Cheap as chips

Where to go for the freebies?

2008-07-27T22:51:00.001+10:00

What could be better than getting something for free? I would certainly would want it, but where do you find all these free things? Doing a Google search with the keyword freebie brings up 7.9million hits.I have come cross three place that. Some of the hits only provide links to promotions like "get a Free iPod if you click on this advert, and then only if you and then of your fiends sign up for an online survey and ....blah blah..", I think you know what I mean.

Having said that, I have three sites that are has quite reliable information about freebies, what to do and where to go etc.

The Freebies Blog - This is my favourite in getting what is going for free. What I like about it is that it also has pictures of the freebies received.
BuckScoop Forum - BuckScoop has a forum for freebies. This is good as it is a forum and many users would provide feedback on how good the freebie is. This Crispy Creme freebie is a good one, stirs out the patriotic blood. :-)
Whirlpool Forum - Whirlpool also has a forum of freebies. Similar to the BuckScoop foum, it has reader feedback, however it does not appear to as active as BuckScoop's forum.

The two forum sites are mainly focused on Australian Freebies, while The Freebies Blog are mainly Australian and American.

Does anyone else know anymore of these sites?

The twin's mums just lost an unreasonable case.

2008-07-24T17:36:00.000+10:00

A few months ago, I wrote an article about the parents of an IVF twins suing their obstetrician for implanting two embryos instead of one, causing a set of twins to be born.

Well, the case has been settled in favour of the defendant. This article from The Age has some details on the case.

Apart from the ridiculous amount money being sued for, the following quote stunned me.

"The court was told the twins' birth mother had lost her capacity to love and the couple's relationship suffered as they became mired in everyday tasks associated with raising two children."

Having read this, I get the feeling that this set of parents have lost (or perhaps, never gained) the notion of being parents. Not only have the mums blessed with children via the amazing IVF program, they have twice the amount of enjoyment with the twins.

I am not saying that having twins is an easy job. I have a young toddler myself and I can imagine that a pair of twins will be even harder, but as a parent, I will never lose the love for my son.

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High fuel price costs jobs

2008-07-22T23:30:00.003+10:00

About two weeks ago, when I was waiting for my car to be serviced, I had an interesting conversation with the mechanic at the car dealership. It goes something like this.

me: "Did see the price of petrol today? It is getting pretty high."

mechanic: "When I drove in to work this morning, I saw about $1.70 per litre."

me: "I hope that it goes down a little in the next few weeks"

mechanic: "Well, I think the damage is already done. Some of my mates had to quit their jobs because the petrol prices are too high."

me: "Really?!?"

mechanic: "Yeah. They had to travel about an hour to work, and the cost of petrol is around $125 per week. They just couldn't afford it."

At that point, I start the feel how lucky I am to be working about 5 minutes drive from home. In a city like Melbourne where the suburban sprawl of extremely wide, it is quite common for workers to travel for more than two hours each day between home and work. The lack of public transport to service the widening suburban sprawl does not help these people.

The mechanic went on to say that his friends would have got more money in their pockets if they went on the dole, or unemployment benefit, however they manage to find similar jobs closer to home.

If I was in a similar situation, I probably would have seriously consider this option as well. In the current economic climate, having enough money to provide for your family the number one priority.

What would you have done in a similar situation?

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The real cost of that hamburger, movie, or kid

2008-07-22T22:33:00.001+10:00

Welcome to a guest writer, Aaron Stroud, who blogs On Financial Success. He provides plenty of down-to-earth writing around personal finance. Many thanks to Aaron for the guest post.

What do burgers, kids, and movies have in common? They all involve opportunity costs.

When you buy a burger, you can't use that money to rent a movie, pay down debt, or invest. And when you sit down to watch a movie, you've traded your time and money for two hours of entertainment.

Sometimes a movie is the best use of your time and money, but that's time you can't spend reading or walking in the park.

These alternatives–the missed opportunity to read, walk, pay down debt, or to invest–are the opportunity costs of picking one option over another.

