Money Magazine March 2017

“Do not save what is left after spending, but spend what is left after saving” - WARREN BUFFETT Eight questions per issue, 11 issues per year over 18 years ... that means Money’s chairman and chief commentator, Paul Clitheroe, has answered 1584 reader questions in his Q&A column alone. In this month’s cover story we revisit some of Paul’s favourite questions along with his answers. Not surprisingly, they stand the test of time. While our money goals and woes are all very personal, at the end of the day, as Paul says, most come down to financial independence. “This is great news, as the key to money success is to do small things on a regular basis.” If you’re looking for some more financial lessons, Vita Palestrant talks to…

Doing smart business My wife and I (both in our late 50s) own a small business and we operate it on a shoestring budget. We try to be very disciplined with our expenses, particularly as neither of us has the monthly security of a pay cheque. Off and on we need a casual hand and so we hire our 18-year-old daughter, who is also a full-time university student, to work on weekends and evenings to do various jobs such as letter drops, filing and attending the incoming phone calls, for which we pay her a fair wage. This way we can reduce the company tax as this is a business expense and is tax-deductible. We save company tax of about $5187 when her wages amount to about $18,000 for the…

In praise of property For any 20- to 30-year-olds reading this magazine, don’t worry about having a wardrobe full of clothes that sometimes you will never wear, or the flash car that depreciates as soon as you drive it out of the car yard. Invest in property! I would love to be 20 and know what I know now about real estate. I bought my first house at 20, sold it six years later for a profit of $24,000 (back in the 1970s) and my husband and I have just gone from strength to strength with property. We are just about to retire, we own our own home on the Gold Coast, and have two investment properties owned outright and four properties positively geared. You can do it, too, and…

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PAUL CLITHEROE Paul is one of Australia’s best-known personal finance commentators. Paul says: “In the late 1970s, I was offered a job researching the then new area of managed funds. I went for the job and the money instead of taking a year off to travel. Life is short and I do regret not taking that time out.” PAM WALKLEY Pam was founding editor of Money and is now a senior staff writer. Pam says: “Vetoing my husband Bruce’s purchase of a glorious Brett Whiteley years ago. It wasn’t hugely expensive but with two kids money was tight. Its value has risen heaps but my biggest regret is it’s not hanging in my home.” ANNETTE SAMPSON Annette has written extensively on personal finance and she has written several books. Annette…

EDITORIAL Chairman & chief commentator Paul Clitheroe Editor Effie Zahos Deputy Editor Maria Bekiaris Art Director Ann Loveday Designer Chantelle Galaz Senior Sub-editors Bob Christensen, Debbie Duncan Senior Writers Susan Hely, Pam Walkley Staff Writer Steph Nash Online Content Producer Sharyn McCowen CONTRIBUTING WRITERS Heidi Armstrong, David Bassanese, Nerida Cole, Ross Greenwood, Sam Henderson, Adam Hobill, Greg Hoffman, Deborah Light, Roger Montgomery, Anthony O’Brien, Marcus Padley, Vita Palestrant, Annette Sampson, Mark Story CONTRIBUTING ARTISTS Yianni Aspradakis, Simon Casson, Reg Lynch, Jim Tsinganos, John Tiedemann, Richard Whitfield PHOTOGRAPHS Getty Images, iStockphoto ADVERTISING NSW Jermaine Borquaye (02) 8268 4489 Victoria Michael Pollard (03) 9823 6394 Queensland Nikkola Hogan (07) 3101 6636 South Australia Jo Moroney (08) 8267 5032 Western Australia Vikki Stacy 08) 9449 9908 PRODUCTION Controller Rosanna Quinzon Advertising Production Dominic…