Cut the cards to stay out of trouble

BRISBANE families are watching every cent as household budgets struggle to cover increasing costs with less income.

THE Watts family juggle a small business, household expenses and a mortgage – all without a credit card.

Currently on maternity leave from her HR consulting business watts next, Sue-Ellen Watts said the family budget put aside money every week for everything from car registration to Christmas costs. The boys, even the baby, have their own accounts into which $5 a week is deposited.

‘‘When we were younger we got caught in the trap of always having things on credit,’’ Mrs Watts said.  ‘‘I think one of the biggest problems is that people don’t save for things. They want them now and then they get in trouble.’’  She said post-Christmas sales were also a good time to buy birthday presents.

The recent decision by the Reserve Bank of Australia to keep interest rates low was a good thing for the family.

‘‘Predominately for the business, because it has been going for five years and we have put a lot of investment and time into that. Interest rates staying where they are means we can continue that investment.’’

The family use Aspire Retire financial services. Cofounder Olivia Maragna said low interest rates were a good time to put spare cash on credit cards or other personal debt.

OLIVIA Maragna (pictured) of Aspire Retire financial services has shared her tips for staying in the black.

Business owners: Prepare for the potential of interest rate hikes. Have cash buffers in place. Reduce debt.

Homeowners: Put spare cash towards credit cards or loans. It’s a good time for renovations with stable prices.

Investors: Consider starting a long- term growth strategy – shares, property etc.

Deposit holders: May feel like putting cash under a mattress, but look at investment options and remember higher returns mean higher risk. Read fine print and get advice.

Source: News Ltd

Cut the cards to stay out of trouble – Successful Small Business Owners