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With the world constantly on the move, it has become ever more important to have access to your money while you're on-the-go. The Horizon app provides banking at your fingertips and is available for both Apple and Android. It provides customers with real time access to accounts and branch information  – anytime, anywhere.   Horizon Bank App features Access to account information Transfer to & from accounts Pay bills Transfer funds via Osko® Activate cards Lock and unlock cards A few things to remember Don’t keep your Member Number and Password with your mobile device. Make sure you logout when you’re finished with mobile banking. Get in touch with Horizon Bank immediately, if you’ve lost your mobile device or feel that someone may know your login details. 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.

Three claims the ATO is watching for this year Last month we saw the beginning of the new financial year and the closing of the last, which means if you earned an income in the last 12 months, it’s time to go through your income and deductions so you can prepare and file a tax return. Many Australians are hoping for a tax refund to relieve cost-of-living pressures. Being aware of what the Australian Tax Office (ATO) is targeting at the moment, can help get your return processed quickly and seamlessly. The ATO has given advice to taxpayers not to rush through their tax returns, as any mistakes or omissions will likely hold up their refunds. “We see lots of mistakes in July where people have forgotten to include interest from banks, dividend income, payments from other government agencies and private health insurers,” ATO assistant commissioner Rob Thomson said. The ATO have also announced 3 key focus areas for this tax season, so here’s what you should be paying extra attention to before you file your tax return. 1. Work-related expenses Many workplaces have adopted flexible working arrangements since the COVID-19 pandemic, which allows some Australians to now have hybrid roles where they work from home part of the week, rather than being in the office full time. With working from home there are a variety of expenses that are valid, but you are required to have valid records to support these expenses. The ATO is watching for taxpayers who may overclaim for these expenses without the valid records. There are two methods that can be chosen from when filing a return, one being the ‘fixed rate’ method and the other being an ‘actual cost’ method.  The ‘fixed rate’ method means you can claim 67 cents an hour, but to do so must be able to substantiate your time working from home. An easy way to do this is by keeping a diary or a spreadsheet of your work from home time. “Copying and pasting your working-from-home claim from last year may be tempting, but this will likely mean we will be contacting you for a ‘please explain’. Your deductions will be disallowed if you’re not eligible or you don’t keep the right records.” Mr Thomson said. 2. Rental property claims There are a number of legitimate expenses you can claim if you own an investment property, however the ATO have said its common that owners get their income tax returns wrong. This can hold up the process and raise red flags. Because of this, rental property claims will be firmly in the ATO’s sights this year. “We encourage rental property owners to carefully review their records before lodging their return and take care to ensure they are claiming deductions correctly,” Mr Thomson said. Common mistakes when it comes to investment property claims include not keeping proper records and claiming an immediate deduction for renovations (which are classed as capital improvements). 3. Additional income As mentioned earlier by Mr Thomson, pre-filled tax information isn’t always readily available and in by 1 July.Taxpayers can end up having to make amends to their returns once additional information comes through because of this. Additional information can include dividends, extra work income or health insurance information. “We know some prefer to tick their tax return off the to-do list early and not have to think about it for another 12 months, but the best way to ensure you get it right is to wait for just a few weeks to lodge,” Mr Thomson said. “You can check if your employer has marked your income statement as ‘tax ready’, as well as if your pre-fill is available in myTax before you lodge. That way, an amendment doesn’t need to be made later, which could result in unnecessary delays.”If you’d like to learn more about what you can and can’t claim, visit the ATO website.   Navigating tax season doesn't have to be a stressful ordeal. By understanding the Australian Tax Office's key focus areas, including work-related expenses, rental property claims, and additional income reporting, you can prepare your tax return with confidence and accuracy. Remember to keep meticulous records, double-check for any missing information, and consider waiting until all pre-filled data is available before lodging your return. Taking these steps will not only help you avoid common mistakes but also expedite the processing of your refund. Stay informed and proactive, and you'll find that tax season can indeed be pain-free. 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.

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.

