I’m wanting to do a Credit Card Interest Calculation, to see how much interest I will pay on just under $500. Yes, we can do the math now though I’m very intrigued to see what Westpac works it out to be. I probably should’ve gone with the Westpac Ignite Credit Card, it has a lower interest rate and have 55 days interest free — too bad I’m not a Virgin customer!

Hopefully I can visualise my pain and never fall into this trap again and remember, always do your own Credit Card Interest Calculation and match it with the banks, because they can be wrong too, they just won’t tell you.

Westpac will release a new credit card as of February 8th, 2009 – Westpac Ignite Credit Card. To all current Virgin Credit Card holders, the new Westpac Ignite Credit Card will replace the existing Virgin Credit Card.

Features include:

• No Annual Fee
• Low 12.99% p.a. interest rate on purchases
• New Instant Offers Program
• New CHIP security
• Same Credit Card Number
• Up to 55 Days Interest Free on Purchases
• No Change to your Payment Methods or Credit Limit
• Keep using your Virgin Credit Card until your new Westpac Ignite Credit Card arrives.

If you would like a few questions answered regarding the new Westpac Ignite Credit Card, I have added a few common questions below:

Q. Do I need to apply for a new Ignite Card?
A. No. If you are an existing Virgin Credit Cardholder, we will be providing you with a replacement Ignite Card.

Q. Do I need to become a Westpac customer?
A. No. As Westpac has always been the card issuer and credit provider of your Virgin Credit Card, we do not require any further documentation from you.

Q. What will happen to Mates Rates™ Instant Rewards?
A. Mates Rates™ Instant Rewards will be replaced by a new online Instant Offers program which will provide you with discounted offers across a broad range of categories including entertainment, travel, shopping and lifestyle.

Q. Do I get to select the colour of my new Ignite Card?
A. No. All Ignite Cards will be available in one vibrant colour – red.

If you would like any more information about the new Westpac Ignite Credit Card, you can visit Westpac’s Ignite Credit Card page by clicking here or you can call Westpac’s toll free number on: 1800 080 000. Please note, this only applies to Australian applicants only.

Westpac Credit Card Comparison

Below I’ve added a table comparing both Virgin Credit Card and Westpac Credit Card. The only differences between the credit cards is the Westpac Credit Card does not charge for a duplicated statement and extra security with the revolutionary chip protection. The interest rate on cash and purchases stay the same as does no annual fee. For more information on the Westpac Credit Card, click onto Westpac’s website.

Virgin Credit Card (Before 8 February 2009)

Westpac Ignite Credit Card (From 9 February 2009)

Managing credit can be a difficult task if not taught the essentials at a young age, but it’s never to late to start learning. Unfortunately, many believe they have acquired certain finance skills as they grow older, in some cases this may be true however majority have only brushed up on the bare necessities, not crawling in the dark cave and exploring. Credit in this world is past important, it’s absolutely critical and before most realise this, they have landed themselves deep in debt and spend an eternity living with it and paying it off, completely encumbering them. The elite wealthy in the world (avg. 10% of the worlds population) know how to manage their money effectively and utilise all monetary systems to their advantage, and let’s be honest, they know how because they’re the ones who built these systems and invented wealth itself! So in order to learn financial management and improve your finances, you should learn from only the best.

Managing credit can be fun, exciting and quite rewarding if your keen to improve your current situation and for the future too, but unless you’re WANTING to change your life and to help your family succeed, then it could prove to be next to impossible. But as with anything, it comes from wanting, a deep desire to do something and it’s only from then, will you begin to grow and advance.

Let’s start by asking yourself a few questions. Try and answer honestly by looking deep within yourself, this may take some time but don’t spend too much time on it. Write them down on a piece of paper and think about it for a little bit.

1. Do you WANT to manage your credit?
2. Do you WANT to be successful within yourself?
3. Do you WANT to utilise systems to help benefit YOU?
4. Do you WANT to give YOU and your FAMILY more?

