Interest Rates Have Been Cut – What Will You Do With The Money?

Interest Rates Have Been Cut – What Will You Do With The Money?

Official interest rates have dropped again, and with most financial institutions (including Queenslanders) dropping their rates in step, the question is what will you be doing with the extra money this will likely give you?

For a lot of people this cut means they will be paying a little less on the mortgage and have a little extra cash at their disposal.

While this is a big relief for some people struggling with the rising cost of living and a high mortgage, it does leave a question around what to do with the money.

So what could you do with this “extra” money?

Spend It

It is tempting to just spend this money, but before you do remember that this rate cut is a blessing that might not come again for some time, and this may be a great time to start a savings account or an emergency fund.

Save It

You could start, or simply top up, your savings. This is a great time to start a regular savings fund as you will probably not miss the money anyway. It may not seems like a lot, but even the smallest savings adds up over time.

Leave it on the Mortgage

This is a great strategy if you don’t want to use the money for anything else. This way you will be paying off the mortgage quicker and will be saving yourself thousands over the life of the loan.

Have you seen the rate for our Ultimate Home Loan yet?

Pay Off Debt

If you have some credit card or personal loan debt, this would be a fantastic way to pay it down while you have a chance. If you do this, just keep in mind not to rack it up again and think about cutting up your card.

Conclusion

There are many ways you could spend this money, but it is important to remember your long-term goals and not spend it on short-term comforts. Your future-self will thank you.

What will you be doing with this extra money? Let me know in the comments below or over on our Facebook page or on Twitter.

Tagged with: ,
Posted in Debt Relief, Saving Money

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

About

Personal Money is a blog and resource for all things money. Find financial tips, strategies and money hacks. We post on the blog at least once per week, and you can contact us any time.

Brought to you by

Social

We would love to hear from you. You can contact us via this website, or see what we are up to on our Facebook page, where you can also interact with other, like-minded people, and win giveaways and prizes. We also have a Twitter account where we chat more Queensland-centric issues.

Disclaimer

Unless otherwise noted, no-one who writes for personalmoney.com.au is a financial adviser and no personal recommendations are implied or made. We recommend you seek professional financial advice before applying anything you find on Personal Money to your own circumstances.