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As inflation and living costs continue to rise, focusing on practical budgeting techniques is essential to regain control of your finances. This guide offers practical tips to help you save money, reduce expenses, and stay financially resilient even during challenging times. Everyone is feeling the crunch of the cost-of-living crisis, and it seems far from over. Many of the essential expenses such as groceries & bills are starting to feel as though they are outpacing earnings. Recent data reveals there was a 4% surge in the Consumer Price Index (CPI) for the year ending in May 2024. Of this, housing and transport costs lead the charge. Although the government has taken some measures to offer some respite such as tax cuts and energy bill relief, it is important to be proactive and take steps to save & ease the financial pressure. Here are some tips: 1. Mastering Your Budget: Tips for Effective Financial Planning Your best tool in these challenging times is a well-structured budget. This can be a simple excel spreadsheet, a traditional paper planner or even a more advanced tool such as a budgeting app. The main goal is to be able to track your income & expenses, and from there, set limits for different categories such as groceries, dining out, transport and leisure to help you take control of your spending and feel on top of your finances. Extra Tip:  Check out the MoneySmart budget template for a helpful starting point. You can customise it to fit your spending habits. 2. Smart Shopping Strategies to Beat Rising Grocery Costs Groceries are a major but necessary expense, but you can still help keep your spending down in this category: Meal planning: Planning or ‘prepping’ your meals for the week is a great way to help keep spending down at the grocery store. If you have your meals planned out, you can make a specific shopping list of only the things you need for those meals. Going in with a list and a plan helps avoid impulse buying or overbuying as you only purchase what you need. Compare prices: Check the different supermarkets to look for the best prices. You can look at the catalogues for the week to see the specials, you may even end up making a plan to buy certain items at one supermarket and others somewhere else to help save money.   Weekly specials: You might even decide to plan your meals for the week around what you have found is discounted at the different supermarkets. Bulk buying: Items that are non-perishable, for example canned goods, toilet paper & toiletries, you can stock up on when they are on special for a good price. There are also cons to bulk buying. Be wary of overspending and buying more than you actually will need. Work out whether you’re getting a good deal and what‘ a reasonable amount to buy. Pack your lunch: When you’re planning your meals each week, also plan for your lunches to take to work. Bringing your own lunch to work helps you save money compared to buying takeout or eating at restaurants every day. Generic brands: Opting for the homebrand products over pricier name-brand products is a great way to save money. A lot of the time the products are pretty much the same. Seasonal produce: Choose fruits and vegetables that are in season for maximum savings. The pricing will likely be more reasonable than something that’s out of season and therefore the demand is higher than the supply. Rewards Programs: Check out the rewards programs or loyalty cards that shops offer. Earning points can save you money off your future shops and often there will be additional savings that are available to those joined up to the programs. 3. How to Cut Monthly Expenses and Save More It’s important to review your regular expenses and scrutinise where you could be making potential savings: Cancel subscriptions: If you have subscriptions or memberships that you’re paying for that you’re not using or aren’t relevant anymore, take the time to cancel them. If you’re keeping them, check to see if you get a discount for an annual subscription rather than a monthly one. Shop around: Explore all your options by researching prices for essential things such as energy or insurance to ensure you’re getting the best deal you can. This also applies to other spending. Shop around to ensure you are getting the best price. Negotiate bills: Although it may be daunting, don’t be afraid to reach out to your current providers to see if there are any better deals you could be getting. A regular review is worth doing if it can save you money! Use public transport, carpool or walk: Using public transport whenever possible, carpooling with your friends, family or even colleagues, riding a bike or even walking depending on the distance. All these options can help you save in costs such as petrol which you could split when carpooling and reduces wear and tear on your vehicle too. Energy efficiency: Looking into options to increase energy efficiency can help you save money. Reduce your energy consumption by unplugging electronics when they’re not in use, only using air conditioning when necessary or even opting for LED lights which are more energy efficient. Make sure your water taps are set to cold. Doing this means you’re not trying to heat water each time you turn a tap on and therefore reducing your gas or electricity energy bill. Free & low cost activities: Explore free or lower-cost activities in your local areas such as parks, museums, libraries or community events. Borrow instead of buy: Borrowing things such as books, movies, or games from libraries or family & friends instead of purchasing them. 4. Planning for Big Expenses: A Guide to Financial Preparation Don't let unexpected costs derail your budget: Create a calendar: Plan for upcoming expenses such as insurance renewals, car registration or strata levies are due, that way you can be prepared and plan your finances accordingly. Save gradually: Set an amount to put into savings each month to help cover these bigger, or unexpected, costs when the arise. Putting aside small amounts more frequently will mean you