If you answered yes to at least one of those questions, you have already taken a step to developing yourself more, which is actually one of the most hardest steps to take – believe it or not. If you answered no (which somehow I actually doubt, however it’s possible) to all the questions, then I can only assume you are sincerely happy and comfortable and I wish you continuous good luck from here on! To the others who are still with us, simply place “why?” to the end of your answer to each question, and see if you can look even further within yourself and understand why you chose that answer. It’s only from breaking existing walls down in your mind that you will step up higher and develop yourself more.

Now that you’ve read all of the above, you’re wondering when can you get to the juicy part? Well I’m afraid with my limited experience, I can only show you a direction and offer multiple resources to read. If I went along and explained what I currently knew about money, it most likely wouldn’t be substantial to create a better life for yourself.

Managing Money Resources:

Fathers 4 Justice – Earn Free Money & Free Rewards

Smart Company – How to Manage Money

Ohio State University – Managing Your Money (Lessons)

About.com – Managing Credit Cards, Debt & More

If you have a question aimed towards me or would like to add a piece of knowledge to any of this or my blog, contact me and I’ll be happy to help, and give you credit for your work. I’m always interested in other people’s thoughts as I believe in multiple minds sharing an abundance of knowledge to create a better and more beautiful world for everyone.

I continue to dwell on the negative effects money causes us personally and as a nation. As with my previous post about the Monetary System, I’m still in strong belief money has forced us to become over aggressive and keeping our minds off track much more important things like sustaining longer and healthier lives. Having no money causes different symptoms to different people, however one statement still applies to all – “In order to survive, one must possess some form of currency in the monetary system.” - Basically, no matter where you live, you will need money to a certain extent due to our continuous efforts to build our nation around money.

Money has long since existed, just in many different forms to how we see it now. According to Wikipedia, currency started being used as early as 3000 BC, using specific amounts of barley in a metric measurement such as silver, bronze, copper etc would be used later on. Then it was reported the Lydians became the first to introduce the use of Gold and Silver in a coin form. From there it became known the first stamped coins were minted around 650-600BC. If true wisdom does exist, it would not come from one man, it would be from history and how we’ve learnt not to make the same mistakes again, or have we? Have we forgotten how many wars money has caused, how many people have been killed? Not to mention time wasted squalling over money rather then focusing on the growth of humanity.

My father once told me, “Andrew, I’ve tossed money back & forth so many times, its better with, than without.” and the way the world is growing, this statement is not only valid at present but will be for many, many years. People say money doesn’t bring happiness nor wealth within, however many fail to realise our world is constantly moving and following the path of money, so in order to gain access to needed things like food, shelter and clothing, you need money and then from there, you can build up within yourself and not focus on negatives like your bad financial status.

You still believe you don’t need money for happiness? Picture this, you and your partner are taking a walk along the river, there is an ice cream truck and you make your way to the board. You want to buy two big ice creams, one for your partner and one for yourself, it’s a beautiful day and it will taste divine so you take your wallet out and open it – BAM, empty. How would you feel? Not only embarrassed but also ashamed of yourself, not able to provide something so simple. This will be stored in your sub-conscience and over time will dampen your confidence.  Now this maybe a simple story however it’s critical to understand money can and will bring you happiness, if managed and used correctly.

Money is important and is a nesscceity but don’t let it run your life, make it work for you. To make money work for you, you need to know the process of ‘time leverage’, I will discuss this at a later date. Once you have a few simple steps on how to manage money, you’ll feel better, your partner will feel better and you’ll be more happy! Stay positive and keep strong.

Some Important Reverse Mortgage Information

Reverse mortgage loans were introduced in the United States in 1989. Since then, almost 20,000 seniors in the country have acquired reverse mortgage loans. This article would give you some important reverse mortgage information.

Reverse mortgages are also termed as home equity conversion mortgages. In case of a reverse mortgage, home owners are able to keep the ownership of their houses and at the same time, receive a lump sum payment, or in some instances, a monthly payment from the lender. If the home owners shift to another place or expire, ownership of the house is obtained by the lender unless the elderly borrowers or their inheritors repay the loan. The home owners also have the option of selling the house and use the sale proceeds to pay off the lender.

