From car loans to mortgages, credit cards and savings, interest rates affect every Australian’s financial life in one way or another. Right now, interest rates are on the rise, so what should you do to manage your finances in the coming months? Review your budget If you have a mortgage, car loan or personal loan, rising interest rates are going to increase your weekly outgoings. Prepare now by reviewing your budget to find opportunities to decrease your weekly spend. There may be options to save expenditure in areas of your life so that the money can be re-directed. Perhaps you can put off a planned purchase… cut back on regular, small purchases – like daily coffees and take-out lunches… or take public transport instead of driving and parking – all these simple measures will help you to make up the difference. Review your ongoing commitments You may not feel you have the time but take half a day off anyway to review your regular outgoings like phone, internet, power, and insurance payments – call each of your providers and their competitors to see what they can do to reduce your costs. Pay down your debts Interest rates are predicted to continue to rise so consider paying down any outstanding debts, like credit cards and personal loans – the smaller your loan balance, the less interest you’ll be charged. If you’ve got spare cash, you could also consider paying monthly subscriptions and memberships up front – in doing so you may be able to negotiate a better price and you’ll free yourself from monthly payments (though you’ll need to keep saving for the next time you need to pay upfront). Set aside an emergency fund While it’s important to get your debts under control now, don’t leave yourself short. Make sure you always have a fund set aside to hold you over in case of an emergency – you may fall ill; you may have an accident; or lose a contract; or a contractor may not pay you on time. You don’t want this to cause you to go into debt. Make the most of your savings For many years now low interest rates have done nothing to reward savers. And while they’re still relatively low in terms of bringing financial returns on your hard-earned cash, make the most of what you’ve got by doing your research and finding the deposit account that will earn you the highest interest. Manage your money, build your wealth At the Ayers Group we have a payroll solution that can help you build your wealth by managing your contracts with efficiency and full compliance. From preparing contracts through to managing timesheets, submitting expense claims, invoices, and tax returns, we can help you manage your money and build your wealth with greater ease. Talk to an expert from the Ayers Group today.