don’t feel as much of a pinch, and the pool of money will grow. You can read our blog on why you need an emergency fund for more information on planning for unexpected costs. Automatic transfers: Following on from the previous point, you can set up automatic transfers from your main account to a designated savings account each month to ensure consistent progress towards your savings goals. High interest savings account: Do your research and make sure that the accounts you have are earning you the best interest on your savings. At Horizon Bank we have a range of popular savings accounts to suit whatever your financial goals or needs are, contact us today to discuss your options. Seeking Help for Debt and Financial Strain If you're struggling with debt or feeling overwhelmed by the cost of living, there are resources that you can reach out to for help: Talk to your bank or credit union: Discuss financial hardship assistance options or payment plans if you're facing difficulty with your loan repayments. Financial counselling: You can contact the National Debt Helpline (1800 007 007) for free financial advice and support. Mental health support: Reach out to Lifeline (13 11 14) or Beyond Blue (1300 224 636) if you need emotional support.   Remember, even the small changes can make a big difference. By implementing these tips and taking control of your finances, you can ease the burden of the cost-of-living crunch. Looking for tailored budgeting support? Contact Horizon Bank, your Illawarra & South Coast based customer-owned bank, to learn about budgeting tools, low-interest accounts, and financial hardship assistance options designed to help you navigate today’s economic challenges. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong.

4 TOP TIPS TO PAYING YOUR HOME LOAN OFF FASTER (without increasing your payments) Pay your home loan off faster without increasing your payments? That doesn’t sound right! Well of course paying more off your loan will reduce it but short of asking for a raise or getting a second job, most of us are working off what we receive each payday. These paying off your home loan faster tips are all about working smarter, not harder.Stick with me and I’ll give you 4 top tips on easy and fast ways to pay off your home loan quicker.You may have heard that the secret to success is to find those little hacks, those incremental improvements that snowball to achieve tremendous results. Well, this is all about finding what’s available to you and taking full advantage to benefit you financially. It’s not as hard as you’d think. 1. CHOOSE YOUR REPAYMENT FREQUENCY If you don’t specify how often you want to make loan repayments, your bank or lender is likely to make it monthly. If you’re getting paid weekly or fortnightly, change payments to that. KEY INFO: This is really important and simple information … your loan interest is being calculated on the daily balance of your loan, so the less your loan balance is … the less interest you’ll attract and you’ll eventually pay off your loan quicker. This tip and the rest below are all incremental ways that takes into consideration that Key Info and helps you reduce the length of time of your home loan and therefore pay your debt off quicker. 2. MORTGAGE OFFSET ACCOUNT Ask your lender for a mortgage offset account. This account is key to successfully paying off your home loan quicker. What’s a mortgage offset account you may be asking? Basically, a mortgage offset account is a savings account that earns no interest, the balance however offsets your loan balance. Put simply … if you had $500,000 left to pay off your home loan and you had $30,000 in your mortgage offset account, you would only pay interest on $470,000 rather than $500,000! How good is that? As an example, if you had a 6.00%p.a. home loan, that would be a saving of $1,500 in interest over a year, compared to if those funds were in a savings account earning 1%p.a. The less interest you attract means you pay your loan off quicker!You haven’t increased payments AND you still have access to your savings in the mortgage offset account should you need it.Ideally, any spare cash you have would be deposited and kept in the offset account. This leads me to tip #3 and how you can live day to day while keeping as much cash as possible in your mortgage offset account.[Learn more about Horizon Bank’s Mortgage Offset Account here.] 3. GET A CREDIT CARD Are the warning bells going off? I know this sounds counterintuitive but the idea here is to find a low rate no annual fee card that you can use daily. What this does is delay payment of your everyday expenses. Remember, your home loan interest is normally calculated daily and charged monthly. It stands to reason that you should keep has much money as possible in your mortgage offset account to offset your daily loan balance. You can achieve this by delaying the payment of your everyday expenses as long as possible. The other REALLY important part of this tip is to pay the required balance of your credit card to avoid any credit card interest. Generally, cards with reward points attract a high annual fee and interest rate. If you are wanting to minimise the cost, a no or low annual fee credit card is your go to. If your bank or lender is doing right by you, you can arrange to have the balance of your credit card paid out of your mortgage offset account automatically each month to avoid any interest.[Learn more about Horizon Bank’s low rate Visa credit card here.] 4. HOLD OFF PAYING BILLS You may be alarmed once again at the idea of delaying payment of bills but once again, this is your opportunity to keep as much in your mortgage offset account for as long as possible. Remember, your loan interest is being calculated on its daily balance. The longer you can keep your money offsetting the loan the quicker you can pay off your home loan.Your online banking should allow you to set up automatic payment of your bills from your mortgage offset account on the last day payment is required. Set and forget.[Learn more about Horizon Bank’s banking access facilities here.] SIT BACK AND RELAXIf you take a little time to put all these tips into place, you can sit back and relax knowing you’re working the system to benefit you financially. You’ll achieve the ultimate goal of paying off your home loan faster. _________________________________________This blog has been brought to you by Horizon Bank.Horizon Bank has a branch network spanning the NSW South Coast & Illawarra, Branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul & Ulladulla & Wollongong.Horizonbank.com.au    

