Rise High Investor Weekly Video #19 Saving for a deposit vs paying off your personal debts

Mastering Money Management for Property Investment Success

To succeed as a property investor, managing your money effectively is essential. This means understanding your cash flow, spending less than you earn, and developing strong financial habits. If you have personal debts like credit cards, car loans, or personal loans, now is the time to tackle them. Clearing these debts will not only improve your financial skills but also boost your borrowing capacity for property investments.

Why Pay Off Personal Debts First?

1. Better Money Habits: Paying off debts builds discipline and prepares you for the financial responsibilities of investing.
2. Higher Borrowing Capacity: Personal debts reduce the amount banks will lend you. Clearing them allows you to borrow more for property purchases.

Steps to Take

1. Cut Up Credit Cards: Stop using credit cards and focus on reducing the debt you already have.
2. Consolidate Debts: Combine debts into one lower-interest loan or your home loan to simplify repayments. Speak to a mortgage broker for advice.
3. Save More, Spend Less: Use a budget to identify where you can cut back and put more money toward debt repayment. Download our budgeting tool from the Rise High Investor website to get started.
4. Set Clear Goals: Decide whether to focus solely on debt repayment, save for a deposit, or do both at once based on your situation.

When to Focus on Saving for a Deposit

In some cases, saving for a deposit might take priority, such as when:

1. Property prices are rising quickly.
2. Your debt is manageable and won’t impact borrowing.
3. Rental income from your property could offset debt.

Managing your money well is the foundation of successful property investing. Whether you focus on clearing debts, saving for a deposit, or both, the key is to take action and stay committed to your financial goals.

Start today—small steps lead to big results!