Ways to have Money

There are 13 ways to take better care of your money.

Consciously I have kept it easy, and in many cases this is based on my own experiences. I' m not gonna tell you to have a household, because it's like I' m gonna tell you to eat balls. Governor Lowe stresses that "don't be timid to ask for a better offer, be it for your mortgages, your power contracts or your telephone plan".

I' ve often done that to get a better offer because I am a long-term faithful client. The debts are great, to a certain extent. It' gonna help you have today what you'd have to be waiting for till morning. This allows you to distribute the cost associated with long-term "assets" like a house over the years in which you profit and allows you to improve your base return on them.

So, always make sure that you don't take on so much blame that it can compel you to just sell all your investment at the times you should add to them or even worse maybe still fail you. Yes, I know it's been a long while since official interest rate increases were last made in Australia - in fact it was 2010.

As Governor Lowe notes, "many borrower have never seen interest rate increases". However, don't let the recent story of declining or low interest rate deceive you. In my opinion, a rate hike is still a long way off (and they may even drop further at first) - but that's only a perspective and opinions can be false.

Look at the USA, where after six years with almost zero interest rate, US interest rate has increased by 2 percent in the last three years. Moreover, when interest rate levels rise, the movements are usually much bigger than the small out-of-cycle movements of recent banking groups.

Essentially, this means not taking all the debts that are on offer to you, trying to remain ahead of your disbursements and making sure that you can stand up to at least a 2 percent increase in interest rate if you pull your loans. However, they calculate usury interest of about 20-21 percent if I get a revolving credit or do not fully repay by the due date.

Sure, the 20-21 percent interest rates sound a rip-off, but don't forget your home is not securing your credit card debt and at least the high rates provide that extra incentive in order to be paid by the due date. There are no long run debts for your credits but your home loan is.

Thus if you have any indebtedness that may take longer than the due date on your approval cardboard to commerce off point, it should be on your security interest if you person one. Of course, this works best for investments that generate high yields on avarage over a longer period of time. To make the most of it, you have to get started as early as you can.

This is why the savings piggies that the bank regularly distributes to kids have the advantage that we get used to making early savings. Currency is secure, but has low yields and that $1 will only have increased to $237 today. Stocks are quite volatile though (& so have harsh eras marked by arrows), but if you can see through that they will increase your fortune and that $1 has risen to $526,399 to date.

It is well known that the stock markets are going through difficult times. Equity markets are volatile, which is the amount we charge for higher long-term yields than most other investment categories. Naturally, real estate values will always be quieter than stock values as they are not quoted every day and are therefore not exposed to day-to-day mood fluctuations.

Japan's real estate falling for nearly two centuries after the 1980s bubbles, the US and some EU real estate falling heavily in the GFC, and the Australia housing markets having experienced several periods of declines over the years, and of course we are going through one right now.

To hear that 50 billion dollars have been cut from the stock exchange in one single trading session may sound frightening - but it doesn't tell you much about how much the stock exchange has actually fallen and you'll only lose something if you actually close out after the case. More alarming was the decline of the stock exchanges by about 20 percent by 2015-16 and even more so the GFC, which dropped by about 50 percent.

However, such incidents occasionally occur on the stock exchanges - the 1987 collapse brought 50 percent in a few month's time & Australia's stock price dropped 59 percent from 1973-74. After every time, the rally in the industry has been back. Well, we've seen it all before, even if the detail can be different.

Our secret is to allow your asset allocation to periodically decline sharply, and when they do, remember that we've seen it all before and the markets will find a basis and pick up their long-term upward momentum. Once you start making the initial decision, it's rewarding to think about how you might react if you find that your markets have just destroyed 20 percent of the value of your bet.

"So I can't get to bed at nights, get me out of here," then maybe you should reconsider your policy, because in the end you'll only sell to lows and buy topping. Therefore, try to tailor your asset allocation to your willingness to take risks. This can be done in two ways.

My puppy even asked about it - but he stacked a quarter at about $19,000, just as everyone was discussing it wouldn't have been smart then (it's now under $65,000), although many saw it as the best there was since cutting loaf of bread. Even my puppy asked me about it. Frequently, when the amount fixed on an initial return is already gone, it is best to do the opposite.

Here I have focused mainly on providing face-to-face financing and investment at a very high standard, rather than invest in things like diversity and looking at your investment over the long run.