If you locked in a fixed-rate loan before interest rates began to rise, you may be worried about the upcoming increase in your mortgage when the term you locked in comes to an end. Here are a few tips on how you can avoid a budget shock when your mortgage reverts to a variable rate. When the interest rates first began to rise from their record-low rates, many homeowners rushed to lock in a fixed-term rate to secure a lower, stable rate. The Reserve Bank of Australia estimates that close to 1 in 4 mortgages were ‘fixed’ at the end of last year, which essentially means the rate was locked in for a period. Usually, banks will offer a fixed-rate period of 1, 2, 3 or 5 years. However, for homeowners who had locked in a fixed rate earlier, such as in 2020 or 2021 when rates were much lower, will likely feel the pinch a lot more when their fixed-term ends than those who opted for a fixed rate in 2022 or 2023. This is because the rates jumped up from around the 2 per cent mark to closer to the 6 per cent mark, and this could potentially add hundreds or thousands of dollars to their repayments in interest, depending on the size of the loan. It's difficult to know what the market is going to look like in the future when opting for a fixed-rate, which is usually done from the perspective of knowing exactly what your repayments will look like for a certain term. Unfortunately, all those fixed terms will eventually expire, and homeowners will return to a variable rate, usually paying more interest. Some may fix their loan again when it comes to this time, but it will likely be at a higher rate than the one they were offered in their previous fixed-mortgage term. If you’re finding yourself in this position, here are a few ways you can make the transition a smoother, and hopefully a less stressful experience. Build a buffer A good idea to test how you will be able to manage the higher repayments is to start putting a bit extra into savings between now and the end of your fixed rate mortgage term. A starting point for this could be to use a mortgage calculator to identify a ballpark of what your new repayments will be when the fixed term ends, and put the difference into a savings account. This will give you an idea of how the household budget will be affected, plus you may even benefit from extra interest in the savings account too. Some fixed-term loans also allow you to make extra repayments, which could help ease the burden when the mortgage increase occurs. At Horizon, we allow up to $30,000 in extra repayments each loan anniversary year, which helps reduce the term of the loan. Horizon also allows you to redraw on those funds free of charge if you require them. Adjust the budget If you work out the new higher repayment and it’s looking tight budget-wise, you may need to look at making some cutbacks. Firstly, look at scaling back discretionary spending where it’s feasible, such as limiting dining out or getting takeaway meals and subscriptions or entertainment activities that are not necessary. Reviewing your budget is always a good idea to ensure you are using or saving your money effectively for your household. Many online tools can help with budgeting and identifying leaks, such as MoneySmart’s budget tool.  Horizon Bank also has some budgeting tools and tips to help out.  Come up with a plan of action It’s important to have an action plan before the fixed-rate term ends so you’re prepared for the change in repayments. A good start is to discuss with your lender everything you need to know before the rate changes; for example what rate you will be offered if you were to fix the mortgage again, or what rate you will be offered if you were to stay on a variable once it reverts. Sometimes there’s a difference between what a new customer and an existing customer would be offered ratewise. If you’ve been with your bank for a while and have always made repayments on time, you may find your bank is willing to negotiate to keep your business. If you’ve paid off more than 30% of the value of your property, you may find you’re eligible for a rate discount. If you want to go into another fixed term loan, it’s also wise to think about that in advance so you can do the sums and get things started promptly.  However, if you decide that you want to refinance to another lender, don’t forget to weigh the costs against the savings. Some lenders will charge exit and application fees, so it’s worth doing your calculations to see if refinancing makes sense for you and your situation. Finally, if you’re having trouble paying your loan and this is causing you anxiety, you can always speak to your lender’s hardship team or a financial counsellor for free via the National Debt Helpline: 1800 007 007.   The end of a fixed-rate mortgage term can be a challenging transition, especially in an environment of rising interest rates. However, you can navigate this phase with minimal financial discomfort with careful planning and strategic decision-making. Building a financial buffer, adjusting your budget, and outlining a clear plan of action are all effective ways to prepare for the increase in repayments. Remember, open communication with your lender is key. Understand the new rate you'll be offered, negotiate if possible, and consider all your options, including another fixed term or refinancing, always weighing the costs against potential savings.   With the right approach and resources, you can manage this transition smoothly and maintain control over your financial future. For more information on home loans and navigating changes in mortgage rates, visit Horizon Bank 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.  