What is an offset account? A home loan is a major financial commitment. This is why it’s a good idea to use products that will help you manage this commitment. Put simply, an offset account is a savings account that ‘offsets’ your loan balance and can help you pay it down quicker. Here's an example: Sarah and Tom have a $400,000 Home Sweet Home loan. They also have $40,000 in a Home Sweet Home 100% offset account linked to their home loan. Instead of paying interest on the full $400,000, their offset account balance means they only pay interest on $360,000 ($400,000 – $40,000). If their home loan interest rate is 6.00%p.a Claire and Sam would pay $2,158 interest in a month instead of $2,398 – saving them $240 just because they have an offset account. A bonus feature is that they can access their money at any time if needed. It is important to note that an offset account, while it is a savings account, does not attract any interest. Why get an offset account? A mortgage offset account with a substantial balance will reduce the amount of interest you pay on your home loan, which will reduce the amount you pay over the life of the loan. An offset account can be used just like a savings account where you can make regular deposits. The bigger the balance, the more it’s helping you to pay down your home loan. If you come into an inheritance, earn winnings or some other form of income, holding it in your offset account will ensure you’re maximizing its effectiveness in regards to your payments. You’ll be able to manage your offset account from within Online Banking and our mobile banking app. When you log in, you’ll be able to see the balance and make deposits, transfers and withdrawals. There are no withdrawal limits from an offset account and transfers are instant. What should you look for in a mortgage offset account? Not all offset accounts are the same. Some offset 100% of your loan, while some offset a smaller percentage so make sure you check the details of the account. Be on the lookout for: A 100 percent (full) offset account, rather than a partial offset Easy access to your offset funds No balance limit or penalties for withdrawal Any monthly or annual fees for having an offset account Some financial institutions may offer multiple offset accounts linked to one loan, which can help if you're saving for a few big-ticket items like another property, a holiday, a wedding or a new car. Look out for any fees associated with multiple offset accounts. How much money do you need in an offset account to make it pay? Having a substantial balance in your offset is going to maximise its effectiveness in reducing your interest costs. While you can use it as a savings account and withdraw money from it, any money regularly withdrawn from the account may not be beneficial. If the money is leaving the account as quickly as it goes in, the benefit is going to be minimal. Unless you have money sitting in this account long-term, you may only see little or no benefit. You may also want to consider the interest you would earn in a regular savings account that has an attractive interest rate. If using an offset account, will the reduced interest on your home loan be greater than the interest you would earn, if your savings in the offset account were in a savings account? Is it better to have money in offset or redraw? Offset and redraw facilities offer the same savings concept but are different in how they work. They both can help you pay off your loan earlier by reducing the amount of interest you pay on your home loan. Both are generally available on most standard variable rate loans. An offset account works like a savings account. You can have your pay deposited there, link a debit card to it, and make regular deposits and withdrawals. Alternatively, a redraw is a loan feature. You can only use your redraw if you have made additional repayments to draw from. Making extra repayments into your loan can increase the equity in your home, reduce your loan repayments and will help keep extra savings out of sight, out of mind. Many loans now have a redraw feature that allows you to make additional repayments to your loan. Some lenders may have a redraw minimum or a fee for using the redraw feature. You may be able to use an offset account and the redraw feature on your loan, it doesn’t have to be one or the other. Ultimately, which one you prefer to use comes down to how you manage money. If you need discipline and don’t want to access the funds as you would from any other account, a loan redraw facility may be the best option.   At Horizon Bank, we’re here to help you with your personal banking needs. Get in touch with our friendly team today and let’s chat about your home loan and investment loan options. Speak to a real local person with branches conveniently located in Albion Park, Bega, Berry, Bermagui, Thirroul, Wollongong, Ulladulla, Moruya, Merimbula and Nowra.      The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

