In our previous blogs we have debunked the myth of Offset accounts and proven that they are relatively ineffective. Now use our HELOC calculator and reduce your monthly input by an amount equal to the cash you spend directly which is “convenient” or does not make you “feel cheap”. Notice it adds months (and interest) to your mortgage. Quite a penalty to pay for the “joy” of carrying cash.
Working with clients, I have also found that they did not realise how much was going out. A daily lunch $12.00 ($3,000 a year), kids school lunches (2,500 a year), a few beers with the mates ($2,500 a year). It all adds up fairly quickly. (More on how to monitor these figures in later blogs.)