So how much does a $2 hamburger really cost? Well, over the next 25 years you're missing out on:

$65 if you carry credit card debt at 15%
$9 in saved interest on a 200k mortgage at 7%
$34 in missed retirement savings if you earned 12%

Perhaps it is worth rethinking your options before ordering that hamburger!

Oh, and the costs of children? Costs vary from family to family, but one thing is for sure—children are expensive. Fortunately they pay dividends superior to any stock.

Aaron Stroud shares reliable, easily followed steps to build wealth at On Financial Success. Subscribe to his feed to follow along or ask a question to direct the conversation.

Would you use a fuel price monitoring service?

2008-07-17T21:24:00.002+10:00

With the fuel prices almost reaching the $2 per litre mark, I am always looking for different ways to spend as less as possible when I am filling up the car. One of this ways was to exploit the volatility of fuel cycle. Sometimes, I believe that the fuel cycle is manufactured to keep the illusion that the poor driver is getting a bargain at the bowser, (I am probably too cynical).

Fuel watch was a program that was first used in Western Australia with varying degree of success. It was introduced in 2001, so its effect on the local fuel prices would be well understood if it was to be introduced for the test of the country. Fuel watch was to provide the drivers to make an informed decision on when and where to get the next load of fuel.

An article in WA Today today has indicated that fuel price cycle in Western Australia has basically disappeared. It is not conclusive that Fuel Watch was the main reason. If the price cycle is as predictable as it is, what difference would Fuel Watch make?

I believe that fuel cycle will not totally disappears. It's price will still go up and down,following the world oil prices. It just that the fuel prices is not going to be as volatile as it has been. The volatility cycle will probably be measured in weeks rather than days.

Instead of investing money into Fuel Watch for the rest of the country, that money should be invested into more worthwhile projects such as ways of dealing with housing crisis, or getting more people in homes.

What do you think about a monitoring service like Fuel Watch?

CoPF #161 up at The Budgeting Babe.

2008-07-14T23:10:00.002+10:00

The 161st edition of Carnival of Personal Finance has just been hosted by the Budgeting Babe. My entry on the rental crisis was also selected for publication.

Some of the articles that caught my eyes were.

Sallie's Niece on how she spent $900 on Gyros.
Money Ning on adjusting your invesment contribution.
Our Four Pence Worth has some wise advice on splurging on that next purchase.

There are many other great articles at the carnival. Get over there and take a look.

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Watch out for David Rhodes and his crazy chain letter

2008-07-09T23:18:00.001+10:00

About two weeks ago, I received a letter in the mail addressed to "T. Chin", Upon opening it, I discovered it is a letter from David Rhodes. It had a 5cent coin taped to the top corner of the letter. It certainly caught my attention on what it was all about. Having never heard of David Rhodes, I read a bit more. It dawned on me that this is a classic pyramid scheme/chain letter that no one will ever be the winner. Furthermore, this type of activity is illegal and will incur a heavy penalty if found guilty. The Consumer Affairs of Victoria has a nice bulletin of what this chain letter is all about. The fines are more than $24,000! Wikipedia also has a good article on the history of this letter.

Essentially, the chain letter works by having you sending a gift of $10 to the person at the top of a list of 5 people. Of the 200 letters you send out, the person on the top of the list is removed and you placed yourself at the bottom of the list. The person that receives your letter will do just as you have done. You get your $10 when you have reached the top of the list.

That evening, I read it again trying to understand why so many people would be drawn into it and give it ago. Let's have a look at some of the letter characteristics.

The plan itself appears to be extremely plausible for it to work, and the instructions looks thorough enough for it work. It even contain steps on how to fold the letters so that the creases in the folded letter does not mess up any future photocopying by your receiver.
The chain letter contain a calculation of a scenario where it appears to be reasonable and realistic. It used a 3% response rate on letters that you sent out.
The outlay for the participation is about $200. Most people may think that this is not such a large outlay and would be willing to risk to receive the "guaranteed" $70,000 return.
Everyone loves a rags-to-riches story and caused them to think "if it happen to him, it certainly can also happen to me as well." The letter also contain several other rag-to-riches testimonials.

