As earnings season kicks into gear the fat cats spare no tricks to catch their mice. PR teams and CEOs are spinning yarns in the hope of catching new customers which can only be fought with a healthy scepticism towards the messages that you hear in the media.

Take ANZ for example, boasting of record profits and excellent service they were quicker than mercury to announce 1,000 roles being “made redundant”. At the same time, they’ve been holding open days in Manilla to recruit the same labour at a 1/10th of the cost!

Despite this, next month 100 ANZ employees will get their personal butlers as part of a $500,000 Luxury cruise package in Malaysia whilst mortgage holders have no choice but to pay up for the ‘record’ feast.

If you look at it from a shareholders perspective ANZ’s profit pursuit is justified, as let’s face it, pretty much all of us average Aussies have super and those super companies invest heavily in the banks.

However, what I can’t stomach is the blatant overspending on a booze cruise or the outsourcing of Aussie jobs. That’s where the ethical buck stops I’m afraid.

What do you think?

Well into February and we can start to get an idea of the year coming and what tricks and techniques will be the choice for profiteers. As always, real estate is trying everything to ‘stimulate buyers’ and keep the slow melt of housing prices under wrap.

Recent data from the ABS has seen prices drop 1% in the December quarter and annual data shows as much as 4.8% being shed of properties right around Australia.

Despite this, you don’t have to go far to hear promising messages of prices ‘bottoming out’ or even rising in the last quarter.

The problem doesn’t stop with the usual marketing jumbo to keep our wallets open. Over the weekend I had some time to catch up with a friend in real estate who gave me an interesting insight into the front lines. The world he showed me was one of desperation and stress as home owners try to save as much of their investment as they can.

People who bought their homes only a few years ago are ending up upside down on mortgages that never should’ve been approved in the first place. In 2009, almost anyone’ could get a $250,000 loan. Today however, they are sitting with a mortgage that started at $250,000 and has been getting out of hand ever since.

My friend didn’t take long to add further woe to the story, by telling me that he would now see many properties selling for close to 50% of their purchase price, leaving more and more Australians ‘upside-down’ on their mortgage with no hope of repaying them.

When will we wake up and see the big picture? Our credit markets are getting completely out of hand and as the plug is slowly being pulled many will face an uphill struggle to get back in the black.

Especially with the interest rates being pushed back up by the banks despite the RBA keeping them on hold.

Rather than drilling down and finding out the facts for ourselves the media and real estate marketers continue to pull the wool over our eyes. Unfortunately, with a ‘slow melt’ happening around us it is still evident in most investor markets around the world we’re quickly running out of sand to hide our heads in.

The sharks are well and truly in the water, are you?

Your thoughts?

Despite all the dark GFC 2 clouds forming it seems that Australians will be spending about $1,200 over Christmas this year.

Even with the rising costs of living and our ever shrinking wallets, it clearly seems that as a nation we are getting ready to spend up big this silly season.

Whilst this is not anything new it is somewhat a paradoxical situation where the biggest potential spenders are the ones who feel like they need more cash but are blind to the full impacts of the impending GFC2.

It seems that people are literally putting their head in the sand and in an attempt to ignore the dark headlines such as ‘austerity packages’, ‘crisis talks’, ‘stagnating economies’ and ‘price pressures’ that appear daily in the media.

Our incessant need for ‘best’ is making us worse off, locking us in a mindset where the items that we need are put on the back-burner in preference for ‘non-essential purchases’ such as flat screen tv’s and tv-games. Fact is, a recent survey by news.com.au found that 80% of respondents had bought something they didn’t need.

That survey went on to show a brilliant stat that 45.7% of adults who had just made a non-essential purchase of greater than $1,000 were extremely frustrated about the rising cost of living. Not only that, two thirds of those who had just spent the $1,000 had said that they needed a $100 extra a week in order for them to feel comfortable.

What is it with Australians?

Are we a bunch of complete idiots?

Seriously, I really hope we have a massive GFC in Australia the likes of what is occurring in the US, UK and half of Europe.

This will be the only way to get Australians to WAKE UP and take more care of themselves financially.

How many bloody 4WD’s can we have in CITIES, how many massive flat screen TV’s can we have in the homes of people who complain about the cost of groceries?

I’ve had enough.

Bring on the GFC. Bring on the pain and let it be the biggest wake up call Australia ever had!

Merry Christmas!

What do you think?

With consumer confidence finally climbing back up, retailers are slowly becoming hopeful of a merry Christmas after last years let down. For us shoppers however, this means that the discount sprees that came early last year probably won’t start until Boxing Day.

Fortunately there are many ways you can save on all the presents and decorations that needs to be bought this season, and here are five things I’ll be doing to get more for less:

Get in the group-giving spirit

The world of gift giving is riddled with ‘political correctness’ which often makes us worried about how our gift will be perceived. One type of gift which often suffers because of this is the group gift, where you and your friends come together to buy something extra special to the people you love. Probably the biggest concern when doing this is what will happen when you mix friends with money as the last thing you want is for your present to turn into a source of conflict. Have a look at this great article on how to best manage a group buy so no one gets left out or shamed in the process.

Mobilise your coupons

With the internet and smartphone revolutions in full swing it’s easier than ever to find big savings near you. Apps like Deals on Deals and groupon sites like LivingSocial almost always save you 50% and often more or the original purchase price. This is the perfect way to spoil someone you love without turning your wallet into a crater. DealOnDeals is great because you don’t actually need to print out a coupon or pre-register. Simply download the app to your phone and start discovering deals and discounts on the map of your local area.

Go online, but be strategic

We all know that buying online is a sure fire way to save some of our hard earned cash. But what if the person you buy a present for decides to return it? This is a very common problem for savvy shoppers as the gift won’t be perfect unless it’s exactly what you wanted. Luckily, there is a very simple way around this, just ask the person to whom you are buying something for first! Truth is most of us don’t mind being asked about what’s high on the list this Christmas since it only means we get something we’ve been craving all year. Use that to your advantage, as your family and friends will then use this information to then go online and buy. It’s the perfect way to keep your Christmas budget in check and still give generous gifts.

If you have a credit card, use it! (Wisely)

Especially in the big spending months, credit card providers fall over themselves to try and attract your business which also means plenty of promotions and special offers. Check what they are offering and take advantage of it! It could be bonus frequent flyer points for your next holiday or zero interest periods. As a savvy shopper you can make your plastic work for you. But remember, there is always an asterisk somewhere, so make sure you check the reversion rates and don’t buy more that you can afford to pay off.

Start saving early

It might be too late to use a Christmas savings account for this season, but starting now could help you out for next year. The basic principle is easy, spread out the cost of festivities over the whole year and it’ll only cost you a small amount of every pay. Wait until last minute and you’ll have to find the full amount on the spot. Use sites like www.infochoice.com.au/ and www.ratecity.com.au/ to find the best option for you.

How are you saving this Christmas?