With the warmer months nearly upon us, many of us are probably wanting to lose a few of those lockdown kilos so we’re in shape for summer.

As well as giving your body a makeover, now is the time to shape up your finances and get set to achieving your financial goals.

Here are a few finance fitness tips to help you on your way:

Review your budget

Many of us changed our spending habits over the past few months, so now is a good time to review where your money is being spent and to set up a savings plan for the future.

Don’t forget to factor in expenses which come in at different times, such as utilities and car insurance.

Cut your living costs

As well as cutting back on impulse purchases, there are other ways to reduce your living costs. Look for a better deal on your insurance, mortgage, telecommunications and utilities.

From gym memberships to online entertainment, really look at your subscriptions and decide on which ones you are getting your money’s worth from, and which ones you can ditch.

If your living costs are lower, you can increase your borrowing capacity, as it shows the lender you have more available money.

Set up a savings account

Once you’ve reviewed your budget and reduced your costs, set up a savings account and pay any excess into the account. The best way to save is to arrange for a direct debit to that account when your pay cheque comes in.

Remember the phrase out of sight, out of mind? If your savings money is in a separate account, you won’t be seeing it when you check your regular bank account, so you also won’t be tempted to spend it!

Pay down the credit card and lower the limit

While comprehensive credit reporting means financial lenders look at how well you manage your money, many are still interested to know what your credit card limit is; they still often have the view that you could rack your card up to the maximum amount.

Contact your credit card company and lower the limit. This will also mean you won’t be tempted to spend more than you have to.

Get ready now

The market is still very buoyant, and the RBA recently announced it will hold the official cash rate at a record low of 0.1 of a percentage point for the 10th consecutive month.

So, it is hardly surprising many people are taking advantage of this – according to the Australian Bureau of Statistics, lending and refinancing activity is now at record levels.

Speak to a mortgage specialist and find out how much you can realistically borrow – if you’re in a position to get a pre-approval on a loan do so. That way, if you see a property you like, you can put an offer in knowing that the chances are the finances will be approved. It is a competitive market at the moment, so you may need to move quickly in making an offer for a property, and raising the finance.

Shop around for the best deal on your mortgage

With interest rates so low, there are some great deals to be had. Don’t just look to your bank; mortgage brokers have access to other financial lenders who are offering competitive borrowing rates and cash back deals on offer.

Having been in the business for over 40 years, we can honestly say, this is a good time to look at buying an investment property to help you reach your financial goals.

Drop into the Cardiff office or give us a call on 02 4954 8833. Or send us an email at mail@apnewcastle.com.au – we’d love to help you realise your financial dreams through property.