when they take out a mortgage, they are automatically set up to make their mortgage payment once per month.
Action Step:
Find out the balance of your mortgage by checking your latest mortgage statement or calling your mortgage provider directly.
Use the Genistar FAT FINDER form to work out how much monthly net income you have (monthly income minus your monthly outgoings), and then decide how much you want to put towards your mortgage.
Set up a one-to-one appointment with your Genistar representative. They will be able to show you specifically how this strategy can work for you in relation to your mortgage. So take action and book an appointment today.
The distance between dreams and reality is called action
WE CAN HELP
Genistar’s mission is to help families become debt-free and financially independent. Why not let us help you start working towards a better financial future for your family and yourself?
Action Steps:
If you haven’t had a complimentary Financial Game Plan done yet, book an appointment with a Genistar representative today. Let us help you plan for a better financial future. See Trustpilot for reviews by many of our satisfied clients.
If you would like to make extra income, why not take a look at the Genistar business opportunity. Speak to a Genistar representative to find out when the next Business Opportunity Meeting is taking place.
Happy Financial Planning!
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