Blog

From time to time we all have surprise expenses that come up, but the financial pressure can pile on when you’re hit with an especially large, unexpected cost & it can quickly blow out your budget. For when these surprises come along, an emergency fund can help cover you and your family. We’ve looked at a few reasons why this safety net is important and some steps you can follow to get one set up. What’s the purpose of an emergency fund? Unfortunately, this fund isn’t for fun spending such as a holiday or shopping spree. An emergency fund is designed for expenses that aren’t anticipated that you may need to cover in a short time period such as: Medical or dental bills Urgent home repairs Car repair costs A loss of income for a period of time Emergency travel If you don’t have an emergency fund, you might have to tap into your savings, take out a loan or extend a loan to cover the unexpected costs which can be stressful. How to build an emergency fund 1. Set up a new account An emergency fund is usually a dedicated bank account. That way, you can see how much is in it and don’t have the temptation of taking money out for reasons other than urgent costs. Speak to your customer-owned bank about establishing a new account. You may even reap the benefits of a bit of extra interest if you save regularly.Usually an emergency fund will be a dedicated bank account. By having it that way, you can easily see how much you have in it as well as removing some of the temptation to take money out of it for reasons that aren’t urgent costs. You can speak to your local branch or contact us to discuss your options when establishing a new account, you may even be able to benefit from some extra interest if you save regularly depending on the account you go with! Check out our popular savings accounts or our popular everyday accounts. 2. Establish a target Although it’s hard to know exactly how much you may need in the future for life’s unexpected events, having a ballpark figure in mind can help you with your saving.The Australian Securities and Investments Commission’s MoneySmart suggests putting aside three months’ worth of living expenses. The site has a budget planner you can use to see what this may look like for your household. 3. Think about regular payments Work out how often you will make payments into the emergency fund. If you’re starting from scratch think about putting money into the emergency fund weekly, fortnightly or monthly. This could depend on the frequency of your pay. You may opt to have automatic deductions from your main account to your separate bank account set up for your emergency fund, this way you don’t have to think about it. 4. Consider adding any windfalls to your emergency fund If you get a pay rise, inherit some money or receive a tax refund, consider directing some or all of it into your emergency fund. Adding a larger payment can help build the fund up quickly. Adding a larger payment to your emergency fund is a good way to help build the fund up quicker. If you happen to get an inheritance, a good tax refund or a pay rise for instance, you may consider directing some or all of those funds to your emergency fund. 5. Set up some rules for tapping into the fund Having some ground rules around when or how you can use the funds in your emergency fund is important so that you don’t tap into it too often. Keeping the emergency fund at the right level is key. For example, things such as smaller car repairs or dental bills you may just want to use money from your other accounts rather than the savings in your emergency fund so it isn’t being used too often, saving the funds in there for more major incidents. Building an emergency fund will provide you with peace of mind that you’ll maintain financial stability should unexpected expenses come up. By setting up your dedicated account, establishing your savings targets, making regular payments and setting yourself clear ground rules for its use, you can create a great financial safety net that will protect you and your family from unanticipated expenses. Don't let surprise costs derail your financial plans. Start taking steps today to build your emergency fund and secure your future. Speak to your local Horizon Bank branch team for more information on setting up a dedicated account or you can get in contact with us online. Remember, the key to financial resilience is preparation, and an emergency fund is your first line of defence. Ready to take control of your finances? Begin building your emergency fund now and enjoy the confidence that comes with being prepared for life's unanticipated events.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.

