David Koch is the host of Channel 7's Sunrise breakfast program and the founder of Pinstripe Media.
An exciting weekend of football Grand Finals ahead. Sadly my team, Port Adelaide, failed at the last hurdle to make it to the AFL’s big dance. As President since 2013 it has been fascinating to be part of a professional sports organisation and observing how high performance teams operate. And I reckon all business owners can benefit from some of their strategies.
The Australian economy was in pretty good shape going into this pandemic. It's fair to say, if you had to be in any country in the world to get through this recession it would be Australia.
I’ve mentioned this before, but it’s worth restating, while Government debt will obviously rise to fund the economic stimulus packages the debt level is easily manageable… and it’s borrowing at an interest rate of less than one per cent. For example, just this week the Australian government sold $2bn in bonds set to mature in 2030 at an average yield (interest rate) of 0.8759 per cent and had demand from investors of more than three times the offer.
Don’t get me started on credit card interest rates… the only financial product to not cut its interest rates despite official rates being at historic lows. And, according to the Reserve Bank, staying this low for years to come.
The ABS employment numbers were a shocker in anyone's book. Employment declined by 227,700 in May, worse than expected, and the unemployment rate was up to a 19 year high of 7.1 per cent… up from 6.4 per cent in April.
The Australian economy shrank just 0.3 per cent in the March quarter… pretty good when you consider drought, bushfires and the start of the pandemic. By comparison, the US economy shrank 5 per cent in the March quarter; the UK fell 7.7 per cent; Germany fell 8.6 per cent; and China fell 33.8 per cent.
The TPB says businesses should take extra care when seeking outside assistance in accessing the government’s COVID-19 stimulus measures as unregistered tax operators and online scammers are attempting to capitalise on many small business owners lack of know-how.
‘The investment property market is being hit hard by the pandemic which is seeing a huge increase in residential properties up for rent which is pushing down rental income. Inner city Sydney and Melbourne are the hardest hit.
Here’s a challenge. We want you to spend 15 minutes a month thinking about your money. Doesn’t sound much but how many people, or couples, actually sit down and think or talk about their finances. No, we’re not talking about paying bills, checking the credit card statement or doing the banking. That’s managing your money and very different to being informed and thinking about your money in the big picture.
**Given the current global climate, we realise many of you have a lot of questions about personal and business finance. And that’s why, we’re going to be running more frequent Facebook Live sessions in the coming weeks. Follow our Facebook Page for constant updates. Drop your questions and feedback in the comments section below and we’ll answer them next time we go live.
The Coronavirus Health Crisis is also rapidly morphing into a Personal Financial Crisis for many people. It is seriously scary out there. We are almost certainly heading for our first economic recession in 29 years.
Success or failure when it comes to investing often comes down to our personal psychological traits, and the way we make decisions, rather than the actual quality of investments themselves.
Be honest. Who’s feeling a bit of financial strain at the moment and who dreams of a big inheritance to not only solve those financial problems but also fund a better lifestyle?