Last week we discussed how the Governor of the Reserve Bank Phillip Lowe recently recommended that home borrowers ensure that they have a ‘buffer’ against the time when interest rates inevitably rise. Interest rate buffers are not the only type of buffer in good financial planning. Buffers are used in many areas, but the need for buffers always comes from the same source: understanding that the way things are now is not likely to be the way things are in the future.
Last week, the Governor of the Reserve Bank Phillip Lowe gave a speech at the National Press Club. As is the tradition, at the end of his set speech, he was asked questions from the floor. One question stood out among the many.
The extraordinary growth in the price of housing in Australia leaves new home buyers increasingly reliant on the ‘bank of Mum and Dad’ to get a foothold in the property market. Six figure cash gifts are increasingly being reported. The movement of money from one person to another often raises questions about the safest way for that money to be transferred.
For most Australians, University is not free. That said, few Australians pay their Uni fees upfront. Most pay them via a loan scheme. This loan must be repaid when your income reaches a certain level. But a question sometimes arises: should you repay the debt sooner?
In recent articles we've explored the personal and general reasons why many Australians choose not to sell their family home as they move into and through retirement. In this article, we look at ways that make keeping a family home easier once you stop working.
Research shows that people are more interested in saving a large percentage on a cheap purchase than they are in saving a small percentage on an expensive purchase. This can lead them to waste both time and money, and can also be expensive when it comes to big ticket items like home loans.
Entrepreneur Elon musk spent his first month in the United States living on $1 a day. He was 17 years old. Obviously, this discipline did wonders for his personal financial planning. Other people have taken on a similar challenge and report much the same thing. This article shows what we can learn from their experience.