Territory Stories

The Northern Territory news Mon 16 Mar 2020

Details:

Title

The Northern Territory news Mon 16 Mar 2020

Other title

NT news

Collection

The Northern Territory news; NewspaperNT

Date

2020-03-16

Language

English

Subject

Community newspapers -- Northern Territory -- Darwin; Australian newspapers -- Northern Territory -- Darwin

Publisher name

News Corp Australia

Place of publication

Darwin

File type

application/pdf

Use

Copyright. Made available by the publisher under licence.

Copyright owner

News Corp Australia

License

https://www.legislation.gov.au/Series/C1968A00063

Parent handle

https://hdl.handle.net/10070/795942

Citation address

https://hdl.handle.net/10070/799008

Page content

MONDAY MARCH 16 2020 LIFESTYLE 23 V1 - NTNE01Z01MA HQmoneysaver Minimise the coronavirus pandemic economic fallout INSIDE PATRICK TADROS ANTHONY KEANE THEboard gamethat has for generations caused rifts between familymembers also provides lessons aboutmanaging ourpersonal finances. Since 1935,Monopolyhasgiven players the chance tobecomeareal estate tycoon, while offering financial wisdom that canbe applied to theworld ofmoneyand investing. MLCfinancial adviser Matt Neill believes Monopolycan teachus the importance of budgeting.He said playerswho didnot maintainenough cash for expenses, such as rent, might be forced to sell ormortgage their propertiesat a loss, in order to raisemoney. This shouldbe a lesson toall regarding their financial affairs, MrNeill said. He recommended building anemergency fund that covered three to sixmonthsworthof livingexpenses. That way, you will be financially set for any unexpectedmedical bills or homerepairs. On theotherhand, towin thegameyou cant staycompletely safe byholding cash. It will need to be investedand that means taking a risk, buyingand developing properties. Just makesure, when investing in growthassets, to be prepared for anyshort-termups anddowns for apotential long-termwin,MrNeill said. If indoubt, consult a specialist adviser and getpersonalised financial advice,he said. Buying properties in Monopolyearnsyou money if someone landson your square, so its a good idea to buyup multiple spaces around the board. Thesame goes when choosing shares. MrNeill said diversifyingyourholdings was key toeverygreat investmentplan. Index funds, also knownas exchangetraded fundsor ETFs, areanexample. Theseprovideacheapentry intoa diversifiedportfolioandcontainavariety of stocksand bonds, MrNeill said. At some point in aMonopolygame youll probably start negotiating withyouropponents to tradepropertiesor borrowmoney. Scotwork negotiationconsultant Jared Bamford said this couldhelppeoplehone their negotiationskills. Whether its buying a property, asking for apay riseor selling your car, considerwhats important to theother party,he said. Thenask for whatyou want in exchange for giving the otherpartywhat is important to them. Its awin-winoutcome. Eventmanager Jackie Newton said Monopolywas agood moneyconversation starter withher sonHarley, 7, andhis friends. It teaches basicprinciples around managing your finances andbeing awareof overheads like taxesand rent, she said. Ms Newtonsaid other lessons included the importanceof propertyownership and howto use moneywisely rather thanspending without a strategy andgoing bankrupt. It is alsoagreat gametoencouragekids to win, to avoid jail and that youcanstillwincash coming second in abeautycontest! she said. GAME OF LIFE: Jackie Newton with son Harley, 7, and friend Ava, 9. Picture: Matt Loxton Monopoly teaches us valuable life lessons MANY Australians remain clueless about the interest rates on their debtsand couldbe paying toomuch. The Reserve Bankof Australiasdecision to slash the cash rate to0.5per cent this monthresulted in manybanks including thebig four passing on the full0.25percentagepoint drop tomortgagecustomers. Despite this, personal loan andcredit card rates still remain relativelyhigh andareoften in thedouble-digit range. AYouGov Galaxy poll commissionedby MoneysaverHQ in partnership withSocietyOne quizzed 1000 Australiansand foundwhilea majority (54 per cent) were awareof the interest rates they were paying on their debts, 46 per centhadno clue. And only26 percent of peopleknewtheRBAs official cash ratewas below1per cent. SocietyOnes chief executive officer, Mark Jones, said Australians shouldknowthe rates they werepaying on their deals to ensure theywerenot gettinggouged. They shouldknow because its an importantpart of their householdbudget,he said. A WHATS YOUR RATE? lotof debts in theAustralian economyare variable, sowhen you takeout amortgageor a credit card the rate is true at the timebut it moves over time. Mortgageprices have continued to fall in recentyears andmany fixed andvariable rate deals nowhavea2 in front. While thecheapest credit carddeals areas lowas 7.49per centandpersonal loans vary, fixed rateunsecured loans can bedown in the7 per cent range. TribecaFinancials chief executive officer, RyanWatson, said it was important toput pressure onyour lenderand ask for thebest deal possible. It actuallypays toknow whatyour interest rate is andcompare it regularly with otherproviders in themarket, interest rate, little by little, and it ends up hurting your hip pocket.He said, if youwere questioning a lenderabout the interest rate youwerepaying, to makesure you understood the best deals thatwereavailable. TheMortgageand Finance Association ofAustralias chief executive officer, MikeFelton, said people shouldcheckall rates theywere beingcharged. Its essential that customers know theactualmortgage rate they arepaying, as well asall fees and charges, so that theycan compare to what is available in the market,he said. Wewould recommend that acustomer assesses their home loan at least once annually to ensure that theyare getting a competitive rate. Being complacent can cost you thousands, writes Sophie Elsworth Cheapest three-year fixed home loan, owner-occupier, principaland interest ING Orange Advantage 2.49% AMP Professional Package 2.49% Cheapest three-year variable home loan (based on a $300,000 30-year loan) Reduce Home Loans Low Rider Home Loan 2.44% Cheapest low-rate credit card G&C Mutual Bank Low Rate Visa Credit Card 7.49% Cheapest $10,000 unsecured personal loan Symple Loans Personal loan 5.75% Cheapest $10,000 secured personal loan Endeavour Mutual Bank Term deposit secured loan 4.45% Source: RateCity.com.au THE BEST DEALS hesaid. It cansaveyou thousands ofdollars. Another reasonwhy it pays toknow your interest rate is that a trick thebanksoftenuse over time is what I like to call interest rate creep. They sneakily increaseyour


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