Money Magazine May 2021

Money magazine is Australia’s longest-running, highest-selling and most-read personal finance magazine. Money magazine provides credible, independent, easy-to-understand financial advice to help its readers save money and make the most of their investments.

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11 Números

en aquest número

1 min.
family challenges

IN OUR ASK PAUL segment this month, a couple who are 26 and 27 years of age bemoan the fact they can’t afford a property in a metropolitan area. This wouldn’t have been surprising if, like most individuals their age, they had few savings or had mounting debt. But they were quite good with their money, with $110,000 in joint savings, $20,000 in shares and zero debt. If they think they’ve been priced out of the market, what hope is there for many other would-be homeowners? Such is the paradox of living in Australia today. Despite the pandemic, our economy has so far held up, the jobless rate is lower than was grimly predicted a year ago and, with the federal government’s prudent management of the health crisis, our employment and investing prospects set…

3 min.

Letter of the month Shop around for big savings on insurance I wanted to share with like-minded Money readers my experience of home and contents insurance renewal with a state-based motoring association provider. The premium had increased by 10% over last year, so I shopped around and secured a like-for-like quote with another motoring association provider that was $820 a year cheaper. Being a loyal customer of 22 years, I rang my current insurer to offer them the opportunity to improve on, or at least match, the quote. It would seem that everything we are taught at business school about the disproportionate cost of bringing on a new customer as opposed to retaining an existing one does not apply in the insurance industry. My current insurer would not budge. Not even one dollar. I…

1 min.

Contact us To send a letter to the editor, write to: Money, Level 7, 55 Clarence Street, Sydney NSW 2000 or email For all enquiries and letters, please include name, address and phone details. Letters may be edited for clarity or space. Because of the high number of letters received, no personal replies are possible. How to get Money Subscribe to the print or digital edition, as well as our free weekly email newsletter via the Money website or: Online: Call: 136 116…

2 min.
what did your mother teach you about money?

VITA PALESTRANT “When I was little and nagged Mum to buy some novelty or other she invariably said, ‘Money doesn’t grow on trees’. That, along with other advice, including ‘You never listen!’, fell on deaf ears until my teens. I worked in a pharmacy through high school and the local library during my gap year to pay for a trip to Europe. I had listened after all, and it was far more empowering and satisfying having pulled it off myself.” MARCUS PADLEY “Mum taught me that money was nothing to worry about. I remember an ad for a bank that had two showings of the same video shot from the point of view of a parent taking their kids to the beach. In the first a father stressed over his job and the…

4 min.
my light-bulb moment

Money talks … and so should we. In some circles talking about money is considered gauche or taboo, but it’s a belief that could be costing us a lot of moolah. Sharing tips with friends and family on best-value products and services, cheapest home loans, savings hacks and useful money apps can be a real eyeopener and financially beneficial. Most recently, I’ve had a closer look at my insurance and energy bills. My car insurance was up and my green slip was more than $700. When I looked into it, I found out the increase related to a minor accident I had a couple of years ago. Otherwise it would have been at least $300 cheaper a year. Unfortunately, I’d paid the amount without question over the two preceding years. I was pleased…

1 min.
costs hit disability cover

Convincing Australians of the value of life insurance has always been an uphill battle. People don’t like paying for things they hope they’ll never need. But just as term life cover provides financial security if we die, income protection or disability income insurance offers an important safety net. In recent years, disability premiums have been rising due to a low-interest-rate environment (meaning life companies are earning less from their capital and policy reserves) and an increase in claims. The rise in claims reflects greater prevalence of mental health conditions and a legacy product design issue that means in some instances claimants are better off not working. APRA, the regulator, is pressuring life companies to adapt the way disability cover is offered so the sector is sustainable, but continued large-scale losses are making premium…