Aussie Finance Blog

Australian personal finance news, tips and advices.

How to Improve Your Student Finances with a Personal Budget

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Uni life taking its toll? If you seem chronically short of cash and struggling to pay for rent or groceries each week, you need a budget. A student’s finances won’t be princely sums to begin with, especially since we can’t work full-time amid our studies; but we can make our student finances stretch a bit further with some clever budgeting and some other financial tips.

Debt isn’t always bad: student loans for investing in yourself ... (read more)

What Is a Bank Overdraft Used For

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Australians have a lot of financial obligations to keep track of. It’s not uncommon for a person to hold a dozen accounts with banks, lenders, service and utilities providers, clubs, retailers and more. Keeping financially afloat while the coffers are constantly diminishing is a wearying prospect, and the ongoing pressure of debt is a sign that things need to change. Loose spending and over-commitment can be reined in, but staying on top of finances requires a consistent and balanced approach. Often overlooked as a solution, a bank overdraft can provide smoother sailing for those who need to weather a financial storm.

The safety net of a bank overdraft provides peace of mind. Fluctuating fortunes can be balanced by using a bank overdraft for flexible access to money when it’s needed. When managed properly, an overdraft can provide leeway during times when money is short, with the account again replenished during more lucrative times. With an overdraft, funds are readily available, unlike other loan arrangements that lock borrowers in with rigid terms and conditions. Overdrafts have utility for both short and long term financial advantage when used wisely.

Advantages of a bank overdraft

A bank overdraft allows the withdrawal of funds in excess of the account balance. There are fees and interest involved, so understanding the advantages and disadvantages of a bank overdraft is essential to use it effectively. A history of responsible money management and a reliable income stream (or inconsistent but adequate earnings) are needed to access an overdraft facility. When used wisely, an overdraft can assist a person of average means to remain on top of finances, always having money on hand when required. There are quite a few bank overdraft facility advantages worth considering.

  • Timing the flow of funds is particularly useful for plugging cash flow gaps. Paying bills, clients and even employees can be difficult when expenses temporarily outpace income. Using an overdraft, it’s business as usual, without unwanted financial headaches and distractions.
  • Flexible bank overdraft arrangements mean the money is on hand whenever you need it. Interest is only paid on money used, so the overdraft facility can remain untouched and interest-free until needed. Flexible arrangements facilitate short-term and long-term overdrafts for meeting personal financial obligations and retaining composure even during occasional financial upheavals.
  • Late payment fees are an unwanted and unnecessary expense that way too many people experience on a regular basis. A bank overdraft facility will automatically make timely payments to business and service providers even when there is no balance in your account. Developing a relationship of trust and reliability with your bank results in financial give-and-take for everyone’s benefit.
  • Financial leverage is attained by accumulation of wealth, equity, and a good payment and credit history. A bank overdraft will ensure your credit record remains clean, while also helping you avoid embarrassing situations where a miscalculated bank balance leaves you short of ready cash.
  • Interest repayments on a bank overdraft are often minimal compared to other loans. With an overdraft, interest is only paid on funds utilised, whereas other loan arrangements demand regular and fixed monthly interest repayments.

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    3 money-saving tips for buying a new car

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    That new car smell, the smooth ride, the envious look on your neighbour’s face, the empty savings account … hang on, that’s not right. There are certain things that make buying a new car worth it, and an empty bank account certainly isn’t one of them. But you know what? You really don’t need to spend as much as everyone else does for a brand new car and here’s how you go about it.

    Time it right

    The time of the year can be a massive factor in how much (or how little) you pay for your car. Choose to buy your car towards the end of the financial year, and you could secure yourself a very nice deal. You see, at this time of the year, dealers are eager to hit their sales targets for the year or to beat last year’s record. Whatever their motivation, there’s no doubt that they are much quicker to offer cut-price deals or throw in free extras at this time of year.

    You can also get good deals in December as manufacturers push dealers to sell that year’s model before the calendar year ends. So think December and June for maximum savings.

    Get a finance broker

    You may have this idea that finance is not the best way to save money but the truth is that very few of us have enough money in our accounts to buy a car outright. And even if we did, taking that much out of your savings is a rather depressing thought.

    No, your best option is to finance that new car and keep your nest egg intact. And saving money on your loan is a definite possibility if you use a broker like Stratton Car Finance. By using a broker, you could be cutting down costs right off the bat by avoiding dealer finance which is often overpriced and has unfavourable terms.

