The Reserve Bank has lifted interest rates this month again, due to the Australian economy recovering.

Understandably it is sometimes hard to view a rate rise as a positive factor when you have a mortgage. Better that, than having a mortgage with low rates and no job or income to pay it, wouldn’t you agree? This could have been the scenario if the economy went into the type of decline it has in some countries. You only have to look at the economy in Greece to see the devastating effect that could have happened here without responsible economic factors being in place.

With our unemployment rate continuing to fall and house prices rising quickly, amongst other strong economic factors, to not raise rates now may have been a big mistake for all our futures. Small rises now, may save us from interest rates spiraling out of control. This keeps interest rates at more sustainable averages.

Remember to take advantage of your extra savings and have it in your 100% Offset Account if your loan is set up this way.

Also rest in the knowledge that the way house prices have been rising, your equity position is likely to have increased at a much faster rate than interest rates have risen.

There is always a silver lining if you look for it.

Till next month, always look at the big picture and keep focused in building your wealth over your lifetime.