So was in Woolies Sunday afternoon, and at the checkout an older woman (late 60s?) with a full trolley, was trying to pay using the old plastic.  Thing is, for some reason it just wouldn’t accept her card. She showed the checkout chick and even myself that she clearly had sufficient funds by showing us her internet banking accounts & balances. Didn’t matter though, as her plastic just wasn’t being accepted, which also meant not being able to get cash out and pay old school.
Since Christmas evening, there’s been 2 power losses here on the northern Gold Coast.  That means no way of paying for goods using plastic. No buying groceries or goods unless you have cash. I went to local Bunnings the day after Boxing Day, so a full 48 hours after the tornado storm, and the power was still out and they were still unable to accept online payment. So it was cash only, or something I hadn’t seen in use since the 90s….. the good old manual “click clack” credit card imprinter.
This move to ‘cashless Australia’ seems inevitable, just like what the ATM, Phone Banking & Online Banking did to banking, that is, the ability then to reduce costs for the Banks, reducing frontline staff numbers, and closing Branches. We’re now at a stage of Banks removing those ATMs due to the reduced use and more businesses no longer accepting cash.
My loan Golf Club pro shop no longer accepts cash even for a drink or bucket of balls. A major car dealership in Southport has not accepted cash for servicing, parts or merchandise since early 2023.
Yes, it’s actually legal for a Vendor to not take cash, but they have to offer an alternative method of payment, AND they must advertise at or before the point of sale what their payment acceptances are. If they don’t advise their alternative payment methods, they must accept cash, being still legal tender under the  Reserve Bank Act 1959.
Cash must be used and protected.  Going full digital in currency takes away your privacy to transact and purchase what you want, when you want, and without questioning by Banks, Brokers, the law, and the wife.

I understand technology and advancements, and yes it’s quick and easy to ‘tap n go’, but what this movement towards cash removal can take away is possibly much more.
The removal of cash can take away the ability for that old woman who needs to buy her weekly groceries if her plastic doesn’t work.  It takes away the ability for the young kid who wants to earn some pocket money by washing the neighbours’ car or mowing their lawn.  It takes away the ability to give some spare cash or change to the local busker, street charity container or homeless person.
Importantly, it takes away more of your privacy, in an age where we already have less privacy that our parents.
Additionally, going fully digital in currency can  result in possibly a significantly reduced borrowing capacity for the average consumer who doesn’t watch what they spend or doesn’t have a budget in place.


That’s a message for a future article.

With the new year well under way, and another rate increase by the RBA, it's timely to review where we're at, and importantly what's ahead.

Historically the RBA Cash Rate is still low when compared to recent decades. While there's still expectation rates will increase again this year, there's a feeling the RBA will pause after the next increase to reflect on where the economy is placed.

Some Lenders still expect RBA to increase rates by another 0.50%. by the end of 2023.
On the positive side, there's evidence that inflation is starting to slow in Australia, with expectation that this will flat-line by end of the year. Certainly this is evident in some overseas economies.

This means we could finally see the end of rate increases by year's end, with possibility of rate reductions in 2024, depending on the impact of the current rate increases, softening inflation, and slowing house sales.
​
So hang in there, we're nearly through this. Look after each other, and if you feel your current home lending is not the best it could be, feel free to reach out to me for a chat.

Today marks 6 years as a finance broker, and happy to say business still going well.

Grateful to have helped so many people and families with obtaining finance for their home, their investment property, their new car, or those extra funds needed to make life a little easier.

In an industry where a sizeable percentage of new Brokers don't make it past 2 years in operation, i'm thankful for the support of my clients, my friends and those partners who place their trust in me and my service in passing my details onto their own friends and clients.

Having previously spent 25 years with mainstream major Banks in Australia, I guess a certain level of expertise is gained, both from a lending side, but also in how to deal with people on a personal level. Everyone is different, and everyone has different goals and understandings, and it's how you relate all that together that makes each interaction personal.

So here's to many more years of helping people navigate the increasingly difficult world of finance, and having some fun along the way.


​Peter Taffe

Well another year almost done, and finally looks like the states and country are finally opening up.
Whatever your side about vaccination or non-vaccination, about freedoms or good of the people, let's all take
the time this Christmas to reflect on the year that's been, and more importantly, on the year ahead.

From Taffe Financial Solutions to you & your family, wishing you a safe and Happy Christmas, and a prosperous 2022.

​Peter Taffe 

Well here we are in Dec 2020. What a crazy and unprecedented year it's been.  Event cancellations, business closures, border closures, we saw it all this year.

We've all heard and seen the negatives that occurred, but I want to focus here on moving forward, and what the positives are and will be.

