Many food movements have emerged over the years to help people eat better. There’s the slow food movement that encourages people to swap out fast food for locally grown sustainable produce. Locavores only eat products grown and produced in their vicinity.
This could be a 50km or 100km radius or even much less, as Vicki Robin suggested in her book: Blessing the hands that feed us: Lessons from a 10-Mile Diet. You’re also probably familiar with the organic movement, freeganism, and the nutraceutical movement … the list goes on and on.
Regardless of how you choose to spruce up your eating habits, you’re bound to appreciate it more if it doesn’t blow up your food budget. The good news is there are hacks, tips and tricks you can employ to eat better for less. Whether you call it thrifty eating or frugal feeding, here’s how to maintain a lightweight food bill without skimping on nutrition and taste.
When you’re at the supermarket and gliding between the aisles, these handy shopping tips will help you save more when you finally check out at the till:
When you’re tinkering in the kitchen, there are also some ideas you can use to cook on a budget:
Dining out has its own place in your social life. Instead of shunning restaurants completely, you can still give yourself a break here and there as long as you make an effort to cut back. Here’s a list of tips to help reduce the cost of eating out:
Eating better for less takes some serious dedication, and it’s sometimes a slippery slope when that pizza craving comes calling. But the journey to a healthier diet and wallet is paved by incorporating the above-mentioned tips and ideas one at a time. You may even discover more ideas to keep the ball rolling on saving more while getting quality nourishment.
So when it comes to what you buy and eat, keep avoiding consumerism traps while chasing those best-buy deals, and you’ll be good to go.
Credit cards are not the complete villains they are often painted out to be. After all, they can be great financial tools that come with bonuses, rewards points, cash backs, and credit building opportunities. But when a huge pile of credit card debt rears its ugly head, it can leave you struggling with unforgiving late fees and high interest rates.
It happens to the best of us, and there are many Aussies in the same boat. The brilliant news is, there are practical steps you can take to nuke that credit card debt and give yourself a breather. Check out our seven-point guide:
The instruction to budget has probably been shoved down your throat by every personal finance expert out there. But there’s a reason why it can’t be said enough. Creating a budget forces you to get organised. You have to put everything in black and white: How much you owe, the amount you spend, and what you need to do to change those numbers for the better.
Don’t be vague with it. Create a detailed outline with realistic goals and specific actions. If your goal is to pay down a certain amount of credit card debt within a particular period, you can decide to do so by cutting out some non-essential expenses. Scratching off pizza nights with friends could, for instance, free up the required funds.
If credit card debt is terrorising you, you probably need a more aggressive approach to get rid of it. That means bringing out the entire arsenal of debt-neutralising tools at your disposal. The list includes any extra funds you have tucked away, tax return money, side hustle earnings, yard sale profits, plus more.
Gather it all together and target it at your credit card debt. Saving for a rainy day is all well and good, but it only makes sense when you no longer have a mountain of debt that's growing by the minute.
Trying to fight an enemy on many fronts is a recipe for frustration and failure. Happily, there are two ways to face off with your credit card debt without getting overwhelmed. Pick your preference:
Debt consolidation melds all your accounts into one, so you won’t have multiple repayments and fees clamouring for your attention. You can either:
Taking two steps forward and one step back makes for slow progress. If you’re gung-ho about paying off your credit card debt once and for all, you may need to give your credit cards a very long and extended holiday.
Closing credit card accounts removes the temptation from under your nose, making your job easier. You can still keep one or two credit cards. They can be handy as long as they offer a better deal and if you can use them responsibly.
Talking to the right people can help you manage your credit card debt better. There’s your credit provider who has a vested interest in seeing you pay back what you owe. Most lenders are charitable enough to restructure your payment plan to suit you, but you have to communicate with them as soon as possible.
You can also talk to your financial planner, who can help you map out a personalised plan for clearing credit card debt so that it matches up with your bigger, long-term financial goals.
Once you start winning the war on credit card debt, keep the ball rolling. Don’t stop to pick up crazy amounts of debt in case you trigger that famous and vicious debt cycle. You’ll need your trusty budget with you at all times. Try as much as possible to stick to what it says.
This is also the best time to start building that nest egg or rainy day fund. The next time an emergency comes knocking, you’ll at least won’t have to rely on plastic money for back up.
When it comes to prize money, Aussie sports offer some of the highest payouts in the world - whether it is horse racing at the Melbourne Cup, the Australian open (of golf or tennis) or even cycling and the Tour Down Under, Australia is host to some of the biggest sports with the highest prize offerings.
Salaries and sponsorships aside, here are the Australian sporting events offering the biggest prize money.
Golf has a strong place in Australia - in particular, a golf tournament that has a long and prestigious history is the Australian Open. First played in 1904, not long after the creation of the Australian Golf Union in 1898, the tournament has been held in a number of locations throughout Australia.
The Australian Open of golf is a sporting event that sees immense competition and attracts massive audiences - as a result, prize money within the sport is significant, and tournament winners receive a hefty sum. While in 1966 the first prize of the tournament was $1600 AUD (a lot , Australian Open prize money has grown to a considerable $225,000 AUD for first place.
The Australian Open is one of the biggest tennis tournaments in the world, and the first of four grand slam tournaments held each year. First held in 1905, it is hosted in Melbourne, where top tennis players will compete for the top spot. Every year, Australian Open previews and trends aim to predict who will come out on top, with previous champions including the likes of Roy Emerson, Novak Djokovic and Serena Williams.
In addition to sponsorship money and other sources of income, Australian Open players make a significant amount in prize money - in 2021, the total prize purse is $80 million AUD, with first round qualifying prize money of $25,000 - not a bad amount just to qualify. When it comes to the winning prize, mens and womens singles winners will get just under $3 million AUD.
Next on the list is the Australian Grand Prix - held yearly in Australia, it is the second oldest racing competition in Australia that is still around, and was first run in 1928. As of 2020, it has been held across 23 locations.
As a significant racing competition, it has attracted world class racers such as Michael Schumacher and Lex Davison, and estimated audience attendance even peaked at above 500,000 people in 1995.
When it comes to prize money, teams are paid by the F1 (based on performance), and they then decide how much to pay their drivers (again based on how they perform) - for example, Lewis Hamilton earns an estimated salary of $30 million USD, in addition to win bonuses.
One of the biggest yearly sporting events in Australia is the Melbourne Cup - this is one of the most popular betting events in the country, where horse races are held throughout the day.
Whether you look at prize money or betting wins, both horses and spectators have won millions. In 2020, prize money was $8 million (received by the first 12 past the post), in addition to a $500,000 AUD winning bonus - the winner of the 2020 Melbourne world cup received $4.4 million. This money is shared by the horse owner, trainer and jockey.
When it comes to Melbourne Cup punters, 2020 saw a retired man win over $1 million AUD from a $28 dollar bet.
To wrap up this list, the Santos Tour Down Under is a cycling race located in Adelaide - established in 1999, it has already seen rapid growth and attracts top UCI teams locally and from across the world.
Based on start list quality, the Tour Down Under is, within the southern hemisphere, the highest ranked professional road cycling race, and in 2020 was won by rider Richie Porte.
In terms of prize money, 2020’s competition saw riders receive over $6000 AUD for stage wins, and the winner left with somewhere around $30,000 AUD. When you include sponsor money and other earnings, the riders make a decent amount of money over the 11 day event.
Gather it all together and target it at your credit card debt. Saving for a rainy day is all well and good, but it only makes sense when you no longer have a mountain of debt that’s growing by the minute.
When it comes to prize money, Aussie sports offer some of the highest payouts in the world – whether it is horse racing at the Melbourne Cup, the Australian open (of golf or tennis) or even cycling and the Tour Down Under, Australia is host to some of the biggest sports with the highest prize offerings.
Golf has a strong place in Australia – in particular, a golf tournament that has a long and prestigious history is the Australian Open. First played in 1904, not long after the creation of the Australian Golf Union in 1898, the tournament has been held in a number of locations throughout Australia.
The Australian Open of golf is a sporting event that sees immense competition and attracts massive audiences – as a result, prize money within the sport is significant, and tournament winners receive a hefty sum. While in 1966 the first prize of the tournament was $1600 AUD (a lot , Australian Open prize money has grown to a considerable $225,000 AUD for first place.
In addition to sponsorship money and other sources of income, Australian Open players make a significant amount in prize money – in 2021, the total prize purse is $80 million AUD, with first round qualifying prize money of $25,000 – not a bad amount just to qualify. When it comes to the winning prize, mens and womens singles winners will get just under $3 million AUD.
Next on the list is the Australian Grand Prix – held yearly in Australia, it is the second oldest racing competition in Australia that is still around, and was first run in 1928. As of 2020, it has been held across 23 locations.
When it comes to prize money, teams are paid by the F1 (based on performance), and they then decide how much to pay their drivers (again based on how they perform) – for example, Lewis Hamilton earns an estimated salary of $30 million USD, in addition to win bonuses.
One of the biggest yearly sporting events in Australia is the Melbourne Cup – this is one of the most popular betting events in the country, where horse races are held throughout the day.
Whether you look at prize money or betting wins, both horses and spectators have won millions. In 2020, prize money was $8 million (received by the first 12 past the post), in addition to a $500,000 AUD winning bonus – the winner of the 2020 Melbourne world cup received $4.4 million. This money is shared by the horse owner, trainer and jockey.
To wrap up this list, the Santos Tour Down Under is a cycling race located in Adelaide – established in 1999, it has already seen rapid growth and attracts top UCI teams locally and from across the world.
If you need cash, taking out a personal loan might be the answer. This type of loan can fund you with hundreds or thousands of dollars. Moreover, you are usually given one to five years (or even more) to pay back the loan in full.
Personal loans usually don’t have any restrictions on how you will use the money. That is why they are known to be the funding option you can go to for almost any purpose. Furthermore, a personal loan can be the best option when it comes to your unexpected expenses.
The following are the types of personal loans you should know about:
Under secured personal loans, lenders will require you to put up a valuable item to secure the personal loan you are trying to get. It can either be your savings account, house, or car. Furthermore, if you fail to pay back the loan, the lender has the right to take away what you pledged as collateral.
Secured personal loans usually come with lower interest rates because of the collateral requirement. However, this is not true when it comes to car title loans and payday loans. These types of loans typically offer higher interest rates and fees.
Unsecured personal loans don’t require you to pledge collateral for you to get approved. Instead, lenders will look into your creditworthiness. They use this in evaluating your application, which includes your ability to pay, the interest rate, and the loan amount you can qualify.
Borrowers with good credit scores usually get lower interest rates and favourable terms than those with bad credit scores. Hence, it is vital to work on your credit if you currently have a bad credit score.
Personal loans usually have fixed rates. This means the interest rates under fixed-rate personal loans will remain the same from the start to the end of the loan term. Because the payment amount remains the same throughout the term of the loan, repayment is simpler to manage.
Variable-rate personal loans are less common. However, some lenders offer this type of loan. Under a variable-rate personal loan, your interest rate will be subject to change over time based on a financial index.
The following are examples of personal loans people usually get for a variety of purposes:
Credit builder loans help you with rebuilding and building credit. This is an excellent option for those who are struggling with having bad credit. Furthermore, they are also good with those who are still starting to build credit.
This type of loan can either be secured or unsecured, depending on the lender. Making on-time payments in this type of loan can improve your credit score. Most of the time, credit builder loans only offer small amounts that can be repaid over a few months.
Vacation loans are mostly unsecured. You can use this type of loan for your travel expenses. However, the drawback would be repaying the loan for several months or years. This means your vacation memories might fade away, but you still have to repay the loan.
An alternative for this type of loan would be to plan and save up money. You can prepare the amount you need earlier than your planned vacation. That way, you won’t end up paying interest from taking out a loan.
Wedding loans are typically unsecured. They are designed for a particular purpose. Since weddings can be expensive at times, this type of loan can help you make ends meet.
This is excellent if you have a good credit score. That way, you will get favourable terms and interest rates. Moreover, you can lessen the loan amount you want to borrow by changing your wedding plans or saving up money.
If you have many debts, you can use debt consolidation loans to manage it easier. Most of the time, this type of loan is unsecured. Furthermore, if you pay a lesser interest rate using this loan, you can get out of your debts a little faster than usual and save money. You can also use this loan to pay off your credit cards, which leads to an improvement in your credit utilization ratio.
It pays to know the different types of personal loans. That way, you will know what to expect in borrowing money. Furthermore, it is vital to note that you should only borrow funds you can afford to avoid any financial problems in the long run.
According to the gospel of personal finance, ‘saving money’ is the Holy Grail of financial independence. But once you embark on this path who’s to say you’re being frugal, not stingy? And what’s the difference between the two? Let’s take a closer look.
If your determination to not part with money goes overboard, the world has reserved a few names for you: miserly, niggardly, tight-fisted, mean, plus a few more choice words. Yes, these are all synonyms for stingy, but clearly, there’s not much good to say about individuals with Scrooge-like qualities.
On the other hand, being frugal is often associated with thriftiness, carefulness, caution, prudence, self-discipline, and good management. All qualities that would make Gandhi proud.
However, due to the paper-thin line between frugality and stinginess, it’s easy to get lumped together with the bad apples when all you’re trying to do is channel a bit of Gandhi. Or worse, you might end up morphing into an unpleasant caricature of Scrooge without realising it.
This requires us to break down the difference between the two, so you can easily stay on the financially and socially acceptable road to monetary freedom.
Is money more important to you than family and friends? There’s a cost to having a healthy social circle, and most stingy people are not willing to pay for it. For instance, they’ll turn down invitations to social events, gatherings, or dates that require money until their friends no longer bother to ask. Stinginess can, therefore, turn you into a social loner.
In contrast, frugal individuals are willing to pony up some of their savings to maintain relationships with the people around them. They realise there’s a way to still spend less while enjoying special company. For instance, they’ll look up discounts when visiting restaurants or stick to affordable options. They may also organise bring and share get-togethers or put together picnic dates to keep things economical.
Sometimes the only way to show your care for loved ones is by spending on them. Stinginess can quickly turn into selfishness when you’re reluctant to invest in making others happy. This is by no means an obligation, but it leaves you focusing on the value of money rather than the value other people bring into your life.
Frugality is quite the opposite. You can still be frugal and considerate. This involves simple things like leaving a tip to show your appreciation of wait staff, shopping for affordable but meaningful gifts during holiday season and special occasions, or even splashing out on an expensive purchase or experience for the sake of another person’s well-being or pleasure.
Cheapskates have been known to devise extreme means of saving money. There’s dumpster diving for expired food, coin hunting, and going to the other side of town to buy something that’s a dollar cheaper than the milk bar around the corner. But frugal people prefer to be economical with both their time and money. Each second they invest should bring tangible and reasonable rewards.
By way of example, a frugal person might spend time tracking down cheaper service providers, goods, and grocery items. If this helps them save hundreds of dollars, then it’s well worth it. At the end of the day, you should not have blinders when trying to save a buck or two. Frittering away a big chunk of time to save a disproportionate amount of money is not the way to go.
Another way stingy people have blinders is when they choose a low price over quality, even when it doesn’t make financial sense. The famous author, Terry Pratchett, manages to explain this concept through Samuel Vimes, a cynical character in his Discworld books:
The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.
Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.
But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots at the same time and would still have wet feet.
Replace poor man with stingy man in the above quote, and you’ll have hit the nail right on the head when it comes to a critical difference between frugality and stinginess.
Looking at all the comparisons we’ve made, being stingy boils down to having a low quality of life while frugality maintains or improves life quality. Here’s how:
While it is true that spending less and saving more can catapult you to financial freedom, it also doesn’t mean you have to sacrifice your happiness along the way. When you choose frugality over stinginess, the journey might be longer, but it’s bound to be more comfortable. And when you finally find financial independence, the experience will be sweeter because of the investments you’ve made along the way. You’ll have loving friends and family plus many precious memories and experiences that add depth and meaning to your life.
When it comes to managing your money, issues like dealing with surplus cash flow, making big investments, climbing the property ladder, planning for retirement, and more could be part of the mix.
With such a tall order, you might be in the market for a financial planner who can step in, hold your hand, and help you navigate the complex landscape of your finances. So, how do you locate a good financial planner? Most importantly, what’s the cost, and how do you ensure you’re still hitting your financial goals square on the head?
There’s a hodgepodge of professionals on Australia’s financial planning landscape. But if you need help staying on top of your finances, you should do your homework before engaging any financial planner or adviser. To point out the slight difference between the two, a financial planner is a specific type of adviser who helps you craft a long-term program that helps you meet your financial goals.