In this post we’ll look at the steps you can take to creating a personal budget. Creating and sticking to this will teach you discipline with your money and help you to reach your savings goals sooner. It will also enable you to view your income differently which could see you with a surplus of funds rather than living paycheck-to-paycheck. Putting your budget together This can be done simply in an excel spreadsheet. List your income at the top, then list all of your expenses in categories where possible. Total up your expenses and minus this cost from your total income. If you have money left over, great work. If you find yourself in a minus, keep reading for tips on how to get back in the green. Anticipate Changes – before making a budget, think ahead for any large changes that you can reasonably anticipate, like taking out a new mortgage or other personal finance expenses  and incorporate it into your plans as early as possible – even if you do not know what the value will be.  Don't forget to include extra income as well – for example, any anticipated raises or money from a tax return. Make educated guesses – When you don't know the future value of something, make conservative estimates. Make expenses that bit higher, and income a bit lower. This provides a cushion in case things do not go as planned.  Review Your Spending  As previously mentioned, making a budget starts with creating a list of all your expenses and their costs. This includes loan repayments, credit card payments, money spent on groceries and bills plus any entertainment expenses. You can use our budget planner calculator to get started. Look for ways to cut back. This is the hard part! The easiest way to cut back on your expenses is to list them in priority order. Which ones are needs versus a want? If they’re all needs, consider cheaper alternatives. For example, look for a cheaper plan with another internet provider or share the cost of streaming services with a family member or friend. Be Accountable  Good financial management is all about ownership. A budget is only useful if you stick to it. Share your success and setbacks with your significant other, family member or close friend who will encourage you to stay on track with your spending. Make it easy for yourself by printing out your budget table and keeping it close by to refer back to. Sometimes a hard copy is easier than starting up your computer and loading your budget software. If you use a budget planner app even better. Our phones are always within easy reach! Have a purpose and goal in mind  This will help you determine how much you may need to save for and how quickly. Decide if you’re saving for something specific such as a holiday or a new car, or if you’re just trying to cut back on excess spending. Helpful budgeting tools  Our budget planner calculator is a free online tool that is convenient to access and easy to use. Once you’ve got your list of expenses, put them into the calculator which will tell you if you will end up with a surplus or shortfall after considering the income details you provide. This can also be accessed from your smartphone or tablet. Have a plan for any excess funds you find yourself with. It is quick and easy to open a savings account or term deposit online where you can deposit your money into straight away to avoid temptation. If you are still finding yourself in the red, make sure you have all of your expenses properly listed. Get someone to check over your budget for accuracy. If you are still experiencing issues, seek help from a financial counselor about managing debts. Get in touch with the friendly team at Horizon Bank today and let us help you on your savings journey. Horizon Bank has a branch network spanning the Illawarra and South Coast with offices at: Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank. 

The end of the current financial year is 30 June with the new year beginning on 1st July. With End of Financial Year or EOFY quickly approaching, it’s important that you get your tax return checklist together and have the correct documentation to complete your tax return. Here are 5 key things that are required when you lodge your tax return: Payment summaries or Income statements – provided by your employer Bank statements showing interest earnt - if you lodge your tax return online using myGov, the Australian Taxation Office (ATO) may prefill these fields already for you. Records and receipts of work related expenses Records and receipts of expenses and maintenance incurred on investment properties Any other documentation showing forms of income We’ll discuss some key practices to get into the habit of to keep you on top of you affairs during tax time. Record keeping Good record keeping is a must and is a continuous job that has no real end date. Having folders or an organised filing system that clearly labels the financial years containing expenses, deductions and income earnt will make it much easier to find what you need when doing your tax return. The ATO has a myDeductions tool, which is free to use and is available through the ATO app. Income tax deductions you can claim Are you aware of the deductions you can make at tax time? Visit the Australian Tax Office website to see what you can claim. Do you research so that you are not missing out on income tax deductions you could be entitled to. Keeping receipts for work and self-education expenses will ensure you don’t miss out on any deductions. EOFY deals At this time of year, there are lots of sales and specials to entice you into buying things with your tax refund. Cars, technology and whitegoods are some of the popular items going on sale. Before hitting the shops, be sure to check that these are things you need and not just want, otherwise you might be spending dollars you don’t actually have. It might be a good idea to wait until you’ve done your tax return to see if you’re entitled to a refund. Set yourself up for tax return success If you are using a tax agent ask them ahead of time what you need to bring to help them complete your tax return. Keep this in mind for the following year so you are organised and have all your paperwork ready to go. This will greatly help you with your tax return submission and can even save you time with your tax agent. The tax season runs until the 31st October each year. You have until this date to lodge your tax return. If you owe money, your notice of assessment will tell you how long you have to pay. How to best manage tax refunds It can be exciting to see a big lump sum payment hit your account. If you’re expecting a refund, have a think about what that extra money can go to. You may want to put it into a savings account, or contribute to a loan repayment. Be sure to manage your refunds wisely, and plan for the next financial year ahead. Are you planning for the EOFY and need some extra help with your banking needs? Get in touch with the friendly team at Horizon Bank today and let us assist you. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

