5. Get savvy with your super
AMP has introduced a simple service to consolidate your super online for free at
amp.com.au/consolidate or you can also call 133 888. And consider topping up your
superannuation through salary sacrifice. The benefit is in the compound interest. Lower income
earners may also be eligible for the Government Co-contribution scheme.
6. Review your mortgage
An effective way to save interest on your home loan is to make extra repayments each month. The
monthly repayment on a $300,000 mortgage over a 25-year term at 7.25 per cent is around $2,168.
But you could pay off the loan 10 years earlier and save $158,277 in interest if you increased your
monthly repayments by $575. You may also want to consider making fortnightly repayments as
opposed to monthly repayments, as this may also save you interest in the long term.
7. Have a debt strategy
Pay off 'bad' debt like credit cards first, as they usually have the highest interest rates. As the
interest rates on home loans are much lower than other loans, this type of debt should more
aggressively reduced after your credit card and other high interest loans are under control.
8. Protect your family
Consider taking out life insurance and income protection through your superannuation. With
changes in regulation, it’s now possible to obtain income protection insurance from some super
funds until age 65, if cash flow is a problem.
To truly