On the other hand, “financial adviser” is a blanket term that covers professionals who help you knuckle down on specific financial goals. Across the board, financial advisers and planners have more know-how regarding saving, investing, and managing money. This can be handy if you’re faced with a situation that’s way over your head. For instance, you might need expert advice before you sink your finances into several investment products.
It all boils down to whether you have the time, confidence, and savviness to chase after your financial goals without help. If you’re looking for general guidance on debt management and building cash savings, you can easily scour the market for free resources.
But if you find yourself treading unfamiliar water, it’s generally best to seek advice instead of risking it all. By way of example, enlisting the services of a financial adviser is recommended when you:
A financial adviser’s services can be loosely split into the following:
For the most part, the Future of Financial Advice (FoFA) reforms have cracked down on commission-based services. But, you’ll still need to be wary when it comes to life insurance products that have somehow slipped through a loophole in the newest regulations. Generally, it’s best to recruit a fee-based or independent financial adviser who can freely recommend products that span the entire market.
Planners who work for a commission have sometimes been found guilty of pushing only specific products, thereby limiting you to a particular part of the market. With commission as the carrot at the end of the stick, it’s easy for a financial planner to lose sight of your best interests.
For low-cost options, you can consider planners who conduct business over the telephone or through online means. You can also avail yourself of the benefits of digital technology by checking out Robo-advice. This is a computer program that churns out advice using an algorithm after you feed it your financial details. While this may sound fascinating and futuristic, there are still many limitations to speak of when it comes to getting in-depth advice for complex financial affairs.
A more up close and personal meeting with your planner is preferred but expensive, especially if they have offices in a swanky part of town. Keep in mind the overhead costs will inflate your bill. However, the first introductory meeting is usually free, so there’s that.
When searching for a good financial planner, you can cast your nets wide in several ways:
Always ask for qualifications before getting down to business. Previously, advisers could get by with passing off monogrammed business cards which were of scant value to clients. According to new legislation, a qualified adviser should now boast a bachelor’s degree.
They should also pass strict tests to ensure compliance with ethical codes and professional development requirements. Asides from qualifications, you should also check for the following:
When shopping around for a planner, you should draft a short-list of promising options and then set up one-on-one meetings. When you show up, take the first step in establishing a relationship by providing the following:
In turn, you should also ask your planner the following questions:
This depends on the type of services you subscribe to, but charges can include a plan fee, product fees, and ongoing fees. Under a different pricing model, you may be required to pay a specific percentage of assets under management. Remember, there’s no such thing as a free lunch. Planners who offer free services usually work for a commission. Therefore, they’re merely waiting to cash out on money you invest, and taking their advice will likely end up poorly for you.
So you finally have your financial plan in hand? What next? Make sure it spells out everything clearly and accurately – from an assessment of your current needs and situations to details of how specific recommendations will change the status quo. If you’re dealing with a true professional, expect to see a professional-looking document complete with page numbers, a table of contents, and an executive summary.
If you feel the plan is not up to scratch, clarify your areas of concern and ask the planner to work on it more. Once the plan is complete, make sure it doesn’t get buried at the back of your desk drawer. Instead, negotiate a reasonable fee that allows you to review the plan here and there to accommodate your changing financial needs and goals.
Everyone needs a vacation once in a while, and while it’s a good idea to lay back and contemplate what you’re doing with your life, it can be a hassle if you don’t come prepared. But why is it such a hassle? One word: budgeting.
Having a vacation can be costly, especially if you didn’t save up money beforehand. Creating a budget and sticking to it as you spend money on your vacation is essential if you don’t want to take on debt- that is, if you saved up enough money for the vacation. In reality, however, many Americans rack up so much debt in just a single vacation.
It’s not surprising, to be honest. There are many things you need to spend on a single vacation like your lodgings, car rentals, flight expenses, or RVs. Fortunately, there are alternative loan options if you want to finance an RV. But first, let’s delve deep into what an RV loan is and how it works.
An RV loan is a type of loan that helps you finance an RV. This type of loan is a long-term loan that can be used to buy a motorhome, a camper, or a travel trailer. These RVs do not come cheap and have a range of at least $10k to a million, or even more. For this reason, many RV buyers need to rely on some form of easy financing to purchase these vehicles. Thus, RV loans exist.
However, if you want to opt for second-hand vehicles that are still usable, there are lenders in the market that offer loans, allowing you to purchase new ones or used vehicles. Also, there are a lot of alternative lenders in the market, not just banks. You can find lenders online, credit unions, or RV dealerships that run promotions or loans to help their customers buy an RV.
More often than not, RV loans are made as collateral once you’re unable to pay the loan itself. However, this can also be a good thing since a loan that puts up your purchased RV as collateral means you don’t have to put your other valuable assets on the line.
Since RVs are expensive, the repayment terms for RV loans are typically long, like 10 to 15 years. It’s like this to make the repayments more affordable and customer-friendly. If you are looking for RV loans with good credit that don’t last that long, you can find one if you look hard enough. Some even offer less interest if you’re able to pay for the loan before the repayment period ends.
However, if you aren’t sold on taking out an RV loan, check out these alternative options that you can opt for your next vacation.
If you are shopping for loan rates for your RV, you can try finding one that is specific for the RV that you want to buy. Major banks and other alternative lenders have reasonable rates. However, the percentage you will pay in interest will depend on whether the RV you’re buying is new or not or whether it is from a dealer or a private party.
If you’re buying from a dealer, lenders tend to give you the best rates and a warranty from a dealer, which is an excellent deal for most. But if you’re buying from a private party, interest rates tend to go up, although private parties can be negotiated about the principal amount you will pay.
Under the category of RV type loans are dealer loans. Generally, RV dealers tend to offer financing on their expensive vehicles, just like your typical auto dealer. A lender typically backs this in-house financing, but you can submit your application through the dealer and the negotiations about the RV. Not only that, but dealers also tend to give off discounts and promotions when you’re buying higher-priced RVs.
That said, if you’re planning to buy from a dealer, you can ask if they are running discounts or other promotions that can affect the final price of the RV. Probably the only drawback of financing an RV through a dealership is that it is much more of a hassle to process since there is a lot of paperwork and admin works, making it more challenging to obtain than an auto loan.
If you are determined to get better RV rates, you can compare rates from banks, dealers, and alternative lenders in your area. Yes, dealership loans are more convenient to obtain. However, they can cost more over the life of the loan.
This is especially true if you didn’t enjoy a discount or a promotion that reduces the RV’s final price, not to mention that dealerships sometimes have a higher interest rate.
Also, your credit score will affect your chances of obtaining an RV loan significantly. If you manage to apply for the RV loan successfully, you’re also more than likely to get a high-interest rate.
Before taking out an RV loan, check your credit score. If it is poor, consider improving it first before taking out the loan. The better your credit score is, the better chances you will land a much better loan in terms of repayment terms and the final price of your RV (if you buy from a dealer).
HELOC or home equity line of credit may be an option for you to finance your RV. The best thing about HELOC is that its interest rates are significantly lower than your typical credit card rate or personal loans. This is because it’s secured with your home. You might want to double-check on that since this can be a significant risk to you. If you default on the loan, your house will be seized, which is unfortunate, to begin with.
If an RV is number one on your wishlist, the first thing you should think about to obtain it is how to finance it. There are a lot of places you can talk to if you want financing options for your RV. However, the process can be a challenge, not to mention risky and costly. That said, do your research, and look for better alternatives and financing options to finally get the RV of your dreams.
Lauren Cordell is a writer that excels in articles that talk about travel and financing. In her free time, she usually browses her social media and plays board games.
Buying your first car is one of the biggest, most important choices you will ever make. Like many big firsts in life, it can be daunting, overwhelming and at times, you won’t know what you should be doing. Before you head out to the car dealer, here are seven tips to help you start forming a plan for this major purchase.
This goes without saying for any big decision. Doing some research before you head out to a car dealership can save you a lot of time. Knowing what you’re looking for or what you want can help you and the car dealer narrow your needs down and help you find the right car.
Knowing your budget for a new or used car is another key aspect of buying a car. If you’re going for a used car, Grays Online has a pricing guide, and a selection of used cars you can peruse to get an idea of what is out there, and what is available, as well as the average price for a used car. Price will depend on a variety of things, and if you have a tight budget, a used car may be the best way to go.
This one ties into budget. Once you’ve determined whether your budget covers new or used cars, look at Car Sales for further advice on hidden costs, or additional costs for new cars, as well as cars on the market, reviews and what models might work best for you. Keep in mind that your needs will always be different to the generic advice on theses websites, but this advice can always be applied to most needs and decisions. Used cars will be cheaper, but some of the perks of a new car may not be there.
The Commonwealth Bank will give you good financial advice when it comes to buying a car. You could be the best driver in the world, but because the roads and other drivers are incredibly unpredictable, and driving is one area where we can’t control everything that happens, CommBank advises getting car insurance. Remember to take these costs into consideration when buying your first car, as having car insurance can help when you have an accident or if your car is stolen or damaged.
Using websites such as Grays Online and Car Sales can help you compare prices, models, and everything you could ever need to know about your first car. It is important to do your research for every aspect, and a comparison can help you determine the best way forward for you and your first car. Many of these tips tie into each other, so there might be a lot of crossover with your research.
CommBank suggests getting your finances sorted before buying your first car as well. You can save–which can take time, but it means you’ll own your car outright and won’t have to pay back car loans if you borrow the money from a bank. This loan, something you can apply for once you turn eighteen, can be paid off in instalments.
CommBank suggests a third option, and one that comes into play if you’re employed. Some jobs provide a car lease program, known as a novated lease. This can finance a new or used car, with the repayments taken out of your salary, and can bundle many of the different costs related to owning a car in one.
Photo by Zach Vessels on Unsplash
When you were little what did you consider to be a ‘grown-up’?
To a four-year-old, to be ten, double digits, is the reach the height of maturity. A year six student is pretty grown-up to a kindergartener. To a year seven student, their geography teacher is clearly a grown-up even if they’re only 23 years old, fresh out of university and still living with their parents. Grown-ups have cars, jobs, wear high heels, have briefcases and furrowed brows. They can cross the road without holding anyone’s hand. They drink coffee and watch boring news on TV instead of cartoons.
To a little kid, once you’re a ‘grown-up’ you’ve got everything figured out, however, grown-ups rarely feel like they’ve got everything under control. Adults – particularly young adults – often feel fraudulent, like they’re playing dress-up like, there are so many markers of adulthood they haven’t checked off yet.
For the record, there’s no one correct way to be an adult but there are a few universal things that we’ve all got on our to-do lists that need to be dealt with so, set a bit of time aside to check these five things off your ‘being a grown-up’ to-do list.
We know what you’re thinking, ‘right for me, if I can tap it and buy things then that makes it right for me!’ but actually, your specific bank and credit card type can have a major impact on your finances. Why do you have the credit card you currently have? Perhaps you researched it meticulously and made what you’re absolutely certain is the right choice for you. If so, then great! However, most of us got our credit cards based on recommendations from friends or family members or even because it was the default option recommended by the bank. There are various types of credit cards on the market: low-rate cards, balance transfer cards, low annual fee cards, cards linked to rewards or frequent flyer programs. You’ll need to do some research to determine which card matches your current needs. You can read more about different types of credit cards here.
If 2020 has taught us one thing it’s that we should expect the unexpected. Many of us have been thrown for a loop by the coronavirus and the way it’s changed how or even if we are able to work. Many young people were caught unawares and being unable to pay their rent were forced to move back in with their parents (which is no big deal and honestly your parents cooking was better anyway!) but they could have been saved by an emergency fund. An emergency fund is a backup fund, separate for your savings that can cover any unexpected and urgent expenses. To learn more about how to save for an emergency fund, check out this MoneySmart resource.
This piece of advice will be short and sweet. Eating dinner sitting on the floor is cute once, twice tops but at the end of the day, the distinction between a coffee table and a dining table is important! Go to a cheap flat-pack furniture store, your local market place, take advantage of council pick up. It doesn’t have to be an expensive table but just get a table and a couple of folding chairs so that you can have people over for dinner like the grown-up that you are!
People are going to keep asking you about wine the older you get. It is one of life’s inevitabilities, people will start caring more and more about wine the older that you get and eventually, you’re going to have to expand your wine vocabulary beyond ‘red’, ‘white’ and ‘another glass, please.’ There are plenty of ways to expand your wine vocabulary and the best thing about this is that you can do this by drinking! Get yourself some wine that comes with tasting notes or go to a wine tasting and experiment until you find which varietals you like.
Read voraciously! In a society so obsessed with immortality, our neglect of the written word is downright shameful. To quote Umberto Eco, “The person who doesn’t read lives only one life. The reader lives 5,000. Reading is immortality backwards.” So read a book that wasn’t assigned to you in school. Open your eyes to diverse perspectives. Read a classic, read something written by someone whose lived experience is different from your own. Check out this list of 100 classic books you should read in your lifetime.
For a first-time buyer, deciding which car insurance to purchase can be more complicated than choosing the car itself. There are so many terms that are thrown around Comprehensive Car Insurance, Third-Party Insurance, Fire and Theft Insurance, Compulsory Insurance…Honestly, it can feel a bit like your insurance might need its own insurance sometimes!
It’s one of those things that isn’t taught at school but you wish would have been because, like doing taxes, cooking and learning how to make a doctor’s appointment, it’s important but unfortunately, it isn’t something many of us understand.
Insurance is important and it protects you from being left up a creek without a paddle if your car gets damaged, stolen or needs serious repairs. It is also easy to think you might not need car insurance if you’re a careful driver but, the statistics tell us otherwise. Road crashes are very common all across Australia and you’d never drive without a seat belt or airbags, so, why would you drive without insurance?
So, for something so important it stands to reason that we should all get a little more education on the subject.
Comprehensive Car Insurance lives up to the name. If you are looking for peace of mind then a Comprehensive Insurance policy will give you reassurance in spades. These policies are known for giving you extensive coverage in a wide range of situations from accidents and collisions (even if you’re at fault). They cover towing and emergency repairs and often even offer replacement cars if your vehicle is a write-off. They even provide cover for damage done in situations where you’re not behind the wheel, for example, theft, fire, vandalism, malicious damage or weather-related damage. Some policies even stretch as far as to cover your car’s contents if it’s stolen or damaged.
If you invest in comprehensive car insurance, your insurance policy will also have your back should your vehicle cause damage to someone else’s vehicle or property. So, if an accident that you’re in causes consequent damage to another person’s vehicle, belongings or private property then your insurance will pay to repair or replace the damaged property belonging to someone else. Comprehensive Car Insurance policies are highly competitive meaning you’re sure to find a fairly priced policy that will suit your needs. If you’re still not sure how this relates to your recent car purchase, a good rule of thumb to follow is if you’ve bought a brand-new car or your car is in relatively good condition then comprehensive car insurance would likely be your best option. To learn more about the specifics of policies, head here to check out NRMA comprehensive car insurance.
Third-Party Car Insurance, sometimes called Third-Party Property Damage Insurance, offers a lower level of coverage. At its most basic level, this sort of coverage covers damage to other people’s vehicles and property but, if your car is damaged in the same event, and you are found to be at fault, your repairs likely won’t be covered (although specific plans vary from insurer to insurer).
Who would this type of insurance be suited to? If you have a relatively low-value car meaning the value of the car is low enough that you wouldn’t bother to repair it, or if you know you wouldn’t be left struggling to pay for repairs out of your own pocket then this level of insurance may be sufficient for you. If this is the case, you’d still need to be insured so that you are not left financially exposed by having to pay for the damage your car might do to a more valuable vehicle or piece of private property.
An important thing to remember is that Third- Party Car Insurance is not the same thing as Compulsory Third Party (CTP) Insurance or your Green Slip. In Australia, CTP Insurance is mandatory and you’ll need to provide proof of it before you can register your car. In most states, your CTP Insurance is rolled into your registration, but in NSW you need to purchase it separately. This insurance covers the liability for anyone behind the wheel in the case they injure other individuals in a motor accident but won’t cover any damage to property.
The sort of car insurance you should buy is dependent on the amount of coverage you’ll need. Comprehensive Car Insurance offers you near-total peace of mind, covering you extensively in a wide range of situations whether or not you’re at fault and whether or not you’re behind the wheel at the time. This is the best choice if you’re driving a new car that is in relatively good condition. If the value of your car is relatively low, Third Party Car Insurance may be enough for you. If you’re interested in a further comparison between the two policies, check out this Australian government comparison resource.
So you’re interested in starting your own business, it’s an exciting although nerve-wracking time. There’s always some risk involves but there’s no point going in blind – so here is our cheat sheet for first-time business owners to help you along your journey.
If you’ve even gotten to the point where you’ve found this article, it’s likely that you’ve got a killer idea. You’ve been mulling it over in your head and it’s gotten to the point where you just know you have to see it through. Whether you plan to provide a service, produce your own goods, open a restaurant cafe, or something else undoubtedly wonderful – if you’re confident in your idea you owe it to yourself to pursue it.
