Tips on investing extra cash into your home

Barker explained that by using this money, whether it be an annual bonus or not, to help pay off your bond, the end result will mean paying less interest on the bond, paying it off sooner and building an emergency buffer should life throw some curveballs.

“While it is ideal to pay more than your instalment into your bond, it may not always be possible due to other demands on your money,” he said.

“However, if you receive additional money during the year, use it to make a significant dent in your bond.”

Barker added that another smart way to spend extra cash available was to use it to renovate your home. By keeping it in mint condition, Barker explained that consumers would not only get their money back should they decide to sell it, but it would also be much easier to sell.

“Basic maintenance-type improvements will always yield better results than personalised fixtures and fittings,” he stressed.

Barker concluded by urging consumers to be savvy when deciding what to do with additional money available and to ensure that this cash worked in their favour.

“While it may be tempting to spend [the cash] on entertainment, investing in your home to build your wealth will maximise the impact of the extra cash,” he said.

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