There is such a thing as a happy loser!
Imagine yourself at the races. You study the field, choose your horse and then place your bet. And then you hope that your horse runs stone cold last! “Slow down, Wynxie! Let someone else finish first today.” Sound crazy? Well, if you’re betting on horses, it is. But there are other kinds of ‘bet’ where […]
Here’s something you might not expect to hear a financial adviser say: maybe repaying your debt is the last thing you should do. I should explain. Not all debt is equal. Financial planners divide debt into two broad types: deductible and non-deductible. As these names suggest, deductible debt lets you claim a tax deduction for the interest […]
I’ll start this blog with a question. When you spend money, how often do you ask yourself what you won’t be buying as a result of your spend? After all, you can only spend a dollar once. Whenever you buy something, that means there is something else that you cannot buy. Financial advisers call this the ‘opportunity […]
What is your most important financial asset? Is it your home? Your superannuation fund? Your investment portfolio? Your sports car (probably not!)? Actually, it’s you. That’s right, you are your own most important financial asset. Think about it. The average Australian working full-time earns around $75,000 a year. If the average working career is 40 […]
Not all debt is the same. Even if the interest rate is. One of the main differentiators between debt is whether or not you can claim a deduction for the interest. If interest is not deductible, then the interest rate paid is much higher than you might think. When interest is not deductible, you have […]
2017 is drawing to a close and we wish you all the very best good fortune of the season. Thank you for being part of our journey in 2017. May this summertime solstice be a peaceful one for you and your loved ones. During 2017, Australia took the record for the longest period without a […]
5 MINUTE READ 2017 is coming to a close and what an ‘uninteresting’ year it has been. Earlier this month, for the 13th month in a row, the Reserve Bank of Australia (RBA) left the official target cash rate unchanged. This means that Australian interest rates have been at record lows for all of 2017. Obviously, […]
Here is an idea for you. There is no such thing as a discount. There is just the price. As we head into Christmas, many people will be lured into retailers with the promise of discounts or price reductions. Many people can’t resist the potential for a bargain – a sign promising 30% off is […]
Last week, we introduced the concept of mental accounting. We want to continue the theme this week as part of our ‘behavioural economics month.’ Mental accounting can be seen every day with little expenditures like gift vouchers. However, sometimes people apply mental accounting to much bigger parts of their financial management. And that is where […]
Christmas is coming and you probably know someone who is really hard to buy a present for. You might be tempted to buy them a gift voucher. Can we suggest you think again? Unfortunately, gift vouchers are generally a really bad idea. We know, we know – we sound like the Grinch. But let us […]