Money coming your way? Don’t waste it, invest it!

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moneybagAre you about to inherit a small fortune? Have you been awarded a sizeable compensation payment or had a serious lottery win? Or maybe you are expecting a retrenchment package? If so, you need to think carefully before you decide what to do with your new found ‘wealth’.

 

Certainly you should consider paying off some of your debt, particularly if it’s getting hard to handle. You may also want to buy one or two useful items to make life more comfortable, but it makes sense to put the bulk of it to work for your future well-being – through investing.

Many Australians see investing as something other people do. They either don’t know how to go about it, or think they need a lot of money to make it worthwhile. Yet investing sensibly gives the average

Australian opportunities to transform ‘windfalls’ into longer term security.

In fact, most of us are investors already, through our superannuation fund which invests in a number of different investment areas, such as shares and property. An increasing number of us are taking a more direct interest, by investing in share offers such as Queensland Rail. There are various ways to invest, and numerous investments competing for your dollars.

So how can you work out what investments are best for you? You really need advice from an experienced professional financial planner who can look thoroughly at your circumstances, preferences and your attitude to risk before recommending investments suitable for your particular needs.

Source | IOOF

Becoming Money Smart

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Smart-Money-300x300Results from a recent survey on financial literacy in Australia revealed that one in every three people find dealing with money stressful, even when things are going well.

If this sounds a little like you, you’re not alone. Financial matters can sometimes seem overwhelming and it may be difficult to know where to begin.

The key to overcoming this stress is to boost your financial IQ so you can make informed judgements and effective decisions regarding the use and management of your money.

A great place to start is by visiting the MoneySmart website (www.moneysmart.gov.au). Run by the Australian Securities and Investments Commission (ASIC), the MoneySmart website offers free, independent information to help everyday Australians make smart choices about their personal finances.

The website provides tips on managing and investing money, borrowing and saving, superannuation and retirement; plus the latest consumer finance news and scams to avoid. There are also handy calculators

to check your financial health status and forecast your financial position based on a variety of scenarios.

Taking control of your finances doesn’t mean you have to go at it alone though. As your financial adviser, we can provide you with guidance to help you set your financial goals and reach them sooner. This may involve providing advice on how to:

  • Manage debt
  • Create a savings plan
  • Invest for wealth
  • Achieve tax savings
  • Make the most of your super, and
  • Plan for your retirement.

Why not take the next step in your financial health by speaking to us so we can help you further.

Source | IOOF

Ever wonder where your money goes?

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budget deficit - recession 3d conceptIt doesn’t matter how much money you have or make, sometimes it just doesn’t feel like it’s enough. When you create and stick to a budget, at least you know how much you actually have and what you can do to make the best of it. 

Budgeting shows you where you are financially, and helps you map out a path to where you want to be.

By creating a budget and setting aside a few minutes a week to keep track of your money, you will be able to:

  • Make informed decisions about what to do with your money
  • Figure out what changes you should make in your spending habits
  • Start getting into good saving habits.

 

Step 1 – Track what is coming in and out

The first thing to do is figure out what money you have and where it goes. Try to keep a diary of your expenses and your spending for a couple months. This will enable you to calculate where your money is and how much spare cash you have after everything is paid.

Make a list of all the regular expenses you have such as credit card bills, rent or mortgage payments and grocery bills. Don’t forget items that pop up unexpectedly such as holidays, birthdays or insurance premiums.

 

Step 2 – Manage your budget

Regardless of whether your budget is in the red or in the black there are things you can do to be thriftier. Some easy ways to reduce your spending are:

  • Find small, non-essential items you can cut back on.
  • Are there any direct debit payments which are being paid without you actually using the service? This could be an old internet provider or a gym you don’t go to any more.
  • Can you get a better deal on your services? Sometimes switching your phone, mobile, gas or electricity can provide you substantial savings, it helps to look at all your options.
  • Can you pay more than the minimum on your debts? Whether it’s personal loans or credit cards, paying the minimum will hardly make a dent as you will only be paying off the interest.

Whatever happens, don’t ignore the problems. By being open and honest about your financial difficulties with me, we can look at solutions to help you out.

 

Step 3 – Make goals and stick to them

It is time to get your money to work for you by making financial goals:

  • Short term goals – make them achievable in a realistic timeframe. They could be as simple as paying off your credit card or saving up for a family holiday. Make sure you reward yourself when you have achieved them.
  • Long term goals – these can be harder to achieve as they seem so far away, but look at goals such as saving for a deposit, paying off your mortgage quicker or saving for your retirement.
  • Expect the unexpected – it is a good idea to put some money aside for emergencies or unexpected events. You could aim to save enough to cover the cost of replacing an expensive household item, but a lot of people aim to have three months’ pay saved up.

