Big lessons from the Lifestyle Challenge

In 2020, we teamed up with JGFit and Dan and Marie on ChilliFM for a lifestyle challenge. The idea was to show that things are easier when you’re both physically AND financially fit. You don’t get a 6 pack overnight, and unless you’ve hit the lotto, the chances are you won’t be ready to buy a home without a bit of planning either.

So over that time we’ve share a few tips for financial fitness so you can afford to get to where you want to be.

  1. Know about good debt and bad debt – Good debt is money you spend on something that’s likely to go up in value. Bad debt is spending money on things that won’t make you money. We’ll all have a bit of good and bad, but it’s important to get them around the right way.

  2. Don’t reduce your options because of bad debt – Try to invest in the good debt before you weigh yourself down with bad debt. This means it’s a great idea to save your new car, for after you’ve bought a house! It also means Afterpay isn’t your friend either. They’re not deal breakers but it does limit your choices.

  3. There’s also even better debt than good debt! – For example, a home loan for your own home is good debt, but a loan for an investment property is even better debt because it also comes with tax deductions. We can advise you more on that, and we’d likely chat with your accountant too, to make sure your lending fits your accountants plan too.

  4. Get your side hustle – All of your every day expenses can add up, and they don’t look too good on a credit card statement either (and yes banks do look at that to see if what you put on your application actually stacks up).

  5. Look for some savings (for now) – Saving on some bought lunches could really help you build those savings. Remember the sacrifice isn’t forever, just until you get your ‘good debt asset’ behind you. And look, as much as you may not want to hear it, try saving up for the things you want to buy rather than use a credit card or Afterpay. Who knows, you might just decide you didn’t need it that bad after all!

  6. Date on a dime – Keeping some spark in a relationship need not be expensive. A nice home made dinner and home movie with popcorn, or a hobby you can share on date night, might help you save $100 a month or so. Every little bit helps. It doesn’t have to be every time, just sometimes, and remember it’s worth getting creative so you can achieve your goals quicker.

  7. Speak to a broker early even before you have your deposit – Some people keep delaying until they’ve saved a full 20% deposit so they can skip Lenders Mortgage Insurance. In the meantime they could miss out on a really good property, or the market could go up faster than the savings build. See us to discuss where you want to get to so we can help you get in to the best position, or help you jump right in with the right finance to suit your individual life plan.

There you go! A few tips on financial fitness to get you to where you want to be.

Stay in touch on our facebook for more information on assistance to buy your first home or if you want to get started, just contact us below.

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