smart money strategies
Use your equity
The other day a friend asked me to help her with a personal loan to pay for her upcoming wedding. She applied for a personal loan with one of the major bank. The loan was approved and the rate offered was something like 14%. My friend was happy to accept the rate but the bank wouldn’t release the money because they wanted receipts to prove that she is spending the money on the wedding! The bank wouldn’t just give her the cash. Very frustrating when you’re planning a wedding! She asked me what she can do to get the cash without having to go through with all the trouble of receipts and bank cheques.
what is negative gearing?
Negative gearing is not about making tax losses, far too many people think of negative gearing as a tax strategy rather than a tax effective investment strategy. You’re decision to invest should be based on the potential of the investment making you richer or increasing your wealth in the long term, and giving the tax man less is an added benefit! Not the other way around, you should not enter into a loss making investment purely to reduce your taxes, you may be risking a lot more to save a few dollars in tax.
make your money work harder for you
If you have cash sitting in your saving account, firstly congratulations, I am envious. But are you making good use of that money? Well it depends on what you mean by “good use” right? No I don’t mean spending that money on something you always wanted. What I mean is, is that money working hard to help you pay off your debts quicker?