This is the first time that I have ever received such dangerous spam through the post. However, it is only dangerous if I acted upon it. The best thing I can do is take the 5cent coin off the letter and throw the letter into the recycling bin. At least that way, that letter did increase my wealth by giving me 5cent, better than nothing.

By the way, just found the Make Money Fast Hall of Humiliation. Reading the comments, I am amaze on how gullible some people are.

Rental crisis and what you can do to avoid it.

2008-07-07T13:18:00.003+10:00

The ever increasing affordability of housing in Melbourne is causing some grief in the rental market. The landlords may be loving it as there are no shortage of potential tenants. This situation has inflated the rents of properties. I don't believe that the situation is isolated to only Melbourne, the other capital cities are also experiencing similar effects, especially in Perth and Brisbane.

Unfortunately, the rent for a property is almost dictated by how many people wants to live it. In today's rental market, I would not be surprise if the rent is higher than a mortgage's repayment.

In the Frankston area, just a short drive from where I live, the landlords are being opportunistic in trying to extract as much rent as possible. This article from the local paper discusses the sad state of affairs.

So, if you are renting, what you do to help with the rising rent rates.

Move the an area with cheaper rent. Some suburbs has lower rent rates than others for many reasons. If you are happy with the reasons on the lower rent rate, consider moving to these locations.
Negotiate with your landlord. Most land lords are reasonable people, and an attempt with communication with them shows that you are willing to discusses the crisis with them. In most cases, most land loads are happy with a good tenant with a reasonable rent rate than a bad tenant at a high rent rate.
Know your tenant rights. If your land lord is not is reasonable, have a good knowledge of what your rights are. For rentals in the state of Victoria, you can contact the Consumer Affairs for more information. The are similar government bodies in the other states an territories.
Consider purchasing a house. If the rent that you are paying is so high that it almost as high, if not higher, than a mortgage repayment, then consider purchasing a house. In today's market where new house purchases are declining, the developers are extremely accommodating in the terms and conditions. Have a chat with them. Be aware that purchasing a house is not something to be entered into lightly, it is littered with traps and pitfalls.

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Happy New Year

2008-07-01T12:26:00.002+10:00

Happy New Year!

Today is the new day of the new financial year in Australia. For most of Australian businesses and general public, the financial year ends on the 30June, and the new one starts on the 1July.

So what can be expected for this financial year, from my perspective, I can't see as many positives as I can see the negatives. Lets start with the negatives.

The interest rates are expected to rise. My prediction is that mortgage rates will hit 10% by the end of the year. Recent reports of the slowing down in the economy such as spending in retail and housing will probably stop the interest rate from going much further than 10%.
The petrol prices will continue to increase. Even though there was a recent conference among the oil producers to help reduce the cost of oil, I feel that the days of seeing the pricing at around $1.20/ltr are long gone. I expect to see the price of unleaded petrol to hit $2/ltr by the end of the year.
Australian manufacturing industry to slow down dramatically. The current Australian economy is really riding on what the land can provide, more correctly, what the underground can provide in mining. Another industry such as manufacturing, services and farming will probably suffer due to environmental reasons and economic reasons. Personally, I would like to see the manufacturing industry enjoying the same economic boom as the mining industry, I don't think it will happen in the near future.
Due to the on-going drought and increasing fuel pricing, the groceries prices will be increasing.
Our superannuation fund is on its way to give one of the worst return ever. We can blame the US subprime problems for this.

Feel free to shoot me down in flames with these predictions, and I hope that I very wrong with some of these predictions.

A couple of the positives are

The personal tax rates have changed, which means that you should be getting a little bit more in your pocket each payday.
With the increase of petrol, focus on alternative energy are being looked at in a serious way. So hopefully, a commercially viable solution is not too far in the future.

With those predictions, let's try make the best of the new 08/09 financial year by viewing the negatives as problems which solutions are to be created for, especially on a personal finance level.