Takeaway coffee is a great idea but we’ve already got more coffee shops, cafes and Starbucks franchises than you can shake a stick at. So no matter how good your idea is you have to be sure you can do it in your own unique way. Aim for something amazing, achievable and most importantly: needed!
How can you assess whether your business is needed? A simple way to do this is to find a niche and stick to it. Be incredibly clear and specific about what you’re going to do and why your approach will be different and better than other businesses already in the field.
There’s no denying it, starting your own business is always going to be risky. There are so many unknowns: will people buy your product? Need your services? Seek you out? Without taking a leap you have no way to have these questions answered. Though these questions can leave you susceptible to self-doubt and can have you thinking maybe you’re not ready yet but you are! Take that risk! It is totally normal to feel nervous because what is coming next requires a massive leap of faith but it’s one that many great entrepreneurs have taken before you.
Applying for an ABN is surprisingly simple and definitely necessary if you want to start a business. You’ll want to go to this website to apply for your ABN (don’t worry the process is simple and they’ll talk you through the steps). There are some scams so make sure you are only giving your information to the official government website and remember, ABN application is a completely free process so you shouldn’t be providing payment. You’ll also need to register for GST in order to get your business up and running. Click here to have some legal assistance when applying for company registration.
So, you’ve started your own business, now you’ll need the cash flow to keep things running smoothly. To do this, you’ll want to get a great business credit card. We suggest a charge card with no pre-set spending limits. This does not equate to a totally blank cheque but rather every month you’ll be able to spend whatever your card provider thinks you can payback. When used wisely, experts say that a business card can extend your companies cash flow by 55 days! To learn more about business credit cards with no pre-set spending limits check out this article.
Starting a new business is always going to be hard even under the best circumstances so you owe it to yourself to get all the help you can find! So get yourself a mentor and mine them for all the advice you can get. There is no glory to be gained from going it alone, in fact, without a support system, many new businesses fail. So accept every piece of advice that comes your way, from friends, family, other business owners – even your rivals. You may want to consider a formal mentorship, you can head here for tips about how to approach a mentor.
Starting a new business is undeniably challenging and even seasoned investors and lifelong entrepreneurs can still make mistakes. Everyone is fallible. There’s sure to be setbacks along the way so don’t be too hard on yourself pick yourself up and try again.
As the saying goes: ‘the dream doesn’t work unless you do’ when it comes to starting a business this has never been more true! Plenty of people have great ideas but very few people manage to muster the courage and momentum to put their ideas into practice – you have to have absolute faith in yourself! The first few days, weeks, months, or even years of your journey as a new business owner are bound to be rocky but, if you have confidence in yourself and your vision you’ll be able to weather the storm and take your dream and turn it into a reality!
Anyone can be an investor, but when it comes to investing in property, you need to know what you are doing. It takes more than just skill to be good at investing. It takes persistence, focus and wisdom to know when it is the right time for you to invest in the right property. And although some of the characteristics that all successful real estate investors have may come naturally to them, you can become a better investor over time if you learn to adapt.
As mentioned before, in order to be a successful investor, sometimes you have to be patient. The perfect investment property will not come along very often, so you need to be patient, because getting a return from your investment in real estate can take time. It is true that sometimes you will need to move fast to snap up a good deal on a newly listed property, but you will also need to wait sometimes as well and weigh up your options before diving in. Sometimes, it can pay off to follow your own instincts when you are investing in property, because rushing in to invest in the wrong property can cost you a lot of money. Sometimes, you may have to wait months to find the right property, but it can be worth it if you know when to invest.
In order to be successful with your investment, you need to educate yourself and learn about the property market in your area. Looking at past trends in your local market is a great way to get a sense of what the future holds, so that you can make the best possible property investments. This is because most markets tend to fluctuate in similar patterns, so you will know when there rises and falls in the market based on time periods and things that may happen in the area. Most people usually do some research over the last 5 to 25 years to see how the market has performed during each cycle to see when the best times to invest were during this period. However, at times the market can be very volatile due to unforeseeable circumstances, so you will need to make your own decisions based on a combination of research and instinct to land the best deals.
Having an interest in investing in property is very important, because your love for investing can ensure that you succeed at it. Understanding the market and having an interest in real estate is very important when it comes to investing in property because they are the things that will drive you to become a great investor. If you don’t care about what you are doing, there is no reason to do it, so passion about investing is an important characteristic of a good investor. A great way to get excited about investing is to try and create some goals for yourself so that you will feel good when you achieve them. This could be anything from owning a share in a property to flipping and selling your own property by yourself, but having a goal can motivate you to to achieve great things through your investments
Smart investors know that sometimes you need to try different strategies in order to get the best return from your investment. Sometimes, you may need to try investing in different properties or using methods that you are not familiar with to make money. This could even mean diversifying your portfolio and buying a share in a property, rather than paying for the whole thing. Online property marketplaces like Roofstock are becoming more and more popular with property investors because it allows people to invest as much or as little as they would like in a property, while still getting a return on their investment over time. Good investors know when to adapt to new ideas and to try new things, because if the stars align, these strategies can pay off for them.
In order to be a great property investor, you need to know how to manage your money well. This means that you need a steady income and a good understanding of which properties are worth investing in to make money as a real estate investor. A person who is constantly in debt to other people or not sure of their financial situation is not going to be a good investor, because he won’t know how much money he has to invest at any given time, which can work against you if you are not careful. If you are very interested in investing and you have limited funds to play with, speak to an investment specialist, who can advise you on investing in property successfully. They have an extensive knowledge of the property market and a background in financial planning or investing, so can really help you to get the best return for your investment.
Anyone can be a real estate investor, but it takes a certain kind of person to be really good at investing in property. Teaching yourself about investing and the property market in your area is a great place to start when you are learning about investing in property, so you have to be prepared to invest your time and money into becoming a successful investor. It can be hard at first, but once you get the hang of it, you will find it easy to make money as an investor and thoroughly enjoy doing it.
When you are looking to buy a new car, you want to make sure that you are getting what you are paying for by getting the best deal that you possibly can. If you haven’t bought a car for yourself before, it can be hard to know what to do before you buy your car. Luckily, there are a lot of great tips out there that you can adhere to, so that you can make sure that you get the best deal on your next purchase of a new car.
Finding out the market value for your new car before you go and buy it is the best way to ensure that you are getting a good deal on your new car. There are a lot of websites out there that can help you calculate the market value of your car so that you know what you should be looking for when you go to a dealership to buy your new car. It may also be worth looking at Consumer Reports for the car that you are looking to buy, so that you can know what other people think about it. They can tell you about any issues that others may have had with the car based on consumer experience, so you can be certain that the car you want will be up to your standard.
If you want to get the best deal for your new car, you need to shop around, because that is the only way that you will ensure that you will get the best deal. Each car dealership can offer whatever price they like for the brand new car that they are selling so it pays to compare prices from dealers in your area, so that you know exactly what each of them can offer you. Websites like Price My Car are great for people that want to compare the prices of new cars, because it allows you to look at all of the dealers in your area to find the best price for your car. Using a tool like this will also give you a rough estimate of the amount of money that you will need for your new car, so you can plan accordingly.
If you are trying to get some money together to pay for your new car, the first place you should start is with your old car. You are probably going to get rid of your old car when you buy your new car, so you might as well put the value of your old car towards your new one. Although sometimes trading in your old car can be the best way to get the money to afford your new car, selling your car separately before you buy a new car may be a better option for you. Selling your car separately will give you the freedom to go and buy from any dealer, rather than working with just one dealer. This will give you the freedom to shop around to find the best deal, so that you can save money for the right car for you.
If you want to get a good deal for your next car, sometimes you have to negotiate to get the best deal. For example, if you have shopped around and you know about some of the deals that other dealers are offering on the same model of car, you may be able to use that information to get a better deal on your next car. To beat other dealers in the area, your dealer may offer you a discount or a few added extras, like rust-proofing, extended warranty or free car washes for a year, so that you buy with them. If you don’t ask, you won’t get, so it is worth negotiating in this situation because car dealers are trained sales professionals.
If you have the option, when buying a new car you should always pay in cash. This isn’t because car dealers like cash more than liquid currency, it is because paying in cash can help you to limit the amount of money you are spending on the car. If you get a car loan to pay for your car, you may actually have to pay more for the car in the long run, because you will have to pay for interest rates on your loan, making the total a bit more than you may have anticipated. Another thing to remember is that, some dealerships will offer discounts to people that will pay for their car in cash, so you can actually save money by paying in cash in some cases, which is what you want.
There are many things that you can do to ensure that you get the best deal on your new car. The key is to do your research before you go out and meet with dealers, so that you know exactly what you want and what sort of price you should be offered. It can be hard to find the best deal for the new car that you want, but at the end of the day you can save yourself a lot of money by negotiating and shopping around, so it is truly worth it.
Each year, over 10,000 Australians go the US to start a new life. Part of life’s journey often includes getting a loan. And before you get that loan, whether it’s a car or personal loan, you may want to be aware of the great significance your credit score plays in getting in better a interest rate and even getting the loan to begin with.
Your credit score is the number that lenders and creditors use to gauge your risk as a borrower. Credit card companies, mortgage bankers, and auto dealers are the three bigwigs of lending who evaluate your credit score before deciding whether or not to approve your loan application and much interest rate they’re going to charge you.
As the US debt Stats burgeon, there are certain sectors that starts to impose stringent requirements when it comes to accepting applicants. It is evident to employers, landlords, and insurance companies who take a peek at your credit score to find out how responsible (or reckless) you are when it comes to money before they will offer you a job, renting you out an apartment, or issue you an insurance policy.
Yes, your credit score is that important. But what exactly is a credit score? You may ask.
A credit score, in its most generic term, is a statistical number based on credit history that assesses the creditworthiness of a consumer. Lenders use it to rate your probability to repay debts.
It typically ranges between 300 to 850. The rule of thumb is that the higher your credit score, the more financially trustworthy you are. Otherwise, you’ll be labelled as a high-risk borrower if you have a less-than-desirable credit score.
Your credit score is calculated through these five different factors.
Your payment history makes up for 35% of your total credit score. As a matter of fact, your timeliness in paying bills will profoundly affect your credit score more than any other metric.
Delinquent payment issues such as collections, charge-offs, repossession, tax liens, bankruptcy, or foreclosure can take a severe toll on your credit score. For this reason, it becomes almost impossible to get approved for anything that requires a stellar credit, especially loans.
You need to make on-time payments every month to boost the health of your credit score and increase your chances of getting approved on applications whose requirements involve an excellent credit score.
The total amount of your debts takes 30% of your credit score. Calculating it involves evaluating some few essential factors regarding your debt. Such factors are the credit utilisation ratio or the ratio of your credit card balances to your credit limit, the relation of your loan balances to the original loan amount, and the amount of overall debt you carry.
As a rule, you need to maintain your credit card utilisation within 30% or less of your card’s available limit. Having too much debt or high balances can greatly affect your credit score. Fortunately, it’s easy to fix. All you need to do is pay off all remaining balances.
The age of your credit history accounts 15% of your total credit score. It considers both the average age of all your accounts and the age of your oldest account. It’s ideal for your credit score to have an “older credit age” as it shows that you’re already experienced in handling and managing credit.
Moreover, closing existing accounts or opening new accounts minimises your average credit age. As such, it will not be a good idea to open multiple new accounts simultaneously.
Inquiries consume 10% of your credit score. An inquiry is placed on your credit report that shows you’ve made a credit-based application whenever you submit an application that demands a credit check.
Making at least one or two inquiries don’t make a big difference, but several inquiries do. It’s particularly visible within a short period and may cost you several points off to your score. With that, it’s crucial to keep your applications to a minimum to keep your credit score in good shape.
The good thing is that only those inquiries made within the last 12 months will be factored into your credit score. Inquiries will completely vanish from your credit report after two years. Take heed also that checking your own credit report will result in a so-called “soft” inquiry, but it doesn’t affect your credit score.
It makes up the remaining 10% of your credit score. The final metric to consider for determining your credit score is whether or not you’re using different types of credit such as store accounts, credit cards, mortgages, and instalment loans. The number of accounts you have will also be taken into consideration.
You don’t need to worry if you don’t have accounts in each of these categories. You don’t have to open new accounts too just to increase your mix of credit types.
While there are important metrics that influence your credit score, there are some factors too that most borrowers commonly thought will affect their credit scores. However, they don’t, or at least not directly.
Your credit score is quite important in getting approved for loans and obtaining the best interest rates. However, you don’t need to torment yourself about the scoring guidelines just to achieve the kind of score that lenders want. Generally, if you will responsibly manage your credit, your score will shine through.
If you’ve never applied for a mortgage before, there are a few essential pieces of information you need to know. To start, you should have a deposit of at least twenty per cent of the home’s value, a steady income along with a good credit history.
Let’s take a look below over the things you need to get a mortgage in Australia and how to make application approval just that little bit easier.
First things first, you’ll need a copy of as much personal information as you can get. If you’re applying for a mortgage from lenders, you’ll need to provide information on your employment history, previous addresses, plenty of information on your current assets as well as a comprehensive look into your income and expenses.
Here’s a list of the general pieces of personal information you’ll need to have ready for your mortgage application:
Now that you have some idea of the types of personal information you’ll need to get a mortgage in Australia, we can move on to determining what you can afford.
A second step in getting a mortgage in Australia is understanding what you can afford and making lifestyle changes to ensure your lender knows you can afford to pay it.
To make it easier to determine if you can afford the loan, begin with your income each month and take out the expected loan repayment. From there, work out whether the leftover income is enough to pay your bills and general everyday expenses.
For a better chance of success in your mortgage application, it’s also a good idea to have a deposit saved up prior to your application. This way you’ll be able to reduce your monthly repayments and show you’re a responsible saver.
If you’re planning on taking out a loan from banks like St. George, there’s a great mortgage deposit guide to give you some information on how best to meet lender requirements as well as how to become a low-risk borrower.
As we mentioned above, a deposit is essential to reduce your loan amount. However, depending on which bank you choose, your minimum deposit amount may change. If you’ve saved only 19 per cent or less of the value of the home you’re looking to buy, you’re considered a high-risk borrower and will need to pay lenders mortgage insurance.
We suggest spending a year or two building your savings account for your deposit, as it’s more financially wise to pay less interest and rely less on a 90 per cent loan.
To many Australians, a mortgage is the biggest loan they’ll ever have. And with that said, you must be able to show lenders that you’re capable of being frugal and responsible with money. One way to do this is by setting up a long-term savings account and regularly depositing into it. This account could even be your mortgage deposit account.
This account will show lenders you’re able to pay repayments on time, in full and not default in the future.
If you do have a bad credit history, there is some good news, and that is that it’s repairable if you work hard. The truth is, a bad credit score will stay with you for a decade, though lenders rarely focus on financial decisions from a decade ago. Work to rebuild your score for two years prior to your mortgage application and you’ll be on track for approval.
Even if you have a solid credit score, having spotty employment history is likely to leave your application in the rejected pile. There’s little point to applying for a mortgage in Australia if you’ve jumped from job to job in the months leading up to your mortgage application. On top of this, if you’re in-between jobs it’s also not the best idea to apply either.
What we suggest is that you be employed for a solid three months prior to submitting your mortgage application, and ensure you’re going to stick with that job for the foreseeable future. This way there’s little chance of financial hardship and defaulting on your repayments.
When times get tough we could all do with some extra cash. If you’re running low on emergency savings, have a credit card or phone bill on its way and no money in the bank, you might be getting anxious. Thankfully, there are plenty of ways to get cash quickly.
Below we will take a brief look over seven of the easier ways to get cash quickly to pay for those bills.
Up first is the simplest way to get cash quickly – a short term loan. On services like CashnGo you can take out short term loans of up to $2,000 to pay bills, buy groceries or do anything you’d like. One part of the service is that you can choose to pay off the loan between one and three months.
If one to three months is not sufficient for you, consider comparing longer term personal loans.
Another great way to get your hands on some extra cash is by selling items on Gumtree. Have a look around the house for items which might hold some value that you no longer use. These could be something as trivial as a premium phone case like a LifeProof, a TV or clothes. You’ll be able to sell these online in a few clicks to get some quick cash.
Our tip here is to take a quick look on Gumtree’s homepage for some inspiration. There could be things on sale for a few hundred dollars that you never realised you could sell.
A more localised version of GumTree is Facebook Marketplace. You’ll find that there’s a huge market for knickknacks and used items on Marketplace which is great if you’re looking to make a little extra cash as fast as possible. Most of the items listed, including yours, are likely to be sold for pickup only, so make sure you have your location settings correct.