Firstly business.  With borders re-opening, finally, many businesses are returning to trade, which brings with it the staff that may have been laid off or placed on significantly reduces hours.  Businesses re-opening will re-establish all the related trade relationships including Suppliers, Growers, Transportation, and all the staffing needed for those businesses.

In this lead up to Christmas, an already busy time for most retailers, this will hopefully see those businesses that were on the brink of collapse, finally able to pay rent, pay wages, and importantly pay themselves and keep their business alive.

Secondly border re-openings will finally allow for not only family members to finally see their loved ones, but also allow those people who want to get away from everything, to take that vacation, be it locally or interstate.  Again, the flow on benefit to the struggling hospitality sector, especially here in sunny Qld,  will be most welcome, and again see staff back in work.

What do we take away from 2020?

If nothing else, planning and budgeting.  Unlike the State & Federal Governments, the average person can't simply print more money or issue Bonds to keep their lifestyle going.  The man in the street needs a plan, and that plan should always include a cash reserve.  This can be called whatever you like, but I call it the "In Case Sh*t Happens Fund"

Your hot water system blows up.... Your kids needs emergency medical treatment....  The family car is stolen and insurance won't replace it, or worse, you're involved in an accident that's not your fault, and the other party doesn't have insurance to cover your repairs or vehicle replacement. Yes you can borrow money for this, but should you have to?

Let's include now the fall out from 2020 ....   You're placed on indefinite leave from work with no income to pay the rent or mortgage ....   Your business is forced to close for a week, a month or longer and you still need to pay full time staff and the lease.  Where's your money coming from?

I've said in many posts that everyone should have a budget. Know what's coming in and what's going out each month.
That budget should include first a sum of savings that comes out of your income before the bills, and placed into a separate savings account.  If the month's bills are higher than normal, you have the money to cover them.  If the monthly bills are less, then your savings increases.

Yes, those savings can be put towards your first home, second home, or investment property.  That ultimately comes down to your goals and planning, as i've covered in previous posts. But regardless, we all need to have that cash back-up just in case. 

If you have a Mortgage, you should have at least 3 to 6 months' repayments in savings.  That can be a separate account, or in addition to the normal loan repayments. I'm not saying that it'll be easy to accumulate, but nothing worthwhile is. And with interest rates at historically low settings, if you can't afford your repayments and be able to put money aside, maybe you've borrowed more than you should.

Now more than ever, there's never been a clearer example of why everyone should have money aside for that "rainy day".  The "In Case Sh*t Happens Fund".  Because one day, it will happen, and there may not be the Government bail out to help out.

I hope that those people who lost their jobs due to matters outside their control will return to work and are able to move on with their lives.  And I hope everyone has a safe and Happy Christmas, and we all have a much better 2021.

Peter Taffe

Well just ticked over 4 years working for myself as a Finance Broker. It's so rewarding being able to assist clients by offering a greater range of solutions than you would otherwise be able to provide when you work at just one Bank.
​

Building relationships with clients that sees return business is so gratifying, as are the comments of appreciation when you've helped them realise a goal, a dream, or simply to help them along their financial journey.


Wouldn't have been able to stick it out this long without the help of family, friends, and some great clients and business relationships.

If you have any family members, friends or work colleagues that you think could benefit from a financial review of their home or personal lending situation, or needing some advise on how to consolidate their debts or get into the housing market, please have them call me, or give them my name & number for a no obligation chat, 7 days a week. 

Thank you everyone, and here's to more happy outcomes and financial solutions.

Peter Taffe
Taffe Financial Solutions

Well here we are, looking already at the back end of the COVID-19 pandemic, and the associated economic and social lock-down impacts.  Hopefully you have managed to weather the whole situation without too much adversity, and you might be wondering what affect this situation has moving forward.

Personally I see this crisis as having some positives. Chief among these is that people need to realise the importance of budgeting their income, and not living on a week to week basis.  Many people realised very quickly that in the situation where loss of employment was sudden and without notice, they were left in significant financial distress, and many left wondering how they would be able to pay the next week's rent payment, or next month's mortgage payment.

While some people genuinely survive week to week due to personal circumstances including low incomes, large families, or expensive medical conditions, there is still a vast portion of society that does not sufficiently budget and allow for that "rainy day".  They live for the moment, they have the latest gear, they holiday overseas.  

That's fine if you have a strong and ongoing income stream with no commitments, however as we've seen, when your income is stopped and you're unable to immediately supplement that income elsewhere, what is left to do? What money do you have aside to see you through a medium term forced lay-off?

