Summary Of The Week:
- BLOG 011 (Morning Routine For A Successful & Productive Day) – highlights how having a consistent morning routine maximises your productivity and positively impacts your life in achieving your short, medium and long-term goals. I provide a list of the 8 things I do each morning to start my day off right.
- BLOG 012 (First Home Buyers: How Big Should Your Deposit Be?) – breaks down how much of a deposit you need to buy your first home. I provide a practical step by step guide on determining how much you need to save and how best to reach the goal amount.
- BLOG 013 (My Verdict On Acorns: The Micro-Investment App That Invests Your Spare Change) – reviews Acorns: an automated financial investment service, helping you to save and invest your money. Fundamentally, Acorns is the digital equivalent of a coin jar. But it’s by far the smartest coin jar you’ll ever own.
- BLOG 014 (Minimalism: How Living Meaningfully Adds Value To Your Life) – explores the benefits of Minimalism. I believe living with less leads to a more purposeful life and incorporating this lifestyle allows you a life with more time, more money, and more freedom to live a meaningful life. Living with purpose will enhance your life exponentially.
Quote Of The Week:
“Our memories are not in our things. Our memories are in us” – The Minimalists
Book Of The Week:
“The Four Agreements” – Don Miguel Ruiz
The Four Agreements provides a practical guide to personal freedom. These four statements have been my guide before which are deeply embedded even more so now. This is a book I would advocate everyone to read.
Short, Practical: 7/10
Article Of The Week:
My good friend Daniel Sims is an up and coming investment analyst who writes insightful investment articles weekly. This one is on how you can prepare for the next large equity market collapse. He provides a simple checklist that you can follow which will help in limiting the possibility of making irrational decisions and leading to better long run performance of your share portfolio.
Video Of The Week:
Highly recommend watching this Four Corners episode “Betting on the House”. It investigates housing affordability and mortgage lending in Australia and questions whether Australians obsession with owning property has pushed us to the brink of an economic collapse.
The facts are that Australians are carrying more personal debt than ever before. For every one dollar earned, on average, Australians have nearly two dollars of debt. We hold the dubious position of having the second highest level of household debt in the world with almost twice that of the United States. Much of this stems from our obsession with buying real estate.
While debt has been increasing, wages and incomes have remained relatively static. 820,000 (one in four) mortgaged Australian households is in mortgage stress i.e. household income doesn’t cover expenses. This has impacted the daily lives of many Australians who are struggling to afford food to support their family as well as added pressures on relationships and family life due to the constant worry of defaulting on their home loans.
In 2008 the Reserve Bank cash rate was 7.25%. Today it’s just 1.5%. But even with interest rates at historic lows, Australian households are stretched like never before. The slightest change to income, rise in interest rates or price increases of day to day expenses could tip many Australians over the edge.
As a believer of Free-Market Capitalism, Four Corners unfairly puts a lot of the blame on the banks as investors should take some responsibility for borrowing habits in Australia.
I note that this episode does not address all the factors affecting Australia’s housing problems such as tax policy, negative gearing and population growth.