Quick post towards the end of Apr08

2008-04-23T23:13:00.002+10:00

I haven't been keeping up with one of my goals for 2008, that is to post at least articles per week on this blog. There are many things to talk about, like the inflation rate has just hit 4% today, the level of mortgage stress is at a record high and how the fixing our interest rate is working out for us.

Things on the family front and work front have been extremely busy. My wife is about half way through carrying our second child, and project deadlines are looming at work!

Hopefully, I will get back to regular posting sooner than later. However, if any one wishes to do any guest posts, drop me an email via tehn.yit.chin@gmail.com

CoPF #147 - Q1 financial advice edition

2008-04-08T23:24:00.001+10:00

Carnival of Personal Finance #147 is up at MoneyNing. Many great articles, some of the ones that caught my eye were...

Wide Open Wallet - The pawn shop are thriving. This article gave a scary thought of pawning items that are financed. I guess when folks are desperate, crazy things are done to get money.
You might as well burning $5! - The $37 Latte. This a great article on keep track of you finances.
On Financial Success - Can we afford college? A good range of tips on how to go about getting a university/college fund ready for your kids.

My recent article on you are only worth at market value was also included. Many thanks to MonyNing. Happy reading!

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Did Earth Hour 2008 really work?

2008-04-05T00:18:00.001+11:00

Well, Earth Hour 2008 came and went last weekend. I even wrote an article about it. Unfortunately, I was not able to participate in it as our 2 year old was caught the croup a few days previously and needed some attention.

How did it go for you? Even though I was not able to participate in it, it has made me more aware of the my usage of electricity. This also goes for the other resources such as water, gas and food. So Earth Hour wasn't just one hour for me, it is going to be an effort for me to apply it to my day-to-day living.

The one thing that got me beat is the amount of energy used to increased the profile of the event, to create the infrastructure to support the event and to celebrate the event.

Earth Hour's blog has figures quoting a reduction of 264MWatts in Toronto, Canada but it hosted huge public music/party for the event. It also has figures about Bangkok, Thailand saving 73.34MWatts.

I can't help but think that if we all just stayed at home and turned off the lights, it would have been an even more significant savings. A cynical person would think that many people got into the spirit of Earth Hour because it is the in-thing to do for the environment. Think about it, imagine the public music event in Toronto, what kind of infrastructure is necessary to support it, and the energy consumption of that infrastructure.

Am I just a bit too cynical about this type of events?

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CoPF #146 - Online Broker Tip edition

2008-04-01T22:58:00.002+11:00

The 146th edition of the Carnival of Personal Finance is up over at Stock Trading To Go. I was fortunate enough for my post on revisiting my superannuation to be included among the many fine articles.

A selection of the articles are:

Dreaming of Ferraris - Personal Benefit of Savings
Blunt Money - The high cost of inertia
The personal financier - How to make sure that this is your dream home: 7 Practical tips
Smart Easy Money - If you build it, they will come
Mommy gets paid - Friends and Money

These are only a small selection of the many articles being hosted. Go and check them out.

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You are only worth at market value

2008-03-30T21:26:00.002+11:00

Back in 2002, my wife and I went into semi-retirement. Well, more really like putting our working lives on hold and recharging our personal life. Since graduated from university in 1992, I have never had an extended period of holiday or even a time to reflect on my life and where I want to head towards.

At the start of 2002, I told my boss that I am resigning my position, I told my family that I am selling the house going traveling around Australia in a caravan. Their reaction was a bit of disbelief and telling us that we are quite mad.

So we sold the house in Feb 2002, paid all our debts and put any remainder into a term deposit.

We reached Brisbane after six months of a traveling up the east coast of Australia from Melbourne. I started to look for a job and ended up with an offer of a job that I thought would paid a bit more. They offer me $45K, and I rejected their offer. That is one of the biggest mistake that I have ever made!

I rejected their offer because I believe that I am worth more than the offer, and my mistake is that assumption. The reality of what I am worth is that I am only worth as much as the job market is willing to pay for my services.

You may be the the most talented engineer in the country that is worth $150K, but if the hiring companies can only pay $50K, that is all you are worth.

What do you do if you think you are worth more? Well, the following may be worth attempting.

