Financial Planning

Financial fitness is not that different to physical fitness. Both take time, moderation and discipline, and both are equally rewarding in terms of improving your quality of life. Here’s a five-step plan for putting your finances in healthy working order. Know what you want When you set out to improve your fitness you usually have a goal in mind – maybe you want to look good for summer or be fit enough to keep up with the kids. Do the same with your finances: work out what you want to achieve so that you can make a financial plan for how to get there.        2.  Make a plan To include exercise into your week you have to schedule it in. Maybe you have to wake up earlier? Give up your lunch break? Take the same approach when making a plan for financial...

We all set goals, either consciously or unconsciously, but most of us are content with vague easily set targets that are just as easily forgotten the next day. We sort of know where we’re going and we count upon fate, luck, providence and quick thinking to get us there. This might work sometimes, but it also makes it easy for us to become confused, find excuses or give up. Goal setting is one of the simplest and most powerful tools you have to bring about positive changes in your life. Like driving in a big city, it’s harder to find your way if you don’t know exactly where you’re going. Setting goals is like stopping to look at a map – it takes a few minutes to do it, but it makes sure you’re headed in the right direction. Here are some examples of...

If you’re running a small business, now is the time to think big. The Federal Government’s focus on small business in the May budget was designed to encourage small business growth through tax cuts as well as measures to reduce red tape, promote more start-ups and hire more employees. Many business owners will be taking advantage of the opportunity to receive an immediate tax deduction on every asset they purchase valued up to $20,000. Cars, utes, tables, chairs, printers, photocopiers, tools, TVs, sound and security systems, computers, tablets and smartphones are just some of the assets that can be deducted until the end of June 2017. Short on capital? Try Leasing While these tax deductions are great news for many small businesses, what about those who don’t have the capital available to purchase assets? If you are a small business in this situation, leasing may...

Women aged over 45 are nearly twice as likely to be disabled from sickness as men, new research has shown. Produced by the Financial Services Council (FSC) and KPMG Australia, the research looked at the likelihood of disability insurance claims across a range of client demographics. In particular, the report found that 45 year old females are 94% more likely to make a claim due to sickness than their male counterparts, but 22% less likely to make a claim due to accident than males in white collar occupations. Other key findings from the research include: A person who has held a policy for 10 years or more is 50% more likely to make a claim than a person who has held a policy for less than 1 year Male white collar smokers are 50% more likely to claim due to sickness than male white...

There are many ways to build wealth, but what about protecting it? I’m often struck by how strongly Australians focus on the wealth-building side of their goals: they understand mortgages, they know about starting a business and they understand that regular contributions to super is a good idea. But look closer at these wealth-building ideas: they all require that you feed them with your cash or your hard work, and sometimes both. It’s actually you and your income-generation that builds wealth. So what would happen if that capacity was taken away or reduced? The way to protect income-generation is through an insurance called ‘life products’. They insure you and your earning capacity, and every Australian with debts and children should investigate where these products could fit in their financial plans. The obvious one is life insurance which pays a nominated benefit to your next...

For two months you have worked hard at paying off your debt. You stuck with your budget – each week putting the extra savings onto your debt repayment. Then one day you are at the shops and see something you really want – new shoes, the latest iPhone, a dress for your daughter – and your determination to pay off your debt goes out the window. You decide to splurge just this once but over the coming months you find there are too many other things you can’t resist spending money on. It’s not long before you are even deeper in debt and once again looking for a way out. After much soul-searching you realise that unless you change the way you think about money you will never get ahead of the debt cycle let alone start building your wealth. Becoming wealthy is...

To conclude our three-part series on successful renovations, we have left the best till last – how to get the cash to make it happen! There are plenty of different ways you can fund your renovation and we can talk you through these options to find the one best suited to your budget and project size. Here are some of the options we may discuss with you. Home equity If there is an available amount of equity in your home, you can use this to access credit up to an approved limit. What is equity? It’s the difference between the value of your home and the money you owe. For example, if your home is worth $700,000 and your home loan is $500,000, then you have $200,000 equity in your home. You can generally borrow up to 80% of your home’s value (known as 80% of...

What better time than the start of a new year to review your finances and look at ways to do things better in 2015. Start by considering these four tips: 1.Find out how much equity you have Most home owners are pleasantly surprised by what can be achieved by tapping into their equity. Depending on how much of your home loan has been paid off and the capital growth of the property, you could be sitting on untapped wealth that could be used to invest in a second, third, fourth … property! 2. Review your insurance It’s not worth getting caught without insurance when you need it. We can talk you through the benefits of Building and Contents insurance, Life insurance, Mortgage insurance and Income Protection insurance – as well as check you’re insured at an appropriate level and are familiar with the fine...

Between all the Christmas parties, gift buying and holiday activities, it's all too easy to wake up in January with a credit card hangover. Start thinking now about ways to practice safe Christmas spending and you may well avoid the New Year pain. Pay with cash When you pay by credit you don't think much about the cost, but when you pay with cash or a debit card you have to know that you have the money before you can make the purchase. Resist impulse shopping Before you hit the shops, make a list of what you need and then resist the urge to add impulse buys unless you really need them. Read catalogues and go online to find out where the best prices are before you leave home. Set a limit When it comes to gift buying, nights-out or holiday activities, set a limit on...