My father always said that savings was putting money aside from your income first towards your savings, and then determining what you needed to pay: mortgage, rent, food, electricity, water, insurances.  If you didn't have enough to cover those basics, then draw from savings and review your budget going forward.  This way you always had savings aside to cover that rainy day, or home deposit, or holiday.

Basically, if you earn $100 each week, put $80 into savings & $20 towards the necessities. If $20 wasn't enough, then review the budget and draw from savings.   But what most people do with that $100 is, hopefully, addressing the necessities and bills, but then doing some discretionary spending, and then if there's something left over, putting that into savings.   The shortcoming in this though is most times you will spend what you have, and therein not have any savings.

It's a new world and a forever changed economic environment out there.  Some employers that come through this will realise they can get by with fewer staff and fewer clients, but still maintain a profitable business.  Some businesses simply won't be coming back at all.  And as an employee, how will you be affected by this changing landscape, and what will you do to ensure that you won't be financially worse off if something like this ever happens again ?

A budget and a goal isn't the sole answer, but it is a start.

​Stay Safe.

With Christmas fast approaching, it’s timely to reflect on the year that’s ending, and whether you have reached those financial goals and objectives that came up through the year… saving for a holiday… or new car… or deposit on a new home.

Maybe the goal was renovating your current home, or buying a new one.
Maybe it was purchasing a second property as an investment.
Whatever your goal was, if you didn’t reach it, what stopped you?

Was it a lack of information, or a lack of implementation of your plan?
Did you make a start on the goal at all?

Many people have the best of intentions, whether it is financially based, or health wise, yet many people don’t follow through on those plans. And that’s not always your fault.

Sometimes we need a hand to guide us, to inform us, or to just be there to help us.

Last year I made a goal to finally lose some weight. Many of us make the same promise to ourselves, but unless you’re fair dinkum, unless you really want to achieve the end result, you’ll always fail.

To date I’ve lost around 72kg in 14 months, and i’m thankful for the support of friends, family & many clients who have followed me on this goal.

There’s still more to go, and I know this will happen, because it’s something I really want to do for myself.

So,  if you really want that financial assistance for yourself, whether it be help with a budget, setting financial goals, or information on building wealth or minimising debt, then make that decision to commit, and pick up the phone and call me for a chat, or shoot me an email.

And I promise to help you with your financial goals and future success.
​
All the best for a great end to 2019, and a brighter 2020.

Peter Taffe
Owner, Taffe Financial Solutions

Buying your first home shouldn’t be a scary or intimidating time. It should be a time to embrace new experiences, new challenges, and an opportunity to grow both in knowledge and financially.

​Many people don’t know how to go about it though, or where to even start. So here are 5 important tips to help get you moving in the right direction.

​I’ve already covered this in my first blog. Without putting a budget into place, you’re behind the 8 ball. A budget informs you on what you have coming in, what money is going out, and hopefully what you have left over to go towards your Savings.
​
With more focus from lenders on ascertaining your monthly living expenses, it’s more important than ever to be able to know exactly where your money goes each month, and if need be, where you can cut back or make changes.

With a budget in place that has a surplus after each pay, the next step is to get that deposit together.

As with creating your budget, the deposit and savings you create will depend on how seriously you want to get into the property market.

​As long as your savings are growing, this is a positive. That’s not to say there may be times when stuff happens and this may impact your savings, but continue to focus on growing the savings.

An increasing savings balance shows a Lender you have the ability to make potential loan repayments while maintaining your household budget. As a general rule, you should have 20% of the purchase price, plus the ability to cover any legals and government fees and charges. 20% deposit means not having to pay Lender’s Mortgage Insurance (LMI) to the Bank.

If you have less than 20% of the purchase price in savings, Lender’s Mortgage Insurance (LMI) may be applicable, and this once off premium will be dependent upon 2 factors;

1. How much of the deposit you have.
2. What is the loan amount required.

The lower your Deposit, the higher the LMI premium will be. Similarly, the lower your loan amount is, the lower your LMI will be. LMI can in many cases be added onto the base loan amount, and so in some cases you may not need to pay this from savings, but you will be paying interest on this as it’s added to the overall loan balance.

Your Broker can discuss other options to replace low deposit situations including parental home as additional Security, & Government Grant assistance.

​Once you have the savings together, and you think you’re ready to seriously look at properties, the next thing to do is get pre-approved for finance.

This gives you a solid idea of what property you can afford, and it quickens the overall final formal approval timeframe.

A pre-approval, or Approval-in-Principle, is basically a full loan assessment which takes your credit position, income, liabilities and savings into consideration. It provides an approval of finance generally subject to the new property being acceptable to the Lender.

