In the world of international finance, copper is considered to be what analysts call ‘a key lead indicator’. The nickname ‘Dr Copper’ refers to the fact that you can predict the health of the world’s economies with the copper prices. When the price of copper is high, the economies of the world are humming along nicely. When the price of copper drops, we need to put our financial house in order to weather any possible coming recession.
In Australia, we largely escaped the effects of the global financial crisis. That’s partly due to the stimulus package, and our mining boom, driven mainly by China’s own stimulus package. Now China is facing inflation, the central government has imposed stricter controls on borrowing, and halted the development of ‘ghost cities’ that pushed the price of real estate to beyond sustainable limits.
So what does this mean for us in Australia? Well, most of us should be aware that the mining boom of the last few years is over, and the value of the Australian dollar has dropped. Both of these aren’t necessarily bad; it means that the economic focus will move from the west and the north back to key driver states of NSW and Victoria. However, we should be prepared for some rocky times ahead.
Future-proofing your life
Now is a great time for a spring clean and get your house in order..
Review your mortgage so you can sustain repayments easily.
Credit card debt
Often, people have several credit cards, all with different amounts of debt. It’s easy to lose track of exactly how much you really owe (and what total interest you’re paying). If you’re carrying debt on two or more credit cards, transfer as much as you can to the card with the lowest interest rate, then make every effort to get rid of it as quickly as possible. You’ll save money and stress.
Review your health insurance regularly. Making sure you’re on the right level of cover for your stage of life. ie Young and single, Couples wanting to have a baby or two, Growing families with kids, kids have now left home. Join your company health scheme, save premiums and rest easily, knowing you’re covered.
Now is also a good time to increase your savings levels. If you’re putting away a regular amount each month, then try to increase it by as much as you can bear.
With competition in the Energy market, why not challenge your existing Electricity Company, and ask them for a better deal. You have nothing to loss and everything to save.