We know that navigating tax season can be daunting but throw in the increasing threat of tax scams and it’s even trickier. By remaining vigilant and informed, you can protect your personal information and financial security. Below are 10 simple tips you can follow which will help you recognise common scams and how to avoid them. These 10 practical tips to identify phishing emails & reporting suspicious activity will enable you to safeguard your identity & prevent any financial losses during this upcoming tax season. 1. Beware of phishing emails: Phishing emails are frequently being sent out by scammers, in this instance they will be pretending to be from myGov or other related government agencies. Often phishing emails ask for you to provide personal information & other sensitive details such as your myGov username and password. 2. Verify email sources: A quick and easy way to help determine if an email from myGov or government agencies is legitimate before responding, is to always double check the sender’s email address. Typically, any official emails from myGov will come from addresses ending in @my.gov.au 3. Avoid clicking on links: Think before you click! Be cautious of any links that are included in emails that are allegedly from myGov. Instead of clicking links, you’re best to manually type in the myGov website address to your browser to access your account. 4. Watch for urgency or threats: Often phishing emails will create a sense of urgency or be threatening to try coercing you into taking immediate action. Always be sceptical of emails that claim your myGov account could be suspended or you may face penalties if you don’t respond to the email promptly. The same goes with offers of refunds or overpayments. 5. Never share personal information: Remember that official representative of myGov or government agencies won’t ever ask you to provide them with personal information via email. This includes your password, tax file number or banking details. If you receive unsolicited emails, avoid sharing this information in response. 6. Report suspicious emails: It’s important that if you receive any suspicious emails claiming to be from myGov or other government agencies, you report them to the Australian Cyber Security Centre (ACSC) or even the myGov help desk. If the email you receive is regarding taxation, you can forward the email to the Australian Taxation Office (ATO). To do this you can: Phone the ATO on 1800 008 540. Forwarding the scam email to ReportScams@ato.gov.au Take screenshots of fake social media posts and email them to ReportScams@ato.gov.au 7. Use two-factor authentication: A good safeguard of your myGov account is to enable two-factor authentication if possible (2FA). By adding 2FA you add an extra layer of security by requiring a second form of verification in addition to your password when logging in, such as a code sent to your mobile phone. 8. Stay informed: Keeping up to date with the latest scam alerts and security advice from the ATO, myGov and any other relevant government agencies. Often these organisations will provide information around common scams and ways to protect yourself against them. 9. Educate others: Tell your friends, family and colleagues about myGov phishing scams so you can spread awareness. Encourage them to also be vigilant and to report any suspicious emails they receive. 10. Regularly monitor your accounts: Keep a close eye on your account activity on your myGov account and linked services such as the ATO, Centrelink, Medicare or Department Veterans Affairs. If you notice any suspicious or unauthorised activity, or changes to your account, report it immediately.  You can review further information about active scams and examples of myGov impersonation scams on their website. By making sure you’re aware of the risks associated with the myGov phishing emails, and making sure you are proactive in taking measures to protect your account, you’re able to safeguard your personal information and minimise the risk of falling victim to a scam. 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.

