With a lot of people sitting at home and wondering what to do with their money, there are a lot of people considering buying new cars or properties, here is my take on interest rates:
What are interest rates?
The lending rate at which banks offer loans and credit to consumers/clients.
How does low interest rate affect me?
You can now borrow money at a lower interest rate (payback rate), which means your monthly repayment costs should be lower. If you already have a loan, your monthly premiums should reduce, and you can use this difference to pay off your loan/debt quicker.
Why does government lower interest rates?
To try and get citizens to start buying goods and products (cars, houses, boats, clothing etc) to revive the economy.
So should I buy a new car or house?
Only if this has been something you would have anyway bought irrespective of interest rates and you have saved up for it.
Remember the golden ratios – do not spend more than 25% of your income on a house and not more than 10-12% on a car (take home pay).
The Side Hustle
Another problem with people unable to work is that they are struggling to earn an income. Unfortunately at the moment, it seems like we will be in a type of lockdown for the rest of the year, so here are some options of jobs you can do from home, with little to no experience required:
You test websites for companies and see if there are bugs, they pay anything around USD20 per test. The more you do, the more you will get invited.
There are a lot of online options, and they mostly require people to copyright and review documents. There is a test that needs to be taken to test your English, so make sure you are proficient in English.
This is for those who like writing but aren't ready to jump into freelancing yet. It's a content marketing company, and they do a lot of product description writing.
One man's trash is another man's treasure. With time on your hands, go through your garage, rooms, and storerooms and have a look at what you can sell.
Financial ways to get ahead during Covid-19
Have you got your Will in place? If not, this is the best time to get your Will drawn up. We schedule a free will consultation with you over Zoom, Skype or Teams and we get your Will drawn up during the meeting.
Funeral policies – This assists the family in settling the bigger costs if you should pass away.
Retrenchment protector – This pays you a monthly income if you should get retrenched.