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Five finance lessons from James Bond

James bond style gun barrel

When it comes to money, the discussion of bonds usually refers to a financial product. However, finance lessons can often be found in unlikely places. With the release of new James Bond epic, Skyfall, the world’s most famous secret agent can offer tips on more than just style and charm.

So what do we know about Bond?

If you’re looking to smarten up your finance skills, here are five lessons James Bond offers his faithful followers.

Calculate your risks and investments

Bond never makes a reckless decision. He sums up every move, and investment decisions are no different. If you know your strategy, you will begin to achieve more from savings accounts. Even high interest savings can be a highly calculated investment. For example, a view that interest rates will rise may convince you to ‘ladder‘ your funds over different terms. If you had $75,000, you might invest $25,000 into a three-year term, $25,000 into a two-year term and $25,000 into a one-year term. Then, as each term matures, you can invest the funds into a new term deposit, taking advantage of any upward changes in interest rates.

Older means wiser

It’s never too late to change your investment techniques. In fact, the new Bond film has been hauling in record box office numbers. Not bad for an age-old franchise. And while past performance is not a reliable indicator of future gains, proven techniques can often be the best bet.

In an investment era where experts are divided on predictions of property and shares, high interest savings accounts can provide some stability. If film buffs had to bet on a character franchise, Bond would be a pretty safe bet. The same goes for choosing fixed interest.

Make property investment safe as a house

With the new Bond film title referring to ‘Skyfall Lodge’, Bond’s childhood home, it’s worth remembering the importance of property within Australian investment portfolios. Be wary of investing in any inflated property market. However, you can bolster your property investments by choosing affordable housing where land is in limited supply, population is growing and infrastructure is in place.

Diversify your savings plan

Skyfall has all the hallmarks of a classic. However, Daniel Craig has been commended for bringing a modern and dark twist to the character. Similarly, your savings can benefit from classic techniques mixed with a splash of creativity. A high interest savings account is a timeless technique. But how are you going to fill that account? Look for a savings account that allows you to add as many deposits as you can. Set up auto-deposits to separate your savings and spending cash. Are you focusing too much on one account? If you have a credit card accruing interest, be sure to pay that down. Also, if your finances are in check, is it worth setting up a 100 per cent offset account on your mortgage? The most creative techniques could see you squeeze valuable extra funds from your savings return.

The modern investor

With auto-deposits and reports immediately available on online savings accounts, there is no excuse for not modernising your savings regime. Just as 007 has an affinity for the latest gadgets, being proactive with tools such as savings calculators can help you boost your investment goals. Meanwhile, set up alerts and automate any loan payments.

The most savvy investors know how squeeze extra performance from the most classic techniques, including high interest accounts, so take a few finance lessons from the one and only Bond in order to get ahead.