Once your goals are made, stick to them. But don’t beat yourself up if you slip up for a month or two; simply reassess your goals and get back to them.

 

Step 4 – Speak to a professional

We are here to help. If you feel that you are in over your head and or just want to get a step up with your finances, make an appointment today and we can help you create a financial strategy that will help you achieve your financial goals.


Source | IOOF

Is debt ruling your life?

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Is debt ruling your life?

 debt-managementStudent debts, credit cards and personal loans can be a source of unnecessary stress and prevent you from enjoying other things in life.

Clearing your debts doesn’t have to be hard work. With the right advice, it’s possible to get your finances on track sooner than you think. Which means you can get back to living the good life, guilt free.

 Here are some tips to help you get out of debt.

Plan your budget

Achieving your goal of being debt free doesn’t have to be daunting; a good way to start is with a budget. Try to keep a diary of your expenses and your spending. This will enable you to track where your money is going and how much spare cash you can use to attack your debt.

Pay extra

Try paying more than the minimum off your debts. Whether it’s personal loans or credit cards, paying the minimum will hardly make a dent as you will only be paying off the interest.

Prioritise

Prioritise all your debts by the interest rate you are paying. Try to get the balance down on high interest debts first, as paying these off first will save you a bit more money. The money you save in interest, you can then use to pay off your lower priority debts. This will get you to your debt free goal that little bit faster.

Consolidate

Consolidate all your higher interest debts into one lower interest debt. This could be in the form of a low interest rate credit card or a personal loan. This strategy will also reduce your interest repayments.

Ensure you have the right card

There is no need for anyone to be paying 20 per cent interest on their credit cards. Due to the increased level of competition in the credit card space, many lenders are offering much lower interest rates and deals.

 When doing your research, make sure you read the fine print, as cards offering low or zero interest rates on balance transfers, do so for a limited time only whereas other cards might offer a low interest rate for the life of the transfer.

Become card free

Once you have selected a low interest rate card to transfer your balance, make sure you don’t use that card for any new purchases until you have paid off the full amount from the initial transfer. The best way to do that is the old fashioned way – cut your card up and throw it away!

Take the first step

If you’re having difficulties repaying your debt, take the first step and speak to your lender. If you’re open and honest about your financial difficulties with your lender, you will probably find they are open to review your repayments and look at other solutions to help you out.

Speak to a professional

If you feel that you are in over your head and struggling with your finances, speak to a financial planner for help with a financial strategy that can get you back on track.


Source | IOOF

Happy New Financial Year!

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 happy-new-year-2013-39[1]Everyone thinks about change and making resolutions when the calendar year ends but what about the financial year end?

 The new financial year is a perfect time to make some resolutions to improve your financial health. If you create simple and easy-to-follow resolutions you will be more likely to succeed.

 

To start, you can ask yourself the following questions:

 •         What do I really want to change?

 •         What are the benefits of making changes?

 •         What steps do I need to take to make changes?

 •         What will stop me from making positive changes?

 •         Are my changes realistic and long term?

 This article lists some simple, easy-to implement resolutions you could take on for the new financial year.

 

Keep your receipts

The most common reason people don’t take advantage of tax deductions when they file their tax return is simply because they don’t keep receipts. While keeping receipts for big ticket items is necessary, you don’t always need a receipt for the smaller items such as stationery and books.

 

Create a budget

Achieving your financial goals doesn’t have to be daunting; a good way to start is with a budget. Try to keep a diary for your expenses and your spending. This will enable you to track where your money is going and how much spare cash you can use to either attack your debt or build investments.

 

Cut your spending

Look at cutting unnecessary expenses. This could be as easy as making your lunch or coffee at home, cutting out optional extras such as lottery tickets or taking public transport instead of driving.

 

Pay extra

Try paying more than the minimum off your debts. Whether it’s personal loans or credit cards, paying the minimum will hardly make a dent as you will only be paying off the interest.

 

Increase your savings

Set aside a little bit of extra money each day, week or month. If you can save just $10 a day, you will have an extra $3,650 at the end of the year. You can talk to your employer about getting it automatically deducted from your pay – if you don’t see it you are less likely to miss it.

 

Contribute to your super

Think of the long term and your lifestyle when you retire. One way to increase your retirement savings is through salary sacrificing some of your pre-tax salary.

 

This will not only help to increase your super savings but could also reduce the amount of tax you pay.

 

Seek professional advice

Your financial adviser will help you keep to your resolutions and make sure your financial strategy is appropriate for the year ahead.

Source | IOOF