    However, when you use a broker, they will find you a variety of competitive rates currently on the market giving you the option to pick and choose the product that suits you best. And once you have the finance arranged, you can head to the dealer safe in the knowledge that you have the financial side of the deal sorted. This puts you in position of power with regards to buying, and if you play your cards right, you may be able to squeeze a few add-ons as a deal sweetener. Something that a dealer might not do if they were doing you the ‘favour’ of arranging your finance.

    Ask about demo models

    Demo models are those cars that you take for a test drive, and that usually spend most of their time in the showroom. They are always tricked out with all the very best features, but at some point, the dealer will need to get rid of their demo model and bring in a new one. And that’s where you come in.

    Ask the dealer if they have any demo models for sale. These cars offer incredible savings and often have very low kms on the clock. And while a decent demo model may not be as cheap as a base model, it will have all of those additional features so you’ll get way more bang for your buck.

    Just be careful to check all handles, buttons, and levers as these will have quite a bit of wear and tear considering how many test drivers played around with them in the showroom.

    So remember the next time you’re in the market for a new car – time it right, use a finance broker, and ask about the demo models. Use any one of these tips, and you should save a little money. Use all three, however, and you’ll be surprised at how much you can shave off the price of a new car. Maybe that leather interior you like so much is possible after all.

    How to Save on Electricity During Summer

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    Australia is known for the hottest summers in the world. Sadly, these summers are not just bound to get even warmer, thanks to climate change – they’re projected to become twice as long as the winter season too.

    This year alone, temperatures are expected to break record highs. You’ll need to make the necessary preparations to keep you and your family cool for the summer months. But with electricity costs skyrocketing, how can you stave off the heat without breaking the bank over your electric bill? ... (read more)

    Debit Vs Credit? Which do Australians Prefer

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    Credit and debit cards have been in existence for decades and provide a familiar and convenient way to pay. The question is though, with the dash from cash, accelerated by Covid-19, what are the preferences of today’s Australian consumers when choosing between these two options? And what are the differences between debit and credit card protection?

    To begin, we will explore the credit and debit card landscape in Australia. ... (read more)

    How to choose the best mask for bushfire smoke

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    Post updated on 11 January 2021 with new product info.

    Smoke mask is not a topic I would normally write about but given the circumstances (large bushfires in Australia), I think it’s important that we talk about the risks and options we have to protect ourselves and our family (including our pets). Scroll down if you are interested in the smoke masks only. I also found a smoke mask for dogs.

    Protect Your Family from Bushfire Smoke

    It was nearly the holiday season and the end of 2019 was just around the corner. But with dozens of bushfires raging all across the country, Australia was in a state of crisis. South Australia shut down more than a hundred schools due to a catastrophic fire warning and even those further away from the actual flames were suffering from the effects of wildfire smoke. ... (read more)

    How to Choose an Air Purifier for Bushfire Smoke

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    Last updated on 11 January 2021 with new product info.

    There are the dismal statistics we read about the direct effects of bushfires that burn for months in different parts of Australia. Australia is often severely affected by bushfire smoke that’s blanketing the country. There have been instances of asthma, breathing difficulties and other respiratory ailments in Sydney and other cities. People have been advised to stay indoors to avoid exposure to bushfire smoke. But while commercial buildings are equipped with HVAC systems that have filters, homes aren’t always equipped with such systems that protect family health. This is why home purifiers have been in high demand for most people lately. ... (read more)

    Strategies for a Fun but Frugal Christmas

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    A growing number of Australians believe that it’s about time for people to stop feeling pressured about gift-giving. This year, they’re reducing the budget they’re allotting for presents and are opting to celebrate the Christmas season for what it’s truly about. 

    You can still have a fun Christmas even if you haven’t saved a lot of money for Christmas shopping. After all, how you spend the holiday with your loved ones can be more memorable than any of the gift they might receive. ... (read more)

    Cryptocurrency Maps. Charts And Prices: Everything You Should Learn Before Investing In It

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    It’s safe to mention that cryptocurrency is risky. For one, inefficient trading may lead to more financial loss than gain. Still, it’s possible to reduce potential losses and increase profit opportunities by understanding the fundamentals. In particular, you should learn the ins-and-outs of cryptocurrency maps, charts, and prices. 

    Continue reading to know some essential aspects of these topics. By reading this article, you should gain sufficient knowledge of trading cryptocurrency.   ... (read more)

    How will the relaxed lending regulations impact Australian borrowers?

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    Getting approved for a loan or credit card isn’t always easy. Potential customers often have to jump through multiple hoops as part of the application process, and there’s no guarantee that this will result in a lender’s tick of approval either.

    But this process may soon become easier for borrowers.

    In late September, the government announced that it plans to stimulate the economy by removing the responsible lending obligation from the National Consumer Credit Protection Act (2009). ... (read more)