Want to set your children up for financial success? Start teaching them basic money lessons early on to help them develop good practices to last them into adulthood. As parents, you can set your kids up for success in many ways, one of them is teaching them good money habits. Schools are beginning to bring financial literacy into their curriculums, however the basic and most important lessons often start at home. Sometimes, this can involve children observing their family’s behaviour; other times, it involves more active engagement. Here are a few ways you can help give your kids a head start. 1. Establish a rewards scheme One of the most fundamental financial lessons is that money needs to be earned. While we realise as adults there are caveats to that rule, it’s an important place to start with children. Once they realise they cannot get things they want for free, it encourages them to be more mindful of the money they have and might encourage them to start to look at ways they can earn money to save up.  A good way to put this lesson into place is to consider rewarding kids for their positive behaviours. An example is to set chores for the kids that they earn money for doing such as cleaning their room, taking the bins out or helping out in the kitchen. Keeping rewards small might encourage them to save their earnings in order to get themselves something bigger and more meaningful. 2. Incentivise putting money away As a kid it can be hard for them to see the benefits of saving their money and not spending it as soon as they get it. To make saving their money a more appealing notion, you could offer them reward or bonus money once they have saved a certain amount. For example, when they reach $10 saved, you offer an extra $5 for their efforts. It tells them more could be gained from storing money than buying something immediately. It’s also an early introduction to compounding interest. 3. Let them help at the counter or checkout To understand saving money, kids may need to become familiar with the money exchange involved in purchasing something. This can help to teach them that the things we want aren’t free and need to be bought with money. A good way to do this is to let your kids pay at the checkout at shops with cash and receive the change. It may be even more impactful of a lesson if it’s something they want to buy, like a favourite food item or a toy, and they are using money they earnt. 4. Set up a bank account Several banks offer accounts for young children to help them kick-start their savings habits. At Horizon Bank, we have a few different youth accounts to choose from. Setting one up could be a fun experience for the kids and encourage them to save by wanting to go to the bank to put money into their own account. It could also help the little ones see that money can grow over time with regular investment. They’ll likely earn some interest as time passes, which may help teach them about the power of longer-term saving. 5. Introduce goals We all know it can be hard to feel motivated to save money if there is no goal or target, you’re aiming for. Think about sitting down with the kids and asking them what it is that they want to buy, then helping them work out what’s needed to achieve that goal. You may need to discuss the goal they set to ensure it is reasonable and achievable for them, so they aren’t discouraged if they are unable to achieve it. It’s likely that you will need to be checking in with them to ask how they are going working towards their goal, what they need to still achieve and encouraging them to keep going so they stay motivated and don’t lose sight or interest in their goal. Teaching kids about money and savings is not a one-time discussion but a continuous journey filled with practical lessons and experiences. Building wealth for kids starts by instilling healthy money habits early. Children can understand the value of saving and smart spending decisions with the right guidance and tools. Encouraging savings and setting a savings goal for kids will help them grasp the concept of financial planning and delayed gratification. Incentivising saving and making it a fun, rewarding activity can reinforce these concepts. Letting them participate in real-life transactions can also enhance their understanding of money's worth and the importance of budgeting. The journey to financial literacy is a gradual process, and the team at Horizon Bank is here to help! With a range of youth accounts, we can provide the tools you need to help your child build healthy savings habits. Remember, it's never too early (or too late) to teach your children about money. The seeds you sow today will reap benefits as your children become financially responsible adults. Get in touch with us today. We’ve got the Illawarra and South Coast covered with branches located in Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula.  

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 for 2024. 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. Are you are looking to create a budget for 2024, but are not sure how to start? Get in touch with the friendly team at Horizon Bank today and let us help you on your 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. 

SMSF trustees, get ready to maximise your retirement savings! What is a Self-Managed Super Fund (SMSF)? A self-managed super fund is a private superannuation fund you manage rather than relying on a professional fund manager. As an SMSF trustee, you have more control over your investments and can customise your portfolio to suit your specific needs and risk tolerance. However, with greater control comes increased responsibility, including compliance with regulatory requirements and ongoing administration. Why Choose Horizon Bank's SMSF Saver? The SMSF Saver account from Horizon Bank is designed to meet the unique needs of self-managed super funds. It offers a range of features and benefits that make it an ideal choice for savvy SMSF trustees looking to optimise their retirement savings. Competitive Interest Rates: Horizon Bank's SMSF Saver offers competitive interest rates to help your retirement savings grow. Earning a higher return on your cash holdings can maximise your wealth accumulation and achieve your long-term financial goals. Flexibility: The SMSF Saver provides flexibility in how you manage your funds. With no minimum balance requirement and no fixed term, you can access your money when you need it without penalty. This flexibility allows you to adapt your investment strategy as your needs and circumstances change. Easy Access: Managing your SMSF Saver account is simple with Horizon Bank's online banking platform. You can easily view your account balance, transfer funds, and access statements from the comfort of your home or office, giving you more control over your investments and financial planning. Security: As a member-owned bank, Horizon Bank prioritises the security of its customer's funds. By choosing the SMSF Saver, you can have peace of mind knowing that your retirement savings are securely held with an established financial institution. All about You: As a customer-owned financial institution, Horizon Bank prides itself on providing personalised service to its customers. As an SMSF Saver account holder, you'll have access to dedicated support from a team of experienced banking professionals who understand the unique needs of self-managed super funds. Maximising Your Retirement Savings with SMSF Saver Consider implementing the following strategies to maximise your SMSF Saver account and optimise your retirement savings. Regular Contributions: Regularly contributing to your SMSF Saver account can help grow your retirement savings. By consistently adding funds to your account, you can use compound interest and accelerate your wealth accumulation. Diversification: Diversifying your SMSF investments can reduce risk and improve returns. By holding a portion of your portfolio in cash through the SMSF Saver account, you can create a balanced investment strategy that aligns with your risk tolerance and financial goals. Monitor Performance: Regularly monitoring the performance of your SMSF Saver account and other investments can help ensure you stay on track to achieve your retirement objectives. By reviewing your account statements and discussing your investment strategy with a financial advisor, you can make informed decisions and adjust your approach as needed. Review Fees and Charges: It's essential to review the fees and charges associated with your SMSF Saver account and other investments regularly. By minimising costs, you can maximise your returns and ensure more of your money is working towards your retirement goals. Secure Your Financial Future with Horizon Bank's SMSF Saver Choosing the right savings strategy is crucial for self-managed super fund trustees looking to maximise their retirement savings. With its competitive interest rates, flexibility, and personalised service, Horizon Bank's SMSF Saver is an excellent option for those seeking a secure and effective solution for their cash holdings. By taking advantage of the features and benefits offered by the SMSF Saver, you can optimise your investment strategy and secure your financial future. Start growing your retirement savings today with Horizon Bank's SMSF Saver and take control of your financial destiny. As always, we are here to help and have branches across the Illawarra, Shoalhaven, Eurobodalla and Sapphire Coast. Contact us if we can be of any assistance. 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. Note: You should consider the General Terms & Conditions in deciding whether to buy or hold the products.