There are plenty of categories to choose from on Marketplace so you’ll be able to classify your items, making them easier for potential buyers to find.
Did you know that empty spaces in your home can be rented out to the public for them to use as storage? On websites like Spacer, you’re able to list your garage or spare bedroom for anyone to use as a storage space for their items or even a car. You’ll be paid for this and it’s a fantastic way to make some extra money from a spare bedroom or garage that you don’t use very often.
If you’re a pet lover, then this one’s for you. You can sign up to walk or pet sit animals on Mad Paws and get paid to do so! You can choose your own hours as well as pick your own rates so that you’re making enough to cover those unexpected expenses without having to change your daily schedule too much.
All you need to do is head over to the Mad Paws website, fill out the Become a Sitter application and you’ll be on your way to getting paid for walking or pet sitting people’s adorable pets!
A fairly easy way to get some quick cash is by offering your opinion or providing research companies access to your smartphone habits. Depending on the study, you’ll either be asked to do a little writing, let companies know your opinion on their services and products or give them access to your phone or computer habits.
Organisations like Roy Morgan and Nielsen pay participants for their opinions and for a look into their TV and internet browsing habits for statistical reports. Something as simple as installing an app on your smartphone can earn you up to $150.
Take a look at the Focus People’s website to find market research opportunities in your area.
If you don’t think your old electronics are in good enough condition to sell on Facebook Marketplace or Gumtree, then look to recyclers or a refurbisher. Scour through your house and there’s a good chance you’ll have an old iPhone, iPad or Galaxy device that you no longer use. Take these devices to a recycler and they’ll likely offer a fixed-price payment for your device. Online retailers also offer payments for the devices that you send in, check out refurbished electronics sellers like mresell.com.au.
Starting an online business can be an exciting venture. Whether it’s something you want to do for fun, or you’re looking to increase your financial freedom, it will involve a lot of time, work and effort. In today’s internet landscape, there’s more and more small businesses starting every day which means the market is increasingly competitive. Here’s 6 steps that will help you start an online business.
For those looking to start a business, it’s easy to get excited and try to find what you will be selling immediately. However, if there’s no people looking to purchase what you’re selling, your business is likely to struggle. Therefore, the best approach is to start by finding a market.
The key is to find a market that has a problem without a real or effective solution. The internet has made this significantly easier as you can search online forums for what people are looking for, search engines for what businesses are competing, and how you can improve upon what they’re offering.
Something you might not initially consider when starting a business is the legal process you will have to endure. There’s a lot to set up when you create your business. Firstly, you must determine your legal business structure. This might be a sole proprietorship, a partnership, or a type of corporation. Typically, a one-person business would be a sole proprietorship.
It’s also worth protecting your businesses brand and name by trademarking your logo, name and any designs. At the same time, it’s important to ensure you aren’t infringing on any existing trademarks. Specialised trademark lawyers like LegalVision are well-experienced in trademark registration and help ensure you and your business get through the process properly.
When people search for a product on google, it can be seen as the start of the customer journey or sales process. Not everyone is looking to make a purchase straight away. People seek out information, reviews, alternatives all while slowly working towards the end sale. It’s important that your online store satisfies each of these points in the consumer journey. Show the consumer what problem they have, and tell them how your product or service can uniquely solve this problem and make the customers life better.
The better information you have, the more memorable your brand will be and so the more likely it is that a reader will turn into a customer.
If you have an online business, it’s clear that your website will need to top quality. Think of your website as your virtual storefront. Keep things clean and simple, making it easy for your visitors to understand what you sell and find their way around the site.
Make sure it loads quickly, and it’s easy for customers to make a purchase. It’s also important that you have a way to capture visitors email addresses. This will help you keep your customers up to date and sell to them without having to get them on your site again
Email marketing is one way to increase your sales, but there’s many other channels that you can leverage in the digital space. Pay-per-click (PPC) advertising is the easiest way to generate traffic. In Google, your PPC ads typically appear right at the top of the search results and you only pay for those who click on your ad. This is a good form of advertising, especially for newer sites that are testing out their pages and keywords.
It’s important however, to generate organic traffic. Search Engine Optimisation (SEO) is the act of optimising your website for search engines such as google. The idea is that the better your site is in the eyes of Google, the better it will rank for specific keywords.
Another thing you can do online is build yourself up as an authority in your chosen space. As an authority, your customers are more likely to trust you and make repeat purchases. To do this, it will take time and a considerable amount of work but can be extremely valuable to your business. Your site might have a blog where you write content addressing customer pain-points and how your product can be a solution to these problems. You can also build up your authority by guest posting on popular sites within your niche. The more often people see your name and business, the more familiar they will be with it and the more likely they will be to make a purchase from you, rather than a competitor.
If you’re starting an online business, it’s important that you first do your research. While it can be exciting, diving in headfirst will usually set you up for failure. Knowing what to sell and how to do so is just the beginning of launching a successful business.
With the new year in full swing, people are setting out to realise their New Year’s resolutions. By now, some may have already failed and others may be struggling to find ways to continue towards their new goals. A huge amount of New Year’s resolutions are financial related and of course, finding ways to make and save money is helpful for everyone. Here is 6 money hacks that can help you for 2019.
Budgeting can hardly be seen as a hack. Everyone knows the huge difference it can make, however, very few people actually set out and follow an effective budget. Doing so can be one of the most powerful money hacks there is.
It’s important to know exactly how much money is coming in and what money must go out. Things like bills, groceries and transport are all necessities and must be paid. Once you subtract these things from your income, you can then see how much money you’re left with for saving and spending. Obviously, you should spend less than you earn and save as much as you can. Today there’s a huge amount of apps that can help you plan out and track your budget. If you’re not an app person, you can create a simple excel spreadsheet.
The best time to plant a tree was 20 years ago. The second-best time is now. No, we’re not telling you to stat selling trees, but this old Chinese proverb is a great way to get inspired and motivated to start doing things.
It can be easy to feel like you have missed all the opportunities. “Bitcoins rise and fall has come and gone”, “Apple stocks have reached their limit“, ”I’m too old”. The excuses can go on, but you will only miss more opportunities. There’s no time like the present to start investing and it can be easier to get started than you might think.
Apps like Raiz make it super simple by rounding up your purchases to the nearest dollar and investing the spare change. You can choose how aggressive your investments are, and how much you want to invest. Over a few years you could build up $1000’s in savings simply by rounding up your daily purchases.
If you want to get more serious about making your money work for you, you can consider trading on the Forex market. This strategy will take a bit more learning, but with the right strategies, taught by professional coaches like that of Learn to Trade, it’s possible to make money on the foreign exchange market.
Now we’re not telling you to stop exercising, but gym memberships can build up to be quite the expense. Think about what it is you do at the gym and consider if you actually need the gym. A lot of exercise can be done for free at your own home and in local parks.
Find body weight exercises you can do almost anywhere, such as pushups, situps, lunges and dips. Of course, running is super easy without a gym too. Getting rid of that membership can save you hundreds or thousands of dollars every year.
Access is the new ownership, at least that’s the idea behind the sharing economy. Sharing your assets within the community is a much more affordable and efficient way of using things rather than everybody paying for new items. There’s really no limit to the sharing economy, from fashion with The Volte to space with Spacer.
We all have our vices, whether we know it or not. Think about what you regularly spend money on, that you don’t necessarily need. It might be smoking, drinking, clubbing, or the monthly hair appointment. All of these things can cost hundreds of dollars every week.
Try going for several weeks or months without one of your vices. You will be surprised with the impact it can make on your finances.
Cooking at home can save you a huge amount of money. Restaurants, cafes and fast food might be easy and delicious, but I bet that’s not what your bank account thinks. Learning to cook can be fun and rewarding, and when you see the savings building up, it’s sure to be a worthy investment.
The three broad types of home loan interest rates each have pros and cons. Deciding between them can seem tricky, but don’t worry, we’re here to help!
You’ve probably come to us if you’ve been wondering: “What is the personal loans application process?”
Applying for a personal loan is generally quite straightforward if you’re looking to sign up with an Australian lender or bank. This guide outlines the main steps in the application process for personal loans, to help you get the loan you’d like in a hassle-free way.
Before you can apply for a personal loan, it’s absolutely vital to do serious research into the offers around. You’ll only be able to choose the best personal loan if you’ve got a clear idea of what you’ll want to spend the money on, first up. Once you’ve got this in mind, you’ll be able to save a lot of time and make a more relevant decision. Things you’ll need to consider from here are:
The application process for your personal loan can be done many ways these days. Online is a common way to apply, as many banks and lenders offer online applications. Typically you can also apply by post and on the phone, however in all cases you will need to:
You’ll also need to provide proof of:
If you’re applying to a bank you’re not a customer of, you will typically be required to show evidence of your identity. It’s not uncommon for banks to ask for 100 points of ID in these cases.
Online applications can take several business days before you receive an approval or denial. If they send you a product disclosure statement, you should check this thoroughly. You might also be requested to give further evidence so the bank or lender has everything on hand. Here again you may need to provide proof of income, identity and evidence of other debts you might have.
Almost there! If your personal loan application has received approval then all you need to do is wait for the bank to email or post you your contract. Once you’ve returned a signed copy of this to your lender, it should only be a matter of 24 hours or so before it’s approved. When this happens, your loan application has officially been accepted.
Your personal loan should now be available as soon as they are “drawn down” into your bank account. So yes, you can spend it!
If your lender or bank is deviating significantly from the steps we’ve outlined, or if they haven’t been 100% transparent and things seem a little dodgy, please stop your application process. You can check for free whether everything is as it seems or otherwise with the Credit and Investment Ombudsman or Australian Financial Ombudsman Service. These services are designed to help ensure that loans and all the procedures involved are following regulations, and also settle disputes between clients and their lenders.
Whether you’re a first time property buyer, or a veteran real estate investor, it’s crucial to get acquainted with home loan fees. If you’ve used a home loan calculator or comparison rates to shop around online, you’ll be familiar already with how home loan fees can easily add up quite quickly.
Home loan fees can make a big difference in the total amount you’ll be paying on your mortgage. Whether you’ve found the best interest rate or not, fees are a key factor to consider if you’re hoping to save money in the long run. This guide explains some of the standard home loan fees, so you’ll know what to look out for when choosing a mortgage.
Application, establishment, set-up, start-up or up-front fees all refer to the one-off charge that you’ll pay when setting up your mortgage. The average Australian mortgage of $350,000 may be associated with an application fee of up to $500 for residential home loans, and only slightly more for investment properties. Home loans without establishment fees may charge you more in terms of maintenance or ongoing fees throughout the duration of your loan.
Maintenance or ongoing fees may be monthly, quarterly or annual, and are also sometimes called loan service fees. These service or administration charges may sometimes be required in under certain situations, a good example of this is a redraw facility fee. Redraw facilities will only apply if you’re using the redraw option to withdraw additional repayments you’ve made on your home loan.
Lenders and credit providers are covered by Lenders’ Mortgage Insurance (LMI) as a rule. This protects them in the instance that you or other borrowers default on a home loan. As a first time home buyer, you’ll often be charged an LMI fee if your home loan is an amount above 80% of your property value. If it’s not your first time taking out a home loan to buy property, you will typically be charged LMI fees if you’re borrowing to cover your entire property value.
It is possible in some instances to get some of your LMI premium refunded. This may be an option if you’ve been with your current home loan for one or two years and you’re switching loans. It’s also a good idea to check whether you can avoid paying LMI again if you’re changing to a new loan outside this period. This might be the case if you have enough equity on your home if you’re paying LMI at the moment.
Break fees, or break costs, apply when you switch home loans before your fixed rate home loan period is complete. They can be quite high in some instances. If market interest rates have decreased during the period you’ve had your fixed rate home loan, its generally the case that break costs will be higher. They aren’t always set at in advance, so you’ll often only find out what the break cost will be when you ask your lender.
Early exit fees are also known as deferred establishment fees, early termination fees, deferred application fees or early discharge fees. These are the charges you’ll be looking at if you wish to completely pay off your home loan within a specific time frame. As an example, you’ll most likely be charged an early exit fee if you’ve had your mortgage for under 5 years.
On the plus side, they are capped under Australian Law so that the lender you’re leaving can only recoup the amount they will have lost by your early exit. This means that home loan providers will not be able to charge exit fees as a means of putting you off moving your home loan elsewhere. If you’re quite lucky, you’ll notice a few lenders who offer to pay your early exit fees when you sign up with them. As always, make sure you consider other fees, interest rates, features and flexibility when looking to switch lenders.
Termination fees are also sometimes called settlement fees or home loan discharge fees. These apply when you repay the total amount of your mortgage. For the average Australian mortgage, it’s not unusual for discharge or termination fees to range around the $250 mark.
Refinancing fees are charged by your new credit provider when you move your home loan to them while refinancing. These may be flexible in terms of their size, so negotiation isn’t always off the table. Refinancing will very often involve discharge fees, application fees, and break fees. It’s important to think things through carefully before you refinance your home loan to avoid paying too much in charges.
There’s more to it than fees and bad news, actually. Under Australian law, you’re not required to pay over 48% per annum on your mortgage. This includes set-up and fixed fees. It’s a good thing, because home loan fees can cost the average first time home buyer a fair amount in the first year alone.
There are a few other fees that might apply to your home loan, depending on your circumstances. In some instances it is possible to come across charges like:
It’s strongly recommended that you talk to your lender or loan provider before you commit to a mortgage. Yes, you should do this even if you’ve carefully checked out what’s on offer online because while these deals may be relevant at the time they’re published, they may change at any time. Please do read the fine print, too before signing anything, as home loan fees can easily add up to thousands over the course of your home loan.
Term deposits are a generally low-risk ways to invest your money at a fixed interest rate for a set period. They’re amongst the most straightforward financial products available, but do prevent you from instantly accessing your money throughout the entire deposit period.
Withdrawing your term deposit before maturity is not a straightforward task. When you deposit with a bank or credit union, that institution typically uses this money to lend to other customers. The high interest rates associated with term deposits is thus an incentive for you not to withdraw while these funds are being used for other purposes. When you do need to terminate your deposit early, it’s normal to be faced with financial penalties.
Because you’ve essentially committed your funds for the period of your term deposit, it’s often necessary to give 31 days advance notice if you’d like to make an early withdrawal. It’s best to consider whether you’re sure about locking away your funds before you open a term deposit.
If you decide that you’d like to invest your money elsewhere or if you need them in case of an emergency, you’re likely to be faced with a range of different penalties for withdrawing before maturity. Different institutions will charge different fees, which might be called early withdrawal fees or prepayment penalties depending on your institution.
A common penalty for withdrawing early from your term deposit is for your bank to apply a reduced interest rate to your remaining funds. The amount of the decrease will often be larger if you have a longer term remaining. For example, a term deposit earning 3% per annum and withdrawn fairly early may be penalised by dropping to 2% per annum, while a deposit termination made later on might only incur a 0.5% per annum penalty.
Another penalty charged by some institutions is a break fee, which will also vary between institutions. Reading the fine print of your term deposit agreement is generally a good way to understand what your penalties might be before you invest. It’s worth doing this before you choose a term deposit that suits you, so you can decide if it’s the product for you.
Very frequently term deposits will come with minimum balance requirements. What this means is that even if you aren’t withdrawing the entire deposit before maturity, it’s possible you’ll be lowering your overall balance to below the minimum amount required. If this happens, it’s often the case that the bank will close your term deposit account automatically. It’s also not unusual for the interest rate reduction to be applied on top of the remaining deposit.
It’s always good to consider your options before you open a term deposit, and it’s well worth being aware of the following things:
‘Cooling-off’ periods are a feature of some term deposits, and these give you a chance to withdraw your funds and close your mind penalty-free if you simply change your mind.
If you’re reading this, you’re probably familiar with the dream of owning and living comfortably in your own home. Ideally, without the hassle of rent or mortgage repayments. In reality though, we live in a country with the highest housing price-to-income ratio, and ever-rising property prices. Which means, most of us are realistically stuck with mortgages that take years to pay off, and it can feel overwhelming at times
The average first home owners in Australia are borrowing over $344,000, and the average Aussie home loan comes in at over $400,000. With fees and interest, the average Australian homeowner could quite easily be paying over $1,000,000 if not they’re not making their repayments as quickly as possible. At the same time, we are faced daily with hundreds of unique and original home loan options. It’s no real surprise then, that most of us are looking for real ways to repay our home loans early. But how can we do this practically, without a massive pay rise?
There is no such thing as a free lunch. If there were, we’d all be having a laugh in our mortgage-free houses or enjoying a barbie in our fully paid-off gardens. There are a few strategies you can use though, that could make a big difference in early home loan repayments.
