How Low interest rates impact your future

The RBA Cash Rate

On the first Tuesday of every month the Reserve Bank of Australia (RBA) announces the official cash interest rate. With the current Cash rate at 1.00% and the economy failing to gain strength the, today the RBA dropped the Cash rate to 0.75%

The question is why?

The main purpose of a rate drop is to stimulate the economy. The logic is relatively simple. Low rates on loans mean lower repayments and hence more incentive and serviceability to borrow money now.

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Which Financial Strategy is best for you?

When it comes to gaining your financial independence, every educator swears by their own systems, but is one truly better than the other?

Like many topics this does not have a quick answer, but the right one is the one that not only works for you, but most importantly the strategy that you can support, not only today but also into the future.

So here we’re going to look at 5 strategic options that you have and what they can give you.

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Why money for time is a poor trade

Do you really need to work for money?

This is a question that not many people ever ask? But for the vast majority of people out there who are well and truly indoctrinated into the money for time exchange this just seems to be the accepted way of life.

When it comes to having a job, your role and the amount you’re given for the work you do is ultimately reduced to a single number … dollars per hour. And as an extension of this you’ll be expected to work a set number of hours. Pretty standard stuff.

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How superannuation won’t help you retire early

Do you want to retire early?

Who doesn’t?  Besides you should. But if you really want to become financially independent before ‘retirement’ then there are some things you absolutely need to know about your superannuation fund and how it isn’t going to help you get there.

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Why a Bank is the worst place to have your money

How do banks make money?

Like any business banks generate income.

Long story short, banks make money by loaning money to clients (you), manufacturing debt and collecting the interest in repayments over the lifetime of the loan.

Banks play a very long term game with the interest they collect on the loans they provide often measured in decades when it comes to home loans.

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