Before receiving Money Coaching with Sylvia I was living from pay to pay. In fact I would usually run out of money a few days before my pay check went in each fortnight. Despite working during the past 10 years I had zero savings. (Though, I had managed to pay off a $10,000 credit card debt and got rid of all credit cards as I knew I couldn’t trust myself with one). I was in my early 30’s and really wanted to start saving for a house deposit. Plus I had just started a relationship with an amazing man (now my husband) who is a saver (I know – opposites attract right!) and who encouraged me to sort out my finances. With him as an excellent catalyst, and Sylvia’s knowledge and ongoing support I set a goal of saving $20,000 that year.
One of the things I learnt that really helped was the importance of Short Term Savings so that you don’t have to touch your Long Term Savings. This was a huge revelation for me. I made a budget. Cut out and cut back on spending and with Sylvia checking in with me regularly I hit my Savings target for the year! I was elated! And kind of addicted to seeing the interest the Bank paid ME each month, go up! Over the next few years I was able to save $55,000 and when my husband and I bought our first home together I was able to make a respectable contribution to the deposit. Making our repayments manageable enough for me to be a Stay-at-home Mum. I am so grateful to Sylvia for her help and support.
Learning to manage my finances not only gave me greater confidence in myself but it has enabled me to live a lifestyle I had only dreamed was possible.
Problem solved from MONEYCOACHING
Let me tell you a story of how life changing it was for one participant because her employer paid for a group of their staff to do a course “You and Your Money”.
I didn’t know Jill’s situation (not her real name) – she was paying off her mortgage – it was a 15 year mortgage which is so common for many people
– she thought she was going to have to keep working past retirement age – to pay the mortgage
– the pension would not be enough – she had done a retirement spending plan
– she didn’t know there was any other option other than selling her much loved home when she retired which she didn’t want to.
Then one day at a You and Your Money course, the session we did was on Property choices and mortgages. I asked questions of the group “Are there ways to pay off a mortgage quickly?” And “Is it a good idea to increase the mortgage re-payments instead of paying the minimum if we can afford to do so? Why?
And because of that our group went on-line to ‘sorted’ and used the Mortgage tool and had some fun playing around with different figures which showed how much interest you could save if you increased payments – even slightly.
I didn’t know the impact this fun activity was having on Jill as she didn’t say anything.
Finally, after playing around with the mortgage calculator at home Jill went to the bank with her new knowledge. She shared with the group the next week that she had negotiated her mortgage to be paid off comfortably in 4 ½ years instead of 15 years. She told the group that before this seminar she had no idea how mortgages worked – she thought she just had to do what the bank told her.
She was now looking forward to retirement with no mortgage, plus she would have extra savings too.
Jill could now see her dream would come true of visiting family overseas when she retires.