Secure a Strong Financial Path? No More Childcare Fees!
Big school’ means a lot of things, however from a financial perspective it means NO MORE CHILDCARE FEES!
That equates to more than five months of repayments every year on their mortgage! For many families, the start of primary school is an opportunity for a parent to increase their hours of work or return to the workforce on a part or full time basis.
This can have a significant effect on the family income, lifestyle and relationships.
What are you planning to do with the extra cash to ensure it does not simply disappear into your everyday spending?
What are your options to secure a strong financial path?
As a minimum we would encourage you to use any money previously assigned to your childcare facility to make additional mortgage repayments. These additional repayments have a compounding effect and can significantly reduce the term of your loan, thus saving you thousands in interest over the lifetime of your loan.
When living on a single income it is not uncommon for additional expenses to be added to credit or store cards. Unfortunately these types of credit facilities typically accrue very high interest.
We recommend that you take the time to review all your debt and talk to us about consolidation options to reduce your overall interest (and mostly lower your repayments).
Refinancing your home loan can be difficult when children are young as lenders are hesitant to lend on a single income or consider casual earnings.
When you re-enter the workforce, refinancing your home loan becomes easier as your ability to repay improves. There are currently some very attractive interest rates available.
Investments are typically the first item that we see families put on hold while their children are young. With both parents working and the elimination of childcare fees, an investment property may become an affordable option. Remember you don’t need to pay off your own home before considering an investment property.