As most of the loan assessment is already completed, this means you may be able to make an offer on a new property with more attractive finance terms, such as a shorter finance date, over someone else who doesn’t have their finance ready to go... and this may make your offer to the Agent the one to recommend to his client.

So you’ve gotten your pre-approval. Next step is to locate that property. This is where the real hard work happens, as the best way to make money on a property is in the buying stage. Buy low, sell high.

Firstly you need to know where you are going to be living; near the beach, in the country, in a high rise in the city, or in a townhouse in the suburbs.

For your pre-approval you should already have some idea of where you want to be, and this will be based on discussions with your finance broker or bank. But now that you’ve shortlisted an area, you need to hit the internet, and the local Agents, and find out what’s available, and importantly, what property has been selling for.

Once you know this information you will know that the asking price for a potential property is good value, or if the owner is dreaming.

This can mean weeks and weeks of searching, open homes, internet trawling, and many coffees. But in the end it can be the difference between the home you really wanted, or somewhere you just aren’t overly thrilled in.

For any help, advice or information, please call Peter at Taffe Financial Solutions.
Mob: 0431418343 eMail [email protected]

Buying your first home shouldn’t be a scary or intimidating time. It should be a time to embrace new experiences, new challenges,and an opportunity to grow both in knowledge and financially. Many people don’t know how to go about it though, or where to even start.

​So here’s 4 important tips to help get you moving in the right direction.
I will update my next buying tips soon. As always, information & knowledge is power, so use people who have experience and are trustworthy. Deal with locals, and seek out recommendations from friends.

U.S. Senator and former lecturer at several U.S. universities, Elizabeth Warren pushed a rule in her book “All Your Net Worth: The Ultimate Money Plan”.  That rule was called the 50/20/30 budget rule. Specifically, allotting 50% of your net income on Needs, 30% on Wants, and the remaining 20% allotted to Savings.
 
While the rationale of understanding what your income is, and allotting specific amounts to needs, wants & savings is sound, I believe that her suggestion that you should allot greater funds towards ‘Wants” over what is put towards savings is not a plan I would recommend, especially for those seeking to buy their first or second home, or those looking to build wealth with a view to an early & comfortable retirement.

​Do you need to budget? Of course you do. But Mrs Warren's 50/20/30 budget may not be the best option for you. 

Budgeting is necessary to know if you’re on track to meet your financial goals. So firstly you need to know what your goals are.  Is it to build a deposit to buy a home? Is your goal to buy a new car or take that overseas holiday?  Or is your goal simply to enjoy life and not worry about your ability to meet your bills and lifestyle?
 
So, without a reason or a goal in place, you are already on the back foot if you don’t have a budget in place.
 
Let’s pretend we don’t have Credit Cards for the moment and we still only use cash. Would you fill your car up at the servo without knowing you had enough money in your wallet to cover it?  Would you go to the supermarket and do a grocery shop if you didn’t have enough cash
in your purse to pay for them?  Of course not. You’d make sure you had funds to cover your purchases.
 
In its simplest form, this is budgeting. Living within your financial means by knowing what money you have to cover your expenses.
 
Yes – you could then make an argument for use of credit, such as credit cards, overdrafts / Lines of Credit etc. However, in most cases the use of these facilities is living off the Bank’s money, not your own. In many cases this can lead to hardcore debt which often does not get repaid without significant financial review, refinance, or restructure.
 
You can be smart and use credit cards to make purchases, and by paying off the outstanding debt by the statement due date, you have effectively used the Bank’s money while retaining your funds.  Some Cards may offer rewards such as flight points or gift cards etc, and if planned correctly you can come out ahead when factoring in these Rewards.
 
But this will only work in your favour if you have a budget in place, and you know what you’re spending is within your budget. Discipline is the key to making this work for you. But not everyone has such discipline.
 
So in covering off, the benefits for having a budget in place mean knowledge of where you stand financially; Knowledge as to whether you can achieve your goals financially, and peace of mind in knowing that you can move forward to hopefully have an easier life.
 
The impacts of not having a budget in place include compromises, worries, and a financially uncertain future for yourself and possibly your family.
 
So ask yourself:

• Is it more important to steaming movies, or is it more important to get that new home?
• Is it more important to be wearing the latest fashions which change year to year, or would you prefer to see Europe or the Maldives with memories to last a lifetime?
• Is it more important to eat out on all those take-a-way coffees and gourmet hamburgers, or would it be better to have equity in a new home or own your car outright?

There’s plenty more that can be done to assist achieving your goal, and every budget is as individual as the person making it.