Managing loans and mortgage part02

What's the best loan?

Usually it's the loan with the lowest interest rate. this often the single most important thing to get right , so shop around. Event small differences in interest rates can make a big difference the total amount you will pay, especially with log-term loans. Extra features that cost you more in interest rates may just waste money.

Which loans should you pay off first?

Pay at least the minimum amount due to every lender on time if you can afford extra payments, start with the loan changing the highest interest. Only put extra into other loans after the most expensive one has been paid of. The lowest-priority loan is one that has tax-deductible interest-for an investment property loan, for instance.

Why pay loans and mortgages off faster?
Paying off your loan faster can save you thousands in interest payments.

One single way to get ahead is to pay your loan fortnightly instead of monthly. In effect, you make the equivalent of 13 monthly payments a year instead of 12 . Fortnightly payments will cut for years off a 20 years home loan of $200 000. And if you can pay an extra $ 100 per fortnight, you will cut seven years off your loan.

If you have some money to spare, consider reducing your loan balance. Paying $ 1000 off a credit card changing you 18.5% interest  obviously beats putting the same money into a term deposit earning 5.5%.

Also, remember the effect of tax. Paying $1000 off a loan charging interest of 6.5%, saves a full $65. Even if you could invest the money somewhere else that earned $65, you would then have to pay tax.

Be careful about claims that refinancing will pay off your loan faster. You can only pay off loans faster  by paying more money . Only refinance if you can sure the saving outweigh the costs.

Source: ASIC 

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Managing your Loans and Mortgage Part 01

"Getting into debt is far easier than getting out of it. If you shop around and manage your loans, they won't make a mess of your finances." 

When you should borrow? 

Look at the total cost including all the interest before you borrow. Only borrow if you are sure you can afford the repayments. 

For things you just Want, such as holiday, it's cheaper to save up for them. Even for things you may Need, such as a smart phone, it cheaper to save if you can. 

If you do borrow, pick the shortest  repayment period you can afford, especially for anything that you use up quickly, like a holiday, or that loses value, like a smart phone. 

For a home, almost everyone has to borrow because it's hardly realistic to save up for one. In this case, it can make good sens to borrow, because a home could increase in value, perhaps even faster than the interest rate you will pay.

How much should you borrow?  

It pays to be cautions. Lenders or mortgage brokers may offer you a bigger loan than you would feel comfortable with. 

Interest rates could go up, and if you borrow to much even a small rise could get you into trouble. 

Could you afford to do that for the full term of the loan,maybe for 20 or 25 years?

Tip: Do a trail run before you borrow. Try saving an amount equal to your repayments each month, or saving the difference between your rent and home loan repayments. 

Source: ASIC

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Kingdom of Animals

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In 2011, the western black rhino (a subspecies of the black rhino) was declared extinct, after being on the list of Critically Endangered species for over a decade. As recently as the 1900s, however, it was the most abundant of the rhinos, its population close to a million, but by 1995, only 2500 western black rhinos remained, and that number was decreasing.

The extinction of the western black rhino is blamed on hunting, mostly for their horns, which are used in making ceremonial daggers as well as in traditional Chinese medicine. Read More

The western black rhino was about 12 feet (3.7 meters) long and, like other brown rhinos, ate the leaves of plants. When it was too hot to eat, it slept or wallowed in the mud. Watch more  related 

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The Amazon rainforest is the largest rainforest in the world, occupying an area shared by nine countries — Brazil, Peru, Colombia, Venezuela, Ecuador, Bolivia, Guyana, Suriname and French Guiana.

In fact, it is so large that it represents half of the remaining rainforests on Earth. It is an amazing natural sanctuary, home to unique plants and roughly 16,000 species of animals, many of which cannot be found in other parts of the world. Some scientists even say that there is a new species of animal discovered in the Amazon rainforest every 3 days!
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The Amazon Basin is the world's largest rainforest, drainage area for its second largest river and one of the most biodiverse regions on Earth. Tropical forests have been present in South America for millions of years and were at one point spread over most of the continent.

As the Earth cooled and grasslands spread, the rainforests retreated to strongholds like the Amazon Basin, shrinking and growing as ice ages came and went. Today's Amazon rainforest covers around 5.5 million square kilometres and sprawls across nine countries. It is hugely biodiverse, with some 10% of the species known to science calculated to be found there.
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Financial Success Isn't One Size Fits All!– Robert Kiyosaki

"To obtain financial freedom, one must be either a business owner, an investor, or both generating passive income, particularly on a monthly basis."

Why such a huge difference? First, formal classroom education is largely out of context with your hopes, dreams and aspirations. Second, formal education tends to be "one size fits all," hardly the recipe for involvement. In contrast, a coach or mentor's impact on your life is so much greater because a coach teaches you in specific context of something you care about. Equally important, your coach focuses on your specific strengths and weaknesses; if you have a bad slice, your golf coach doesn't focus on how to fix a hook!
Focus and customization is exactly what makes Rich Dad Coaching so successful. Every Rich Dad Coach customizes the coaching program to your interests, needs, hopes and dreams. Then your coach helps you create a specific plan and holds you accountable to make it happen. They'll provide you with the experience and motivation you need to pursue success. Register here

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