As teenagers embark on their journey toward adulthood, it's crucial to equip them with essential life skills, and one of the most important skills is managing their finances responsibly. Perhaps they are about to start their first job or are looking to save up for something special. Opening a bank account for teenagers can be an excellent way to introduce them to the world of personal finance, teaching them valuable lessons about money management, budgeting, and saving. In this blog post, we'll provide you with a step-by-step guide on setting up a bank account for your teenager, empowering them with financial independence.   Step 1: Research and Choose the Right Bank We suggest looking for accounts that offer zero transaction or setup fees, attractive interest rates, online banking options and branch support for when you want to have a chat to a real person! Here at Horizon, we offer an account that is specifically for teenagers, the Teen Saver account. For kids wanting to focus on savings, take a look at our Youth Reward Saver account.   Step 2: Gather Required Documentation Before contacting the bank, it’s important to ensure you have all the necessary documents. This typically includes identification documents that verifies your full name, date of birth and home address. For example, this could include a passport/birth certificate, Medicare card and a letter addressed to the teenager at their home address from school etc. For more information on identification documents required, reach out to us for clarification.   Step 3: Visit or contact the Bank If you can, pop into the branch with your teenager or, if they’re comfortable, send them in independently. They will need to be there! Encourage them to take an active role in the process by asking questions and engaging in the conversation. This will help them develop a sense of ownership and responsibility towards their finances. The Horizon Bank team can help set up online banking, a debit card and answer any questions you might have. We have branches in Wollongong, Ulladulla, Albion Park, Thirroul, Bega, Merimbula, Moruya, Bermagui, Nowra and Berry.   Step 4: Educate them on Financial Literacy Make sure your teenager understands the basics of money management. Teach them about budgeting, saving, and the importance of responsible spending. Encourage discussions around long-term goals, such as saving for a car or something they have their eye on, to provide a sense of purpose and discipline.   Setting up a bank account for teenagers is an invaluable step towards fostering financial independence and responsible money management. By empowering our teenagers with their own accounts, we equip them with the necessary tools to make informed financial decisions and set them on a path towards a secure future. If you have any questions or want to learn more, reach out to Horizon Banks's friendly local team.