Tips for preparing for a change in interest rates Why do interest rates change? To understand why interest rates change, we'll first talk about the cash rate. The cash rate is a rate set by the Reserve Bank of Australia (RBA) representing the interest that banks and lenders have to pay on the money that they borrow. This rate will rise to try and slow the economy down, or fall to promote economic growth. The RBA's objective is to promote a stable currency, full employment and economic prosperity, ensuring that price growth, or inflation, remains relatively low and stable. Interest rates on the other hand, are what determines the cost of borrowing or lending money. If the RBA raises the cash rate, then it will cost more for banks to conduct business between themselves. Banks and lenders may pass these costs on to consumers in the form of rate rises, meaning anyone who has borrowed money from that institution will be charged more interest. What does an interest rate rise mean? The cash rate has a flow on effect to financial products with variable interest rates, such as savings accounts, variable rate mortgages and personal loans. Learn more about the different types of loans. It also impacts cost of funding for the banks. An interest rate rise means the cost of funding a loan has increased. This can lead to higher repayments, which can leave borrowers with less disposable income, meaning many people may need to look to make savings elsewhere. Interest rate rises can be tough for families and small businesses, as increased mortgage and debt repayments can make life more expensive. On the flip side, depositors enjoy an interest rate rise as they will see a greater return on their savings and term deposits. What is the impact of interest rates rise on mortgages? A rise in interest rates will see your minimum monthly repayment increase. If you’re not sure what this is, you can find out by checking the loan details in your online banking or by asking your lender. If you're on a standard variable rate loan, you'll probably see your rate go up in line with any interest rates rise. It is important to check your loan contract and any other relevant terms and conditions when you first receive your loan offer. Fixed-rate mortgage holders are likely to be affected when they reach the end of the current deal. A rise in interest rates could make a re-mortgage more expensive. It’s important to remember whilst a small rise may not affect your repayments too much, a few consecutive rises could have a significant impact on repayment costs. How do I prepare for an interest rate hike? It’s important to have a financial plan to deal with any potential changes in interest rates. If you’re following the market and have noticed interest rates rising, you can always speak to us about your home loan to see if making extra repayments or switching from variable to a fixed rate would be in your best interest. If you don’t have a home loan with us, get in touch to see if refinancing to Horizon makes good financial sense. Making a plan to cover the next three to six months is a good idea to make your money go even further. Setting a budget and reducing unnecessary spending is a great place to start. Putting extra money towards other debts like credit cards and personal loans will also put you ahead if interest rates rise. Tips for managing an interest rate rise on your mortgage Calculate the impact the interest rate rise will have on your mortgage. Use our loan repayment calculator to get an idea of how calculator to work out the impact. Calculate what you can afford If your mortgage repayments are likely to go up, work out if you're able to afford them. As discussed earlier, you may need to cut unnecessary spending to make up this extra cost. If you think increases are expected to happen in the future, then start saving up enough money now to cover your mortgage payments when they occur. Are you on the best deal? If you have a fixed rate home loan with us, we will be in touch before your fixed term ends to discuss your options. At this point you can lock in a new rate or switch to a competitive variable rate. It’s important to speak to your financial institution first to see if the savings are worth it before switching. Make more mortgage repayments if you can Taking advantage of the lower interest rate environment while you can and paying extra if possible will put you in a better position during a rate hike. It’s important you always check with your mortgage provider before you pay any extra repayments as fees may apply, especially on a fixed rate loan. What happens when interest rates fall? Low interest rate environments tend to benefit borrowers rather than savers. The goal is to stimulate economic growth by making it cheaper to borrow money for large purchases like property. People are willing to make larger purchases and will borrow more, which increases the demand for household goods. A low interest rate environment is great news for homeowners because it will reduce their monthly mortgage payment. This also sees potential homeowners be drawn into the market because of the cheaper costs. The flow on effect is that low interest rates mean more spending money in consumers' pockets. Lower interest rates gives borrowers a break in terms of lower debt repayments and it can also provide an opportunity to get ahead on your mortgage. Unfortunately, people with large deposits in the bank don’t see much of a return on their investment when interest rates fall. To view our current interest rates on our loans and savings products, visit our interest rate page. Horizon Bank is here to help you with your banking needs. If you have any questions or would like us to discuss your needs further please get in touch with our friendly local team today. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

