The RBA has made no secret of its desire for interest rate stability. The word stability has been a feature of interest rate decisions, the quarterly monetary policy statement, Board meeting minutes and speeches by key officials.
Ten tips to save and make money ... National Economics Editor Jessica Irvine. Source: Supplied
PEOPLE often ask me for financial advice. I'm not qualified to give it.
Should you buy shares, property, or keep your money in a bank this year? For most people, without inside information, it's hard to know. I don't know the next stock about to hit the headlines and no one really knows where interest rates are going to be in one, two and especially five years' time. You should be extremely cautious of anyone who insists they do.
JESSICA IRVINE: Making dollars and sense
JESSICA IRVINE: Balancing your body budget
Ten simple ways to save and earn money ... follow Jessica Irvine's tips. Source: ThinkStock
After a decade of writing about finance, here are ten things I do know about money: how to make it and how to protect it.
1) When selecting a job, you should follow your "comparative advantage". Economics teaches us that we're all better off when we each specialise in doing the thing we're relatively best at, and then trade between us. Think about what you are good at doing. Usually it's something you quite enjoy — because you're good at it. Invest in developing those skills and work hard.
2) Know your value and ask for pay rises. And aim high. Ask for twice what you want, and then, when you only get half, you'll be content.
3) Should you rent or buy? Whatever you do, don't overstretch yourself. Paying too much for a home that won't appreciate in value — and paying excessive amounts of interest for the pleasure — is just as bad as paying rent money and saving the rest.
4) If you have a mortgage, ring your bank and haggle for a mortgage discount. Interest rates are not set in stone. If you have a decent credit history, you should be aiming to get a 1 percentage point discount off the headline rate.
5) Stop paying bank fees TODAY. I haven't paid monthly account keeping fees for well over a decade. There are fee-free accounts out there. Get one.
6) Shop around. Log on to comparison websites to find the best paying savings accounts, the lowest rate mortgages and cheapest insurance. Prices have never been so easily discoverable. Do your homework.
Pay off your credit card ... If you can't move to a 0% balance transfer deal. Picture: Thinkstock Source: News Corp Australia
7) Pay off your credit card first. If you can't afford to pay it off now, take advantage of the many 0% balance transfer deals that are on offer to give yourself some reprieve. Check for any fees and be wary that the new card does not reset to a very high interest rate.
8) Remember the magic of compound interest. Money in savings account earns you interest. And overtime you earn interest on that interest. It's the closest you'll get to money for nothing. A dollar saved today will be worth more than $1.60 in ten years (assuming an average interest rate of 5 per cent) if you leave it there.
9) Remember superannuation money is real money. Look after it. At least know the name of your fund and where your money is invested. If you're young, you can choose an asset allocation with a higher risk — i.e. more shares. As you approach retirement, slowly wind it back to cash to ensure you're on track for the retirement you expect.
10) Realise that the only reliable path to higher living standards is increased productivity. You can make money on financial assets if you're lucky, time the market correctly, or have inside information. But most of us will have to rely on the fruits of our labour to accumulate our wealth. Wages should rise over time with inflation plus compensation for when workers become more productive.
Work hard. Work smart. And live within your means. It ain't sexy, but it's a solid foundation to building true wealth.
Work hard, work smart ... George Szalai, 50, and Nathan Baker, 20, at The Byron Group in Smithfield, Sydney which specialises in designing, manufacturing and exporting ambulances, bomb squad vehicles, mining people-movers and other vehicles. Their new plant employs 170 workers. Source: News Corp Australia
Anda sedang membaca artikel tentang
Try these top ten finance tips
Dengan url
https://duniadiggi.blogspot.com/2014/09/try-these-top-ten-finance-tips.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Try these top ten finance tips
namun jangan lupa untuk meletakkan link
Try these top ten finance tips
sebagai sumbernya
0 komentar:
Posting Komentar