Your complete guide to buying a home The property market and housing affordability is tricky to navigate for first home buyers or any home buyer no matter how many times you’ve done it. Keep reading for helpful tips that will make buying a home a smooth and easy process. The home buying process It all starts with savings your very first step is to open a savings account with a good interest rate that will reward you for saving. This will not be an everyday account. Consider one that withholds interest if you make a withdrawal to help avoid the spending temptation. A Reward Saver account is a great example. What to buy House and land packages are popular with first home buyers and home buyers in general, but you can also buy houses and apartments off the plan. Of course, you can always purchase an established home and renovate it to suit your needs. Looking around If you haven’t already, jump online and see what is available. Chat to real estate agents at open houses to gain property market insights. Family and other experienced property buyers can also give you advice on what type of purchase makes sense for you. Keep a record of the open houses you visited to remember what you liked and didn’t like about each one. Keep in mind you can buy a home listed with a real estate agent, but some home owners prefer to sell privately and save on agency fees. Home loans – what you need to know There are many different types of home loans available, however your best bet is to compare current mortgage rates and use a home loan repayment calculator to work out how much you can afford to borrow. Speaking to a lender about your different options is a good start to get a grasp on how much you need for a deposit, plus any loan establishment fees. Some financial institutions require a 20% deposit to avoid lender's mortgage insurance. If saving 20% seems daunting, speak to one of our lenders to explore your options. You may consider sharing ownership of the property with a family member, friend or partner. Another key element of the home buying process is finding a good solicitor who will explain the contract of sale. Don’t be afraid to ask questions as it will make buying a home easier in the future. Do your research on government grants Depending on eligibility criteria, you could be looking at receiving the First Home Owners grant which is $10,000 towards the cost of your home. There are criteria you need to meet to apply for the grant. Learn more about the NSW first home buyers grant and the criteria here. Documentation required You can imagine that if you were to lend a large amount of money to someone, you’d want to know they have the ability to repay the loan, that’s why when you apply for a loan, the lender will ask you for a list of your assets and liabilities. In other words what you own that is of some worth (example a car), your savings and any other loans, store cards, credit cards. They’ll also ask you about your rent, if you have dependents and what your income is. To help with the application process, have your latest bank statements, payslips and be ready to answer the questions above. Being prepared with this information will speed up the process. Go home shopping with your loan pre-approved At this point you’ll know how much you can afford to borrow so you can go home shopping confident of your maximum limit and ready to put an offer in. This ensures your dream home won’t slip through your fingers.   Legal representation You’ll need a solicitor to go through the terms of the contract and represent you in the sale. The solicitor will also assist in providing the deposit, settling the property and Government fees. Home Insurance After you’ve purchased a home and got the keys you’ll need to organise home and contents insurance. The best place to start is with the building. If you're going to undergo renovations, estimate how much it would cost to remove debris and rebuild your home. If you’ve built your home, the cost of the build should be in your building contract, so you’ve got a good idea of how much to insure your home for. The next step is to estimate how much your contents is worth. Figuratively going through each room will help.  Looking for more home buying advice? Speak to a Horizon Bank lending specialist and let us help you on your journey. 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.

Saving to buy a house? You’ll have more options with a larger house deposit Your house deposit is just one of the costs you need to consider when saving money for a house. Other costs include stamp duty, legal fees, removalist plus money for furnishings and the list goes on. Let’s take a look at how you can save for that dream home faster. Work out what you’re saving for The best way to save for a house is to have an idea of what you’re saving for. This will not only give you a clearer picture of your end goal, but will also help your lender in giving you an estimate on your borrowing power and affordability. So consider, are you after an established home, townhouse, apartment or something off the plan? Do your research to be fully informed on each type of dwelling so you can inform your lender with confidence about what you’re looking to purchase. Set a goal Set an amount you would like to save and a timeframe to save it in. This will help keep you on track with saving money for a house. A deposit of 20% of the property price is generally required by most financial institutions to avoid lenders mortgage insurance. Lenders Mortgage Insurance (LMI) is a cost imposed by financial institutions to protect themselves against ‘high risk’ loans. Any loan that is greater than 80% of the property value is considered ‘high risk’. You will need LMI if you’re borrowing more than 80% of the property value. Set a budget – and stick to it! Take a look at your income and expenses, if you’re spending more than you earn now is a good time to cut back! Regular dinners, coffee outings, direct debits and other subscriptions/memberships are costly and will hinder your savings goal. Use our budget planner to get you started. Save regularly Making regular deposits into a savings account that’s not an everyday account and will normally pay a better interest rate is critical to your savings success. A Reward Saver account is great example. If you get paid weekly, your savings should also grow weekly. This takes discipline and effort however saving to buy a house = owning your own piece of the property market. Worth it! What else can I do? Doing all the above but feeling like it’s still taking forever to get that house deposit? Here are a few other options to try: • Move back in with parents or relatives • Pick up casual work on top of your current job • Limit the amount of times you go out in a month by picking and choosing between social commitments • Need some time out? Go away for a short weekend trip rather than long interstate or overseas holidays • Any extra funds that come your way should go straight into savings The important bits to take away • Be clear on exactly how much you need to save • Keep a budget to show where you’re spending and saving. Use our budget calculator to help. • Higher interest savings accounts will reward you for saving (and not withdrawing!) • Moving back home may sound drastic, but will help you reach your end goal much faster.    Looking for more advice on how to save for a house deposit? Get in touch with Horizon Bank today and let us help you on your journey. 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.