At some point you’ll probably need a loan for something whether it be a holiday, car, credit card or home purchase. One of the ways a lender will assess your application is by looking at your credit history. This is why understanding what your credit report and credit score says about you is important. What is a credit score? Many people use the terms “credit score” and “credit report” interchangeably however they are two different things. Your credit report contains a summary of your financial history, while your credit score is included in the report and reflects how reputable your financial history is. Credit bureaus such as Equifax hold credit report information. A credit report is created when a bank or other credit provider submits a request for information. Why do I need a credit report? Having a credit report and score will assist you in applying for a loan or credit card as lenders can use this as one indicator of your ability to repay. Credit reports can also be used by landlords when deciding who to rent their property to, and by employers as part of their hiring process. How do I build a credit report? Credit reports can be created when you have a utility account in your name and the provider runs a credit check. These include phone, gas, electricity and internet accounts. These are considered credit accounts, so if you default on payments for these, it will be listed on your credit report. How do I access my credit report? Visit the ASIC money smart website for a list of sites where you can access your credit report once per year for free. Be wary of websites asking you to pay for your credit report as this could be a scam. Requesting your credit report more than once per year may attract a fee from credit reporting bureaus. What is included in your credit report? Personal information and contact details are included. How long you’ve been at your current and previous address is also on there. Other things that make up your credit report include: Type of credit provider. Different lenders have different levels of risk. For example a non-traditional lender such as store finance may have a different level of risk than a bank or credit union. Size of credit requested. Both the type and size of the loan or credit limit you’re requesting can affect your credit score. Mortgages have a different level of risk compared to credit cards. Number of credit enquiries. Every time you apply for credit, the credit provider obtains a copy of your credit file and the application is noted. The pattern of credit enquiries over time also affects the level of risk. This is considered a red flag for credit providers. Directorship information. If you’re a director or proprietor, it may impact your score. Check both the individual and commercial sections of your credit file to see what is noted. Age of credit file. Check the date your credit file was created. A new file may indicate a different level of risk compared to an older file. What stays on your credit report? Default information. Any personal or business credit such as overdue debts or serious credit infringements could negatively affect your score. Court writs. Default judgments or court writs may convey you as an increased risk and negatively impact your score. Bankruptcy: if you declare bankruptcy, this will stay on your report for 5 years starting from the day you declare bankruptcy or 2 years starting on the day you were no longer bankrupt. Debt agreement: Entering into a debt agreement is where you negotiate to pay a percentage of your combined debt that you can afford over a period of time. Payments are made to your debt agreement administrator. These agreements remain on your credit report for 5 years from when the agreement was made or 2 years from the day the agreement is completed or declared void. What is a good credit score Earlier on we mentioned credit bureaus hold your credit report information. They also determine your credit score differently. Generally, the higher your credit score, the better it is. Below is a breakdown of how Equifax evaluate your credit score as an example. Looking at the table, a score between 833 and 1200 gives an excellent score which means it is less likely that a negative event (related to repaying a debt) will be recorded on your file in the next 12 months. This means you are in the top 20% of the credit-active population and will appear as less of a risk to lenders. A below average (0-509) score means you’re in the bottom 20% of the credit-active population and are unlikely to be approved by reputable lenders. Source: Finder.com.au Improve your credit score Fixing issues on your credit report When you receive your credit report, you can contact the credit bureau you received it from if there is any incorrect information. Only incorrect information can be removed. If all of the information is correct but your credit score is still low, there are steps you can take to improve your score. How do I fix my credit score? Consolidate your debts into one easily managed personal loan if possible. Consider entering into a debt agreement to pay off multiple debts. You can read more about debt agreements on the Australian Financial Security Authority’s website. Lower the limit on credit cards if you are not reaching that limit with your spending. Avoid a default notice by making payments within 60 days of when they are due. Default notices of $150 or more remain on your credit report for 5 years. Limit the number of credit enquiries you make. Multiple enquiries for credit made within a short period are recorded on your credit report and are considered a red flag to lenders. Seek help from a financial counsellor to help you work out a plan for paying down your debts, through disciplined spending and saving. Use of financial counselling services is not recorded on your credit report. Thinking of applying for a loan or credit card, but want to know more about your credit report first? Get in touch with us today, we’re here to help. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

