Spending: How do you compare?
Have you ever wondered how your spending habits compare to that of your friends and neighbours?
Not compared to the spendthrifts (where you may come out better) or the frugals (you spend much more), but compared to average Australians? Continue reading
Redefining what it means to retire
For many years, we have assumed that we can simply exchange our pay cheque from our employer to one from the government once we reach a magical retirement age.
This is the way it worked for a long time, but there is growing evidence that we need to redefine what it means to retire. Here are four reasons why. Continue reading
Can I withdraw my super as a lump sum?
Question
I am not yet 60 but have reached my preservation age and have retired. I would like to take out a lump sum from my superannuation to pay out the mortgage.
Can I do this now or do I have to wait until I turn 60? Continue reading
Retirement savings around the world
Medical advancements may be leading to longer life expectancies, but how are your retirement savings keeping up?
Australians are expected to live longer than most other people in the world. The United Nations in 2010 ranked Australia in fourth place for life expectancy around the world. Males are expected to make it to 79 years, and females to nearly 84. Mildly ahead of Australia are only Japan, Switzerland and Hong Kong. Continue reading
The looming pensions crisis and the OECD solution
Millions of workers who think pensions will secure their future could find themselves facing poverty in retirement.
In particular, the Australian federal government admitted in March 2013 that their unfunded superannuation liability for politicians, judges, public servants and military personnel is $200 billion and increasing. Continue reading
The plan you no longer need
Question
My contract period for my mobile iPhone is just about to expire, and I’d like to hand it over to my newly-teenage son while I upgrade to a new model for myself.
But I don’t want to pay a hefty monthly fee or start a new contract for him. He won’t be using the phone very much and I think it would be a waste of money. Is there an alternative? Continue reading
Credit cards 101
Some people’s experience of credit cards is the equivalent of financial imprisonment. This often follows the view of credit cards being the same as free money.
It’s easy to get caught in this trap. After all, you probably experienced a school education where you solved complex mathematical problems and studied classic literature, but no classes were offered in personal financial management. Continue reading
20 cheap things to do on a long weekend
Entertaining the family over a long weekend can easily eat into your budget.
But why spend up big to entertain the family when there are so many things to do that won’t cost you the earth? Here are 20 ideas to get you started. Continue reading
Can I break my fixed-rate mortgage?
Question
I heard that people wanting to refinance their mortgage are no longer penalised with exit fees, making it easier to go elsewhere for a cheaper interest rate.
I have a $400,000 fixed-rate mortgage for three years at 7.5%pa, and interest rates are now much lower. I have one year to go before the fixed rate ends but would like to refinance to a lower rate now. Continue reading
Five ways to enjoy a night out without going broke
Your friends can have a direct influence on how you spend your money. It can be hard to have a big night out without spending up big on drinks, dinner, movie or cab fares. Especially if this has already become a habit.
But there are ways to enjoy being with friends, have a good night and still have some money left over. Continue reading
Money is the root of all evil, or is it?
What you believe about money plays a leading role in your level of prosperity.
Of all the beliefs about money, the one that appears most often near the top of the list is “Money is the root of all evil”. Continue reading
Superannuation 101
If you are working in Australia as an employee, you would receive superannuation payments as part of your remuneration deal. So, in a nutshell, what is superannuation?
It’s your money – for your future. The Australian government understood how hard it was to get people to save on their own, so they legislated forced savings. Continue reading
Your credit files take on a new life
Did you know that credit reporting agencies are about to get greater access to your information?
While the Australian government says this will facilitate better assessment of consumer credit risk by creating greater transparency, the upshot is that the laws previously restricting what could be recorded are being eased. Continue reading
How to escape a shopping addiction
You think it’s just an impulse purchase – the handbag on sale, the shoes that have been discontinued, or the on-trend colourful toaster that you know will brighten your mornings.
But routine impulsive buying is a weakness for many – in fact it’s been estimated to affect about 15 per cent of us, and it cuts across all education and income levels. Continue reading
Find lost money, the legal way
Have you stashed away some money and then forgotten about it? It’s possible that you could be sitting on a small fortune and not even know it.
There could even be money owed to you from unpaid wages or lost superannuation that you don’t know about. It’s like winning the lottery without buying a ticket. Continue reading
Avoid the trap when turning your home loan into an investment loan
Question:
We have paid off most of our home loan and want to upgrade to a new home but keep this one as an investment property.
Can we withdraw the equity in our current home and use it as a large deposit in our new home, with the added benefit of increasing the tax deductibility of the investment loan? Continue reading
Supercharge your mortgage
If you have a mortgage then the chances are you know what it feels like to be chained to your bank.
But, did you know that an offset account can save you interest on your home and can help you pay it off sooner? It can be a truly powerful tool if used correctly. Continue reading
Till money do us part
Infidelity is often cited as a leading cause of splintered marriages, but identifying infidelity as the reason for divorce neglects to identify the influence of its contributing factors.
While it’s possible that you could wake up one morning and simply decide to pursue somebody other than your spouse, it’s more likely that this opportunity is exploited after resentment has built up from unresolved arguments over other things – like money. Continue reading
Financial advice is just too expensive
Really? So that Hermes Birkin bag at a bargain basement price of $7,000 was a worthy investment? You think it’s a symbol of wealth when in reality it’s more likely a symbol of financial mismanagement.
With a straight face you tell me that you can’t afford a financial planner – or that you don’t trust them. After all, the reputation of the financial planning industry is in tatters. Continue reading
Four lessons from The Block
You’ve watched Channel 9‘s The Block and have decided to buy, renovate and sell your own Aussie castle for a profit.
The show – where the audience gets to see the stresses, tantrums and sleepless nights experienced by the contestants – has been a repeat ratings winner, and its success has encouraged a whole generation of property investors to turn their hands to renovation. Not even a lack of commercial profits on some renovations over the years has dampened their enthusiasm. Continue reading
You’re never too young to start managing money
Five tips to reduce your credit card debt now
What starts out as a convenience, as extra money just when you need it most or an easier way to buy more stuff can quickly become a burden.
Your credit card is not doing you any favours if you struggle to pay the minimum amount each month and think that hitting the credit limit is just plain inconvenient when you need to buy that special gift for your partner’s birthday. After all, it was on sale. Continue reading
Are you prepared to invest in yourself
You’ve toyed with the idea of getting yourself a financial planner but have been reluctant to fork out thousands of dollars without knowing what you’re getting yourself into. After all, you wouldn’t buy a car without a test drive.
So you decide to try the DIY option first, and take a quick look around the website of your superannuation provider to see if you can figure out what to do with that little nest egg growing in your everyday bank account and earning interest of less than one per cent. Continue reading
The new normal: Principles of life get a makeover
It was only 20 years ago that 44% of Australians retired before age 50. That’s right, nearly half of all Australians weren’t even 50 when they retired, and only a meagre 12% worked beyond age 60.
It was the done thing to leave school, get a job and stay in it for the next 30 years or so. True, people also generally lived shorter lives. Continue reading
I’ve decided to budget but feel so stuck
Okay, so you’ve fretted over your finances for long enough, and you can’t bear the thought of being in the same situation with your finances this time next year.
Or, heaven forbid, an even worse position – even though if you are completely honest with yourself you see that this is a very likely scenario. Continue reading
Help, I can’t get motivated to budget
You’re not alone. That quick Thai take-away dinner on your way home from a late night at work last week and the new shoes on sale that you just had to have are now staring back you on your statement and looking much less attractive than they did at the time you handed over your card.
If some variation of this is a regular occurrence for you then the chances are high that you don’t have a budget. Or that you have trouble sticking to it. Continue reading
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