A simple way to speed up your home loan repayment is to consider rounding up the figure directly debited from your account. The average Australian pays around ~5% per annum (standard variable) on the average home loan of around $400,000, a monthly repayment of $2150. If rounded up to $2200, roughly the price of 10 morning coffees, this totals $600 annually off the average home loan repayment.
The easiest way to do this and accelerate towards a life without mortgage repayments is to adjust your direct debit. Doing so is a one-off task and will make sure you don’t have to make the nail-biting decision each month.
Interest on a mortgage is calculated daily. Although mortgage repayments are often displayed as a monthly figure that doesn’t mean you have to repay the mortgage on a monthly basis. By making more regular repayments (weekly or fortnightly) you cut down the principal on which your interest is calculated. This one tactic could save you 10’s of thousands of dollars over the life of your loan.
If you can afford it, professional financial assistance can go a long way. Consider getting help from experts like mortgage brokers and lenders, financial planners and investment specialists. A trained advisor or specialist could help you consider financial strategies and do the legwork for you. With a clear idea of the steps needed to pay off your home loan early, professionals can make a big difference by giving you some structure to achieve this.
Experts will also take note of all the important factors like your income, where your property is located, other debt and your own determination or willpower. Considering your options, find a planner who can realistically help you achieve your mortgage repayment goals.
Rearranging the structure of your repayments can only go so far! When you’ve tried everything above, it’s time to make do some budget redesign. To really make a difference and pay off a home loan early, Australians have loads of options.
Are you currently using a savings plan? Paying higher than average utility bills or a monthly mobile cap you don’t really use? It’s likely that you could rethink the amount you spend on these things, isn’t it? By saving electricity, water, petrol or redirecting your savings direct debit, you could re-channel these funds into your home loan repayments.
By now you’ve probably heard of American Adam Hatter, who redesigned his budget and paid off his $157 000 mortgage in five years. The good news is, you don’t need to buy all your clothes from op shops like he and his wife did. Even small changes can make a big difference, like packing lunch rather than buying that $15 superfood salad. At this point it might seem like we have something against coffee, but do you really need that $3 barista-made flat white every day?
Whether this is your first, second or third home loan, you could do well to learn from professional investors. Whether you choose to invest in shares, bonds or more real estate, a smart investment plan can yield you profits for your repayments. You could even use half your profits for paying off your home loan early and reinvest some of your returns, depending on your strategy. Remember, be smart and go with a professional portfolio manager if you’re not confident.
It’s always a good idea to know a little more about the credit options available on the market, so you can make informed decisions when you need to. Whatever you plan to use your personal loan for, there are smart ways and not-so-smart ways to go about spending your borrowed funds.
Before you take out a personal loan, it’s great practice to understand what you’ll be looking at in terms of features. We’ve highlighted the key features of personal loans in this guide, so you can make the best decisions around your personal loan use. You’ll need to consider:
We’ve given debt consolidation it’s own little heading because it can be easy to overlook the ways that you might consider personal loans for refinancing.
If you have several loans out at different interest rates, a personal loan could help you roll these into one more manageable monthly repayment. Say you have a car loan at 10% and two credit card debts at 18% and 20% respectively, a smart personal loan use might be to consolidate these debts. In this case, you would be looking for a personal loan which covers these combined outstanding debts in terms of value, but with:
When you apply for a personal loan, you’ll be asked what you intend to use the borrowed funds for. Your intended personal loan use will impact how likely it is that you’ll be approved – think “personal jet pack” vs. “children’s college funds”.
Some personal loans such as secured car loans will also come with restrictions on what you can purchase, which means it’s smart to do your homework before applying. It’s worth noting that debt consolidation is considered a higher risk purpose than if you’re planning to buy an asset.
There are several things you’ll be able to get with a personal loan, which could be up to $100,000 depending on your financial situation. This gives you more flexibility and potentially lower interest rates than credit cards for example, meaning you’ll want to consider funding for:
Hopefully we’ve helped you consider some of the key aspects of choosing a personal loan. With a better idea of personal loan uses, you’ll be better able to make a decision about comparing loans, and consolidating debt or using your funds.
Most people only need one credit card, two at a maximum. If you have got into a tricky situation where you have multiple credit cards and you owe money on each one, then you may need financial help. It’s not a bad idea to talk to a financial expert and get advice on how to pay off your credit cards.
Take a look at your multiple credit cards. If there are any that you genuinely can manage without, pick up the scissors right now. Cut that one up. Then, try these few tricks to help you manage multiple credit cards and to work out how to pay off the debt.
When people have multiple credit cards they often get into trouble with the repayments. Debit piles up. It’s important to pay off as much as possible every month, so that the interest is reduced. There is a way to manage multiple credit cards and rather than get into trouble, make sure to pay the minimum monthly repayment fee.
Debt can spiral out of control if you do not keep up with your minimum payments. While the first prize is to pay off your multiple credit cards and then close the accounts, you may not be in a position to do this immediately. Remember:
Something as simple as going through your bank statements will help. Get on top of how much money you owe and how to pay off the debt. Your statement will tell you how long it will take to repay each balance, if you have multiple cards, and will tell you what your minimum monthly payment must be.
If you have multiple credit cards, perhaps you need advise from a deb councillor.
There is nothing wrong in asking for help. Rather ask for help earlier than later. A debt councillor will tell you how to pay off your debt from multiple credit cards and he will advice you how to manage multiple credit cards too.
You have to deal with your debt. Don’t ignore it, because that is when the problem gets much worse. You can go to your bank, or banks, make an appointment with your bank manager (you may have various bank managers if you have multiple credit cards) and ask them for advice on how to pay off the money. If they have given you the multiple cards, they need to tell you the best way to manage multiple credit cards.
Once you are back on track, only keep one credit card. Having multiple credit cards may be very appealing when you are buying a car, sending the kids to school, need that winter jacket or just need a little extra money to tide you over each month, but multiple credit cards can also get you into trouble. Moreover, multiple cards can mean multiple annual fees, which could up at to hundreds if not thousands of dollars.
Debt is not exciting and one of the best and most powerful things you can do, is learn how to manage your money.
There are two main ways to consolidate your debt:
Before you do either you may want to look into your credit score, to get an idea of what your bank sees and to understand the strength of your application. You may also want to read our tips on getting your personal loan application approved. Also, remember that every time you apply for credit, that it will leave a mark on your credit file and it will reduce your credit score.
If you choose to get a personal loan, you will want to ensure that the comparison rate (the interest rate that’s inclusive of all fees) is lower than your current credit card interest rates. It is also wise to call up the lender before applying, to assess the likelihood of your application being successful. The operator will not be able to give you a definitive answer (that’s the job of the underwriting team) – but they will quite likely, give you some helpful hints.
If you choose to do a balance transfer, be mindful that there’s often a fee of around 3% of the outstanding balance. If your credit cards are nearly maxed out, the likelihood of you being approved is considerably reduced. Lastly, if your balance transfer is successful – be sure to cut up and cancel those other credit cards.
Chances are you’ve heard about term deposits as a way to make your money work for you. These uncomplicated financial products are deposits that can be made with a lender for a predetermined period of time. Usually spanning from 1 months to upwards of 5 years, term deposits offer relatively high interest rates over the time your money is deposited. When your deposit matures, you can either withdraw or ‘rollover’ your funds to a new term deposit.
Whether you’re an experienced investor or simply looking for a better interest rate than your savings account offers, term deposits are worth considering. We’ve outlined some strengths and shortcomings of these investment products so you can decide if they’re right for you.
Term deposits are among the most straightforward investment products out there. Simply open up your term deposit and there’s absolutely nothing to do but wait until the period’s almost over.
There are typically no fees for opening up a term deposit, monthly or maintenance fees. A term deposit only involves locking up your funds for a certain amount of time. During this period you’ll enjoy a predetermined interest rate without doing a thing.
The beauty of a term deposit is the assurance of a fixed interest rate during the time that your funds are invested. Should you be lucky enough to lock this in while the market is strong, you’ll enjoy this high interest for the duration of the term deposit. This protects you from market fluctuations and can be a source of comfort should savings account interest rates drop.
With your savings safely locked away, you won’t need to worry about whether you’ll be tempted to spend it on something spontaneous. It’s much easier to stick to a budget and achieve your other financial goals when the risk of impulse buying is off the table.
Aussie term deposits are protected under the Financial Claims Scheme, which guarantees you government compensation of up to $250,000 if the lender you deposit with defaults. Under the scheme a single $500,000 investment could potentially lose half its value should your financial institution go under, but this is easily avoided simply by splitting your deposit into two term deposits of $250,000.
The fixed interest rate of term deposits has a down side. If market interest rates start looking stronger, there’s very little opportunity for you to benefit from this without paying withdrawal fees. There’s also very little chance that any benefit over and above these fees will be worth much either.
Unfortunately it’s not possible to introduce more money to your term deposit once you’ve settled on a plan and the clock starts. Unlike savings accounts that allow you to add more funds to a savings account at any point you like, term deposit funds are locked away. With good planning skills however, it’s always an option to open two or more term deposits with staggered maturity dates.
If you require instant access to your money or an emergency arises, withdrawing is not as easy a task as it is with savings accounts. Term deposits will often require you to pay fines for withdrawing your funds before the period is up. Often, this is accompanied by a cut to your initially high interest rate. In some circumstances you may need to give up to a months notice before any withdrawals can be made.
It’s important to pay attention to the maturity date for your term deposit. At the end of this period it’s not unusual for your money to rollover automatically and a new term to be started. Very often these new terms will be lower than the original rate you committed to, and if you don’t pay close attention, you might well be looking at a penalty withdrawal fee.
Unlike high interest savings accounts or a variety of other competitive products offered by banks and .peer-to-peer lenders, term deposits are very much set in stone. This means a low chance of any bonus interest that you might get from a savings account (though some providers sometimes offer a bonus if you roll over). Similarly, once you’ve committed your money, and accepted your fixed interest rate, there’s also no incentive for your bank to tempt you with flexible features or options.
Once you’ve weighed up the pros and cons of term deposits, you’ll be in a much better position to decide whether this strategy suits you. Moving your money from a savings account to a term deposit doesn’t have to be an all-or-nothing decision. Realistically there are plenty of different options around the amount you choose to invest and a range of investment term lengths.
If you wish to compare term deposits. Visit our term deposits page to see some of the top rates available in the market.
Having a credit card can be incredibly convenient. It’s unbelievably easy to make payments without money in your account and you can earn frequent flyer points while doing it. So what’s the catch? We’ve put together a list of 9 common mistakes, traps and general fails so you can use your card in a smarter way.
Credit card interest is only charged when you don’t pay off your outstanding balance at the end of each month/interest free period, and yet this is a common credit card mistake for Aussies.
By making complete repayments each time your statement/interest-free period is over, you can avoid all credit card interest permanently and avoid this fail.
Annual credit card fees are so common, most Aussies typically assume they are standard. However, annual fee-free cards are available from many providers and an online search for these products could help you cut between $50 and $1,000 yearly. $0 annual fee credit cards don’t always offer the same rewards as premium cards, so if you’re not planning to capitalise on the rewards offers – it could be worthwhile avoiding the annual fees.
Possibly the biggest and most common credit card trap is the interest and fees of paying back your money too late. Late repayments will always incur interest, and even worse they can negatively impact your credit rating. It’s easy to avoid this mistake by setting up a direct debit from your account to cover your repayments at the end of each cycle, so what are you waiting for?
Unless paying off your bill entirely is really not an option, minimum repayments only play a role in helping you dodge late fees. It’s another credit card mistake that Aussies are guilty of, as once again they involve interest fees. Your outstanding balance will carry over to the next statement cycle and will most likely also mean giving up next month’s interest fee days. Credit card providers can make heaps of money at your expense this way, so if it’s possible, try to pay off your entire outstanding balance (or more than the minimum).
Another avoidable credit card trap involves spending more than your credit limit allows. Once again, this can make your credit rating go down. At the same time, it’s a sure way to be hit with overdrawn fees. If you’re exceeding your limit because you’re struggling to cover your cost of living, more fees will be the last thing you want.
It’s recommended that you set yourself a monthly budget for your credit card spending, and something a lot lower than your credit limit is an ideal way to avoid this credit card mistake.
If someone steals your credit card, the last thing you want to do is treat them to dinner. When your card gets lost or stolen therefore, don’t rely on your bank’s security measures. This way whoever may find your card won’t be able to charge their celebration surf ’n’ turf to you.
Interest-free days are a great time to spend with your credit card, as they give you a certain number of days to pay off the purchase without incurring interest. By planning your larger purchases towards the start of the statement cycle when these days begin, you’re giving yourself much more time to pay them off. All without the hassle of paying interest. Learn more about interest free periods.
If you do make good use of your interest free days, it’s important to avoid the credit card trap of not reading the fine print. All too often it’s easy to get excited when your credit card company advertises a 44 or 55 day interest-free period, for example. The common mistake cardholders usually make here is skimming over the details, making it easy to fail by assuming the interest-free period starts from when you make your first purchase.
Interest-free periods actually start from the beginning of your statement cycle, so it’s a good idea to be clear on the exact dates of this period. If you make a large purchase too close to the end of this period, it’s easy to get caught out with only a few days left to pay this off.
Using your credit card like a debit card is not advisable. By this, we mean that withdrawing cash from the ATM comes with cash advance charges, which are like interest payments but at a higher rate. Cash advance interest fees are also immediate, so you can’t avoid paying them through interest-free periods. It’s much better to avoid this trap by using your debit card, even if it is at the bottom of your bag.
Interest free days are a feature of some Australian credit cards that allow cardholders to make interest-free purchases during a specific period. While a great way to cut down your interest payments, they require that you completely repay the outstanding balance on your credit card statement by the due date.
So how does it work?
To enjoy interest free periods, it’s necessary to completely pay off your credit card’s outstanding balance on or before the due date shown on your statement. When your unpaid balance isn’t settled on time every month, banks and credit card providers will not offer this option. Instead, you’ll be charged interest on the outstanding payments.
Interest free periods start at the same time as the billing cycle, it’s a common mistake to make a purchase towards the end of the interest-free days. If this happens, you could leave yourself with little time to repay your outstanding balance and enjoy the interest-free benefits of the next cycle.
For example, if you made a purchase on day 1 of a statement period, you could have 55 days to pay it off before interest is applied to the balance. If you make a purchase on the 30th day of the a statement period, you would have 25 days to pay it off before interest is applied.
Interest-free periods aren’t a feature of every credit card, and as we’ve mentioned it’s important not to forget your due date. It’s good practice to:
Interest-free days are a great feature to take advantage of if you can. When cutting down your costs through interest free periods though, there are several things to keep an eye on:
Looking to get a credit card? Compare credit cards here.
This is a guide to how credit cards work in Australia, helping you understand credit limits, annual fees, interest rates and repayments.
Credit cards are a popular way to use credit for making daily or regular purchases. The money used to pay for goods or services when using your card is borrowed, so before the credit period is over, it must be repaid. If a cardholder fails to pay back the outstanding balance by this time, they typically accrue interest on the amount owed. While your card may come from an Australian bank, it will most likely be part of an international payment network like Visa, Mastercard or American Express.
While credit cards are fairly convenient, unfortunately for us, they’re not exactly a blank cheque. Credit limits are the maximum amount of credit that you, as a cardholder, are allowed to spend. When you apply for a credit card, your bank will often assign you a limit based on your credit history and income details.
You can request the option to increase or decrease this limit when first applying for your card or later as you get used to it. This process will vary with banks, but remember that once you do exceed your credit limit, you could be charged an overdrawn or over-limit fee by your bank.
As we’ve mentioned once before, a ‘free lunch’ is pretty rare when it comes to finance. Credit cards will in many cases come with an annual fee for having provided the service. Your credit card’s annual fee will reflect whether you’ve signed up for a standard or premium card and a typical range for Australian credit cards can be between $0 and $450+. Premium cards with more features such as frequent flyer points, travel insurance or rewards programs, will be at the higher end and attract higher annual fees.
Lots of Aussie credit cards make it possible for you to earn points for using them through a range of rewards programs. You’re probably already familiar with frequent flyer points and gift vouchers, that you can accrue at a certain earn rate when making eligible purchases. For instance, if your bank is partnered with Qantas or Virgin Australia, you’ll be offered the chance to earn Qantas or Velocity points respectively. An earn rate simply refers to the ratio of points earned to money spent using the card, an example being 1 point earned for each $1 spent.
Credit cards come with interest fees unlike their debit or prepaid counterparts. What this entails, is a percentage interest charge added on top of each amount the cardholder spends using the card. This is the fee for having utilised the credit lent by the bank.