Struggling to qualify for a home loan on your own? There may be some other ways to secure your first home! Here are 5 popular strategies that may help you. Property prices are still high and rising in a lot of major cities, so the dream of owning a home can sometimes feel like it’s moving further out of reach for many Australians. However, for savvy buyers, there are still plenty of ways to get your foot in the door. Thinking outside the box… here are some ideas. 1. Buy with a friend or relative Consider buying with a loved one or friend. It’s simple, you can split the cost of the deposit and the loan, which make it easier for you to both qualify for the loan with your bank and meet the loan responsibilities. Before going ahead with this option, it might be worth getting professional advice. It’s best to do so, so that you have an exit plan and preparation for unexpected events such as job loss or getting sick. Check out Horizon’s range of Home Loans or reach out to a lender today to discuss this option more. 2. Get a guarantor loan A guarantor loan means the involvement of a third party – this is usually a parent, extended relative or friend. They put  their own assets against your loan as a guarantee. This will give your lender security in case, for some reason, the loan can’t be repaid. While guarantor loans are good to help those who don’t otherwise qualify for a loan, it comes with risks for the guarantor. If you’re unable to pay the loan back, the lender can ask the guarantor to pay the loan. If they can’t repay the loan, their assets can be repossessed. At Horizon Bank we have a Family Equity Loan, which allows family members to use the available equity in their home or investment property to provide additional security to help cover any borrowing shortfalls between the deposit and loan amount. Reach out to one of our lenders today to learn more, or enquire now online. 3. Consider rentvesting If you’re not able to buy your dream home because you can’t afford it, you could consider investing in a property to rent out at a smaller cost, therefore getting a smaller loan, and renting yourself somewhere else in your preferred area that suits your lifestyle choices. This gives you the opportunity to own a property. Often, owners will use the rental income they earn to pay off their loan, and sometimes even help cover their own rental costs, as well as helping with other property-related expenses. You may want to consult with an accountant to learn about any tax benefits (negative gearing). There is a risk of over-committing with this strategy. The costs may end up outweighing the income your property generates, so it’s very important that you do the math beforehand and work out your budget. You can use our budget calculator to assist in budgeting. If you’re thinking about buying an investment property, check out Horizon’s investment loans. 4. Look farther afield Regional areas are rapidly growing and can often offer similar lifestyle opportunities at a lower cost. Consider a change in scenery if moving is an option for you, and move somewhere where a property market hasn’t caught up to the likes of major cities yet. Regional home buying has been trickier for buyers in the past, with concerns of a move somewhere regional or to the country could hamper their links to city-based employers. This in a post COVID era is an issue that has evaporated, thanks to new technology and more flexible work opportunities. 5. Take advantage of incentive schemes There are a number of national, state and territory based incentive schemes to check out, depending on where you plan to buy and/or live, that can help you get started. These include: First Home Owner Grant – Eligible first-home buyers that are planning to live in their property can get a grant of between $10,000 and $30,000. This scheme is funded by states and territories. Help to Buy – This scheme is set to arrive later in 2024, and is when the federal government offers eligible buyers a contribution of up to 40% of a home’s cost, in exchange for a proportional equity. NOTE: This scheme will only be available to a limited number of prospective homeowners. First Home Super Saver Scheme – This program allows savers to build up their deposit within super while benefiting from tax concessions. Up to $50,000 can be saved up in the borrower’s super account and they can withdraw it once they are ready to apply for their loan. Other state and territory based schemes – Different jurisdictions have slightly different approaches in helping first-time buyers, so it’s worth checking your state and territory websites to see what they can offer.   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.   

We are seeing money mule scams become more common in Australia, with victims being recruited by criminals through fake job ads and romance offers. We’ve put together some tips so you can keep yourself safe. Movies and crime TV shows might be the place you’ve seen the work of ‘money mules’, but we’ve seen real-life examples of this illegal activity popping up in the Australian retail banking space in recent months. Simply put, money mules will transfer the money of crime – such as fraud or scams – into a third party’s bank account to hide it from the authorities. These scams are disguised as an employment opportunity or even a new romance, so unsuspecting victims sometimes get caught up in it all. Here’s how people get caught out and how you can stop it from happening to you. How money mule scams work Money mules are the middle-men that act on behalf of other criminals that are trying to hide or launder money derived from crime. In order to cover their tracks, the money mules will try to recruit new people to get involved in the transfer of large sums of money. A common way of new people being recruited is under the guise of a legitimate employment opportunity, where the employee can earn sums of money quickly by making transfers.  