Here’s what you need to know today

• Australia’s auction clearance rate hit its lowest level in 2024, with the national clearance rate falling to 63.4% according to CoreLogic. Auction clearance rates are generally seen as a lead indicator for house prices, with anything below 65% indicating a buyer’s market and a harbinger of falling prices. (AFR)

  
  

• President-elect Trump continues to threaten large tariffs on major American trading partners. Over the weekend he threatened 100% tariffs on BRICS nations (originally Brazil, Russia, India, China, South Africa but now also includes Iran, Egypt, Ethiopia and the UAE) if they follow through on suggestions of creating a new currency or backing another currency to replace the US dollar. (AFR)
  
  

• British lawmakers are one step closer to approving voluntary euthanasia for terminally ill people after a bill received 330 votes to 275 in favour. This is just the first step in a possibly months-long process of debate and amendments before it is voted on to become law. (BBC)
  
  

• European inflation came in at 2.3% in November, up slightly from 2% in October. The fact it was only a modest rise, combined with Europe’s struggling manufacturing sector, makes another rate cut at the ECB’s next meeting on 12 December all-but-assured. (Financial Times)
  
  

• French bond yields continue rising (meaning the price of the bonds are falling). Last week we reported the French 10-year yield rose to a 12-year high relative to Germany’s 10-year yield. Since then it has continued climbing, briefly topping Greece’s 10-year yield. The increasing yield reflects concern about France’s high levels of debt-to-GDP and doubt over Prime Minister Michel Barnier’s ability to pass a proposed €60 billion in tax increases and spending cuts. (Financial Times)
  
  

• Spain has followed Canada’s lead, introducing ‘climate leave’ that allows workers to take up to 4 days off to avoid travelling during extreme weather events. The new policy comes after horrific flooding last month killed more than 200 people. (Business Insider)

What the…?

The eCommerce era has brought huge cost savings and convenience. But retailers are starting to pull back on one of the most convenient aspects: free returns.

As customers embrace practices like 'bracketing’ (over-ordering sizes or colours to find the right one and returning the rest) and ‘staging’ (showcasing products on social media before returning), online retailers are now pushing back and choosing to ban ‘mass returners’. (Vogue Business)

Investing is a lifelong journey

Here’s what you can learn today.

Community Question: What are some key areas I can focus on to reduce cost of living pressures? How are you advising your clients about this?

We put this question to Jane Mitchell, financial adviser at AdviseWise.

Jane answered: With cost of living on the rise many people can agree it’s a painful time for the family.  

It's natural to feel concerned about how to cover your monthly costs. Groceries, rent, mortgages are all going up, clients worry their wages aren't covering the increase and they don't have enough savings in the bank.

In times where your cashflow position becomes tight or you want to rein in spending, it is always a good idea to look at your cost of living. 

Here are some ways, to help give you back control and reduce your money worries:

• Review your current expenses.    

  • We all think we know where our money is going and what we spend, but the reality can be very different.   

  • How much are you spending on entertainment, dining out, food deliveries like Uber Eats?  

  • Are there costs, discretionary spending you can cut back on that will ease your cashflow? These add up and could be better put towards savings.

  • How often are you shopping online?

  • Review your subscriptions, energy, car insurance, internet and phone plans, check are there savings with better deals elsewhere.

• Make a budget and stick to it.  You can do this!

Establish a budget for your current lifestyle, track your spending, reduce your  overspending. Look at your bank account and credit card statements, put the expenses into the budget tool and you will easily see where the savings can be made.

• What are the direct debits you have coming out of your accounts?

• Set aside a fixed amount from each pay into a separate account to cover your bills, rent and essentials. Reduce the opportunity for overspending.

• By keeping a budget, you are holding yourself accountable and forcing yourself to improve your spending and savings habits, each week. 

• Moneysmart.gov.au have a great budget tool, very easy to use.

• Saving for the unexpected and build a buffer:

Once you have identified things you can cut from your spending, you can build a budget to gradually improve your financial position and build emergency funds for unexpected expenses. 

The last thing you can do if you are still struggling is looking at changing your habits. If you routinely buy takeout, go to the movies, drive rather than take public transport, and partake in recreational activities that your budget simply can’t afford consider making changes that better align with where you want to go financially.

After all, your money is designed to get you to where you want to go. Wealth provides you with financial freedom.

Take action and you can get your cost of living back under control and go back to enjoying your life.

Want to speak to one of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

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