Saving
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Whether you're saving for a holiday, a car or the latest iPhone, the bnext Net Invest can help you along the way with a high variable interest.
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With the bnext Net Invest you get:
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- no monthly account keeping fees
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- access to your money 24/7 with Internet and Phone banking
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- your money is available at call
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- interest calculated daily
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- interest credited to your account monthly
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- no minimum withdrawal or deposit amount
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To get your savings started call 1300 4 BNEXT.
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Savings Calculators
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Want to see how much you can save or is it time to get your budget in order? Check out these handy calculators:
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How to save
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Scott Brouwer, Senior Financial Planner at Big Sky Financial Solutions says a smart way to save is to start funneling funds into a special Net Invest Account or First Home Saver Account so you can keep focused on your goal of owning your own home. Brouwer says automatically transferring five per cent of your wage out of your pay each week and piping it into a separate savings account means you won’t be as tempted to blow your budget.
“Create a specific account and call it your House Deposit Account. This will help remind you this money is not to take down to the pub or to splash out on a new set of wheels. It’s to buy your first home and every time you see your bank statement it will remind you of this. Staying focused on your dream will help act as a motivator,” he says.
Brouwer says the bottom line is that saving money is about getting rid of your debts and “prioritising expenses”. But he believes you don’t have to live like a hermit in order to accelerate your savings plan.
“You’ve got to eat. You have to live. But if you sit down and have an honest look at what you spend on going out and how much you spend on coffee, alcohol and cigarettes and other things that are not essential then you are frittering away large chunks of money that could make all the difference in terms of achieving your financial goals,” Brouwer says.
“How many CDs do you really need? How many iTunes do you need to purchase this week? It depends on your priorities. If your priority is to buy takeaway six nights a week, then great. But if want to buy your own home then you will need to curtail your discretionary spending,” he says.
As well as drawing up a budget and building on your savings, having some knowledge of the market where you want to buy a property is paramount. “Ask yourself: ‘What can I afford to borrow?’ ‘Where do I want to live?’ and ‘What am I going to need to save to buy a property in the area where I want to live?”
The First Home-Owners Grant Scheme (FHOGS) currently awards those eligible with a $7000 grant. But analysts predict there will be no further extensions to the December 31, 2009 cut-off date which means you won’t be able to count on the grant to boost your savings. After you have saved a deposit, the next step is to get pre-approval for a loan. Brouwer believes it’s worth talking to a loans consultant so that you don’t borrow more money than you can afford. He said you also need to take into account any possible changes to your economic circumstances.
“When you are applying for pre-approval you need to show evidence of your income and savings, you need to fill out an application form and you need to know that you are not borrowing more money that you can afford as over-extending yourself will leave you exposed,” Brouwer says.
“Can you afford your home loan on a single income? The great Australian dream is to own your own home but if your plan is also to start a family you need to be confident you can still pay the bills and the mortgage on one wage,” he says.
In summary you need to:
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- Get rid of debts
- Draw up a budget and start saving for a deposit
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- Get pre-approval for finance
- Not borrow more than you can afford
- Research the area you want to live in
- Plan ahead for any change in economic circumstances
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Download an Application Form or call 1300 4 BNEXT to get the ball rolling for buying your first home.
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