Interest rates for credit cards in Australia will often range between 9.99% and 20.99% per annum, and your interest will be charged when your statement period comes around. Interest is charged based on daily outstanding balances from a range of factors, one of which is outstanding payments.
It’s also common to see credit cards offering zero interest or honeymoon rates (typically during a balance transfer), as a means of promotion. It’s important to remember that once this promotional period ends, you’ll be looking at a standard interest rate for using your credit card.
Each statement period will be different, but your bank will notify you of a specific settlement date when setting up your card. It’s common for Aussies who earn monthly income to arrange for a statement date that falls shortly after this point, for the sake of easy repayments or direct debit. All credit cards involve minimum repayments, usually these are between 2-3% of your closing balance. On top of this, you’ll need to repay the larger of either:
Any outstanding balance that isn’t repaid by you at the end of the period will incur interest fees. Because of this, it’s usually best to try and repay your outstanding balance completely.
This will vary again depending on your bank. BPAY is usually an option, or you can direct debit from one of your accounts. It’s also possible to make manual transfers from an account or pay in person at a branch.
In accordance with the 2012 Australian Credit Card Reforms, it’s necessary for your bank to use your repayment for whichever outstanding payment is being charged the highest interest. If you have 2 outstanding debts being charged 20% and 14% interest respectively, the amount you repay will be to settle the 20% debt first.
The majority of credit cards available these days will come with a contactless payment feature (otherwise known as “PayPass” from MasterCard or Visa’s “payWave”). This feature saves you a trip to the ATM or wasting time at the EFTPOS terminal (swiping your card and all that jazz) by letting you simply tap your card on a contactless payment terminal to make your purchase. This covers payments up to $100 and so is useful for smaller, quick purchases. Above $100, the contactless feature still works but you’ll need to enter your PIN.
Using your card overseas can incur different charges abroad compared to at home. Once outside Australia, you’ll need to be aware of possibilities such as:
Hopefully our credit cards guide has answered most of your questions and helped you understand credit cards a little better. Because these products come with a fair amount of considerations, we’ve also put together some other articles that might be helpful.
Refinancing a personal loan sounds complicated, but can be a great way to either consolidate your debt or cut down on your interest payments. Or both, which is great! Quite simply, refinancing means finding a loan that will cover the amount you have owing on your existing loan, but with lower fees and interest – basically better terms all round.
While your debt won’t magically disappear once you’ve done this, you’ll be looking at lower interest repayments overall and if you choose debt consolidation, you’ll also have a lot less maths to do. Our guide covers how to refinance a personal loan and some important things you should think about if you’re considering this.
As we’ve mentioned, interest payments and fees aren’t exactly at the top of every Aussie’s Christmas list. There are other reasons you might want to refinance your loan, and you don’t have to wait till you’re overwhelmed with debt to do so. Do give it some thought if you:
Personal loan refinancing is quite similar to the process you went through when you originally applied for the loan. You need to make sure your credit score checks out, compare loan deals, consider a few things and make sure you close the original personal loan. We’ve broken the process down into 5 stages:
Typically loan providers aren’t to keen on losing your custom, and may not want to say goodbye to the high interest payments as much as you do. Refinancing can be a great way to cut down your personal debt, but you do need to consider potential fees. These might include:
Once you refinance, you may want to read our blog on how to pay off your personal loan faster.
If you’ve compared personal loan deals, checked out all the details and figure you’re eligible for a personal loan, congratulations! You’re almost there! The next step to getting your personal loan approved, is to get your application together. This guide will hopefully tell you what documents and ID you’ll need so you can make a successful application and be approved.
Lenders will require different things to verify that you are who you say you are before they hand over your money. If you’re looking to buy a car with your personal loan, there will also be additional documentation required. Basically though, the two key things every provider will ask for are proof of identity and proof of income.
To verify your identity, you may need to providing two or more types of ID. Commonly accepted identification can include:
If you don’t have two of these or your lender requires further information, you may be asked to provide your:
These will help the lender understand your financial history in terms of income, loans, savings and credit card usage. Be prepared to provide up to three months worth of statements. These will usually be available online if you have internet banking, and so easily attachable for online applications.
Even if you are applying for your personal loan with your existing bank, it may be necessary to show evidence of any income that you’re getting from your assets. If you’re renting out a mortgaged property for example, you’ll need to show a current rent statement and a mortgage statement. It might also be a good idea to provide an overview or estimate of your ongoing expenses, such as how much you spend a month on rent or utilities.
Besides your bank statement, your lender will most likely ask for evidence of your ongoing employment. This might mean you’ll save time by bringing or attaching copies of your recent payslips and your post tax salary. If you’re working for yourself, you may be required to show tax returns for recent few years.
Applying for a secured car loan, you’ll be using your intended vehicle as collateral for your loan. This means you’ll need to provide details of the vehicle so your lender can understand it’s value. It isn’t uncommon for your lender to ask for documents like:
They’ll also want to know the contact information for the place you purchased the car. If you purchased privately, you won’t have a dealer invoice so you’ll need to make sure you’ve made a note of this.
Personal loans are a great way to secure that major purchase, holiday or to handle an emergency. After you’ve having spending all that money, you need to start thinking about paying back your loan.
Because interest payments can add up quickly, we’d all do well to pay off our personal loan sooner. So how to reduce interest and pay off your personal loan faster? We’ve come up with some simple ideas to help you manage your personal loan repayment with minimal hassle.
We’ve mentioned the idea of switching up your repayment cycle before when talking about paying off your home loan early. The same idea applies here, if you’re repaying your personal loan monthly you’ll be making 12 repayments a year. And if you split these into two fortnightly repayments, you’re probably not going to notice the difference in your bank balance. So this makes 24 repayments a year, right?
Not really. Because there are 52 weeks a year however, there are actually 26 fortnights and by paying fortnightly, you’ll be making 2 extra repayments a year. On a $30,000 loan, over 5 years at a 9.51% comparison rate, you could save $1,326.44 in interest payments!
Rounding up your numbers is another relatively painless way to take a little bit off your debt each time you make a repayment. Say your monthly repayment comes in at around $439. Rounding this up to $440 or $450, even $500 can seem like a laugh at the time, but you’ll very quickly realise that this can make a big difference to cutting down the amount of interest you need to pay.
This one’s really straightforward. If you can, extra lump sum repayments here and there will work wonders in the long term to pay off faster. Do check with your loan provider before you do this, or ideally before you settle on a personal loan because some lenders will charge fees for extra repayments. In most cases however, established banks will be fine with this and you can double-check the terms of your loan to be sure.
Refinancing or “debt consolidation” involves switching to a new personal loan with better interest rates and fees. It’s a great way to reduce interest if you’ve gone and settled for a personal loan without comparing the terms of each. With lower interest rates, you’ll notice a big difference in the amount of time it takes you to repay your personal loan.
Another trick involves refinancing your personal loan into your home loan. By consolidating your debts, you’ll simply need to add your original personal and home loan repayments together. As long as you continue to pay the original repayment amount, you will benefit from the lower interest rate of your home loan, and you’ll be paying off your personal loan much quicker. Just don’t cut down your personal loan repayment or it will be sitting for ages on top of your mortgage!
If you’re looking to take that long earned holiday, renovate or simply consolidate your debt, you might be considering a personal loan. Whatever the reason, it’s not loads of fun to get your application rejected. We’ve done the research for you and come up with 9 tips to help you get that application approval.
The very first step to getting your personal loan approved is verifying that you actually meet the eligibility requirements. Often this will include things like:
Having a great credit rating can mean the difference between whether your personal loan is approved or rejected. Check that your credit file shows all your accounts, and you as the one in charge of them. There are also plenty of online tools to help you calculate your credit score before applying. Credit scores can also be bad or very bad. It’s possible that you’ve never missed a repayment ever, a track record of many loan applications might say something about how you manage your money.
It’s not unusual for personal loan applications to be rejected because the applicant doesn’t earn enough income. If your income won’t cover the repayments on the personal loan you’re applying for, it will be difficult to get your application approved. Don’t worry too much though, it’s not a bad idea to work backwards and think about how much you can actually repay monthly. With an idea of what you can afford, you can look around for other loans with lower minimum income requirements.
A good amount to apply for is just the amount that you need. If your holiday plans will cost $5,000, then you might want to limit your application to $5,000. As larger loan amounts are seen by banks and lenders as more risky, a reasonable sized loan will be more easily approved than a larger one.
Very often, lenders will go through a process of confirming that the background information you’ve provided is actually valid. Because they’ll want to corroborate the details on your application against other sources, it’s recommended that you review your application before handing it in so you don’t look dodgy. Any inconsistencies or mistakes you’ve made on your application might be interpreted as an attempt to misleading, which lenders don’t appreciate. If you want your personal loan approved with less stress, it’s advisable to double check everything you’ve put down on your application.
If applying for a personal loan with your existing bank, they’ll be able to check out your savings history easily. If you’ve put away money regularly, it shows that you’re financially responsible. This is a definite pro for getting your personal loan approved, as it shows you’re just as likely to be responsible with the necessary loan repayments.
Lenders vary when it comes to the restrictions of your personal loan. Some will have limitations about what you can purchase with your borrowed money. A good example is a car loan, which may often not extend to cover the purchase of insurance or rego. Checking the loan terms first will help you be approved by making sure you don’t apply for something that’s not actually allowed. To save application time, it’s best to check out the restrictions beforehand. That way you don’t fill out lengthy paperwork before realising you can’t finance your car with your personal loan.
Applicants who don’t have secured assets that can be used as collateral will have a harder time getting approval for their personal loans. Most lenders will also think it’s risky if the assets you have are too low value to be used as security. If you’ve got something better than your old Honda Accord to used as secured assets, make sure it’s shown in your financial paperwork. This way you’ll stand a higher chance of being approved. You can compare secured personal loans here.
As we’ve mentioned, loan providers will always do background checks on the personal information you provide. Lying on your application is a good way to increase your chances of rejection. Even worse, you’ll most likely be blacklisted with the bank or financial provider, making future approvals close to impossible. To improve your chances of approval, be honest on your application.
A term deposit is a short or long term investment where your money is guaranteed a certain interest rate. A term deposit is the kind of account where you put your money into the account and leave it, short or long term, as you have arranged with the bank. You cannot touch the money for a pre-determined time and during that time, you get a fixed interest rate. This interest rate does not change, even if the market goes through a dip.
With a term deposit you have the security of a fixed interest rate and you also have the security of money in the bank. A term deposit is a good investment for two reasons.
A term deposit can only be a good investment because it is a sure investment. You know you are going to get a stable return on your investment without any risk. Your interest rate is locked in for the entire ‘term of your deposit.’ This means if the market drops, your interest rate does NOT drop with it. Also, because you are not able to touch your money for the ‘duration of your term’, you are forced to save that money.
A term deposit is a sure way of investing your money. If you have extra cash that you know you will not need to use for a while, it makes sense to do a term deposit. If you think you may need to access that cash shortly, or urgently, then a term deposit is not for you. The good thing about a term deposit is that you know it will work and you know that at the end of the term, you will have money.
There are short term deposits and long term deposits and between you and the bank, you can choose for what length of time you should ‘lock away’ your money. If you have a lot of money at your disposal and you won’t need access to the money you are investing for a while, go for a long term deposit. If you may need the money in the next few months, go for a short term deposit. The length of time you leave the money in the account depends on the investment deals that your bank or lending institution are offering. You may need to negotiate terms with them. You can look at short or long term investments and you must discuss rollover terms too. This means when your term deposit has come to an end, you have the option of extending it.
Because a term deposit means your money is ‘locked’ at a certain interest rate, you do need to make sure you get a good interest rate from the beginning. While you are safe if the interest rates drop, if interest rates increase, you do not get the benefit of them. For your term deposit to work for you, you want the best possible interest rates from the start.
The way a term deposit works is that your interest rates are set for the duration of the investment. You do not benefit from interest rate increases but remember, you do not suffer from interesting rate decreases either.
Most banks and financial institutions offer term deposits. You need to sit with your bank manager or investment advisor and ask how does a term deposit work. You can compare the various term deposits at different institutions and make sure you get the best interest rates from day one. Your institution should explain to you what is a term deposit, and why it is the best investment for you to make. Remember, your money can only grow with a term deposit. It is a safe investment and it is a low risk investment. You may not make as much interest as with a more risky investment or account, but your interest rate will never drop.
Applying for a term deposit is really simple. You are not asking a bank for money, you are asking a bank to invest your money. The service should be fairly uncomplicated. You will need to fill out a few forms, give your bank details, your tax number and your ID. A good bank or lending institution will do the paperwork for you, but they will talk you through the process so you understand your investment every step of the way.
If you’re interested in investing your money into a term deposits, you can compare our term deposits here:
Anyone can experience financial hardships, often through unexpected events like illness, sudden death, divorce, and more. While it is always important to prioritise making payments for loans and credit cards on time, it is not always possible. No matter your situation, you do have remedial actions you can take.
Within the first 30 days, you will receive a notice from your bank for your missed payment with a specified amount of time to make the payment.
Sixty days after a missed payment, your account falls into default. The bank will issue an S80 Default notice and formally notify you that you are in breach of your loan or credit contract. At this point, you have another 30 days to pay your arrears.
At the end of this period, if you have still not paid, a formal default will be put on your credit history. These notices are serious and stay on your credit history for five years. You will likely find it hard to get approved for new personal loans, mortgage or credit cards until the default has been removed from your credit history.
You are now between 90 and 120 days out from your first missed payment. At this point, you will be sent a Letter of Demand, which will seek full payment of any arrears. Creditors will contact you looking to collect what they are owed. You are under no legal obligation to meet with them face-to-face, but can talk to them over the phone or by email.
It is also at this point that any collateral you have against your debt like a car or house is in danger of repossession.
If you do not respond to the Letter of Demand, the situation can be escalated and brought to the courts. You will receive a Statement of Claim. If you do not respond or the court finds that your debt is valid, there will be a Judgment entered against you for the full amount, plus interest and attorneys’ fees. This Judgment will also be marked on your credit history.
If you ignore the Statement of Claim, the court can declare you bankrupt.
A guarantee is when the bank asks another party to ‘guarantee’ a loan for another individual or a business. This person, deemed the guarantor, is the person the bank will pursue for remuneration if the loan goes into default. Unfortunately, while many guarantors believe that banks can only call on a guarantor once all other remedies have been exhausted, banks can actually call on a guarantee the moment a loan goes into default.
With a personal guarantee, the guarantor’s personal home and assets can be seized to pay the outstanding debt.
Even people with sparkling credit histories will sometimes fall on hard times due to illness, job loss, or divorce that can make it difficult to continue to meet monthly payments. If you know you are in danger of missing a payment for a loan or you have received a Default notice, you have a range of actions you can take including:
The key is to be active in this process. If you are at risk of defaulting on more than one loan, prioritise loans with collateral such as a mortgage or car loan, over unsecured debt like credit cards.
Refinancing can ease worry over making more than one monthly payment a month and can be a good choice for those that will be paying less in interest and fees. However, refinancing can be a risk that costs more over the long-term as you might take longer to pay off your debts and accrue more interest in the process. Refinancing might also give you access to more credit, which can exacerbate the problem. For instance, if you refinance your credit card debt into one personal loan, it might be tempting to begin using your credit cards again.
If you are struggling to meet your financial obligations, the best thing you can to do is to act as soon as possible. The immediate and long-term effects of a defaulted loan are not worth it. No matter what position you are in, you do have actions you can take. Remember, your bank wants to be paid and will often work with you to create a payment schedule that you can reach during this difficult time.
It’s not uncommon for us 9-to-5 workers to grow tired of the monotony of the everyday “grind”. We day dream about quitting our job and heading off to a tropical island to enjoy our days in the sun, sipping cocktails. Of course, this is unrealistic, those margaritas don’t pay for themselves. Instead, many people consider a career change in order to shake up their daily lives, but again, it’s not always realistic. It’s not always worth the time and effort that it may take.
However, there are ways you can change up your daily grind and make a bit of extra money without putting yourself through a testing career change or taking out a personal loan. Here’s 4 ways you can make extra money without learning a new profession.
Working remotely is quickly gaining popularity in many industries. The far-reaching webs of the Internet have made it possible for a range of occupations to be carried out from anywhere in the world. This means workers can work from wherever suits them, and companies can benefit from sourcing talent around the world while avoiding the costs associated with in-house teams.
Popular examples of people who work remotely are writers, designers, programmers, digital marketers and customer support agents. This is great especially for part time workers who want to find ways to earn extra money. Remote work has removed the need for part time workers to physically travel from job to job.
A major factor that causes people to consider a career change is stress in the workplace. If people feel worn out from a career they often feel like leaving. A 2016 Monash University survey found that 32% of Australia’s nurses and midwives considered leaving the profession with stress being a major contributor for the change. For such a specialised career, leaving the profession seems like a dramatic course of action.