Another common way is through a romance scam, where a potential partner will ask their online love interest to transfer money for them. Shielding yourself from a money mule scam It can be tricky to spot these scams, as they are quite sophisticated with the fraudsters creating legitimate-looking email addresses or websites, so they don’t have as big a chance of being detected – however even if they do a good job of disguising themselves there are often some red flags. Here are some tips that might help: The old saying, “if it sounds too good to be true, it probably is”, definitely applies to money mule scams. Being offered large sums of money for minimal and easy work, is a big red flag, so beware. If you get a job offer, make sure you do your research on the company. Things to look for are their ABN, how long the company has been registered and who the directors/owners are. Be extra cautious of businesses that are listed overseas. If something feels a bit off, ask a trusted family member or friend for some advice. Another perspective is always handy as they may pick up on things you missed. If you haven’t met someone in person, or you don’t know the person, don’t send them money. Always protect your banking details and make sure you’re updating your passwords periodically. Always think before you click any links in emails or text messages. What if you think you’ve already been scammed? If you believe you’ve fallen victim to a money mule scam, it’s very important you report it to your bank as well as the police as soon as possible. The sooner you get in touch with your bank, the more likely it is that they’ll be able to stop the transactions. It is important to note however, some transactions aren’t able to be stopped – such as wire transfers. After you speak with your bank, we’d recommend contacting IDCARE – which is the national identity and cyber support service – on 1800 595 160. As money mule scams can involve identity theft, IDCARE can help you come up with a plan if that is a risk you’re facing. You can also report the scam to Scamwatch.   It is vital that you stay vigilant against Australian banking scams. By staying alert and recognising red flags, you can protect yourself against falling victim to these scammers. Money mule scams are on the rise in Australia, so be wary of any “too good to be true” opportunities or offers and keep your banking details safe. Everyone is vulnerable to scams, so everyone needs information about how to identify and avoid being scammed.  You can find more information on scams awareness on our website. 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.

Do you ever feel like when you are listening to news about the economy, you have to try decipher what is being said as if it's a complex code. We get it! In this guide, Economist Nicki Hutley helps to unravel the tangled web of economic jargon so that you can decode financial news, and even any decisions you may face when it comes to work, spending or investing. Buckle up for the crash course in economic know-how! Byline: Nicki Hutley Being able to understand economic concepts is a powerful tool that you can use in making decisions when it comes to your work, your purchasing choices, and borrowing and investing money. You might hear politicians often using economic jargon, so it can also help to better understand what they are talking about. In saying this, often economists don’t make it easy to understand, so this is why we’ve put together a quick guide of commonly used terms that we feel could be useful to you.   Monetary Policy - The RBA (the Reserve Bank of Australia) will use monetary policy to try and steer the economy in the right direction when the economy is either running too hot, meaning high inflation, or too cold, meaning high unemployment. There are 3 ways they do this, but the most common which you are likely to know all about, is setting interest rates (also referred to as the cash rate, which we will explain further in the next point). Higher rates make borrowing more expensive, so people and businesses tend to spend less, which can help stop the economy from overheating. Conversely, when the economy needs a boost, like when people aren’t spending much and businesses aren’t growing, the RBA might lower interest rates. Lower rates encourage people and businesses to borrow and spend more, which can kickstart economic activity. Cash Rate – The cash rate is the interest rate that banks pay to borrow funds from other banks. It is set by the RBA board at each of their meetings. Although this sounds pretty boring, it tends to get a lot of attention in the media, and this is because the cash rate is what influences all the other interest rates, such as mortgage and deposit rates. When the cash rate goes up or down, this will typically flow through to the rate you’re charged for your mortgage, your personal loans and credit cards. Inflation – Inflation is probably a term you’re familiar with; it measures the rate at which prices change over time. The Consumer Price Index, or CPI, is the main measure of inflation. The CPI is made up of the changes in the price of hundreds of different average household goods. This includes things such as bread, fruit, meat, beer, toothbrushes, hairdresser services, school fees, BBQs, electricity, cars & petrol to name a few.Some prices will go up while others will come down in any one period. The RBA has a target for ‘underlying’ inflation, which takes out items that tend to jump around a lot—such as petrol and some foods—of 2% to 3%. When inflation is higher than this target and rising, the RBA is likely to increase the cash rate. Gross Domestic Product – The measure of the size of our economy is called Gross Domestic Product, or GDP. GDP is reported every 3 months and tells us how individuals, businesses and governments have spent and invested their money. This report covers