Is it up, down or flat

Every day brings mixed signals about the economy:

- Housing prices have crashed, house prices steady, house prices on the rise
- World economy worst since great depression, world economy on the mend, world economy on the rise
- World share markets rally for two days adding 2% - 4% on the back of renewed confidence, then lose 2% in the next two days on the back on poor economic data
- USA in deep recession but things looking good for turnaround by late 2009

Who knows what to believe? I heard on the radio the other day that economists give astrologers a good name. The media just want to sell papers, the more sensational the story the better.

For what it's worth, I’ll share a few of my thoughts with you:

- it's been a tough 12 months and it will take another 12 months until we can confidently say we're back on track with some form of consistency
- housing prices in Australia will stay flat and will then start increase within next 6 - 12 months but there will be pockets that drop, some that firm and some that rise within that time
- if you're a property investor and you have some leverage, now is a good time to think about investing in some property but do your research and locate the right property in the right area taking into account trusted fundamentals: strong population growth, close to transport, shops, schools and amenities and strong / consistent rental returns
- think about a fixed interest rate within the next 3, 6 or 12 months depending on mood of RBA and what you think will happen with interest rates....watch closely - if a rise in interest rates will significantly impact on your person finances, start thinking about fixed rates now and talk to your bank manager / mortgage broker / financial advisor
- stick to the fundaments: budget on a regular basis, live within your means, make sure your always have approx. 3 months worth of living expenses in savings, save where possible and be smart with your money

It's uncertain times and these are just my opinions but everyone has an opinion, right? What's important is that you feel comfortable with how you are managing your personal finances and that you should stick to the fundamentals that will help you manage stay in control.

Remember, if you need help budgeting, visit EasyBudgeting or for those in the USA, visit EasyBudgeting USA to download the most user friendly budget planner available on the internet.

Cheers
EasyBudgeting