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Where Should Your Money Go?

It’s that time to reevaluate your finances again and see how your unhealthy spending habits from last year have carried over in the first month of 2019. There are 11 months left for you to correct them, so do not give up just yet.

Tackle these big and costly items before you move on to smaller things:

Vehicle Purchase

New Zealand residents love their cars. Ask any Kiwi and they will agree to that statement. Do not fear if you feel like buying a new vehicle. It’s something you share with many others in your locality, perhaps even your neighbour. As you are already contemplating the idea of purchasing a new vehicle, why not make it one that you can use for several tasks? Ute dealers will happily show you their collection of utes, which do not require a special license to drive but you can use to haul items from one location to another. It can be a passenger vehicle as well as a hauling vehicle thanks to its unique design. You may even buy it and offer it for rent for movers in the area.

Home Loan

Prices in NZ and AU are notorious for skyrocketing rapidly. You are fortunate enough to have snagged a home which you are now paying the mortgage for. The last thing you want is to be forced out of your house because of late payments. It will only make it more difficult for you to afford a new property. Tackle this concern wisely by doing one thing that might be scary: talking to your mortgage company. You may think they will look down on you if you tell them you cannot afford payments anymore, but if they offer refinancing, they will present options for you to consider. It is not wise to sit there and let your loan become an expensive monster ready to crush you. Show your lending company that you are committed to making payments if terms could only be more favourable.

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Emergency Loan Repayment

You switch on the telly and see all those shows where they convert one drab home to something out of a fairytale. You decide you want that for your own home, which is not a problem, but you do not have the money to pay for it all. You turn to cash loans, which are akin to sharks waiting to pounce. They do not ask you where you will use the loan, which makes it a good option for those cosmetic renovations. Only those who are not prone to living a nasty cycle of borrowing should consider these loans, and if you have succumbed to their siren call just to get the renovation you want, make sure you pay them back on schedule. They are your best friend until it’s time to collect, and the high interest rate at which these loans are offered are ready to show you a different side once you default on your loan.

How much are you willing to spend on luxury? Before you come up with an answer, weigh the pros and cons of paying big bucks for items with only one purpose.