Aussie Finance Blog

Australian personal finance news, tips and advices.

Contactless Payments: How Do They Work?

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Are you someone who absolutely hates how long it takes to make a transaction using a credit or debit card? Do you worry about card fraud a lot? If so, you will love contactless payment systems, which involve the use of contactless cards, stickers, key fobs, mobile devices, and wearable gadgets.

In a nutshell:

  • It is secure. You don’t need to hand over your card to the cashier. For the entire transaction, the card never leaves your hand.
  • It is fast. You don’t need to enter a PIN or leave a signature for purchases under $100.
  • It is easy. You just need to hold the card close to the terminal.

Contactless payments make life a tad easier for the average consumer. 

History

Contactless cards have been available in Australia since 2006 but it only started to gain traction in the last few years. From the 7.6 million cards issued in 2010, the number grew to 18 million in 2014. With more and more retailers accepting contactless payments, the total number of contactless cards in Australia should reach 33.9 million in 2019, Timetric predicts. ... (read more)

No Money to Start an Online Business? Here are 5 Ideas

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Source: Pexels

Though money can take you places, there is no guarantee that a bigger investment leads to success. The invention of the internet is indeed a blessing to many who dream of pursuing a business. As long as you have an internet connection, a laptop, and comfortable space, you can start any online entrepreneurship venture even with minimal cash.

You’re in the right place because today, we are about to reveal opportunities that’ll improve your financial future – the digital way. The best part is that you don’t need hundreds or thousands of dollars in order to get your business up and running. ... (read more)

How to buy property with No Deposit

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Using a guarantor to borrow more than 100% of your property’s value

It is possible to borrow up to 105% of a property’s value through some lenders, with the help of a guarantor. This has a number of benefits, including allowing you to buy a property without a deposit, and – as we explore later, can also save you from the cost of lender’s mortgage insurance (LMI) that can apply to more highly leveraged loans. ... (read more)

Five Reasons Why Reverse Mortgages Are a Good Option for Australian Seniors

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Guest Post by Andrew Ford, CEO of Heartland Seniors Finance

People often ask me why am I so passionate about Reverse Mortgages. I guess many Australian seniors are either wary because of the misinformation and misconceptions that still linger in the market, or don’t see how someone can be so passionate about a ‘financial product’.

The reason that I love Reverse Mortgages so much is that I have seen firsthand what they can do for people. I have spoken to, and met with, thousands of seniors whose lives have literally been changed by a Reverse Mortgage. I think that’s pretty neat. ... (read more)

5 Fundamental factors that influence the foreign exchange market (infographic)

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What makes the prices of currencies move on the open market? This is one of the first questions that virtually every trader tries to answer. The reality is that values fluctuate constantly in the currency markets and, more often than not, they are at the mercy of the countless trends and influences found throughout society. 

Factors that Influence
Geopolitical turbulence, macroeconomic policy, government legislation, and technological breakthroughs all rank among the most influential world events on forex prices. Events which affect the forex market can be as benign as a democratic election which returns the predicted outcome, or as unpredictable as the outbreak of a war, or a natural disaster. ... (read more)

How to Live Within your Means Whilst still Enjoying a Takeaway

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“Brick Oven Special Pizza” (CC BY-SA 2.0) by Mike Saechang

Enjoying a delicious freshly-cooked takeaway meal at home is one of life’s simple pleasures. It’s a moment in time when you can relax and unwind with family or friends and sample some of your favourite foods without even having to lift a finger in the kitchen yourself. Unfortunately, for people who need to tighten their financial belts to save money for a house deposit or to pay off that loan, takeaways tend to be one of the first things binned from the luxuries list. That’s without even attempting to find other ways of cutting back and keeping enough cash for a couple of takeaway treats each month. ... (read more)

What Is NPP, the New Payment Platform?

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The NPP (New Payment Platform) is an innovative platform to give Australian consumers and institutions a new way to make everyday payments. Also known as the New Payments Platform, the NPP will allow Australians to make low-value payments 24 hours a day in less than 30 seconds. The system will operate seven days a week, 365 days a year, with no holiday breaks.

Since Australian business—just like the global economy—never sleeps, a round-the-clock payment system that can get payments into the right hands in less than a minute is a real boon for the country. The NPP is the real-time payments infrastructure that Australians need to kick their economy up to the next level. ... (read more)

7 Steps to Creating a Well-Diversified Portfolio

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How can you make more money when investing? And how do you protect your investments from market downturns and unexpected future events? The answer is diversification. If you’re looking to build your investment portfolio, diversifying is important.

A diversified portfolio can help protect your income and wealth during various stages of the economic cycle and provide good long-term returns.

Here are seven tips for diversifying your portfolio. ... (read more)

What is an Open-End Loan

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Open-end loans provide funds for projects, vacations, hobbies and more. They deliver access to an ongoing line of credit that can be redrawn and re-purposed anytime, if loan conditions are being met. Credit card owners may not be aware, but they also rely on a line of credit and an open-end loan. In other words, if a loan is flexible and doesn’t have an exact date for repayment, it is an open-end loan. ... (read more)

What Is a Line of Credit

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Fluctuating fortunes mean there will always be times when assistance is required to plug financial gaps, pay bills and keep the business afloat. There are options for quick finance, such as credit cards, but interest repayments can make them cost-prohibitive in many situations. An alternative loan option is a line of credit, with lower interest rates and other budget-friendly features.

A bank line of credit provides customers the opportunity to borrow additional funds or utilise equity. Banks extend lines of credit (LOC) for a multitude of purposes, from home renovations to business expansion and more. The most well-known of this loan type is the home equity line of credit (HELOC), usually used for renovating or remodelling established residences. A line of credit is also accessible to the self-employed, those with inconsistent earnings, and people wanting to get their business off the ground. ... (read more)