Are credit card surcharges worth the points?
When a retailer charges a surcharge for paying with your credit card do you pause and instead pay using EFTPOS (from your savings account)? Or do you say “that’s ok” and perhaps think “I want the points”? In this month’s Mens Health magazine (May issue) I’m quoted in an article on how to make good [...]
Cash in your frequent flyer award points
In September 2001 I lost over 100,000 frequent flyer points when Ansett Australia collapsed. I had been accumulating reward points with the intent of funding an overseas flight. To that end I’d even paid for a domestic flight rather than use some of my points. What a waste! Back then it was a common complaint [...]
Budgeting tip: Medical costs
You don’t know when you’re going to be sick and need to see the doctor. That makes it tricky to include an allowance for medical expenses in your budget. Medical expenses are included under the category of “irregular expenses” in my budgeting approach. You save a regular amount each pay period into a dedicated savings [...]
Budgeting tip: They don’t make things like they used to
When an electrical good suddenly gives up you can be faced with finding a tidy $1,000 or so to replace it. For many people this causes unwanted financial stress and can result in them funding the purchase through debt or other savings. Neither of those options is ideal.
Qn: How do we get out of debt?
This year I have again volunteered for the Financial Planning Associations’s Ask an Expert program. Following is one of the questions I just received and my answer. The question Hello Matt, my husband & I own our own home but have a mortgage of nearly $300,000. It is an equity style loan, we only have [...]
The New American Money Math
A pithy observation today from fellow financial educator Carl Richards. I recommend you click through to read Carl’s article that accompanies the sketch.
Up to $500,000 in school fees per child
Figures released by the Australian Scholarships Group suggest that the cost of educating your child could be up to $500,000 if you send them to the top private schools. Given that annual fees start around $10,000 per year from early primary school that total figure probably comes as no surprise.
ASG have kindly provided very detailed summaries, which makes their information worth a look.
How much you should spend on your next house
The banks will tell you how much you can borrow. But how much should you really borrow? This article describes how to estimate the ideal maximum amount you should borrow and the true maximum affordable repayment. Follow this process so you can avoid over-extending yourself and find a harmony between lifestyle now and your future lifestyle.
Better budgeting
For many people the word “budget” conjures feelings of restriction. (Just like the word “diet”.) However a good budget should be the exact opposite. It should facilitate you having enough money for the things that really matter so you need not feel restricted. In this article I reveal a better budgeting technique using the model “Pay Yourself First (in practice)”
Is now the time to fix interest rates?
Eighteen months ago when I first wrote about fixing interest rates there had been just two RBA rate rises and fixed rates were much higher than the variable interest rates. It was also still early in the recovery and for many it may have been too early to call. So a decision not to fix [...]
B.S. from GE Money
I just heard on the radio the latest advert for the GE Money Personal Loan. It claims to give you more money to enjoy the things that matter. A lovely marketing tug on your emotions but total B.S.!
How to easily save 5% on your groceries
Groceries are one of the largest costs in most people’s budget, costing around 17 percent of average household spending. Did you know you could easily and legitimately save five percent on your groceries without changing your shopping habits? That would be over $500 per year for the average family. Both of the two large supermarket chains in Australia provide means to purchase their gift cards at a five percent discount to the card value. In this article I share two ways to get those discounted cards.
Save your Easter eggs for success
In a study conducted at Stanford University children were left in a room, each with a marshmallow, and given a choice of eating it then or fifteen minutes later, when they were promised a marshmallow as an extra reward for waiting. Imagine you are your five year old self – what would you do in [...]
Kids, they might be cute but they are costly
Certified Financial Planner professional Matt Hern is quoted in this article published in The Examiner newspaper, February 18th, 2010. Download and read the full article here.
Seventy percent of credit card debt accrues interest
“Did I just read that right?” I thought as I put down my coffee and twice re-read this paragraph: ‘Consumers are still cautious about the debt they build up on credit cards. An analysis by card operator Mastercard shows that only 70.8 per cent of the total $46.9bn in credit card debt is accruing interest, [...]
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