Cost saving tips for renovating on a budget There’s no better reward and satisfaction than taking a step back at the end of a renovation to admire your hard work. Whether you’re looking to update a few features or plan on stripping an old room down and creating something from the ground up, read on for our top cost saving tips whilst renovating. Your renovation on a tight budget Improving the aesthetics and functionality of your home will require money to be spent so it’s important to prioritise where to spend your money. You want it done properly so instead of spreading your funds across two or three areas in your home, consider putting all of your available funds into one space that needs the most work and that you and your family will get the most out of. To start off, use our budget planner calculator to see what extra money you have to put towards your renovation.  If you need a helping hand a Horizon personal loan can help to cover all or some of your renovation costs. Get your design right Getting the design right from the get go will reduce your waste and therefore the cost of removing it. In the long term, an environmentally friendly design that allows for natural light and ensures the house is properly insulated will also reduce your heating and cooling costs. Look for ways to save Taking DIY lessons before you start renovating will give you a basic understanding of tools which means there could be some jobs you can do yourself rather than paying someone else to do. This will not only save time and money but will give you practical skills for use in future.  Keep it simple, as changing major structures or moving plumbing are examples of things that are likely to blow out your renovation budget. There’s no shame in getting a professional in. Not only do they have experience, they also have the right tools for the job. You might find that if you DIY it, you’ll need to shell out for expensive tools you won’t need beyond the job. Shop around for fixtures and fittings This takes a bit of time but sourcing your taps, light fixtures etc online or from wholesalers could save you money in the long run. Do your research on materials that will last a while and improve the quality of your home. Keep an eye out for sales and discounts along the way. Include the costs of fixtures and fittings in your budget planner or expense manager to keep track of all the items you’ll need for your renovation. Make sure you have all the essential materials and fixtures you need before starting the job. This will help you avoid inconvenient delays. Gather friends and family together Many hands make light work. Ask family and friends to lend a hand during the clearing out, demolishing and labour intensive parts of your renovations to save money on tradespeople.  Keep track of invoices and quotes This is where a budget planner or expense manager is really useful to keep on top of what you were quoted for versus what you actually end up paying. This keeps tradespeople accountable and also helps you remember where you sourced your fixtures and fittings from for any warranty claims. The important bits to take away Start by understanding all the associated costs of your renovations. Make good use of budgeting tools to help prioritize these to create a home remodel budget you can work with. Seek advice from licensed trades people and kitchen or bathroom designers to make a fully informed decision. Allow time for the planning, setup and installation of your new rooms and have a plan B if you can’t use your bathroom or kitchen for a few days or weeks. Need some extra help with planning your renovation budget? Get in touch with the friendly team at Horizon Bank and ask us about ways to fund your renovation today. Horizon Bank has a branch network spanning the Illawarra and South Coast with offices at: Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

Money Saving Tips During Lockdown The current situation with Coronavirus outbreaks and subsequent lockdowns presents challenges as our habits and routines are thrown out the window. One thing you may notice is your spending and savings plans getting off track. With more time spent at home, you’ll likely notice an increase in the amount of food and power being consumed. Adjusting our budgets to reflect these changes is the best way to ensure we stay on top of our finances. Horizon Bank has put together some tips to ensure you are keeping your spending and your budget on track. Read on to find out how to apply them to your finances. How to save money in lockdown Shopping lists Shopping online at the moment is the safest and most convenient way to get items you need around the home. If you have started shopping online, it’s essential to use a list still and only buy the things you need. Keeping an eye open for sales and discounts is possibly now more important than ever. Keep an eye on your social media and email offers for when your favourite brands and stores are having a sale or clearance. A list is also vital if you are still heading to the supermarket, local convenience store or butcher for essential food items. This will curb the temptation to overspend or spend aimlessly. Keep in mind that individuals need to shop with purpose rather than browse. Food consumption may increase with everyone spending more time at home, so be mindful of this. Consider looking up recipes you can make with leftovers or with minimal ingredients to make your food shopping stretch further. Direct debits If you have had reduced work during a lockdown, you will want to review your automatic direct debit payments. Now is the perfect time to sort through them and pause or cancel any subscriptions that you can live without for a while, or that you we’re meaning to cancel anyway. Keeping track of your balance to avoid any overdrawn fees is a good idea. Speak to your bank about how to effectively manage this. You could also talk to your utility providers about a payment plan or changing the frequency you pay. Financial Support Financial support options from the