Wait for the job market to evolve. The job market may change so that your position is worth more, but are you able to wait that long?
Move to another city where the job market is willing to pay more. Many people do this, think of how many country folks come to the city for the bigger salary.
Switch profession. If a different job market pays more, consider switching. However, the time it takes to reach the equivalent career level may take a few more years, and then the job market may change again!

We finally returned to our working lives when our travels brought us to Adelaide and I got a position to work in Singapore for three months. My wife enjoyed it very much, and I enjoyed the food very much as well ;-)

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The rules of buying

2008-03-28T23:46:00.002+11:00

My pair of shoes are just about to die, it was then that I realised that the last time I bought some shoes was back in 2003! I haven't even bought a pair of cheap sandals for the beach since 2003.

There are quite a few reasons why that is, but I believe that the main is that I purchase high quality and robust shoes.The last three pair of shoes that I bought were Birkenstock shoes. These shoes are build to last! These shoes are not the cheapest nor are they the most expensive. However, I believe is spending that little bit more to ensure that I get good value for money.

Applying this concept to other products, such as kitchen appliances, clothing and other house hold items, have allow us to not purchase many high price. However, with many of the electrical products emerging from China and India, their quality are questionable.

So my rules are

Buy the best that you can afford. Everyone has a budget on what they can afford, so buy the best that you afford. Some of the best quality products are not even the more expensive products.
Know what makes it a good quality product. For example, a good pair of shoes that last a long time has real leather uppers and eyelets that doesn't cut the laces. For high price items, I would spend a few weeks researching on the product. The car that we purchased, we spend six months researching it.
Dare to be different. Not purchasing the same product as everybody else allows you to choose from a larger range of products, however do the research on why the popular products are popular. They might actually be of good quality.
Talk to the experts. The majority of the items that we purchased, we have no idea on what qualities we should be focusing on? Is the fit of a shoe, or how breathable the upper that is the most important. I have no idea, so I talk to a few of our friends whom have worn Birkenstocks before.
Make sure that it has a good support system. If the product does need to be repaired, it is supported by a good warranty return system with a quick repair time. Is the warranty period reasonable?

What are some your rules when it comes to buying?

Photo credit: sundeip arora
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Earth Hour 2008

2008-03-27T22:21:00.003+11:00

Earth Hour began in 31 March 2007 in the Australian city of Sydney at 8pm to 9pm. The idea is for as many people as possible to stop using electricity for one hour, such as turning off their lights or switch their appliances at the power point, for one hour.

The effect was startling. For that one hour, it reduced the power consumption in the City of Sydney by 10.2%! That is only in one city. In 2008, Earth Hour is going global!

29 March 2008 8pm - 9pm is Earth Hour 2008.

Earth Hour 2007 showed us the following.

It shows how much energy is being wasted. The majority of the time, we just leave a light switch on because we can't be bother to switch it off. Just switch off when you are not using it. I usually leave my computer on at work when I leave my desk at the end of the day. I need to make a conscious effort to switch it off when I leave, especially over the weekends.
Stand-by power is really wasteful. Stand-by power is when the appliances are still be left on when you 'switch it off'. For example, when you switch off the TV, it is still being powered up. The TV is still powered up to do things like being able to be switched on via the remote control, or remember its last settings. To really switch it off, flick the switch at the power point.
Wasting energy is also wasting money. If you like wasting energy, then you must like throwing money into the bin as well. The effect to your wallet is just the same. Don't do it!

Please consider support this. You don't really have to register to join in. Just switch off the power on the 29 March 2008 at 8pm, and consider doing it every week. It will make a difference.

Earth Hour is supported by WWF, (no, not the wrestling guys, these are the panda guys!).

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superannuation revisited

2008-03-24T23:09:00.001+11:00

I have just received my annual statement for my superannuation fund and it has triggered some rethink on my superannuation strategy. The downturn in the stock market this year have probably put many superannuation funds in a similar position. Lets start by looking at some of the figures that has caused me to do the rethink.

