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How To Make Your Savings Work Harder (And It’s Not As Easy As You Think!)

Your savings are an investment.  They are not something that should be plonked into the same old  savings account because that is what you have always done.  You can, and should make your savings work harder.  With the latest round of interest rate cuts, interest rates are low and it is now even more important to make sure you are getting the best possible return for your savings.  “Don’t I just pick the account with the highest rate?” I hear you say.  Yes, generally speaking, but like most things it is not as easy as just that.  So here are a few things you need to look out for in choosing the best possible a savings account for your cash.

  1. What is the interest rate?  I know it is an obvious one.  The higher the better but there are a couple of tricks when looking at the rate.  Firstly, you have […]
By |August 15th, 2013|Saving|19 Comments

10 Easy Ways To Save Money

Ok, here is a confession.  I am not very good at sticking to a strict budget.  For me, it’s like being on a soup diet, it is just not possible!  However, on my journey from being a spender to a saver I have learnt several tips that have helped my bank balance to grow.  Most of them are small things but the best part is that instead of being a chore or a punishment they have simply become a part of the way I live my life.

So today I would like to share them with you:

  1. I always write a shopping list and stick to it.  Supermarkets are the land of temptation.  They are deliberately designed that way.  Where and how each product is placed is planned to get you to spend more.  They call it the “theatre” of the shopping experience.  Have you ever wondered why the milk is always […]
By |August 2nd, 2013|Saving|21 Comments

What Are My Investment Choices? Investing Basics Part 4

So now you have an idea of your risk profile (tolerance) and you understand the relationship between risk and return, it’s time to look at characteristics of the broad asset classes or types of investment.  It is important to understand the different investment types as each category has different levels of expected risk and return.  Understanding what to expect from the different asset types will help you decide which categories of investments best suit your investment goals and your timeframe.

Generally speaking, there are considered five broad investment types or asset classes:

  1. Cash – investments like savings accounts, high interest accounts, bank bills
  2. Fixed Interest – includes government bonds and bond like securities issued by companies called hybrids
  3. Property – includes residential, retail, industrial and office properties.
  4. Australian Shares – are shares listed on the Australian Stock Exchange which cover many different sectors such as mining, healthcare, banking and retail.
  5. International Shares – are shares […]
By |May 9th, 2013|Investing Basics, Investment Types, Saving|2 Comments

Investing Basics – How Do I Get Started? The Money Mummy Guide to Investing Part 1

Yesterday I posted an article which showed that women are better than investors than men, but knowing you have the potential to be a good investor is of no use, unless you know where to start.  So welcome to the Money Mummy school of investing!  Every Thursday I am going to publish a post which guides you through the key principles that you need to know when making your first investment decision.  Successful investing is not difficult and has nothing to do with luck.  There are a few fundamental ideas that you need to know which will greatly increase your chances of success and help you avoid disasters.  So let’s get started.

Before you invest a cent, there is one very important thing you must do and that is make sure your “financial house” is in order.  You must be very clear about how much debt you owe and what type […]

By |April 18th, 2013|Debt, Investing Basics, Saving|2 Comments

Three Things You Really Need to Know When Saving and Investing For Your Child

The best time to start saving for your child is now.  Whether it be for their education, or to buy a car or a deposit for a house, having time on your side and a long term investment horizon will help you to your reach your goals.  However, there are three things you really need to know about when investing/saving for your child:

  1. Watch out for the taxman!

Investing directly in your child’s name is unlikely to be the most tax effective way of saving for your child.  This is due to tough penalty taxes for minors.  The Government has put this in place to stop parents funneling money into their children’s names to avoid tax.  The penalty tax is applied to “unearned income”, that is money the child has not worked for and includes income such as interest, share dividends and distributions from trusts.  If you invest under your child’s name, the […]

By |April 3rd, 2013|Saving|19 Comments