government may be there for you, so it’s important to find the information you need to claim it. Use the links below to access financial support information. Business financial assistance  Disaster Payment - New South Wales  Work and financial support  Claim working from home tax relief If you are now working from home due to the coronavirus pandemic, you could claim some money back for working from home expenses. The Australian Taxation Office has articles about what individuals can claim whilst working from home. Here’s what you can claim if you’ve been working from home. Keep in mind you may need receipts and invoices as proof of purchase. Electricity expenses. Heating, cooling and lighting the area from which you are working and running items you are using for work cleaning costs for a dedicated work area phone and internet expenses computer consumables (for example, printer paper and ink) and stationery home office equipment, including computers, printers, phones, furniture and furnishings Review your service providers If you have been with the same phone, electricity or insurance provider, get in touch with them to see if payment plans or financial relief can be offered. This could be especially useful as you may find your energy bills have increased with everyone being at home for an extended period. Get in touch and chat with them about your different options during a lockdown and if they can do something to keep you as a customer. You may be rewarded with a discount if you have been a loyal long term customer. Now is also a good time to get in touch with your bank or financial institution if the coronavirus lockdown has financially impacted you. They may be able to defer your mortgage payments or organize an arrangement. Ensure you are fully aware of the impact of extended loan terms or deferred payments. Track Spending When you are more conscious you are of what you are spending, the less likely you are to overspend. Eventually, this will become a habit that you can use to save money even when lockdowns have ended. Check out these highly-rated budgeting and savings apps. If you’d prefer to keep a physical track of expenses, you can use an exercise book or a folder for receipts. A paper planner or diary would also work well. This will help you keep on top of your bank balance, and it may even see you have some extra cash at the end of the month if every dollar is accounted for. As a local Wollongong bank with branches across the Illawarra and South Coast, the team at Horizon understands this is a difficult time for many. We are happy to help you with any questions you may have about your accounts and banking needs. Get in touch with us today. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

In this blog we’ll take a look at some practical ways you can make changes to your spending and saving habits. At this time in your life, you’re likely in full time work and may have just bought your first home or investment property. You may even be thinking about starting a family. Whatever your personal situation, read on for simple ways on how to save money. Have a Personal Budget Check out our blog on budgeting tools and tips to get started on a budget. It is important to list your income and expenses honestly to get a good grasp on where you need to cut back and save on. Get rid of your debt Car loans and credit cards are typical debts for people in the under 30 age category. A great money saving tip is to pay these off quickly and reasonably. The key is to set up a recurring direct debit from your pay. This also means committing to paying off more than the minimum monthly balance. Paying off credit card balances in full and on time is essential to avoid extra interest charges and late payment fees. Track how much you spend Sometimes we can fall into the trap of thinking spending on big ticket items is what gets us into trouble, when often it’s the little recurring, everyday purchases that end up costing us more. For example, regular takeaway coffee, lunches and parking costs all add up at the end of the month. This is why it’s important to keep track of your day-to-day spending, so you’re keeping on top of your personal finances and not living beyond your means. There are plenty of apps for this, check out ASIC’s MoneySmart app. Your bank statement is a good place to start and will tell you how much money is going into your bank account and how much is going out. You can then compare this with your budget to see whether you’re sticking to it or not, making it easier to identify areas you need to save. If you find yourself impulse buying, consider how long you have to work for to pay for that product. This will help you evaluate if it is worth the money. Saving & investing your money now The best money saving tips and savings plans are forward thinking with the future in mind. Working hard and saving money will enable you to have a comfortable lifestyle if you decide to expand your family with children. There are many ways to invest spare savings that all provide different returns. ASIC’s MoneySmart website has more information on investing. Alternatively, seeking advice from a financial planner is useful at any age to create an investment plan that will set you up for the future. Plan ongoing expenditure Having a plan for your expenses is a great way to save money and automate many of life’s everyday tasks. ‘Bill Smoothing’ is offered by some electricity and gas companies which allows consumers to pay off bills fortnightly or monthly. This can be included in your budget planner and it works well for people on tight budgets and avoids ‘bill shock’ where you’re required to pay off one large bill. Planning meals is another great way to avoid overspending on the weekly shop. Planned meals means you know exactly what groceries to purchase and this will avoid random visits to the supermarket. Get started on your savings journey by using our budget planner calculator. Horizon Bank has a branch network spanning the Illawarra and South Coast with offices at: Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.