It never ceases to amaze me how too many Australians don’t care about their money!
For years, I worked on radio with a very famous personality who had no hope with money, despite having the best talks about money every Monday on her top rated show.
And believe it or not, his questions were excellent. My answers too! This segment of the money has generated a lot of interest among listeners, if you can measure it from the number of calls we have received.
However, I found that he never seemed to remember the website I was talking about to check if you had the best interest rate on your home loan, credit card, term deposit, or whatever. Considering the guy’s general intelligence, there could only be one reason for his lack of memory – he just didn’t care about getting smarter about money.
That doesn’t mean he didn’t want to get rich. I know he did it because he and his wife came to our financial planning business as clients to build their wealth.
And that, I guess, is also a lesson: if you are not ready to commit to improving your knowledge about money, you had better think about paying for help, if you are serious about getting rich.
It all came back to me when a listener of Ben Fordham’s radio show on Sydney’s 2 GB heard Ben talking about a well-known journalist who had applauded his own action asking his bank for a better rate on his mortgage, which they reduced by more than 0.5 percent.
The auditor, Michael, attempted the same move and was stunned by the banker’s response. “I listened yesterday when you urged people to ask their banks for a better mortgage rate. I had to contact my bank (Police Bank) about another matter. When they said, is there anything else I can do to help you? I just said, I guess you can’t give me a better mortgage rate? The guy said he would see what he could do. I just received an email, my rate went from 3.44% to 2.79%, a decrease of 0.65%.
It should be a clear call to anyone who would rather be richer than poorer, that testing your financial products could be one of the smartest money moves you can make.
To give yourself a benchmark or two to use in checking your financial life, take a look at these:
The cheapest mortgage interest rate: U Bank 2.14% for the fixed, or 2.49% for the variable.
Cheapest credit card: Heritage Bank Gold Visa 10.8%.
Best term deposit $ 50,000 for 1 year: Judo bank 1.4%
Best super fund for 3 years: Suncorp
Multi-manager growth fund: 8.22% per year.
By the time you read this you might find better rates, but if you’re paying more than you should be according to these numbers (or getting less) and not doing anything about it, you better be too. talented than my radio buddy, whose very good salary partly compensates for his silly attitude towards money.
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