The Reserve Bank of Australia announced at 2:30pm (AEST) this afternoon that the cash rate will remain at 2.50%. RBA Governor Glen Stevens cited 4 key reasons behind their decision of continuing to keep interest rates at the same level since the last cut in August 2013: Global growth below trend, however an expectation this will increase over the course of the year. Unemployment has continued to edge higher Resources sector investment spending set to decline significantly Inflation in the December quarter was higher than expected. Looking forward: The Bank expects growth to remain below trend for a time yet however strengthening and; Unemployment to rise further before it peaks Expected further stability in interest rates (i.e. a ‘hold’ bias) The RBA’s next meeting will be on Tuesday 4th March. For more information... read more
What’s your financial goal for 2014? The above quote by author, entrepreneur, marketer, and public speaker Seth Godin may be true for some, however it seems to me that the people who get things done, who lead, who grow and who make an impact … have goals. It’s early 2014 and no doubt some New Year’s Resolutions have been made. Lose weight, improve fitness, quit smoking, save more money … they are all very common goals. Particularly the last one! To improve your financial position it is important to create a goal for the year. Creating a goal helps you identify what you want to achieve, measure your success and keep you motivated to stick to your strategy throughout the year. If you can see results, you are more likely to stick to it. According to global fund management firm Fidelity’s 2014 New Year Financial Resolutions Study, the top goals made for this year are: Save more money — 54% Pay off debt — 24% Spend less money – 19% Develop a long-term-goal plan — 13% Make/stick to a budget — 12% Pay down credit card debt – 8% Interestingly, only 12% had a financial resolution of making a budget. We have a not-so-secret concept for you: making and sticking to a budget can help you achieve the above resolutions. The 5 critical steps to setting up a financial budget plan are: 1) Identify your Specific Goals. Try not to leave it just at “save more money”. Dig down further and itemise each individual goal. Whether it is paying off the credit card, a holiday, new car or just paying... read more
Where to next? Going Up or Down? To Fix or Not to Fix? Leading economists predict there may be an interest rate cut in February or March 2014. We think the next rate rise won’t be until at least this time next year. What does this mean for your home loan rate until then? Since the last two interest rate cuts in May and August this year (0.50% in total), most Banks haven’t passed these cuts on to borrowers. Fixed rates have only fallen up to 0.2% over this period. This tells us lenders don’t think there will be many more interest rate cuts over the coming year. What to think about: Is it time to refinance? Is it time to consider an investment property and fix your rate – giving you certainty on what your expenses will be? Let’s do the sums. Be sure to take a look at your current rate today! Shop around. Lean on your current lender for a better deal. Contact us for more information or for advice on your personal... read more