Account balance change: 7.12% on the opening balance
Return on Investment: -2.58% of closing balance
Management Fee: 16% of contribution

Looking at each of these figures in turn.

Account balance change: This represents the raw change in my account balance. A positive figure here is an absolute must as it indicates that I haven't lost all of the my contributions to the falling investments, fees etc.

Return on investment: I was expecting this figure to be a negative value. We can look across the Pacific Ocean towards the American economy. I actually thought this figure would be a lot worse, I expected it to be around -5% to -7.5%. I was quite relieve to see this figure of -2.58%.

Management Fee: This is how much I am paying my super fund to management my account. Now 16% of my contribution goes off my superannuation's wallet. When I did the calculation and realised what I am paying, I was pretty upset. This figure is what actually drove me to investigate other superannuation fund and how I can maximise the investment.

At end of my calculation, it came down to the following strategy.

Lowest fee structure. Two reasons here, firstly minimising fees is one of the very few items about the superannuation fund that can be influence so make it as effective as possible, secondly, I want to maximise the magic of compounding interest.
Online access. My current superannuation fund does not allow online access. So its performance can not be analysed in a timely manner.
Good insurance policy. Most superannuation has an insurance component, we need to ensure that the policy is suitable and covers all the family members.

What are some of yours?

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Lowest taxable income in metropolitan Melbourne

2008-03-19T23:37:00.001+11:00

The Australian Tax Office has just released some tax statistics for the 2005-2006. Although the data is a few years old, it makes for interesting reading, in particular the data on personal tax.

One of the statistics that I noticed was that Frankston North has one of the lowest mean taxable income at $33,638 for each taxable resident.

We lived in Frankston North for about two years, just before we shifted to our current location. I must say that during our time in Frankston North, we can sense that the place is not a wealthy suburb, but from talking to our neighbour and the other Frankston North residents, the ambiance certainly does not give it that sense.

Living in such a low income area does have its concerns. We saw a lot of the typical events that you would expect to see. For example, we witnessed a police car chase in a residential street, regular thieving and stealing at the local shopping centres, and the occasional violence. We were always on our toes, trying to keep as safe and secure as possible.

Having said that, I am totally convinced that the majority of Frankston North residents are everyday people trying to make ends meet. I wonder if how long before Frankston North begin to move up the scale, if it ever will?

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How to keep cool in a heat wave.

2008-03-18T22:37:00.001+11:00

Today is the first day where the night time temperature has dropped below 25 degC. The last few days in Melbourne has the day time temperatures in the high 30s. I think it peaked at around 40 degC yesterday. The nights have been quite unpleasant.

Apart from giving more money to the utility company by using the electricity to run the air conditioner or the fan, I was trying to think of what we can do to keep ourselves cool, in a frugal manner. These measures need to be immediate effect, so things like checking that the insulation in the roof is adequate is out of the question as it cost too much and it doesn't happen overnight.

A visit to the beach - When the sun has gone down, visiting the beach to lap up the evening sea breeze has to be one of the best way and cheapest way of cooling down, not to mention the evening sunset is always nice to look at.
Closing all the blinds on the sun side of the house, and opening the windows on the shadow side of the house - This was the effect of shielding the direct heat source (the sun) from heating up the house. The open windows will allow any cool air from shadowed side to enter the house.
Drink plenty of fluid - Keeping the body hydrate also allows the you sweat. As the moisture evaporates from your skin, it has a cooling effect.
Wear light clothing - This is a obvious one. Allow the the body to expend as much heat as possible by not insulating it with any thick clothing.
Avoid drinking coffee - Caffeinated drinks like coffee dehydrate the body (this could be a myth, as by googling was able to provide a conclusive answer)
Visit the local shopping centre - The local shopping centre is usually air condifiioned. The kids can played at the local indoor play ground. However, be careful not to be tempted by the shops around!
Visit the local library - The library is also usually conditioned. The books and activities are also educational and functional as well.

What else would you do during the many days of high heat? I would love to hear anyone from Adelaide where it recently endure 15 days of temperature of 35 degC or more. It peaked at 40.5 degC.

