Category Archives: money

You can save through Super for your First Home!

new scheme may help you make your dream of owning a home come true!!

Ongoing high property prices have made owning a home unattainable for lots of prospective first‑time home buyers.  The First Home Super Saver scheme, passed by the Australian Government in December 2017, may help keep the dream of buying a first home alive and well.

The new scheme helps you save for your first home by allowing you to use the concessionally taxed superannuation environment to build your housing deposit.  Eligible voluntary contributions are limited to $15,000 in any one financial year and $30,000 across all financial years.  They include both voluntary concessional and voluntary non-concessional contributions.

You are able to withdraw these eligible contributions and associated earnings from 1 July 2018 to buy or build a first home. You may be allowed to withdraw 100% of eligible non-concessional contributions and 85% of eligible concessional contributions.

Are you eligible?

To have your contributions released, you must be at least 18 years of age and not have owned property in Australia previously, or have already asked the Commissioner of Taxation to release funds under the scheme.  As a bonus, if you have owned property in the past, you may still qualify if the Commissioner determines that you have suffered a financial difficulty that led to the loss of your property.

The Australian Taxation Office (ATO) will assess eligibility to withdraw contributions on an individual basis.  This basically means that you and your partner or a family member can each apply for a release of contributions to buy the same property!

Once your super fund releases your contributions, the Commissioner of Taxation will withhold tax. This will be calculated at your marginal tax rate less a 30% offset.

You have up to 12 months from the time you receive the first amount to sign a contract to buy or build a house. (But, if you still really need more time, you may apply for an extension of up to 12 months.)

Get advice too!

It’s important to seek professional advice before you consider making or withdrawing voluntary super contributions to buy your first home.  Talk to your adviser to see how the scheme can work for you.  Or we’d be happy to help walk you through it if you still have more questions.

Lost Super?

There are about 14.8 million Aussies with a superannuation account, 40% of which hold more than one account.

Some of that 40% make up the $18 billion in ‘lost super’. Is some of that yours?

Find it

Moved home? Changed your job? Don’t quite remember where your teenage self stashed your super? It’s really pretty easy to track it down.

Combine it

Save on fees, reduce your paperwork, keep track of your hard earned money, grow your retirement fund.  But maybe get advice first!  If your health has changed and getting new insurance is problematic, it may be worth keeping more than one account open.

Get online

Many websites and super funds offer to help find and combine your super. It is quick, easy and free. You can check with your known superannuation provider/s, your MyGov site or the Australian Tax Office.

Grow it

A qualified financial adviser can help you find an appropriate superannuation fund that will grow your hard-earned income ready for your retirement – and the sooner you get on top of this, the better!

Fees are just part of the story, do you also know how your fund has performed?  Are you able to choose your own insurance levels?  Or opt-out of insurance if not required?  Do you know your investment risk profile and which style of investing is best for you?

Truth is, most of us get excited when we find $20 in a pocket or an old handbag… your superannuation is likely worth thousands, and it is YOUR money!  Take care of it!

 

Source: https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Super-statistics/Super-accounts-data/Super-accounts-data-overview/

Educate yourself on financial advice

You might be surprised to know, that working out how to achieve your financial goals is easy and you don’t have to earn a high income to do it.

Whether you’re looking to get your financial affairs in order, buy a first or subsequent home, start a family or prepare for your retirement, seeking quality advice from a qualified financial expert can help you achieve your goals sooner, and with more confidence.

So just what is financial advice?

Financial advice is about much more than just making money. It’s about creating new opportunities to help you achieve whatever you desire in life. A financial planner can help work out what’s important to you. They can help develop a plan that aligns your financial decisions to your lifestyle goals.

Priorities can change over time, as can economic conditions, government legislation and investment markets. Advisers can help re-focus your plan, track your progress and keep you accountable along the way, whether you’re starting out, building wealth or planning for retirement.

Seeking financial advice will help you identify solutions to important questions like:

  • Will I have enough income to live comfortably in retirement?
  • Is my family protected should something unexpected happen – what do I need to know about life insurance?
  • How can I make sure I have enough money to fund my children’s education?
  • How can I invest and structure my finances in the most tax effective way?
  • How can I manage my debt and pay off my home sooner?
  • How can I make my money work harder for me?
  • What’s the best structure to protect my investments and assets?
  • How can I maximise my entitlements to government benefits?
  • How does estate planning fit?

At its best, financial advice is an ongoing long-term partnership centered entirely on your goals.

If you’re weighing up whether financial advice is right for you, consider booking an initial complimentary obligation free appointment.  We’d be happy to help!

Stay on top of your business finances

As you know, your finances can make or break your business, so it’s vital to keep them in check. Here’s some tips!

Don’t miss out on entitlements

Take advantage of recent tax and regulatory changes, such as:

Also, the lower 27.5% tax rate for businesses with a turnover under $25 million came into force starting in the 2017–18 financial year.

Brush up on basics

Have a clear idea of your where your income streams are coming from and where your funds are going in expenses. It’s a good idea to always overestimate business expenses and to keep an emergency fund in case something goes wrong… simply becuase it can. Constantly review your budget as it will keep changing over time.

Cash flow is the fuel that keeps a business running smoothly and you need to keep a close eye on it.  Do you understand your break even point?  How many sales are required before you cover costs and then turn a profit?

