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New year, new finances: Tips for your mortgage and superannuation

Pascale Helyar-MorayPascale Helyar-MorayPascale Helyar-Moray OAMFeb 07, 2024
blog - New Year, New Finances Tips for Your Mortgage and Superannuation blog - New Year, New Finances Tips for Your Mortgage and Superannuation

As we move into a new year, many of us are thinking about our goals and resolutions for the year ahead. If you're looking to improve your long-term financial situation, there are a couple of areas to focus on: your mortgage and superannuation. Here are some tips for managing these areas of your finances and an introduction to the Grow My Money cashback program, which can help you earn more money for your mortgage or super fund.

Mortgage Tips

If you have a mortgage, there are a few things you can do to reduce the amount of interest you pay over the life of your loan:

1. Make extra repayments: By making extra repayments, you can reduce the amount of interest you pay over the life of your loan. Even small extra payments can make a big difference in the long run. You could look at paying your mortgage fortnightly instead of monthly as this can make a difference in the near term - as well as the long term, of course!

2. Switch to a lower interest rate: If your interest rate is high, whether for a personal loan or a credit card, consider refinancing to a lower rate, as this can help you save thousands of dollars over the life of your loan. This Yahoo Finance article by Nicole Pedersen-McKinnon, independent financial expert, has some good recommendations.

3. Use an offset account: An offset account is a savings account linked to your mortgage. The balance in your offset account is offset against the balance of your mortgage, reducing the amount of interest you pay.

4. Sign up to Grow My Money: Grow My Money offers cashback into your mortgage so you can turn that necessary spending into extra repaying, reducing the interest you pay over time. The financial influencer, SugarMammaTV, has put together some calculations on what you could save on your mortgage.

Superannuation Tips

If you're looking to boost your superannuation balance, here are a few things to consider:

1. Consolidate your super: If you have multiple super funds, consider consolidating them into one account. This can help you save on fees and makes it easier to keep track of your balance. Canstar has some good tips on how to consolidate your super.

2. Make additional contributions: If you have the means, consider making additional contributions to your super. This can help boost your balance over time and may reduce the amount of tax you pay. Just like with your mortgage, you can use Grow My Money to earn cashback on purchases at their retail partners, which can then be deposited into your super fund.

3.Take advantage of government super co-contributions: If you are a low or middle-income earner and make personal contributions to your super, you may be eligible for a government co-contribution. This can help boost your super balance. You don't need to apply for government contributions. If you're eligible and your fund has your tax file number (TFN), we will pay it to your fund account automatically.

4. Find out if you're eligible for the Low Income Super Tax Offset (LISTO): LISTO is a government initiative that provides eligible low-income earners with up to $500 to help boost their retirement savings by making contributions to their super fund. This offset is designed to help those on a lower income build their super balance and ensure they have enough saved for retirement.

5. Review your investment options: Review your superannuation investment options to ensure that they are aligned with your financial goals and risk tolerance. Get in touch with your super fund, or seek the help of a licensed Financial Advisor to see what investment options are available and best for you.

Introducing Grow My Money

Grow My Money is a cashback program that rewards you for shopping through their partner brands. As The Today Show described Grow My Money, when you make a purchase with a Grow My Money retailer, you'll earn cashback, which will be deposited into your mortgage or superannuation fund. This can help you reduce the interest you pay on your mortgage or boost your superannuation balance over time. Find out more about how Grow My Money turns shopping cashback into mortgage payments or retirement savings.

To get started with Grow My Money, sign up on the website and start making purchases at popular retailers like The Good Guys, The ICONIC, Big W, or Flight Centre. You'll earn cashback on each purchase, which will be deposited into your chosen account. It's a simple and effective way to earn more money and achieve your financial goals.

The new year is a great time to focus on your finances and make positive changes. By following these tips for managing your mortgage and superannuation and using a cashback program like Grow My Money, you can set yourself up for financial success in future years.

This blog contains general advice only and does not take account of an individual’s objectives, financial situation or needs. Before acting on this general advice, individuals need to consider its appropriateness having regard to their objectives, financial situation or needs and should seek their own independent advice.