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To be sure at the CoPF, to be sure...

2008-03-18T20:56:00.001+11:00

I could almost brew a keg of green beer after being included in the St. Patrick's edition of the Carnival of Personal Finance #144 over at beingfrugal.net. Lynnae did a fantastic job collating all the blog posts and hosting them.

Some of my favourites are

Know The Ledge - 10 ways to find more money. I especially like the wise and 'fun' advice in tip#10.
The Dough Roller - 0% Balance Transfer Credit Cards: The 10 Commandments of Responsible Borrowing.
Online Savings Blog - How to Get a Raise at Your Job

Thanks to Lynnae for including my post on How will my financials change when No.2 arrives.

Other than those articles mentioned, there are plenty more quality articles at the carnival.

If you are a PF blogger, consider submitting an article into the carnival at Carnival of Personal Finance.

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Carnival of Personal Finance #140 - Prison Break Edition

The upside of rising interest rates.

2008-03-12T23:07:00.001+11:00

While I was doing some on-line banking the other night, I thought I looked at what the interest rate is on our BankWest account. It paid 7%, which I thought was pretty good. Hmm, I better check out their other products. Their rates on their personal accounts makes interest reading. Here are some highlights

Kids bonus saver account - 10%
Regular saver account - 9%
Children savings account - 6%

10% is an amazing interest rate. This account has bonus interest rates associated with it, but it has some conditions. $25 - $250 needs to be deposited on a monthly basis, and no withdrawal is allow. If either of these two conditions are broken, the interest rates drops to 0.01%. Oh, this account must be linked to a Bankwest Children Savings Account as well.

My home bank, ANZ, also has similar interest rates for their saving accounts, although not as impressive. Some ANZ's highlights are

ANZ Online Call Account - 7.75% for balances of $2000+
ANZ Youth Account - 4.50%

While I was looking through ANZ's interest rates, I noticed that the interest rate on their 4-year interest rate for home loans has increased to a whopping 9.4%. Their home loan variable rate has gone past double digits to 10.7%. Ouch! I think that we were very lucky to lock our interest rate when we did.

The interest rates in Australia has been consecutively increased since the first increase on 8 May 2002. The current cash rate as set by the RBA is 7.25%, starting from a low 4.25% in 5 Dec 2001. While I wish that interest rate would be on a downward trend, I am also glad that the banking folks also provide a balance by increasing their saving accounts, sort of.

photo credit: svilen murad
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First PPP post

2008-03-11T22:40:00.008+11:00

This is my first sponsored PayPerPost post. After looking through the list of opportunities available to me, this is the only one available. What I like about it is that it doesn't mind if the post has a positive comments or negative comments.

So what this post is about is tell the world that I have signed up for PPP, what my initial thoughts were, what I am going to do with the money etc.

Well, the one thing that I like about it is that there are opportunities available that allows negative comments as well as positive comments. I would prefer these opportunities rather than the ones that are specifically looking for positive comments.

The other thing I am surprised about the opportunities is the sponsored prices. There are some opportunities worth more than $100, however these opportunities are only available to blogs with high google page ranking.

The things that I don't really like about PPP is that depending how you write it, the articles could look like paid advertisements. This is definitely not something that I want to head towards. (one of the reasons why I am only going for opportunities that allow negative comments). I also want to write the articles in such manner that it does not detract the current readership.

It also has a blog for those who wants to keep up with what is going on behind the scenes at payperpost.

What am I going to do with the money? We I am going to use it to pay for those annoying weekend surcharges at the local ice-cream stores. (thanks Andy :-).

So far, it is too early to tell if PPP will work out for me, however, even though it is sponsored, I won't let it get in the way of an unbiased opinion.

Be careful of the public holiday surcharge!

2008-03-10T23:05:00.001+11:00

Today was the Labour day holiday in Melbourne, and the Melbourne Motor Show was on as well. So this morning, when we decided on to do, we decided to visit the motor show and spend the day in the city. The weather was nice, and warm. My son had a terrific day at the motor show, he wanted to jump into every car he saw and drive it away! He has a great imagination for a two year old.

