Recently I was asked by question from Alex on an earlier article so I thought I would share this as you need to step up your creative juices. It is your money after all. Change your own spots.....be the banker
Yes splitters and bomb drops and parking your salary all end up towards a similar end result.
Either easing your home loan payment load or playing bank yourself and using your home loan account as a kind of savings account. The banks in general prefer to MANAGE your money for you, but of course at a service cost.
The key to all of this is DO YOU HAVE ACCESS TO ANY ADDITIONAL MONEY PAID INTO YOUR BOND ACCOUNT.
SO instead of splitters etc try to stay away from stop orders etc.
Instead turn your bond account into your current account.
Make sure you have Internet access to both your bond account and your current account. If you can link them together even better so.
Then make sure your salaries or income is paid into your bond account on a monthly basis. AT month end transfer the total sum of your accounts, debit orders etc from your bond account to your current account, where your bills are paid from.The balance remains in your bond account.
REMEMBER your bond account accumulates interest on a daily basis. If you have a bond at prime (13%) then you earn interest at 13% DAILY on your full salary plus the balance left over after paying your accounts and the cycle is repeated each month.
YOU WILL FALL ON YOUR BACK AT THE RESULT and best of all
Your monthly costs are reduced i.e. less transactions happening
Your bond is paid in advance always - so you gain interest each month
You build daily interest at your bond rate and reduced your bond term
You increase your available SAVED money without doing anything ever
Forget about splitters etc, keep it simple and be your own banker
If you need anything else let me know email me at firstname.lastname@example.org THE MAGE