Obviously, reverse mortgages are not meant for everybody. They might turn out to be expensive and a senior home owner might only find out 30%-80% of his home’s value with a reverse mortgage. The service charges and closing costs related to a reverse mortgage may vary from 20 dollars to 30 dollars every month. Some reverse mortgages bear adjustable interest rates and some fixed interest rates. Reverse mortgages are offered to you in various forms. You can get reverse mortgage information from different websites including FHA (Federal Housing Administration) and HUD (Department of Housing and Urban Development).

You may have heard the expression “there is good debt and bad debt” and this is a very true statement but do you question what is good debt and what is bad debt? That’s something I’m answering today, helping you understand simply the importance of both and how it affects your finances and so forth.

Bad Debt

Bad debt can be derived from purchasing liabilities, things that don’t generate an income for you, won’t pay for itself down the long run. A car is a perfect example of this, you take out a loan, pay x amount of interest over 10 years and then you get hit with on road costs, services and other fees – taking money out of your pocket, not putting money in. Don’t be fooled, this can also apply to houses if you don’t do your research. Another example is a credit card, instant money people take for granted without using it properly. Unless you are levering your money using a credit card, you’re actually stacking bad debt onto it, forcing it to work against you like speeding up a timer on a bomb. In order to keep out of bad debt, you need to understand the importance of keeping out of it, making sure you’re ahead of the game, unlike many in society today.

Good Debt

Good debt is utterly important as it opens the doors of passive income to you if done properly. Before banks lend money out to a customer they assess the persons financial status. For example, how much they earn per year, what assets do they own, other sources of income and their credit history. If this strict criteria is met, then it’s a green light to lend and this would be classified as good debt. However, if the bank lent money out to someone who couldn’t afford the repayments on time, had no financial history or income, then they are taking a high risk and it becomes bad debt, much more risk involved.

In order to generate a passive income, you need to purchase assets that will automatically make money for you, however not everyone is born with a million dollars so how do you ‘afford’ these assets? You need to borrow money, leverage it and manage it effectively. Let’s say you found a house, the house was $50,000 and you only had $30,000, you would need to borrow the extra $20,000 to purchase it. Before you do, you need to consider if this will generate more income then the expenditure. So if your loan repayments was $300/week and you were renting it for $400/week, you are making $100/week in passive income, allowing you to pay off the loan much quicker. However, if the house wasn’t paying itself off by its own income, then it would be classified as a liability, something that is taking money out of your pocket and putting it into the banks. There can be exceptions, different investments require different levels of money however, research and planning is critical, making sure your projected income is rock solid.

The more money you put into the house, the faster it gets paid off, the less interest and more profit. This allows you to invest into more ventures by using the equity in the house. This of course applies to all investments and there will always be risk, the idea is to minimise it as much as possible.

The above has been based on knowledge I have learnt from experienced and knowledgeable people such as my Dad and Robert Kiyosaki. Please remember I’m not a financial advisor nor do I ask you to follow my advice, if this ever proves useful, please share it as we all should live in abundance.

Consumerism has hit me hard recently, making me get on my knees and grovel for a popular materialistic item, the iPod Touch – 2nd Edition. Even with our current economic situation with world debt being increasingly high and money dropping in value by the hour, the iPod is still referred to as an liability due to the fact it’s not making me any money and posesses the possibility of breaking down in some way.

I have lost some money surplus by giving in to my feelings which has been invoked by multiple things like incredible marketing. Not to mention, my own desire to hold something which has been beautifully crafted to perfection, with a sleek steel case and a 480×320 touch screen – it’s pure all over.

Pushing that aside, I will now be adding money to a personal fund, details I can’t exactly disclose however I can assure you it’s beneficial to my future and will secure profitable ventures – exciting! I will be removing my saving bar and replacing it with a new bar representing the money added to the fund, named “Success Fund”.

Is this how we are being brought up? Learn how to drive in your parents car, get your license, find the car of your dreams and get a car loan, then spend the next 10 years paying it off. I’m not one to judge, however I do find it intriguing how much we as a nation have changed over the years. Back in the industrial age you would either get your pops truck or work hard and save your money, and then purchase a car in full, most likely it being a used one for your first car. Now it’s sign on the dotted line, get now and pay later with interest, not to mention their hands just inches away from crushing your throat if you refuse or “forget” to pay. Should this be the way, should we teach our kids to have now, before earning it and understanding appreciation?

