Page 38 - Smart Money

Chapter 1

Never buy anything that is full-priced. Always make sure that if you are
going to buy something, you buy it when it is on special. Wait for the
right time to buy, instead of being impulsive. You don’t always have to
buy the branded peanut butter. You don’t always have to buy the best. If
you are buying serviettes or you are buying something that doesn’t really
matter, and you won’t see the logo, just buy the cheapest. They are all the
same at the end of the day.

If you do have a home loan, make sure you see a broker. You could be able
to renegotiate your rate or refinance, and you might not even have to
change banks. You might need to be set up with an offset account, so you
can have your savings in your savings account, but while it is sitting there,
it is offsetting your mortgage.
If you are savvy enough, you could have a credit card that you spend on,
leave all your savings in your savings account, and then at the end of the
month, the bank sweeps your savings account to pay off the credit card.
That will ensure that you are not spending more than your wage, because
the bank can’t sweep if the money is not in there. I would recommend
a low limit on the credit card, too; don’t have a credit card limit that is
more than one month’s salary.

Store cards have a higher interest rate, so stick with one credit card.
Don’t be lured into getting multiple credit cards, because then you have
multiple debts to pay off. One credit card is more than enough.

Take responsibility for your own money. Just because you get a letter
in the mail, or your bank or someone else says they will give you more
money, that’s not necessarily a good thing.

Having a better lifestyle is not about getting a bigger credit card
limit. It is about working smarter and harder, being educated
and making smart investments, starting a business, getting a
promotion, getting a second job – a lot of people do these sorts
of things. Typically, the more money you earn, the more you
spend.