4 Financial Things You Should Never Pay For

Get Your Money Working Harder for You Today

There are only two ways to become richer right now – make more or spend less.

Personally, I prefer to participate in the sea of abundance and work towards creating passive income.  My time and energy is spent is spent here.

However, it still makes tonnes of sense to rain in meaningless spending that is not serving you or your financial future.

And I’m not saying give up the cleaner!  When it comes down to trading money for time I will often spend money to save time.

Time is precious. Once it’s gone, it’s gone. It’s our most limited resource.

My focus here is to identify some financial items that eat into your hard earned, without necessarily needing to.

  1. That Brand New Car

    I’ve included the brand new car because lots of people use equity, car loans or leases to buy their car.  We pay for the car and we pay interest on top.Don’t get me wrong, I like to drive nice cars and I drive a luxury BMW.  But I didn’t pay $230,000 for it, I paid a bit over $32,000.

    Yes it’s older.  Yes Its got more on the clock, but its a BMW and they last forever.

    I love that I get to drive like a kind but spent like a pauper.

    New cars lose 20% of their value as you drive it home from the car dealer, and 50% of their value in their first 3 years of life.

    It’s simple, buy second hand.

  2. Credit Card Interest

    No one likes carrying a credit card balance, and for good reason.

    Are you paying 11.49% interest or way more?

    Take advantage of balance transfer promotions (yes there is normally a fee involved so weigh that up against the interest you are paying) and aim to have the balance paid off during the promotion period.

  3. Access to your Credit Report and Score

    There is no need to pay to access your credit report (unless you need it in a hurry) as the credit reporting agencies themselves will all provide a copy for free.It’s also a great idea to check your credit report annually for errors.To access your free credit report go direct to the credit reporting agencies and avoid the companies making money by providing this otherwise free service:

    Equifax (previously Veda) Equifax.com.au

    Dun and Bradstreet dnb.com.au

    Experian experian.com.au

  4. Late Fees or Over-limit Fees

    Your repayment history is now captured on credit reports!I see the  implications of late repayments and I implore you to make your repayments on time!

    Late repayments cost you money today and impacts your ability to access the lowest interest rates on loans in the future.

    If you have lots of late repayments you could end up paying a higher interest rate.

    Once your repayment history improves I can then move you across to a loan with a more competitive interest rate.

    The entire process is long winded and expensive.

    Get your automated repayments sorted out, avoid late fees and over limit fees and most importantly avoid high interest rate loans.

    I hope I’ve inspired you to get rid of redundant spending.

    What are you going to stop spending money on?

    Plan for Success,

    Stephen