To finish the day, we bought some ice-cream. When I am paying for it, I fail to notice the sign indicating that a 10% surcharge is applicable because of the public holiday at this ice cream shop. At first I was a bit annoyed that I did not notice this sign, but paid for the ice cream and enjoyed it with my family along the Yarra River. I also noticed that not all the shops are applying the public holiday surcharge.

Later today, I thought about it a bit more, I realised what really annoyed me was that the sign on the ice cream store also state that the surcharge is also applicable on weekends as well. I have a real problem with the fact that the cost of an ice cream is cheaper on weekday that it is on a weekend. I wonder how many other ice cream or side street business operate this way?

In the future, I am going to be more wary of the what I am really paying for, in particular of the surcharges. By the way, if the surcharges are not displayed, the shop could be applying the surcharges in an illegal manner.

I have just been accepted by PPP

2008-03-09T13:27:00.001+11:00

Just got an email that I was accepted by PPP. I recently blogged that I was rejected by PPP for some superficial reasons. I was stumped and was about to give up investigating it more. The next few days, Andy from Finance Viewpoint left the following comment.

PPP does work, sometimes it takes a while. Install the tools they say and re-apply after a week.

I am an Aussie blogger and here is a referral link others have used to sign-up : http://tinyurl.com/2995wq

I have 2 blogs on this program and it earns me about $30 p/month. Have to be careful with the sponsored posts as most of the advertisers are American.

I thought, what the heck, I just spent a small amount of time and do what Andy suggested. Lo and behold, I received an email from the PPP that my blog has been accepted a few days ago. The only thing that I changed was to install the tools.

I guess my next step is to decide which items I want to write about. Stay posted.

By the way, you are welcome to use Andy's referral or my referral, http://tinyurl.com/2bxo7b

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Public Housing and the homeless

2008-03-06T23:16:00.002+11:00

My recent participation in the CoPF #142, which has a homeless theme, has caused me to think about what kind of homes are available for the homeless.

To me, homeless means a few thing, but it boils down to not having a place where my family and I can feel safe and secure. The difficulty is obtaining that place, either buying or renting a house. The rental market in Melbourne is red hot, and the affordability of buying a house is at record low.

The Victorian government tries to ease the situation by provide public housing. Public housing is not free housing. Essentially, it is houses that are the Victorian government rents out the public. The differences between public housing and private housing is the criteria which the house are rented.

If you want to rent a house privately, prove to your landlord that you can afford to pay the rent, and not damage the property while you are renting, and the property is yours. The rental rate is set by the landlord. The rental market is so competitive that I have heard of landlord auctioning off the leases.

With public housing, you will need to meet the following criteria to be on the waiting list for a suitable housing to be available. According to this pdf document, there are close to 35,000 people on the list!

not exceed the current general public housing income and asset eligibility limits.
live in Victoria.
not own or part own a house, unit or flat.
have Australian citizenship or permanent residency status.
repay any money that you still owe from a previous public housing tenancy or Bond Loan.

If your situation is extreme, you can be apply for early housing where, if suitable housing is available, your application will have a higher priority. These situation includes recurring homelessness, supported housing and special housing needs.

The key thing is that the rent rate is set at either market rate or rebated rate, whichever one is lower. Market rate is the going rate for a similar property in the private rental market. Rebated rate is calculated at 25% of the combined household income.

The Victorian Government's Office of Housing has a great website that has a lot of detail information.

My closest experience with homeless was when I sold up and went traveling around Australia about 5 years ago. I know that what I did was not even 5% of what a homeless person would experience because being homeless is not just a physical thing, it is also a mental state and also an emotional state. As I traveled around the country, I met many others in makeshift shelters, transient accommodations and hostels. It provided me with an opportunity allow me to talk and to get an indication of their lives. In some ways, I feel encouraged that they are able to survive on a day-to-day basis, given their extreme conditions. On the other hand, I also felt angry and disappointed that in this country that we are not able to do more for the homeless.

Photo credit: Piotr Ciuchta
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