Personally, I don’t drive as yet however, I see logic in saving up a few thousand to buy your first car out in full. From my readings and understanding, chances are most young adults will “accidentally” forget to pay on time and will get slapped with a hefty bit of interest. Don’t get me wrong, credit in this world is not only needed but it’s important to wealth. I just feel we as consumers rely on credit cards and personal loans too much because we have this mindset of “want now” and as you can see, this has clearly caused trouble.

A car loan would be beneficial if claimed under a business as it would eventually pay itself off. From my point of view, you should only consider applying for a car loan when you have the following Why, What, When and How worked out:

1. Why do you need a car loan? - This is a serious question, think outside the square for a moment.
2. What car loan suits you best? - Many to choose from, find which one works for you.
3. When will it be paid off? - Knowing a rough estimate on when it will gives you a goal.
4. How much interest will you be paying? - 5 years might be easier for you but harder on your pocket in the long run. Think this through.

Most people will act on their emotions – i.e. want now – and not consider their current circumstances. By analysing your situation, how much you can afford and how quick you can pay it off, your removing your natural emotion and starting to think like the rich.

UPDATE: Interest Rates have officially been cut by 0.75 percent, leaving the current interest rate at: 5.25%

Where money is being splashed around, being lost and being gained, the Reserve Bank of Australia will be meeting with the focus on cutting interests rates by another 0.5 percent. This of course isn’t certain, only theory by economists not to mention ANZ, CommSec, AMP and Austock’s Michael Heffernan predicting the cut. However, Mark Dutton spoke for most experts suggesting the slow economy would push the RBA into cutting rates between 0.5 to 075 where as Robert Camilleri of Aviva Investments was more optimistic, saying he believed the banks would cut rates by 1 per cent.

An interest rate cut is of course vital in our economy though it’s uncertain how much improvement this can do to the economy, asking questions like how much would rates fall. According to News.com.au, a rate cut of 0.5 percent would would lower payments on a 25-year mortgage of $250,000 by about $85 a month, meaning more money for necessities like groceries.

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Information: News.com.au

I have read many personal finance blogs, most discussing about being frugal and saving money, but is this the option? Should we all take every cent and stash it under our bed until it becomes noticeable? I don’t think so. There is a difference between spending money and spending money wisely. We’ve been brought up in a consumer world, buying our flat screen televisions, luxurious cars and beautiful homes and receiving a letter in the mail informing us have we forgotten about the bank. Many haven’t realised how much debt we as a world have accumulated and in some sense, this whole credit crunch and lack of funds have made people understand and appreciate money even more. I’ve been taught to only buy what you can afford and save the rest. There is no need for luxurious items when your young and free or old and wise for that matter. However, life pressures get to us and it gets harder and harder as we go along and that piece of plastic saves the day to buy that nicety to live comfortably, or so you think…

So ask yourself, what do the rich do? They use credit cards but why aren’t they are debt? Well, they may be in debt to a certain degree, but this is referred to as ‘good debt’ and is managed properly. Credit cards are simple tools used by the rich whereas the poor use them as instant money and this is where we, as a nation go wrong. We have developed this mindset of using someone else’s money to stroke our own greed and not using our own. More or less, to have now and pay later. Sure, credit cards are great — in fact, they are one of the best tools you can use, however many aren’t taught this and get swooped into spending what’s not theirs.

Technically, money is worthless but what it represents, makes our world go round and until you inhabit the fact that money means nothing, you will always be emotionally attached, therefore money controlling you and your life. So what do I suggest:

• Spend what you can afford – never overbuy
• Don’t skimp on important necessities like fresh fruit & vegetables.
• Think abundance, believe everything is within your grasp but don’t be greedy
• Put money aside when you can but don’t be a scrooge.
• Relax and enjoy money. It can bring happiness, but that’s up to you.

The worst thing you can do now is pull all your money out of the bank. Our Australian banking industry & economy is strong by all regulations that have been put in play over many decades. If everyone pulled out their money, how would the economy survive, on bread and water?

At the end of the day, you will do what you want though I would recommend just thinking about your current situation. Sit down outside, enjoy the sun and fresh air and think of what to do next. Thinking on emotion is the worst possible way, it will always lead to mistakes…