Rather than undergoing a career change, people like nurses and carers can benefit from becoming an independent worker. In the past, working for one’s self was largely reserved for trades and more recently, tech jobs. Now, thanks to sites like Better Caring, nurses and support workers can work for themselves.
Platforms such as Better Caring allow workers to choose their rates, clients and the hours they work. Rather than changing careers, nurses can take the stress out of their career by working for themselves. Alternatively, those who want to make extra money can take on clients outside of their jobs.
Picking up extra jobs is definitely not limited to nurses and care workers. The sharing economy has not only made it possible for people to earn money solely on their own, but it’s made it easier to earn money in addition to their main income.
Uber is now a prolific force world-wide, but there’s much more to the sharing economy than ride services. For example, massage therapists can deliver on-demand massages to people in their homes, offices and hotels with Blys.
The most conventional and well tested way for making more money without a career change, or picking up extra work, is to negotiate a pay rise. While many people will try to steer clear of such a conversation, negotiating a pay rise can bring about a well needed boost to your income.
How best to negotiate a pay rise has long been debated. There’s endless information on the subject, some of it is clichéd, some of it is contradictory and it can be confusing to know exactly how to go about such a conversation.
To begin with, you should have a clear idea of your market value and know exactly what you are asking for. Timing is also important and you should have clear evidence of your skills and why you deserve a rise.
While your day job may feel like a constant grind, and the stress of work may leave you feeling like you want to leave the industry all together, a career change can be hugely disruptive to your life. Instead, find ways to relieve the stress by working remotely, or becoming an independent care worker. This way you don’t need to learn anything new and you can continue earning money.
When you’re trying to save, it can be hard to resist the urge to do a bit of retail therapy. While clothes shopping can be fun and exciting, and fashion is a great way to express ourselves, it can be an expensive habit. Here’s how to save some money by spending less on clothes, without your sense of style having to suffer as a result!
One of the most efficient ways of knowing what clothes your wardrobe is lacking and what items you don’t need any more of is to properly go through your closet and see what outfits you actually have at your disposal. By spending a couple of hours sorting through your clothes and reorganising your wardrobe you can find pieces that you might have completely forgotten about and come up with outfit combinations you hadn’t considered before. If you do a quick wardrobe inventory you can quickly learn what bad shopping habits you have. For example, if you have 20 pairs of jeans but only two or three tops that you like wearing, you know that you need to stop buying jeans and balance out your wardrobe a bit more. Rearranging your clothes so that you can easily see what’s on offer when you open up your wardrobe can help you save money because it stops you from thinking that you have nothing to wear!
One way to quickly spend a lot of unnecessary money on clothes is by thinking that you need to follow every fashion trend and that all trends are must-haves. Fashion trends have their moments and then they pass, rendering you with a wardrobe full of items you might never wear again! Instead of falling for fast fashion trends, focus on buying clothes that you genuinely like, that suits your style and that you can see yourself wearing for a long time. Not all trends work for everyone and something that looks amazing on one person doesn’t necessarily work for the next person. The best kind of clothes are the ones that make you feel good about yourself, not the ones that are ‘cool’ at the moment.
If you have a special event or occasion coming up where you’re wanting to wear an extra-special outfit, consider renting an outfit rather than buying one. Buying new outfits for weddings, parties or black-tie events can quickly add up especially if you want to wear something new and jaw-dropping every time! Renting a dress means that you can still wear an amazing outfit to these kinds of events but you pay a tenth of the price compared to if you bought the dress outright. Using a clothes-sharing platform like The Volte, you can have access to a whole range of high-end designer dresses and outfits to rent, rather than filling your wardrobe with items that you might sit in your wardrobe gathering dust once you’ve worn them once.
Looking after the clothes you already have and making the effort to keep them in good condition means they will last longer and still look good. This will ensure that you have less reason to spend money on or replace clothing items. Some of the ways you can take care of your clothes are by only washing them as much as necessary, treating stains or marks as quickly as possible, following the washing instructions correctly and storing your clothes properly. Overwashing clothes can actually damage them by causing friction and wear. While your clothes should always be clean and presentable you should avoid washing them more than necessary. Once cleaned and dried, make sure to hang up or properly fold clothing and use garment bags for those particularly delicate items. Stuffing clothes in a bundle into a drawer is one-way ruin a perfectly good piece of clothing! As well as this, take the time to repair, re-hem or repurpose clothes you own that are still functional rather than buying new items.
Often when we purchase clothes on a whim, we forget to look at the washing instructions. However, purchasing an item of clothing that is dry-clean only is the equivalent of buying a piece of clothing with hidden costs. It means every time you wear that piece of clothing out, it’s costing you another $10-20 and this will add up fast. To spend less money on clothes, check the washing instructions before you buy something and consider how much you need or love that piece of clothing and whether it’s truly worth paying all those dry-cleaning costs.
We all know how supply and demand work so it makes sense that during winter, coats, jumpers and boots are significantly more expensive than they are in winter. For this reason, one way to save money on clothes is to shop out of season and buy the clothes you need for next season when they’re on sale. By being a smart shopper, you can get yourself high-quality pieces for a fraction of the price you would pay if you bought them in season
Knowing your size and body shape when clothes shopping can help you to spend less money on clothes. An important tip to remember is just because you can put an item on, does not mean it fits you properly. Invest some time into figuring out what works for your body and what looks and feels good for you. Also, look at how a piece is meant to fit. If a pair of skinny jeans isn’t tight on you, then they’re probably not the right fit. Similarly, if you’re buying a blazer but you have very narrow shoulders then the fit around that area will be important. Buying clothes that are flattering for your body means you will wear them more often!
A lot of us like to claim that money doesn’t play a big part in our lives, that we can enjoy the little things in life without the materialistic possessions the rest of society obsess over. However, in reality, everyone likes to make extra money when they can. Like it or not, money is an essential part of everyday life.
A lot of us probably have a similar relationship with our smartphones. We like to think we would be ok without them, but we’re addicted to scrolling, liking and sharing, not to mention how easy it now is to communicate with anyone and everyone in a matter of seconds.
If only there was a way to combine the two and make money with your smartphone. Well, there’s actually multiple ways of doing so. Now you can feed your addiction of memes and YouTube videos, while earning cash.
For some, spare space can be hard to come by. For others, it can be hard to know what to do with the spare room that’s now empty because the kids have moved out. Or maybe you have a room that’s over crowded with stuff that you think you need, but really, you haven’t even set foot in the room this year!
Well, it’s time to turn that situation into some money. Clear out your spare room and list it on Spacer. Firstly, you might be able to make a quick buck selling your stuff, but by using Spacer you can create a regular, secondary income
Spacer is a community sharing marketplace for space. What’s a community sharing marketplace, you ask? Well in Spacer’s case, it’s a platform that allows the community to share their space. By listing your spare room, garage, shed or attic on Spacer, someone can rent it off you to use for storage.
While we’re on the topic of community sharing, or the ‘sharing economy’, there’s a similar idea for those of you who love to buy expensive dresses for each and every event, only to let them collect dust in the back of your wardrobe once the event has passed.
The Volte adopts a similar approach to sharing as Spacer, but rather than space, it’s designer dresses, outfits and accessories. Do you have an expensive dress you wore once and now just feel guilty about each time you brush past it looking for an outfit? Well now you can strip some of the guilt away.
List your dress on The Volte and let other event-goers hire it. Now the dress is practically paying for itself, while someone gets a great dress for a fraction of the price.
For those who don’t have space, designer dresses, or simply can’t part with the stack of random stuff in the spare room, maybe you can boost your earnings by tapping into your creative side
With the invention of the internet, blogging soon became a popular medium and before long, people where selling advertising space, and paid memberships as a way to earn money from their sites.
Today, blogging is extremely popular. It’s estimated that there’s over 2 million blogs posted every day, on WordPress alone. WordPress is by far the most popular platform to build a site on. Powering over a quarter of all websites it’s clear that it’s simple for anyone to get started on.
But, is it still possible to make money from something that seems so over crowded? The short answer is yes. The world is hungry for content and a high-quality blog can make you money in a variety of ways.
While blogging is probably best done from a computer, there’s nothing stopping you busting out some engaging content from your smartphone.
The sharing economy and smartphones seem to go hand-in-hand. Parkhound is another community sharing platform, and this time, it’s all about parking.
If you catch the train, or head to events or simply head to a popular city on a Sunday, you’ll know how much of a nightmare parking can be. If you live near one of these areas, and have a spare driveway or parking space, you are in luck.
List your spot on Parkhound, and you can have someone paying to use your driveway in no time.
Learn to Trade
Ok, maybe blogging or sharing your stuff isn’t really your cup of tea. Maybe you’re looking to make money through some strategizing and calculated risks.
Forex trading and smartphones have revolutionised the way of trading. Now, instead of being on the trading floor or stuck in front of a computer, you can trade anywhere, anytime, as long as you have a good internet connection.
Granted, learning to trade will take some time, but with the right attitude and coaches you can soon begin trading Forex and potentially make money right from your smartphone.
There’s many ways you can make money with your smartphone. You might have to share things, get creative or invest some time and effort, but with some clever planning you can make the time you spend on your phone worthwhile.
There are often circumstances that lead us to borrowing money. Whether it’s for a major purchase, personal emergencies, investment opportunities or simply to consolidate debt.
When this need arises, you may ask yourself: How much can I borrow when getting a personal loan? How long does it take to get it approved and will my application actually be approved?
This blog post aims to give you a little bit of insight into the consideration of getting a personal loan, from both your perspective and the lender’s.
Affordability is a major determinant in regards to how much you can borrow and whether or not you will be approved.
When applying for a personal loan, the lender will ask you questions about your income and expenses. The expenses will include things such as rent or mortgage repayments, other loans and general living expenses.
The difference between your income and outgoing expenses will be a major determining factor as to how much you can borrow.
So calculate how much you have remaining by the end of the month. If you have only $100 left over, your borrowing power is significantly less than if you had $500 left over.
If you’re caring for children, your parents or anyone else, this will be taken into consideration, because having dependants can results in unforeseen expenses.
When you visit our personal loans comparison page you can use the filter to see repayment results for different loan amounts over different terms.
When you apply for a loan, lenders use credit rating agencies (such as Equifax and Dun & Bradstreet) to look up your “credit score”. Credit rating agencies collect and provide information about your financial history.
The records kept include other loans or credit cards you may have applied for, your last known employer, directorships your may hold and any defaults you may have had. This information results in your own personal “credit score”.
The higher your score, the more likely your application will be approved. However, it is no guaranteed.
When comparing personal loans, you will see personal loan products with the description “Excellent”, “Very good”, etc. If you’re wondering what the lenders constitute as “excellent” or “very good”, the below chart is a good indicator.
There are now a number of companies in Australia, that determine your interest rates based on your credit rating. The lower your risk profile (your likelihood of defaulting), the lower your interest rates. Conversely, the lower your credit score, the higher your interest rate may be. Examples of companies that personalise your interest rate, based on your credit score include:
Recently financial institutions have started implementing Comprehensive Credit Reporting (CCR) or ‘positive reporting’. This refers to additional information being provided to, and held by Credit Reporting Agencies. These changes allow credit providers to access and use this information to make more informed lending decisions.
CCR means that a more complete picture of an individual’s credit profile can be held on their credit file. The outcome of CCR means, your positive actions (such as always making your repayments on time) will be visible to the lender. Note, not all lenders have rolled out CCR.
Sometimes mistakes happen. For example, you may have not received a bill and accidentally missed a payment.
Some lenders have a broad scope of loan purposes for which they will lend money, whilst others will only lend for a narrow range or purposes. For example, not many lenders will provide you money to invest in Bitcoin or pay for legal fees, however, many lenders are willing to lend for debt consolidation, weddings and holidays.
It is worthwhile contacting the lender to ask whether or not they lend for your required personal loan purpose.
Many lenders will require copies of your most recent bank statements to assess how your money is spent and to see whether or not the information you provided about your expenses lines up with your recent banking history.
Habits such as regular gambling (shown by regular withdrawals at the casino, etc) will reduce your likelihood of being approved.
Lenders will ask about your current employment status and sources of income. Many lenders will state on their website as to whether or not they require a minimum income or employment status. Minimum income levels vary between $20,000 and $50,000 per annum.
Lenders will also want to verify those sources of income. So if you’re getting paid cash-in-hand, before you apply for a personal loan, you may want to start depositing that money in a bank to demonstrate you’re earning a regular income.
Assets such as a car and other possessions you may have, could increase your likelihood of getting a loan. Have a loan secured by something like your car, could reduce your interest rate.
Some financial institutions allow you to secure a loan against a term deposit you may hold with them.
Many lenders will lend to you if you’re over 18 whilst others have a stricter criteria and will not lend to borrowers under the age of 21 or older. Be sure to check with your lender to see what their eligibility criteria is.
Most Australian lenders require you to be an Australian citizen or permanent resident.
Some major Australian banks and independent lenders allow 457 visa holders to get a personal loan. However, you have to ensure you meet the eligibility criteria listed above. Contact your preferred lender to see if they accept applications from 457 visa holders.
The lender’s rely on the honesty of the potential applicant. Being dishonest or providing misinformation could damage a your chances of being approved. Moreover, if you ask for more than you can afford – you will run a higher risk of running into financial hardship.
Making one trade per day, I’m trying to grow 0.01 worth of BTC by 5% per day for 365 days.
Today is the end of week three. (View last weeks blog)
I am up 9.8% from my starting amount of 0.009897, sitting at ~0.0108677
I am up 13.9% from last week.
Track progress here.
Until this morning, I was going to name this blog “Failbitrage”.
Last week, I vaguely remember feeling pretty positive. I was up 7% and had received this great comment on /r/CryptoCurrency in my End of Week 1 post (around the same time I posted posted the End of Week 2 post):
“Don’t let anyone get into your head saying this is impossible. Aim higher than the rest and leave them behind. Break up your massive goal into pieces that you can chew. You have a method that in theory is not impossible.” – usdxrbeur
I had the “You’re the best around” tune from Karate Kid playing in my head and thought this was going to be a record week.
With a clearer head I had a new idea about how to make gains for week 3.
My last week’s plan was to simply keep on picking tokens out of hat. But later on in the night I thought that I was being too conservative in the my token selections. I was determined not only to make the 5% per day – but to get some bigger wins and catch-up to my daily target.
I started looking at tokens that have taken a major dive and thought about taking two outs:
My girlfriend’s first pick out of the hat was Ambrosus. Fabulous pick. The only problem, I was too impatient. I put in my buy order in and waited. And waited. And waited. (It was a low volume exchange). To quote Homer; “The waiting game sucks”.
So I got my girlfriend to pick a new token out of the hat. Monetha.
What happened? Firstly, if I stayed with Ambrosus – my buy order would have been filled and I would have got the 5% rebound. Monetha on the other hand started to tank further.
For those of you not familiar with arbitrage, at any given time, tokens have different values on different exchanges. For the most part, the delta (or the difference in value) between exchanges is fairly small (<1%). But sometimes, there are blips in the matrix and healthy gains present themselves to you.
It’s a bit like when you buy an old SEGA Mega Drive (Genesis) game at a garage sales for $1 and then sell it on eBay for $5.
When transfering the Monetha between exchanges, I was faced with a dilemma: Losing 1.5% of my value in fees, while having no guarantee that the arbitrage would work. I decided to risk it for a biscuit and moved forward.
Long story short, I was lucky enough to break even. I sold a small portion at a loss and made gains on the rest. I thought I was pretty clever, but I would have made that and more if I had stayed on the old exchange (though it did take 3 days for that to happen).
The new exchange I was on didn’t do much volume and the hottest ticket in town was Dogecoin.
After getting back into BTC, I looked for new arbitrage opportunities (and ways to get off that exchange in general). So I picked up some NLC2 and headed over to Cryptopia at minimal cost.
I had a clear memory of putting a sell order at 5% above my buying price, but it turns out I didn’t – and had missed the win boat once again. So I sold at a tidy 2.3% profit – while the rest of the market was off to the races.
Before I started writing this blog on Saturday, I noticed a blip in the matrix, OMG went through the roof on Cryptopia. Seeing it was a recent move and expecting a sudden correction, I did nothing about it. When I finished writing this blog (a couple of hours later) I noticed the price was still holding and that there was a massive buy wall supporting it.
I quickly sold out of the ETH I bought randomly, bought some LTC, lost 3% transfering to Bittrex and the confirmations couldn’t come fast enough.
As I was waiting for the confirmations on Bittrex, I thought I’d create a new address for OMG on Cryptopia.
