Be honest – have you strayed from your financial New Year’s resolutions already? Well, here’s your second chance to bring financial fortune your way, as this Saturday (28 January) marks the Chinese New Year.
In case you didn’t know, this is the year of the fire rooster and unless you were unlucky enough to have a 1969, 1981, or 1993 birth year, the odds are in your favour.
To ensure you don’t ruffle any feathers, follow these money moves for a financially prosperous 2017:
Lock in your mortgage rate
All roosters must be protected from the foxes who lurk around chook pens at night. Use that as a metaphor for your home loan and lock in your interest rate, before you feel the bite of a variable rate rise.
Why? Our home loan database has been inundated with rate hikes on plenty of mortgages for months now. With our Product Data Manager, Peter Marshall predicting that the RBA will raise rates at least twice this year by 25 basis points, things are starting to get serious.
“I expect that in a year’s time the fixed rates available now will be a distant memory,” he warned recently. Ominous sign?
Look after your offspring
As part of Chinese tradition, children receive red envelopes stuffed with un-crinkled notes over the Lunar New Year. Why not take this a step further by topping up their savings accounts? If your little ones don’t have their own virtual piggy bank, now’s the time to open an account with a plump interest rate attached.
Scenario: Say you or your child deposit $8 a week (the luckiest number) into a savings account with the highest ongoing rate for kids in our database at 3.50%. Assuming the funds were kept untouched by the time your child turned 16, he or she would have saved $8,946. That’s $2,267 accrued in interest!
Repay your debts
Welcoming the New Lunar Year with outstanding debts is one sure way to keep you in the red for 12 months. At least, that’s if you believe Chinese superstition. My money’s on the fire rooster throwing a mega tantrum over Australia’s $32 billion credit card debt problem come Saturday. But there’s still time for you to win him over.
Money maneuver: Apply for a new balance transfer card this Friday night in the midnight hour (for good luck), which shifts your credit debt onto an account with a lower interest rate, or generous interest-free period. You may have to pay an annual fee, but it’s still better than winding up with more interest to pay in the New Lunar Year.
For what it’s worth, the money experts here at Mozo have tipped these 5 five cards as the best BT cards in the market.
Feng Shui your property
If you really want to start the Lunar New Year afresh, get to work embracing Feng Shui with the items you already have in your home. All it takes to channel that positive energy flow is some mindful decluttering. Then you can sell unwanted furniture for extra cash in the Lunar New Year.
Fun fact: The art of Feng Shui promotes minimalism rather than excess, and some say it makes people feel calmer at home. We like it because it’s budget-friendly interior design!
Spread those wings wisely
You might not know this, but roosters do have the ability to fly, albeit for a few metres! If you’ll be spreading your wings too this Chinese New Year, planning is key to avoid losing money.
Lucky (or clever) travel tricks:
- Keep an eye on foreign exchange rates so you lock in your spending money at the right time
- Select travel dates and travel times that are positive astrologically, like from this superstitious calendar
- Don’t double up on a travel insurance policy if you’re already covered by your credit card provider. Just ensure that your policy includes unlimited medical
What money moves will you be making to prosper over Chinese New Year? Drop us a line below.