SHOPPING FROM THE COMFORT OF YOUR COUCH… COSTING YOU MORE THAN YOUR WAISTLINE!

Reception • Oct 13, 2020

For generations we have prepared our own food at home resulting in a more positive impact on our bodies. We were more likely to eat smaller portions, take in fewer kilojoules, less fat, salt and sugar tending to make us healthier in weight and better general health1.


So why are we not cooking as much anymore?…


  1. WE ARE BUSY
  2. TOO MUCH CONVENIENCE


Australians are increasingly using apps and online payment methods to shop.


Sadly, for many of us, we use mobile apps to spend money more than we use it to track and manage our money.

Here’s how we spend our money


Australians are spending an average $328 a month on food, movies and music delivered to their doors or downloaded on devices2.


This is purely based on what is delivered to our home without us even leaving the house.

A third of Australians living in capital cities order food through online delivery services such as Menulog, UberEats, Deliveroo and Foodora3.


Even our relaxing Friday night drinks at home is changing. The local ‘bottle-o’ is being replaced by delivery apps like Tipple and Jimmy Brings. We do not need to make a stop on the way home or head to the pub for our grog. With a click of a button, it can be delivered to us in under 30mins4.


So, if you order in… AND you are adding this to your buy-now-pay-later shopping through Afterpay, Zippay and the like, you could very well jeopardise financing your next loan if not used sensibly.


This is made even more dangerous if you are an impulse buyer prone to overspending. Why? Well…


The facts don’t lie. Users admit that…


30% have missed at least one Afterpay payment – penalties apply


65% said the ability to make smaller payments influenced them to make purchases they wouldn’t normally make5.

Therefore, with our modern busy lifestyles, we are creating a real disconnection with what we are actually spending – convenience spending is making us lazier and unhealthier consumers.


We all know people who live less than a five minute walk from restaurants, yet still order-in!


Why are we concerned?


Because of the sheer transparency of the way we spend our money – ‘Big Brother’ is watching our every move. Along with tighter lending criteria, lenders also have greater visibility over our spending. As your finance specialist we find ourselves spending more time and effort than before to help our clients develop strategies with their finances because many of us are totally disengaged with our actual financial status.


Have you noticed that your bank now groups your transactions into categories such as groceries, utilities, cash out, retail spending etc on your online statement and app?


Lenders use this information and now have the technology to review and evaluate the risks for your loan assessment.


There can be a variety of reasons a lender may reject a loan application


Perhaps you’ve renovated, are paying off holiday expenses on a credit card or have bought a new car. As your finance specialist, we can ensure you are ‘loan application ready’ by favourably drafting your situation to the lender that is most favourable for your circumstances. This is often missed by going directly to the bank yourself.


So… how else can WE help?


Our expertise will help you review your spending and budgeting habits to provide you with the best plan for improving your chances of approval before applying for your next loan.


An accurate assessment of your situation and home loan readiness will help you move forward with confidence.

Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. © 2019

The Power of Pre-Approval: Your Key to Home Buying Success

05 Oct, 2023
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Navigating the World of Mortgages: What borrowing capability do you have?

01 Aug, 2023
Navigating the World of Mortgages: What borrowing capability do you have? Deciding to buy a house is an exciting milestone, and we're here to accompany you through the intricate world of mortgages. With the changes to interest rates that have happened over the last twelve months, it's essential that we are prepared and approach borrowing with a healthy attitude, as your choices now will have long-lasting implications, so let's ensure you're well-prepared for this homeowner journey. What should I consider when considering my borrowing limits? First, let's figure out how much you can borrow without sacrificing your peace of mind and daily joys. The key here is to measure your income against your expenses, including the potential mortgage repayments. A general rule of thumb: try to keep your mortgage repayments to no more than 35% of your gross monthly income. When it comes to borrowing generally, the higher your deposit and the higher your income, the more they should be willing to lend. The good news is we have more flexibility as mortgage brokers than the big banks, so we can look at your circumstances closer. Now, let's discuss some essential factors to consider when figuring out your borrowing limits. How much debt can you handle? Think about your lifestyle and what you're willing to give up versus what's non-negotiable. Be realistic about your dream home. Start with something affordable and gradually work your way up as your earnings grow and your equity increases. Think about the future. Are you planning to start a family, change jobs, or experience significant life changes? Factor those possibilities into your calculations. Keep an eye on interest rates and consider how further rises might affect your ability to make repayments. Reminder; A reminder that when purchasing a property, you will also need to factor in further expenses, such as, pay stamp duty, pest & building inspections, conveyancer fees, application fees, council rates, possible strata or body corporate costs, and utility bills to factor in. In Summary We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation to help you whether you are purchasing your first home or refinancing. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/

Refinancing: What Are Your Options As A Homeowner?

By Bree Jones • 19 Jun, 2023
At Future Finance Group, we understand that financial hardship has become a pressing concern for many homeowners across the country, including Melbourne. We want to help you explore the benefits of refinancing your mortgage. By assessing the right time to refinance and understanding the steps involved, we can guide you to potentially save money, access improved loan terms, and secure a more favourable financial future. What are the Benefits of Refinancing? During these challenging times, refinancing your mortgage can bring meaningful advantages. Firstly, it may allow you to take advantage of lower interest rates, reducing your monthly mortgage payments and offering much-needed relief. Additionally, refinancing allows switching from a variable-rate to a fixed-rate mortgage, ensuring stability and protection against future rate increases. By consolidating high-interest debts, you can streamline your finances and gain more control over your monthly obligations. Also, refinancing can unlock equity in your home, providing funds for essential expenses or other financial goals. Assessing the Right Time to Refinance Working out when to refinance can be challenging, mainly because we do not know what the future will bring. We are here to look at your personalised options and work with you to ensure your financial security. We can consider many factors, such as your credit score, home equity, and employment stability, to give you informed options. Steps Involved in Refinancing and Potential Cost Savings : We are here from the beginning to the end and strive to simplify the refinancing process for you. We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation. Our ultimate goal is to help you secure better terms, rates, and long-term cost savings to ease the pressure on you and your family. In Summary In these challenging times, exploring refinancing options can provide much-needed relief and open up financial opportunities for you as a homeowner. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/
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