My repeated attempts failed. I tried a different browser, failed. So I decided to cancel some shizzlecoin sell orders that had been sitting there for months (hoping for a moonshot), and bought some overpriced OMG in an attempt to generate an address. Fail. Fail, fail, fail!
I had the impression that the folks at Cryptopia had put a freeze on new wallet creations to capitalise on this scenario.
By this time, I had bought some BTC and exchanged it to OMG and then waited for my opportunity.
With no success on “Craptopia”, I decided to look for new, greener, OMG arbitrage pastures. I first tried Gate.io, but luckily for me, the confirmation email took too long. I ended up going with Bit-Z, which had a healthier spread than Gate.io (they have a nice mobile app also).
Withdrawing from Bittrex to Bit-Z ended up costing me another ~5%! So my gamble on Bit-Z, really needed to pay-off.
The desktop version of the exchange wasn’t showing up, so I placed the order on the app and went to bed at around 5am.
Result: No enough sleep and desire to slap some Kiwis on the back of the head. And all my OMG selling at 0.00189999. The Gods of arbitrage smiled upon me, the losses I took in transferring between 2 exchanges and buying/selling 4 cryptos all recovered – and more some.
For one, arbitrage seems easier than it really is.
Secondly, if you’re going to do it, you need to know what’s cheap to transfer and what’s not. Was LTC a good move between Cryptopia and Bittrex? I don’t know… I definitely didn’t lose that much transfering NLC2. However, NLC2 is only available on limited exchanges.
Lastly, you need some luck.
Life got in the way.
Not too many comments last week. But “Just buy a hat. Massive gains!” wins comment of week. lol…
Pretty tempted to find some low volume coins with a healthy gap between bid and ask – and just trade both sides. But that requires time and patience (of which I have neither). So we’ll see… I feel like my bag of primitive trading tricks is slowly increasing.
Until next time, I wish you all nothing but green days.
Feel free to provide your feedback on Reddit or send me your buy recommendations for the day @DennisGraham7
Today is the end of week two. (View last weeks blog)
I am down 3.6% from my starting amount of 0.009897, sitting at ~0.00954
I am up 7% from last week.
Week 2 performance
Can a monkey make better trades than humans? Apparently.
In recognition of the monkey’s superior trading abilities, this week I put my pride aside (especially after last week’s performance) and I tried to be as one with the monkey.
The results were good, making an overall profit of 7%..
While I didn’t hit my daily target of 5% growth per day, I did outperform 75% of the top 100 coins.
Here sits the greatest crypto day trader
I put names of tokens in a hat and my girlfriend picked one out of the hat.
“How did you choose the tokens to put in the hat?” you ask. As I didn’t have much free time this week, and didn’t have a chance to research the trading recommendations from /r/CryptoCurrency (see below)… I used the following 3 methods:
On one of the days I was too busy to go through the method and picked a token myself. That was the first time I lost BTC last week.
The second time I lost, all of the options I put in the hat lost BTC value.
View all comments here.
“I always follow one simple strategy: never sell crypto at loss unless you planned your stoploss level. FUD is your worst enemy.
Though sometimes with this strategy I become an investor rather than trader 😁 and get my funds frozen in some alts for really long periods [..]Don’t let your fear of taking losses or your purchase price get in the way of more profitable trades.” – Grandifer
“FUD is your worst enemy […] Don’t let your fear of taking losses or your purchase price get in the way of more profitable trades.” This resonated the most. At one point this week, I was down 7.6% on one of my trades. There was a huge sell wall below my buying price and I decided to cancel some of my sell orders to see if I could minimise my loss, by placing a sell order just below the sell wall.
Later on in the night there was huge 20% spike (that lasted 15 minutes)… it executed all of my sell orders but I only made a marginal gain of 0.88% for the day.
Is there a lesson in this? Probably not. Just lucky to make anything, really. The majority of coins lost value this week and most gains were seen from random shizzle coins with low trading volumes.
Ultimately, although this experiment is low cost – the psychological impact of seeing any losses and markets moving against you is very real.
As for the rest of the notes, stoploss isn’t available to me and hodling isn’t an option in this experiment.
“All that aside, the point I’m trying to make is that past returns shouldn’t have any effect on your current portfolio choices. At any given point in time, you should be able to look at your holdings and go, “Yup, this is the best place my money could possible be right now”. Having a goal of “at least breakeven on any trade” is unrealistic and actually very dangerous. The moment you can click on that “sell” button, gains or losses, and not feel anything…that’s when you become a world-class trader.” – notextremelyhelpful (in a thread of comments from Grandifer)
An interesting perspective, especially “Having a goal of “at least breakeven on any trade” is unrealistic and actually very dangerous”. Though this is sort of where I’m at, just because of the goals/tactics I set in this experiment. Especially because I’m still not back to where I started after taking a loss of 13% in a day (Thanks DNA!), making breaking even (at a minimum) a very strong motivator.
Ironically, if I had held on to my biggest losing token (DNA) for a week more – I would be miles ahead of where I am now.
“big advice: choose very wisely who you listen too. Suppoman has a very bad reputation here, since he has a very shady history of possible scams and other stories that make him not seem very trustworthy.” – ResponsibleLaugh
Solid advice. I’m currently running my experiment on the Kucoin exchange. Not because it’s a world-class exchange, but because I listened to someone shilling Utrust (It actually could have been Suppoman) and that was the only place I could buy it. Long story short, I lost 50% of what I invested into it. However, I had just the right amount of BTC to start this experiment. So I kept the BTC on Kucoin to avoid transfer fees to larger a exchange.
Utrust may actually be a good project (I don’t know), but I didn’t do my own research – and lost. Thankfully, not too much.
Otherwise, my thoughts on Suppoman are; he’s good entertainment – but there’s a strong shill side to him, and a large enough audience to move markets (and make money – mainly for him).
“Can I suggest another experiment for you? Take 0.01 btc and lend it out on Poloniex for a year and see how you fair. Most days the lending rate is pretty low, but when there are alt pumps on it can go to 1% a day or more. At the very least you won’t lose money the way you can with trading.” – teatree
Had a look into it. I still don’t quite get how it’s relatively risk-free/you won’t lose money. But I might save this experiment for later.
“If you’re really trying to move up the distribution of profitable day traders (to at least the 5% range) then I’d suggest learning about the technical indicators beforehand 😉
If you really want to step your game up, look into volumetric analysis (the study of the price/volume relationship). Here’s a great resource: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:volume_by_price” – notextremelyhelpful
A good read. I couldn’t find this indicator in the indicators in the charts on Kucoin – but I’ll definitely try and read up on more technical indicators.
Another busy week ahead… So I might stick to the winning formula for now (yes, picking tokens out of a hat).
I’m contemplating moving to a larger exchange (because every day I seem to be looking at the same 20 or so tokens that have some volume). But we’ll see.
There are two ways to looking at growing the number in your savings account: ways to save money and ways to earn money.
First, it helps to know where your money is going. Using Apps like PocketBook and Money Brilliant can help you track your finances. These apps link up with your bank account and any loans or credit cards you have to track the money coming in and living your accounts each month. It’ll even break down your expenses into categories like food, entertainment, and more.
Even just signing up with money tracking app can help you pinpoint areas where you are spending money without realizing it.
Once you’ve got your monthly expenses in hand, here are six lifestyle changes you can make to up your savings and invest in your future.
Quit a bad habit (source)
This is where the classic ‘stop drinking expensive lattes’ advice comes into the picture. However, for you, your Achilles heel might not be expensive lattes, but drinks at a bar, cigarettes, or eating out. If you’re spending $5 a day on a flat white from your favourite café, that translates to $2,000 a year draining out of your pocket on coffee.
The good news is that there are often cheaper or free alternatives to these so-called bad habits. Eschew bar hopping to make signature cocktails at home. Make coffee in the morning, but jazz it up with your own flavourings.
Picky a free hobby (source)
The good news is, now that you’ve given up a bad habit, you can use a new hobby to keep you busy.
It is so easy to spend money when you’re bored. Shopping on a sunny Saturday might be one of your favourite activities, but it’s not your bank account’s favourite activity. Starting a free hobby can have twofold benefits: help distract you when you might be shopping or eating out and chances are, it might also be some good exercise. Free hobbies you might consider are running, reading (get your books from a library), hiking, geocaching, writing, drawing, and yoga.
Happy hour (source)
This list isn’t intended to make you miserable. There’s value in going out with your friends, even if it doesn’t directly correlate to the number in your bank account. That being said, creating a habit of meeting up for social outings during happy hour is a great way to take advantage of the food and ambiance of swankier places without peak hour prices.
Ikea assembly (source)
This falls into the ‘increase your income’ side of putting more money where it belongs – in your pocket. If you have skills or resources that could bring in money, it’s time to put those skills to use. Online apps like Uber and Taskrabbit might be top of mind, but you can get creative. Everything from selling wares at a local market to starting your own business are open to you.
Diversifying your income streams is a great way to create a stable, financial base. It sets you up for success because the future is never certain. (See our Ultimate List of Sharing Economy Platforms for Australians)
Walk, cycle or both (source)
Not only does walking or biking reduce the amount of carbon emissions in the air, it also reduces your expenses. Car expenses, that is. In metropolitan areas like Sydney and Melbourne, are cars are expensive, luxury items. In addition to the car payment itself (if you don’t own outright), you also have to fork over cash for insurance, maintenance, and repairs. If you can make the switch and ditch your car, you can save thousands of dollars a year and do the environment a solid too.
Research has shown that you tend to imitate the habits of the people around you. Which means start hanging out with rich people!
All kidding aside, surrounding yourself with people that make good money and handle their finances well might not only rub off on you, but will give you new opportunities for investments and advice that you otherwise wouldn’t have. Exposure to people netting large salaries or nurturing large investment portfolios can help influence your thinking, offer new ideas, and improve your own finance game just by pure osmosis.
Just like with other major lifestyle changes, it is important to make small, sustainable steps that you well into the future. Putting yourself on a Spartan budget will only make you miserable and more likely to succumb to a massive splurge. Consciously choosing how you spend your money instead of mindlessly consuming will reduce your expenses and increase your happiness.
I’m trying to grow 0.01 worth of BTC by 5% per day for 365 days.
Today is the end of week one. (View last weeks blog)
I am down 10.91%. My starting amount of 0.009897 is sitting at ~0.00881757
Snapshot of week one
Last week I paraphrased that “95% of day traders lose money, about 5% of traders make money, and only about 1% of traders make money consistently.” Without any sense of self-delusion, I’m clearly in the 95% bracket (and probably towards the bottom of it).
According to coinmarketcap, last week, the whole market had declined ~15.10%. But losing at a lower rate than the market is not the goal and not something I should pat myself on the back for. Especially since the goal was to increase the BTC holdings, which would have remained the same if I did nothing.
I had no strategy. I did however watch a few datadash videos in the past, which always boiled down to “buy the dip” and “I never like to buy at all time highs”. Seemed like a winning strategy, so I thought I’d wing it and see how I go.
Day 1 was good. Day 2 was not so good, seemed like the dip wanted to double dip.
On day 2 or 3 I was watching a Suppoman live stream in the shower (it’s the only free time I have these days). I couldn’t hear exactly what he was saying, but he mentioned something about Bollinger and that it somehow helped him make better trading decisions. I looked into it – and it seemed like a really helpful analysis tool.
I had short listed some buying opportunities based on where the tokens sat within the Bollinger bands. The idea was good. My first trade wasn’t great, but my next trade was.
XRB: A token I passed to buy Dragon Chain (I lost money on DRGN, which bounced back strongly after I sold it)
On the weekend, I ended up going to the country. I was on the road, to places with poor reception and no Bollinger bands. So I was back to shoot in the dark.
I had overwhelming positive feedback on this experiment (anything outside the cryptoverse usually sees me getting down voted for recommending Bitcoin). Thank you to everyone for all your positive wishes. Here are great pieces of advice/feedback I received:
” I think bots and whales push down price to stop loss hunt which means even setting SL is risky. […] Overall, I think accomplishing this, if possible, would boil down to incredible almost unreal luck.” – I_am_Jax_account
Unfortunately, the exchange I’m using doesn’t offer stop-loss functionality. And I completely agree, that an incredible amount of luck would need to play a role.
“Good luck! As someone who has done a bit of trading over the last year I will tell you that the more BTC you have, the harder it becomes to make a 5% increase.” – Westthewolf
Unfortunately, I’m far away from this 1st-class problem.
“Make sure you use safe trading techniques. Scale in and out. Be certain of your trades. Don’t emotionally buy. Going all in our all out might set you back several days if you have one bad trade. It will get harder when you have more money. At the beginning, when it’s just chump change, you’ll control emotions more” – Azntigerlion
Very good advice. It’s something I need to look into more carefully. I believe on my VEN trades, I added scaled out sell orders, which helped me lock in a positive position. On my second NEO purchase, I missed my whole sell order by a small fraction and missed out on 2-3% gain (if I had scaled out), to making a very marginal loss.
“Good luck. Don’t start chasing losses, just move on and forget about it. Even if you make it to .5 BTC you’ve done an awesome job. I’ll keep checking your progress.” – hamster3rs
The emotional aspect of playing with even this small amount of money is interesting. After taking the first big loss (just by the end of day two!)… Did make me think more carefully about the purchases. But I do move on quickly 😉
Averaging 5% per day would be astoundingly good. Rule of 72 will have you doubling your money every 2 weeks at that rate. I recommend you stick to your stop losses and not get greedy. – Bootstrapbuyout
This is the first time I had learnt of rule of 72. Thank you for sharing!
I try and sell out at 5% (but I don’t usually get there!). I’ll try and incorporate more of hamster3rs advice.
Rule of 72
I heard somewhere anecdotally, that monkey’s outperform most traders on the share market.
This week (time permitting), I will be the monkey.
I will try and find a small selection of tokens that look good on the Bollinger bands, and picks one at random out of a hat.
I will place multiple sell orders at different prices to lock in some gains (even if it’s not the full 5%).
Early on, I bought at whatever the selling prices was. This sometimes left a margin of 1-2% between selling and asking price. This week, I will try not to rush into a buy… and wait a little to see if I get a better price.
Until next time, I wish you all nothing but green days.
EDIT: feel free to provide your feedback here or send me your buy recommendations for the day @DennisGraham7 (my BTC is currently on Kucoin)
I’m going to try and grow 0.01 worth of BTC by 5% per day for 365 days.
Today is day one.
Track progress here.
As one of my favourite crypto YouTubers, Crypto Daily says: (and I’m paraphrasing) “95% of day traders lose money, about 5% of traders make money, and only about 1% of traders make money consistently.”
Chances are I’m one of the 95%. But there’s only one way to be certain.
This evening, after playing cards with a mate of mine and having a chat about how is life going and the bags of shizzle coins we’re currently holding… I went home and had a shower. And as it always happens, your greatest ideas happen in the shower. “How hard is it to make 5% per day? There’s always some crypto that’s going up… and how much is 5% daily growth after one year, anyway?”.
Turns out that 5% per day compounded is pretty massive. 0.01 BTC at 5% daily growth is over 510,000 BTC after 365 days.
No, the odds are definitely against me.
Why do it? Because of Moon Ladas, that’s why.
Moon Lada, because Moon Lambos are so 2017
I’ve got none… So feel free to shill me your daily recommendation on Twitter (@DennisGraham7).
Also, it’s currently 2am as I’m writing this. I might try and formulate a better strategy tomorrow.
Make a trade every single day. A bit arbitrary, but I’m not going to hold anything for more than a day (win or lose). Like a shark – I must keep moving forward.
Since I want to get some sleep tonight, I just randomly bought 0.82315302 of NEO.
I will blog weekly to keep you updated, but you can always just bookmark my GSheet.
Loans are useful and sometimes necessary facets of a healthy financial life. While the idea of willingly taking on debt can be scary, choosing the right loan for your needs can help you build your credit while purchasing items that would otherwise be out of reach.
What is a loan?
A loan is temporary transfer of money, which the borrower agrees to pay back with interest. Within the broad definition of a personal loan, there are many different types. You might be familiar with loans for cars or home loans, but people take out loans for many different reasons. Loans can be broken down into long term, short term, medium term, and payday.
Long term, medium term, short term, and payday loans differ in three ways:
In a nutshell, long term loans will have the longest duration, the highest amount borrowed, and the lowest interest rate. On the flipside, payday loans will have the shortest duration, smallest amount borrowed, and highest interest rates.
Long term loans are for your largest purchases
Entering a long term contract can be scary stuff (source)
Long term loans are the loans that people are most familiar with. Home loans fall into this category. Long term loans are 10 up to 30+ years. Most long term loans are secured loans – meaning there is collateral placed against the debt. For example, with a mortgage, the house itself is the collateral.
Because of the long repayment period, long term loans are reserved for the largest