How to Save on Your Mortgage
Low interest rates have offered a great opportunity to investors to enter the market cheaply over the last few years, but that is about to change. In this week’s Money and Investing Show, tune in as host Andrew Baxter runs through some nifty ways to keep up on your repayments with higher interest rates:
Interest Rates and Mortgage Repayments
Interest rates have remained unchanged at very low levels for the last 10 years making it very cheap to borrow. As host Andrew Baxter points
out however, those approaching the end of their fixed rate terms will
be concerned in hearing that interest rates are soon to be increased in
the US and swiftly followed by the Reserve Bank of Australia. Increased
rates mean higher repayments, and higher repayments mean less money in
your account to spend. In this podcast, join Andrew and Mitch as they explore some options to help soften the blow when the due dates for those upcoming repayments to keep up with.
Starting a Business
For homebuyers who are struggling to
meet their mortgage repayments, an increase in income is a highly
welcomed prospect. In many cases, the idea of a ‘dream job’ is centered
around the concept of working for yourself. An added benefit for those
that are successful can be the extra income you can make by virtue of
owning your own business. Long-term business owner and host Andrew Baxter explains
some of the difficulties associated with launching your own business
such as the time it takes until you are generating cash flows after a
major capital outlay and just how difficult it can be to figure out the
key processes and ways of doing things that are necessary to making a
business successful. All too often new and emerging businesses fail.
Years of work can go into building a business to help you pay off your
mortgage, then all of a sudden it fails and you have nothing to show for
it.
Buying a Business
Operators who struggle to launch a
business often revert to buying a business. Like starting a business,
buying a business involves a major investment at the outset, but it does
come with some benefits. Take franchises for example, you pay to take
ownership over a business where you are provided with the day-to-day
processes, equipment and activities which have been proven to generate
cashflows for other franchisees. However, host Andrew Baxter points
out that buying a business instead of building one prevents an owner
from learning the intricacies of what leads into making that business
successful. If you put something together, it is much easier to
recognise the part that is missing than if you had somebody else
assemble it for you.
Side Hustles
2021 was a truly strange year for
professionals and businesses around the world. Millions of workers who
were accustomed to working in an office every day were now confined to
working from home, and with this came an increase in people undertaking
what we call ‘side hustles’. Many working people are happy in their job,
but the added pressure of paying a mortgage can prompt employees to
seek just a little bit more regular income. Side hustles are ventures
which generally require little capital and time outlay that someone may
do ‘on the side’ to generate some extra income. Steady income that is
not labour intensive is the goal for many workers, but host Andrew Baxter points
out as a business owner himself, side hustles are all well and good
until they interfere with the duties you have been entrusted with by
your employer. It is all about discovering a process which is repeatable
and reliable in terms of results. Ironically, countless side hustles
have evolved into what we now see as business empires.
Trading as a Side Hustle
The great variety of financial instruments traded in the market offers a well of opportunity. Andrew Baxter has
been trading in markets for decades and has used trading as his form of
a side hustle. By developing a process which only requires a small
investment of time each day, he was able to generate a cashflow which
has proven to be reliable and effective.
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