Money Magazine July 2021

a fully loaded list

Have you ever written a grocery list and left the shops feeling chuffed because you’ve crossed off all the items as you had planned? That’s what it felt like after we assembled the articles in this edition. Kicking off with the list of winners in the annual Consumer Finance Awards, we hope to prepare you for the new financial year with a roll call of the top institutions you can choose from when you’re reviewing your home loans, investment loans and more. Our cover story, “Good debt, bad debt” (page 32), guides you through the ways you can make debt work for you. With interest rates so low, it’s a great time to be a borrower, especially if you’ve been a strong saver. Once you’ve read it, check out our story…

letter of the month

I now live in Queensland but I grew up in Queanbeyan, NSW, and I was back there in 2017 for a school reunion. I walked up the street to the newsagent to get a paper, and Money magazine caught my eye. I’m so pleased I did, for in it was Greg Hoffman’s Strategy column, “Tiddlers In the Shark Tank”, and his summary of six companies. I picked out what I thought he liked the most and I bought three: Fargo Enterprises (ASX: FGO), Collaborate Corporation (CL8) and Imugene (IMU), for which I paid 0.016 cents. Over the years I have let the first two go. With Imugene, I got more through a capital raising, it has increased in value and I have bought more. Six months ago it came out with what…

feedback

At this price, a Hermès is not quite in the bag If I can afford a $82,966 Hermes Kelly picnic bag (Extravagance, May issue), I would definitively not be needing to read Money magazine, to which l have been subscribing since its inception. Basil Great advice for the various stages of life’s journey I used to read Money mag religiously in my teens and early 20s, before a hiatus as personal and professional life demands took centre stage. During my 20s I purchased my first house, travelled the world (for work and pleasure), met my life partner and focused on building my career and completing postgraduate study. Looking back, I would give my younger self much the same advice Money did more than a decade ago: what you save is more important than what you…

what prize or award have you won that you’re most proud of?

PAUL CLITHEROE “Winning the 2015 Sydney to Hobart yacht race on my TP52 Balance is my most cherished prize. After decades of training, preparation and ocean racing, being the proud recipient of the trophy, for what is one of the toughest yacht races in the world will live with me and my crew forever. Racing a powerful yacht day and night across a dangerous piece of water is quite an experience.” JULIA NEWBOULD “Last year my book The Joy of Money won the Australian Business Book Awards. It was a much appreciated accolade at the end of a tough year when all our in-person launches were cancelled. But the first award I won outside school was at my first job. A colleague and I won the $1000 first prize in a talent quest…

trending in the right direction

In life, it’s sometimes two steps forward and one step back. I have been reminded of this a few times this month. As I write, Melbourne has just experienced another extended period of lockdown. It’s tough. For some people, it’s a simple transition to working from home. For others, their businesses and livelihoods are threatened – restaurants, entertainment, venues, bars, pubs, florists and shops. All this can take its toll on mental health and puts a strain on finances. Will they be able to resurrect themselves from yet another halt in trading, recover from more wasted foodstuffs or other perishables, and are they likely to be reluctant to hire staff again? These are all issues that are placing enormous stress on people. When you add everyday concerns into the mix, say budgeting or…

news & views

THE BUZZ Big debt is fine – just don’t make it personal Australian government debt is on track to reach $1 trillion by June 2025 (around $37,000 per person), according to research by MyState Bank. Most people seem to be comfortable with the sizeable amount, which represents almost a third of superannuation assets. According to the research, 74% of us are okay with the debt if it is used for job creation, aged care and mental health. However, 62% are concerned about high personal debt. According to Heather McGovern, MyState’s general manager of customer experience, given the record low interest rates that support this borrowing, Australians understand how debt can be harnessed for economic good. “The fact that most Australians are comfortable with government debt increasing to support economic growth as we emerge from the…