Money

More to finances than the markets

Noel Whittaker
Noel Whittaker

AS we move into the new year  with all its hope and uncertainty, remember that there is much more to taking care of your finances than merely watching the markets. 

A good metaphor is an injured leg due to a sporting mishap - naturally you would pay particular attention to that leg, but you would be foolish if you became so focussed on it that you neglected all the other aspects of life.

Start off on the right foot by getting your debts in order. List your loans, enter the interest rate and the monthly payment next to each one, and then separate them into those where the interest is non-tax deductible (for example your home loan and personal loans) and investment loans where the interest is tax deductible.

Tax-deductible interest costs much less than non-deductible interest so check that your deductible loans are on an interest-only basis to maximise the funds you can plough into your non-deductible debt. 

The optimum payment for your home loan is $12 a month per $1000 (for example $2400 a month on a $200,000 loan) which will have it paid off in less than 10 years with minimal interest.

If you're stuck with personal loans and credit card loans, attack these first as they carry a much higher rate of interest.  Use all your spare money to pay off the smallest loan quickly and, when that is out of the way, use the repayments no longer needed for it to speed up repayments on the second smallest non-deductible one. Do this and you will be amazed how quickly you will start pulling yourself out of debt.

Finally never forget that becoming wealthy is not a matter of how much you earn but how well you use the money you do earn. 

Despite the challenges of the last year your new year's resolution should be to make 2012 a year when you structure your finances to make the most out of every dollar you earn.

Noel Whittaker is a director of Whittaker Macnaught Pty Ltd. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. His email is noel.whittaker@whittakermacnaught.com.au.

Topics:  finance noel whittaker


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Bluesfest director: Nobody knows why Neil Young cancelled on us

Neil Young  (Photo by Rich Fury/Invision/AP)

Director of Bluesfest seemingly throws some shade at Neil Young

Pacific Hwy fully reopens after truck inferno

Emergency services cleaning up the remains of a truck fire that erupted on the Pacific Hwy northbound near Watsons Ln. February 20, 2017.

Pacific Highway fully reopen after truck fire

'I didn't even know what a mum was': Celeb on Byron cult

Former The Bachelor Australia contestant Keira Maguire.

Keira Maguire reveals her past to I'm A Celebrity camp mate

Local Partners

Byron woman should be jailed for eight years: Prosecutors

SARA Connor escaped a recommendation of guilty of murder, as prosecutors submitting said there was no intention to murder and that the crime came from a fight.

Sir Elton John coming to Mackay: What you need to know

Sir Elton will come to Mackay and Cairns in September.

Tickets to the concert go on sale on March 14

MAJOR ANNOUNCEMENT: Global superstar to rock Mackay in 2017

A major concert is set to rock Mackay this year.

Mackay, Cairns to host world's biggest superstars Sir Elton John

The Waifs announce second Northern Rivers show

25 YEARS: ARIA award-winning band The Waifs returns Bangalow with two shows.

Ironbark is their new album, celebrating the band's 25th anniversary

MOVIE REVIEW: Trainspotting sequel as good as original

DIRECTOR Danny Boyle puts on a masterclass in how to use a 20-year gap between movies to your advantage.

How Karl Stefanovic's wife, kids found out about girlfriend

Karl Stefanovic and Jasmine Yarbrough after their day on Sydney Harbour. Picture: Jonathan Ng

Pictures splashed across tabloid were shock to family

WATCH: Toowoomba opera hopeful's incredible voice

Kaitlyn Orange attends Opera Queensland auditions at Empire Theatres for Opera at Jimbour, Saturday, February 18, 2017.

Opera hopefuls vie for parts in performance at Jimbour House

MKR turns spiteful in suddendeath elimination

Alyse and Matt battled Josh and Amy in a spiteful elimination cook-off.

Bottom of the ladder faces off in spiteful sudden-death cook-off.

Jilted Married At First Sight groom rejected again

Is Married at First Sight groom's second chance over already?

Sir Elton John coming to Mackay: What you need to know

Sir Elton will come to Mackay and Cairns in September.

Tickets to the concert go on sale on March 14

MAJOR ANNOUNCEMENT: Global superstar to rock Mackay in 2017

A major concert is set to rock Mackay this year.

Mackay, Cairns to host world's biggest superstars Sir Elton John

Popular island resort sells to loaded international investor

OUR PICK: Chris Foey's colourful shot of one of Gladstone's great tourism hot spots, Heron Island.

International investor snaps up piece of Gladstone paradise.

Potential home buyers punished for doing the 'right thing'

Should I go to university or buy a house?

What $11.9m can get you on Coast's most exclusive street

29-31 Wyuna Drive Noosaville Qld 4566

This is what a cool $11.9m can get you

How a first home buyer built house with no deposit

NEARLY THERE: Construction on the first house to home orphans at Umoja began in January.



Photo Contributed

His home will be completed later this year.

Ready to SELL your property?

Post Your Ad Here!