Australia: News and Views

So in the next few weeks you may well be getting a $900, $1800 or even more. What are you going to do with the goverment payout - are you going to save your money or spend it?

Well without a doubt the government wants you to spend your payout - that’s the theory -  the government wants to you spend your cash, to stimulate the economy - but is that the best thing for you and your family?

I don’t think it is - sure if your financial situation is so dire you are about to lose your house or rental - then you possibly should spend your $900 payout rather than save it but for most people I think you should look at how to save your money from the payout.

Saving money is now the new black - or as the economists would say - cash is king in an uncertain economy.  Saving money is not a bad idea when most bank saving accounts are offering better returns than most superannuation funds. A rate of around 5% in the bank is look pretty good for your savings.

How to save your money - well make sure you find a safe place - the banks are guaranted by the government and personally  I wouldn’t be putting too much money into shares - however much your friendly broker may be talking about market bottoms.

The other option apart from saving money or spending it, is to use your government payout to  pay down credit card and mortgage debt. The only caveat is that paying off your credit card - doesn’t mean that you now have heaps of money to spend!

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