High times for low interest rates With mortgage rates at their lowest since the days of black and white TV, this might be the right time to make a serious dent in your home loan. Lower rates mean any money you have in the bank could be earning less interest. But if you have a variable home loan rate and your lender passes on the cut, you’ll pay off more of your loan faster just …
How do you save for that rainy day? It’s not just our farmers who keep their eyes on the horizon for rain. Recent research found almost twice as many Australians think saving for an emergency or a rainy day is more important than putting cash away for a holiday. Indeed, saving for a rainy day is our number one savings priority. According to AMP Bank, those aged between 35 and 44 years old are …
Spending money in a cashless world How the move to electronic payments could be making it easier to spend…and what to do about it. It’s Thursday morning and almost the end of the working week. You’re walking to the train station and you realise you’ve forgotten to top up your public transport card. No matter…a few clicks later and you’ve transferred $50 over. At the station you grab a takeaway flat white before the train …
Dealing with being asset rich and cash poor Reverse mortgages could be one way to help with living expenses, but they may also erode any equity you have in your home over time. Given longer life expectancies, the rising cost of living and the property boom, more and more retirees find themselves asset rich and cash poor. One option is to downsize to a cheaper home, but this often has major disadvantages. If they are …
Making the most of record low interest rates The Reserve Bank of Australia (RBA) took the cash rate to a record low of 1% in July, bringing mortgage rates to their lowest level in more than half a century. However, the low cash rate also means your money in the bank could be earning less interest. Why did the RBA cut rates? Rate cuts are a way for the RBA to help stimulate the economy. …
Helping grown-up children with their finances It’s only natural to want to help your kids with big ticket items to give them a good start in life—particularly in an era when tuition fees and house prices make higher education and owning a home less affordable than in previous generations. But it can be difficult to know when to start turning off the tap. If you have an adult child who isn’t very good with money, …
Be aware of your money biases Knowledge is power. The more you’re aware of how your mind works the more you can adjust your attitude towards money. Six cognitive biases that influence how we save, spend and invest money We like to think we’re rational beings. But the reality is that a lot of our daily behaviour is influenced by our subconscious. Behavioural scientists have looked at the way human beings are wired and discovered …
Why saving is behaving Did you know there are 293 ways to make change for a US dollar, but only 50 for an Australian dollar? Cashiers in America must have jumped for joy when debit cards became the rage. Is your bank taking you for a ride? We all have our own methods of saving money. Some are strict―people who set a budget for the week and won’t buy a fourth glass of shiraz if …
9 money mistakes to avoid in retirement How to keep your finances on track once you leave the workforce When you’ve worked hard all your life to build up your nest egg, the last thing you want to do is fritter it away too quickly. In this article, we look at the common money mistakes people in retirement make, and how you can do your best to avoid them. 1. Not taking control of your …
Take control of your finances now for the new financial year. If you set yourself money goals at the start of 2019, the upcoming new financial year is a great time to check if you’re on track. And if you didn’t set any goals – or if you have strayed off track – this is the perfect time to get organised, write a checklist and stick with it! Don’t wait until 1 July to start. …
