Fundamentals of Money Management

Budgets are a moment in time and a starting point. Money management is about developing a system that provides feedback loops so that it’s simpler to stick to your cash flow goals. Most Mortgage Brokers, lender direct, online sales staff and product selling financial planners do not incorporate this into their service. This is to the significant detriment for borrowers and consumers.

Your mortgage strategy and banking includes various moving parts. Understanding your mortgage strategy and how it interacts with your day-to-day banking, preferably a Money Management System, is crucial to optimising deductions, planning to hold and or buy property and manage risk.

Savings accounts, offset accounts and loan accounts are part of our personal financial world that house our money and are accessible on a daily basis. Today, our personal banking transactions and balances are highly-visible thanks to internet banking. Our day-to-day banking may sit at the forefront of our thinking and can potentially cause great worry and stress or alternatively, provide peace of mind.

We can make a conscious decision to maintain control and order over our money, or we can feel like our Money Management is in a perpetual state of chaos.

The enlightened realisation is that this is a personal choice. We don’t need to live in chaos. Moving financial pieces can be tamed and herded just like a farmer skilfully herding sheep into a pen rather than deal with unruly stray cats! For these reasons and more, which you’ll discover shortly, a focus on Money Management and Risk Management can put you in pole position to create property success and empower you to create your ideal lifestyle.

Management of cash flow can be vastly improved by having a specific focus on how you set up your banking. We will guide and educate you on our tried and tested approach which then can be adapted to suit your circumstances. The most common set up of a Money Management System is with three accounts, ideally that will offset your debt. We call them the ‘Grow’ offset, ‘Life’ offset and ‘Fun’ offset. Each has its own unique purpose.

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