Making Smart Investments with Your Money

How To Make Your Dollar Go Further

On account of the fact that the Australian dollar has a massive impact on how much the country pays for fuel, imported products, and overseas holidays, it is little wonder why stories about the local currency dominate news headlines. But over the past four years Australia’s economic condition, as well as the dollar, has declined with “little if any upside potential” for the foreseeable future according to ABC journalist David Taylor

For this reason, several Australians are looking at ways to make their money go further. Even if you can only invest as little as $1000, you’d be surprised at the returns on offer in today’s uncertain and underperforming market.

CFD trading

Seeing as two of Australia’s key exports are iron ore and coal, it makes sense to invest in commodities through CFD trading (what is CFD explained). This leveraged product means you only have to put down a small deposit for a much larger market exposure.

Although your investment capital can go further, there is a potential of losing more than your initial deposit. Therefore, CFD trading requires a high level of risk management. Also bear in mind that you don’t actually own any assets, as you are not physically trading in the underlying market.

Commercial property

As opposed to the residential market, investing in commercial property through managed funds can give you access to high returns for a small price. Over the past year or so the sector has performed admirably, with the total return of the S&P/ASX 200 A-REIT (Australian Real Estate Investment Trusts) Accumulation Index sitting at 20.3 per cent for the 12 months to June 2015.

One of the best options for securities in 2016 is the APN A-REIT, which has an average thee-year yield of 16.05 per cent.

Mortgage contributions

If you invest any spare capital in your mortgage, you will save thousands of dollars in interest and be able to pay it off sooner as well. For instance, estimates from YourMortgage.com.au suggest an extra repayment of $1000 in your fifth year of a $350,000 mortgage over 25 years with an interest rate of 5 per cent per annum will save you over $2000.

However, you will need to make sure that your policy enables you to make extra payments and there are no strings attached with investing in your mortgage.

Super contributions

In order to cut tax contributions and boost any retirement savings, consider investing a lump sum of money into your super fund. The benefit of this is that any amount you add or take from your pre-tax salary is taxed at the low rate of 15 per cent.

It doesn’t matter how old you are either, as an extra contribution of $1,000 a year to your super will be hugely advantageous. To give an example, if you’re 45 and earn $80,000 a year you can boost your balance by a whopping $23,000 in 20 years. Even though you may have to sacrifice some immediate funds, your long-term savings will make it worthwhile. 

Share

Share

Read more...

Read more...

How to Sell Your CarHow to Sell Your CarFor most of us we only sell a few cars in our life so getting the experience to get the best results can be a bit hit and miss sometimes.

Here you can find the top 10 tips for selling your car and getting the best results.

How to Buy a CarHow to Buy a CarBuying a car might seem one of the easiest things to do but with these 10 Handy Tips you'll be able to make sure it is as easy as 1-2-3.
10 Top Tips for Getting the Best Rental Income10 Top Tips for Getting the Best Rental IncomeSo you've done, you've saved like mad for your first investment property and now want to make sure you get the best rental income from it that's possible.

We've got 10 great practical and affordable tips for you to achieve your dreams of financial freedom with rental properties.
How to Make Money and Sense of Bank AccountsHow to Make Money and Sense of Bank AccountsWhen if comes to figuring out bank accounts you wouldn't be to blame if you thought the big banks wanted to keep you in the dark so they can keep making big profits. So we thought we'd shed some light on how to make the most of your everyday money by understanding bank accounts better.

With the help of Amanda Cassar of Wealth Planning Partners we nut out the difference between savings accounts and everyday transaction accounts and how you can have the banks paying you money in interest.

Thinking Very Carefully About Joint Bank AccountsThinking Very Carefully About Joint Bank AccountsJoint accounts, are they the best or worst thing ever invented or somewhere in between?

We caught up with women's finance expert Amanda Cassar to get best tips and advice on whether to have a joint account and if so, how to do it the smart way.

9 Top Tips for Positive Cashflow9 Top Tips for Positive CashflowDo you have a profitable business yet struggle to pay the bills? Does this make any sense to you? The good news is this financial stress is fixable!

Find out how to take away the money stresses and enjoy your profitable business with Wayne Donnelly of 10X as we find out what is cashflow and how to make it all positive.
The Secrets to Understanding MoneyThe Secrets to Understanding MoneyLooking for some handy hand online resources to help get your money sorted?

Let Amanda Cassar of Wealth Planning Partners share some great tips and tricks online to make the most of your money.

10 Ways to Get Your Money Working For You10 Ways to Get Your Money Working For YouIt is so funny that while many of us are highly competent in our professional lives, it is so easy for us to neglect personal money management which should be top of mind for us – afterall if you don’t take responsibility for securing your financial future who will? We go through some of the essentials to help you take control of your finances.
Search by Keyword

Search by Keyword

Follow SheInspires.com.au on facebook
Follow SheInspires.com.au on Twitter
Delicious
Copyright © She Inspires Life Bondi Junction, NSW
2009 - 2017