🤷 The age-old debate..
Is it better to pay weekly, fortnightly or monthly?
🧮 I detailed the mathematical formula in a long client email last night.. [WHY JAMES WHY!!]
The conclusion is 🟰 When you use an offset account and other payment structure (like Credit Card clearance), payment frequency becomes irrelevant.
The ideal strategy is generally to keep ALL cash/savings/salary inside the offset account itself (and doing your best not touching it).
PRO TIP - Multiple offset accounts can still allow flexibility to allocate funds for separate purposes, like "holidays" or "car" for instance. Precisely the same psychologically as separate high interest savings accounts with improved savings benefit. No judgment on your desired structure!
EXTRA PRO TIP - keep your hands off your money! Recall a NEED vs WANT argument. If you can't do this, perhaps the money is better off locked away in a harder-to-reach spot.
*This relates to a typical Home Loan and desire to pay off ASAP. Investment loan strategy can be different.
Truly's advice, financial services and property strategies are complimentary. We do this for the best interests of our clients and we relentlessly strive to serve as the best mortgage brokers in Australia with uncommon excellence!
James Brett. Principal Mortgage Broker ☎️ 0439 591 759
Victor Simone. Principal Mortgage Broker ☎️ 0449 659 029
Nermalee Bowe. Senior Mortgage Broker ☎️ 0431 274 554
Dragan Disljenkovic. BD & Relationship Manager ☎️ 0422 435 900
Credit Representative Numbers 521733, 550284 & 547037 are authorised under Australian Credit Licence 389328
