Our latest thinking on the issues that matter most in financial planning, including market updates, investment insights and news.
Moods in the lead up to the end of the year are usually brighter. What’s not to love about impending shutdowns and holidays?
Unfortunately, a lot of what I’ve got to say is a mood dampener because the world is in a tense and troubling situation.
Global share prices have finally responded to a wall of worries. High inflation with rising bond yields and interest rates caused global shares (hedged) to deliver a weak -2.7% return for the three months to September. The falling Australian dollar has partly mitigated the impact for unhedged global shares which recorded a negative -0.4% quarterly return.
The start of any financial year is a great time to do an economic audit but, with cost-of-living pressures everywhere, this year it may even be crucial. One of the obvious ways to save money is to cut your ‘discretionary’ spend on life’s nicer things — and consumer sentiment and retail sales data suggest many Australians are.
But an easier, more appealing technique could be to sit down and assess the household expenses that you might consider ‘fixed’ costs. Here are the five household hacks that are usually most effective for economising.
Whether it’s our approach to saving and spending or our willingness to take on debt, psychology plays a big part in determining our relationship with money.
Fortunately, there are plenty of ways you can shift gears mentally to get a better handle on your finances. Let’s take a look at just a few below.
“Consumers are being squeezed by high inflation, rising interest rates and tighter credit. These intense pressures may cause a global recession in the coming year. Yet global share markets have delivered very strong returns for the last financial year. Global share gains appear to be reflecting hopes that any economic downturn should be brief as well as the promise of ‘Artificial Intelligence’ (AI).”
The Age Pension thresholds will change on 1 July this year. Whilst the changes won’t go live until 1 July, the rates for each category of Age Pension entitlement has been released.
This gives you time to consider what this means for you, depending upon the type of benefit you may receive, or hope to.