Get help with bookkeeping

You might save money by doing your own bookkeeping, but seriously, do you want or need to?  If you aren’t good at it or have trouble finding the time, it can actually hurt your business. Hiring a bookkeeper or accountant with the expertise to dissect your numbers, help you calculate deductions, organise your cash flow and keep your records in order might just be one of the best investments you’ll ever make.  I know it was for me!

Despite being a finance chick myself, it’s not what I love doing or am especially good at.  I’d rather be sitting with my clients and assisting them any day of the week!

Also, if you’re tech savvy, consider using a finance app or cloud accounting solution that provides real-time insights into your finances and saves you even more time.

Be proactive

Don’t be afraid to shop around for new suppliers or to negotiate better deals.  Loyalty is lovely, but not when it hurts your bottom line.

Encourage clients to pay quickly and email invoices as soon as you complete a job.

Most importantly, take time off to work on your business, rather than just working in it.  It might be ‘easier said than done’ but it’s a fabulous and worthy investment of your time.

Six ways to ease your debt burden

Debt is one of the fixtures of modern life for most people but if you feel it’s getting out of your control, it’s time to act.

Fortunately, there are straightforward ways to regain control of your money.

Start a debt management plan

This will mean prioritising your debts in order of urgency, setting a budget, cutting expenses, consolidating, and planning ahead.

1. Set a budget

Work out how much you spend each week on your debts and discretionary spending and how much income you have. It’s vital that you are honest. From this you can work out how much you need to service your debts to bring them down to manageable levels.

2. Save on easy things

The most obvious way to reduce debt is to cut down your spending on non-essential items. Simple ways include doing things yourself that you previously paid others to do, such as cleaning your house. Eat out less. Cook at home and eat your leftovers at work. Don’t buy things you don’t need at the supermarket and turn off lights and computers when they are not in use. Walk more or take public transport.

3. Stop using your credit cards

Pay cash. Put your credit cards away. The simple logic is that you won’t be tempted to overspend if you only have cash.

4. Pay the minimum on each debt

Service each debt, be it phone, mortgage or credit card each month. Pay off as much as you can but at least pay the minimum, which will protect your credit score.

5. Consider a consolidation loan

You may be able to reduce your interest charges by consolidating your debts into one low-interest loan.

6. Talk to a professional

Your Adviser will work with you to develop a debt management plan that’s specifically tailored to you.

But if you are feeling really overwhelmed, seek help from your doctor.

Money hacks for teens

Help your teens and young adults manage how they spend and save.

So your teenagers and young adults know how to spend, but do they know how to budget for the things they really want? Learning good money management should be an essential life skill.

A reason to save

For many teenagers and young adults with part-time jobs, spending their entire pay each week is easy if they don’t have pressing financial obligations. This is why it’s important to discuss a long-term goal and find a reason to save.

Perhaps this goal will be a car, a holiday with friends, higher education – or even a rental bond if they want to move out. Just make sure you emphasise that they will still need money after the purchase, either for running costs or to enjoy their social lives, so they shouldn’t blow the lot.

Budget benefits

The envelope method is a great way to learn about budgeting. Label real envelopes – or use tags in an app – with categories such as clothes, nights out, transport, phone, food, and university or school supplies. These should cover all their current expenses. Then allocate money to each envelope every pay day.

They can also use MoneySmart’s Budget Planner and apps such as TrackMySPEND to help them work out their goals and how much to allocate to each envelope.

A handy budgeting formula is the simple 50/30/20 rule. Urge them to dedicate 50 per cent of their pay to bills (if they don’t have many, they could reduce this amount), 30 per cent to fun activities and purchases, and 20 per cent to savings. This will get them into the habit of planning their spending and eliminate the habit of living from pay day to pay day.

Learning budgeting and savings skills early will help them build a solid nest egg for their future.

Get advice

Young adults face many big decisions, but helping them get serious about money management early can make life easier as they get older.

A visit to your financial adviser with your child may also help them develop good money management skills from an early age and avoid some of the mistakes we made along the way.

It’s Finally Here!

My latest baby has now arrived… and ok, it’s been 19 years between births and this one didn’t hurt quite so much, (or weigh over 4 kgs) but my first book has now hit the shelves!

Financial Secrets Revealed hit bookstores just before Xmas and features interviews with 20 pretty amazing people.

I’ve interviewed 8 amazing ladies who are kicking goals as business owners and asked the best advice they’ve ever been given.  I’ve spoken with Financial Advisers from Australia and the UK about their back stories, how they got involved in financial services, and the top tips they like to leave their clients.  I’ve also found four amazing everyday heroes who are happy to go about their daily lives, and also make a difference, whether to their families or globally.  I ask how they manage – on Centrelink pensions,  running an international charity or heading into space for NASA.

If you’d like to learn about the setbacks suffered by entrepreneurs and how they’ve recovered, how our beliefs around money affect our behaviour, if budgets are all they’re cracked up to be, then Financial Secrets Revealed  may just be the book you’ve been looking for.

A New Year is often the time we swear that this is the year we’ll finally get on top of our financial situation, so maybe this is the incentive you need to stay motivated and on track with your money goals.

If you’d love to get your hands on a copy, you can let me know directly, or find the book locally or on Amazon.com  Booktopia.com.au or Barnes & Noble.  Also available as an e-book.  I’d love to hear your key take-outs from the book and what you learnt from the interviews.  Stay in touch!

PS  If you’re in Sydney, I have my book launch coming up at Business Chicks HQ on Feb 7 from 5.30 and would love to see you there.  Get your tix here.