YOUR QUICK BITE
by Mieke Buchan
- TO SAVE YOU TIME scrolling around to find out which finance, business, local and world news stories actually mean something for you and your cash – Here’s what you and you money need to know this week.
First up – Who are the online scammers and how you’re being protected.
The HECS debt shake-up and what it could mean for you.
Its almost the holidays – here’s how to hack your Annual Leave in 2025!
And the COST of LIVING CRUNCH has been a huge cause of stress for millions of Australians this year – here are some tips for getting ahead of it all.
Enjoy the read!
Mieke Buchan – The Advantage – Head of Content and Brand
SCAM PATROL –
“Banks and social media companies to be fined over scams under new Australian laws touted as ‘strongest in world”
This one from the Guardian Australia
With complaints about financial scams reaching a record high in Australia last year.. here’s what happened to those cases and how Australian laws are trying to protect victims of Australian digital financial crime.
Social Media companies are under the pump too. Click the link to read the whole story –
HECS DEBT SHAKE UP –
“Economists welcome student debt repayment changes but say government could do better for students than slashing HECS debt”
ABC Australia
Student debt is a killer for young people just starting out in the workforce, even with a threshold – Its also a strain for people who are already working and want to re-train.. How do the promised changes impact you?
“As part of its pre-election pitch, the Albanese government has said it will raise the threshold for how much people can earn before they need to start repaying their Higher Education Loan Program (HELP) debt from $54,435 to $67,000, alongside changes to how repayments are calculated”
Sounds kinda good – But finance experts are divided on whether this approach tackles the real problems with education funding.. Read on to see how this could affect you.
Click to read on – https://www.abc.net.au/news/2024-11-04/economic-impact-of-hecs-repayment-debt-reduction/104557004
A re-elected Albanese Government to wipe 20 per cent off all student debts from June 1 next year. 7 NEWS
The plan will save three million Australians a combined $20 billion. Here’s what we know. https://7news.com.au/news/a-re-elected-albanese-government-to-wipe-20-per-cent-off-all-student-debts-from-june-1-next-year-c-16617229
HOW TO MAXIMISE YOUR ANNUAL LEAVE IN 2025
Money Magazine Australia
Already planning your time off next year? Aligning your annual leave with public holidays is an easy way to maximise your time away.
Most full-time workers in Australia have 20 days of annual leave, and by aligning those days with public holidays, you can stretch them into extended breaks without using much leave.
Money Mag hacks the dates for you! Read on:
https://www.moneymag.com.au/how-to-maximise-your-annual-leave-in-australia-in-2025
LETS TALK ABOUT THE COST OF LIVING CRUNCH –
HERES WHAT EXPERTS ARE PREDICITING FOR INTEREST RATES AND INFLATION NEXT YEAR –
From the The Conversation
“Cheaper mortgages, tamed inflation and even higher home prices: how 29 forecasters see Australia’s economic recovery in 2024-25..
Australia’s top economic forecasters expect the Reserve Bank to start cutting interest rates by March next year, taking 0.35 points of its cash rate by June.
If passed on in full, the cut would take $125 off the monthly cost of servicing a $600,000 variable-rate mortgage, with more to come.
The panel of 29 forecasters assembled by The Conversation expects a further cut of 0.3 points by the end of 2025. This would take the cash rate down from the current 4.35% to 3.75% and produce a total cut in monthly payments on a $600,000 mortgage of $335″
Fingers crossed they’re right! Who wouldn’t love a cut in their escalating monthly Mortgage repayments .. and a smaller grocery bill!
MORTGAGE-BUSTER PRO TIP
Did you know – If you have a savings account on 1.3% and a mortgage with a 2.2% interest rate – By allocating money into your full offset account, you’d save more money on interest than you would earn in your savings account.
Additionally, interest on your savings accounts is subject to tax, whereas the interest-saving on your mortgage isn’t. So you’re paying down your mortgage faster AND saving on interest!
Bad news – YOUR SAVINGS ARE SHRINKING!
Its also vital to ask – are your savings keeping up with inflation? The simple answer here is also no. Your savings cash rate is sitting at around 1.3%. Meanwhile inflation is hovering around 4.9% – so your savings is making a net loss of 3.6% per year. All of that money you’ve worked so hard for is shrinking in value while it sits in the bank doing nothing. Your savings are now “losings”
Lets look at an example – your $120k in a savings bank account will increase to a net dollar value of $121,560 over a year
That’s 1.013 x $120,000 = 121,560
But, with inflation going up by 4.9% – your actual buying power is reduced
That’s .951% x $121,560 = $115,603.56
By doing nothing, you are losing almost $6000 a year!
You can probably do better with your hard-earned dollars and cents!
PRO TIP TO BEAT INFLATION – Aussies just like you are already on their investment journey
In our first live streaming event, I chatted to Miriam Ellis, whose home beauty salon was shut down during Covid. Her husband Craig was working at a local sign factory. As a single income family, they thought they had no chance to realise their dreams of proper financial freedom.
After learning how to streamline their debts, they were able to utilise the existing equity in their family home to start investing.
PRO TIP – When you invest in an asset that increases in value at the same rate (or higher) than the inflation rate – you can actually get ahead!
They now own a townhouse on a golf course in Queensland!! They only had to use $39K of their home equity and spent almost no money to get into it. The experts referred by our team helped them with everything. The investment in Beaumorris is growing in value, paying for itself off AND they are receiving a tax benefit.
It was so easy and stress-free, they are ready to jump into their next investment property ASAP.
PAY OFF YOUR MORTGAGE IN HALF THE TIME!
It might sound too good to be true, but we have thousands of success stories to show our programs work!
In one brief, stress free chat – find out how you could start improving your overall financial position today.
Our own Shelly Horton has shared the incredible journey of moving from credit card debt stress in her 40s to paying off her first investment property and moving onto her next one.
She started on her path to investing a little later than many people – but she’s now had an inspiring expedition from divorcing with debt to being financially secure, stable and excited about a comfortable future.
Click the link to see how she did it – https://theadvantage.com.au/2022/03/20/lets-celebrate-paying-off-our-investment-properties
DE-SCRAMBLE THE CHATTER
Sometimes financial news can feel like a whole lot of world salad.
The Advantage has helped thousands of Australians get ahead by simply breaking down each element of your financial footprint and seeing where you can do better. Maybe they can help you too.
There’s no need to worry about going backwards financially when you can take proactive steps today. Sometimes you just need a little financial education and guidance about whats possible.
A 30 minute initial chat is free of any fees or obligations, you’ll just find out what your options are.
Just pop in your details here –