Money Magazine April 2018

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.

Rainmaker Information Pty Limited
11 号


shop around and reap the benefits

I read with interest your article “Loyal borrowers pay a high price” (March issue). While I’m usually the money-savvy partner in our marriage, my husband had been nagging for years to haggle for a better rate or switch our CBA home loan. In recent years I have ditched loyalty on most of our utilities as well as our insurance – and I’ve saved thousands. For whatever reason, I always had it in my head that it was too hard or our loan was too small to bother (we had less than $50,000 owing at the time). When we were in the market for a small investment property, I finally had the courage to find a new lender and chose UBank purely for the lowest rate, which was 3.89%. CBA’s best offer was…

fired up for early retirement

There’s an entire community dedicated to FIRE – financial independence, retire early. In some ways you could say that they act and live like a cult, quietly going about their business of sticking to insanely high saving and abnormally low spending. It’s a movement that is gaining momentum but it’s not for the faint-hearted. As Susan Hely points out in this month’s cover story, those working towards early financial independence typically save 60% to 80% of their salary. Of course, our seven case studies would strongly disagree about FIRE not being for the faint-hearted. Pat, who plans to retire at 35, actually flips the notion of how most of us live on its head when he tells Susan that “I would consider the way in which most people live their lives to…


Downsizer gets ready for the big move The countdown is on! We retire to our new unit on the lake in 12 to 18 months. I have been a Money reader for many years and have gained all my frugal tips from it. My new best friend is Sell Buy Swap. I am amazed at the things people want and, what’s more, the price they are willing to pay. I am putting this money away for possible new furnishings for my new unit. Over many years one accumulates so much that one does not need. I have donated blankets and towels to the homeless, I have shared items with my family and the rest is being sold. Looks like I will be ready to downsize from a five-bedroom house to a three-bedroom unit. Terrie, Qld Centrelink…

what is your biggest money fear or worry?

SUSAN HELY Susan, a senior writer at Money for more than 10 years, says: “When I was eight my father encouraged me to save my pocket money. I had two boxes, one for travel and the other for old age. I’m still fearful of being old and poor but having watched my own mother live an unnecessarily frugal life I want to enjoy my old age.” ALEX DUNNIN Alex is director of research at Rainmaker Information, publisher of SelectingSuper. Alex says: “My fear is not for me but for younger people. Don’t let yourself be frightened by things like home prices and changing technology. Sure, there are big challenges but also huge opportunities. If you don’t seize them, someone else will. It may as well be you.” JOHN ADDIS John is the founder and editor-in-chief…

in your interest

Right, we need to carry on from last month. I don’t want to waste too much space repeating that column but in summary we were looking at how much you need to be financially independent. The key issue is to take a look at how you would want to live and put an annual cost on it. I looked at a very comfortable $100,000 a year but only as an example. What you plan to spend when you stop work is very personal to you. Whatever the annual amount you project you will need, multiplying by 17 at around age 60 to 65 will do the trick. So for $100,000 a year you will need $1.7 million in investment capital; $50,000 would need $850,000. The investment return numbers I used were…

tougher data law needed

Australian businesses must notify their consumers when a data hack, security threat or leak has occurred at their organisation, now that the Notifiable Data Breaches amendment has become law. Until now, organisations have been able to keep security threats a secret. Now they will be under a legal obligation to disclose all breaches to the Office of the Australian Information Commissioner within 30 days. It’s a huge win for consumers but it is still not enough. Businesses should be doing more to secure their customer data. In my opinion the new law is not stern enough and is simply paying lip service to the problem. It is vague and a lot of it is still open to interpretation for the businesses. It remains to be seen whether businesses get their act together but…