March 2007 |
In This Issue: Welcome to this month’s issue of “Tales for Success”. Last month I read that the top financial goal for Australians in 2007 was to save more money. So I’ve shared a few thoughts on the matter. __________________________________________________________________ According to Money Magazine, the top financial goal for 2007 is to save more money. It was chosen by one out of every three people surveyed. One of the key ways that people can save more money is to simply reduce or eliminate negative debt. An example of bad or negative debt is... Borrowing money to pay for depreciating assets.
An example of good debt is... Borrowing money to invest in an appreciating asset - which will increase in value over time or earn an income. Example: real estate, shares or a business. TIP: Only take on good debt.This is a major key to building wealth. MORE ON GOOD DEBT… Those of you who have attended any of my programs know that I am a huge fan of using Real Estate as a wealth creation strategy. It saddens me when I meet up with people who don’t fully understand the power of this wealth creation strategy. So I thought I would share with you today and the next few newsletters a little of what I have learnt. To begin, a good place to start is to look at your own fears as to why you aren’t already a property investor. One of the most common reasons I hear from people is: “Interest rates are on the rise” or “I don’t know where the interest rates are going”. I asked my finance broker for a more informed answer on this and here is his reply Interest Rates Everyone has an opinion about this but I don't think it’s worth the airspace. The fact that we have low fixed rates right now is probably a good indication that rates will be going down not up. Fixed or variable is a pre-occupation with people taking out a first loan. Statistically it is very rare that a punter has been better off taking out a fixed rate loan over a variable. The banks usually get it right. Fixing the rate is usually not the best choice for people wanting to lower their rate but is the right choice for people wanting to gain certainty and security of expenditure around the interest payments. It’s also a good choice for people who have a large property portfolio and are highly geared so if the rates shoot up they don’t have to sell in a falling market. Sometimes it is beneficial to split a line of credit with some fixed and some variable. Speak to your bank or broker. The possibility of interest rates hitting 18% again is very unlikely. If it did it would be for a short time as any government would be quickly shuffled out of office if it maintained any rate over 10% for very long. More on Property Investing in my next issue. __________________________________________________________________ Two Day Training with Jules Dawson Sat 3rd/Sun 4th March - 9am to 8pm each day Venue - Peppers Salt Resort & Spa - Kingscliff Click For More Information ________________________ MetaStock Installation & Training: Kingscliff - 17th March 2007 Venue - Peppers Salt Resort & Spa - Kingscliff Program hours are 9am to 5pm __________________________________________________________________
The next full edition of this free newsletter will come to your Inbox in approximately one month’s time. It will be packed with solid information to help you improve your life in ways that are always wealthy and wise. ’Til then... Many Happy Returns, Jules Dawson Jule Corporation Pty Ltd Forward |