everything from toothbrushes to roads.GDP tells us which parts of our economy are doing well, and what parts aren’t doing so well. Economists are mostly interested in seeing how GDP changes between one period to the next and whether we are in a period of growth or not. If the GDP falls for 2 quarters in a row, that is defined as a recession.Something else economists sometimes talk about is “trend growth”. This indicates how fast the economy can grow without setting off inflation. Stagflation – Stagflation is a term that was created in the 1970’s to describe a period when economic growth is low, or shrinking, yet inflation is high. Stagflation doesn’t happen very often fortunately. An example of stagflation is in 1983 when inflation hit 11%, but the economy was in a recession. Productivity – Productivity is one of the most important economic indicators. It measures how much is produced for each hour worked. We’re sure you’ve heard the saying “work smarter not harder”, well when we work “smarter” productivity goes up. This is important as productivity is one of the key ingredients for improving our standard of living. When we see a rise in productivity, we see businesses doing better and this means profits and/or wages are higher as a result. Sounds ideal right? So, how do we get productivity to grow? Increasing investments into machinery and technology that help us do our jobs more efficiently, we can make improvements to the way businesses operate and we can invest in upskilling people. Productivity can also be improved by governments, by making it easier for businesses to do business through investing in infrastructure such as roads and telecommunications. Fiscal Policy – Think of Fiscal policy as the government’s wallet and spending habits. Just like how you manage your own money to buy things or save for the future, the government uses fiscal policy to control spending, taxes, and borrowing to keep the economy in good shape. Fiscal policy is balancing what people want or need from the government (such as schools, hospitals, roads, defence and childcare to name a few) with the requirement of paying for these things through taxes – taking into account the overall effect of those decisions on the economy. A very important day for the fiscal policy calendar is the second Tuesday in May. This is when the federal government hands down its budget. When the government spends more than it receives, the budget will be in deficit leading to an increase in debt. Labour Force – The Labour Force is the number of people who are working (employed) or aren’t working but looking for work (unemployed). You’re counted as employed by The Australian Bureau of Statistics even if you work just one hour per week, and you don’t count as unemployed unless you are looking for work. If you aren’t applying for jobs or working for any reason, then you’re not counted as a part of the labour force. Underemployment – Unemployment, as previously mentioned, is the number of people actively looking for work. This is reported monthly basis as a percent of the labour force. There is a concept called underemployment which refers to the people who work part-time but seeking more hours. When you add together the unemployment and underemployment, you get the underutilisation rate. Policy makers will look closely at this rate to see if there is likely to be wage pressure, which could lead to inflation. Exchange Rate – If you’re an avid traveller, you’ll know this term very well and probably keep a close eye on it. The Exchange Rate refers to how much you would get if you were changing your Australian dollars into another country’s currency, or vice versa. If you’re lucky enough to have a trip overseas planned soon, you’ll be following the exchange rate for your destination, so you can map out costs while you are there. Another time you may encounter exchange rates is when you’re buying something from overseas (imported goods) which could a piece of clothing, a car or petrol. When the Australian dollar falls, we pay more for imports. Cryptocurrencies – Cryptocurrencies can only be accessed via computers or other electronic devices and don’t have a physical form like banknotes or coins. The most commonly known cryptocurrency is Bitcoin. They are often referred to as “cryptos”. It’s important to know that it is not the same as ‘real’ money, and is not regulated in Australia. Cryptocurrencies aren’t a very useful form of money as most sellers won’t accept cryptocurrencies as payment. Cryptocurrencies are often very volatile, compared to the Australian dollar that generally doesn’t move by much day to day.   Together, we’ve delved into the intricacies of some key economic concepts and terms that are frequently used when discussing the state of the economy and its impact on our lives. Deciphering the complexities of economics isn’t just about unravelling jargon; it's about equipping you with the knowledge to navigate the economic currents shaping our lives. I hope this explainer helps you to more confidently steer through these economic waters and traverse the complexities of our financial world. At Horizon Bank, we believe in empowering our customers with the knowledge and resources they need to make sound financial decisions. Understanding economic terms and concepts is crucial, but having a trusted financial partner can make all the difference. Whether you're planning your next investment, considering a loan, or simply seeking some guidance on navigating the current economic climate, Horizon Bank is here to support you. Visit our website at Horizon Bank or come into one of our local branches to learn how our personalised financial services can help you apply your newfound economic insights in practical, profitable ways. Let's decode the world of finance together. 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    

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.