Tag Archives: money

Running a Small Business? Make sure you are properly insured

Running a small business is hard work. The last thing you need is to lose it all because of poor insurance choices.

Do your homework

First you need to work out what needs to be covered. There are the obvious things such as plant and equipment, the less obvious things such as public liability, professional indemnity, and finally protecting the financial performance and position of the business on the sudden loss of a key person.

Policies should cover a wide range of eventualities and each business should have a policy package specifically geared to its needs.

People are the most important assets, and the success of the business may hinge on key personnel.

Business expense insurance can cover certain fixed business expenses, and key-person insurance can protect the financial performance in the event of a key person or business owner dies, is permanently disabled or suffers a traumatic event.

Insufficient coverage

Owners risk losing control of their companies, serious financial losses, and complex partnership problems by being uninsured, or underinsuring against something going wrong.

Having the wrong kind of insurance is equally risky and ultimately a waste of money, which is why it’s necessary to seek advice on the right insurance for your business.

It’s also important to regularly review and update your insurance, especially when your business grows or changes.

There is always tax

You do not have to pay capital gains tax (GST) on a business insurance settlement, provided you tell the insurer before making the claim what proportion of the premium you can claim GST credits for, which will be the part that relates to business purposes.

But remember, your accountant should assess all taxation matters.

Working together with your financial adviser to determine what insurances can be put in place is an important consideration when running a business.

The Insurance Council of Australia, http://www.understandinsurance.com.au, and the Australian Taxation Office, www.ato.gov.au, have more information.

Returning to work? Four things to think about

There are many reasons for taking a break from the workforce: to have a baby, look after family members, or recover from a redundancy or illness. Whatever the reason, returning to work can be challenging. Here are some tips that may help give you the confidence you’re after.

1. How are your finances?

Before starting a new job, or returning to a previous role, take the opportunity to review your financial situation. Are all your bills paid? How good is your debt management? You should also update your budget to account for your new income, keeping in mind any changes in expenses such as child care, and ensuring you have savings in case of emergency. This is also a great time to think about income protection insurance.

2. Check your superannuation

Your superannuation savings may have stalled from lack of employer contributions. If you’d like to try to catch up, there are options. For example, you can salary sacrifice part of your pay or you may be eligible for the government’s co-contribution scheme.

Spouse contributions may also help, and under the superannuation reforms that came into effect on 1 July 2017, anyone with a partner who earns less than $40,000 can contribute to their super and may receive a tax offset in return.

3. Stay in touch

While you’re still on leave, there are a few things you can do to give yourself the best chance of transitioning back into the workforce successfully.

If you plan to stay in your industry or role, make sure you are up to date on the latest trends and insights. Keeping in touch with colleagues and your network is also a great way to show you are engaged in your area.

You may also take the opportunity to learn a new skill, gain experience or take a course. This may indicate to potential employers that you’re eager to continue learning. Remember to update your resume afterwards.

4. Talk to your employer

Many people returning to work will require flexible workplace arrangements, such as the ability to work from home or only for certain periods of time. Talk to your employer about this early on, then you can create an arrangement that works for both of you.

If you are seeking a new position and know you will need to work from home some days, research employers’ workplace flexibility arrangements. Is there a work-from-home policy? Is work–life balance encouraged? Seek out companies that offer these policies and keep an eye out for organisations with a return-to-work support program.

Some people find that slowly easing back into work sets up a stronger foundation for long term employment. This may mean going back one day a week, then increasing this to two, three or four days. If you think this may work for you, discuss a trial arrangement with your employer.

Return to work with confidence

Returning to work after extended leave can be daunting – but it can also be a great opportunity to develop your skills, connect with a community and achieve new goals.

Reach out to your networks and see how others managed the transtion.  There’s great groups available like Busines Chicks who offer fabulous support to their members.

There are also many financial aspects to consider, so speaking to a financial adviser who understands the latest reforms and your unique situation may give you peace of mind.  I’d love to help!

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.

What is Bitcoin all about?

Chances are by now you’ve heard all about Bitcoin… but you may not know too much about what it really is.

Bitcoin is a type of digital currency known as a cryptocurrency. It operates on a decentralised peer-to-peer networked program on your computer, meaning that transactions can be conducted between a buyer and seller without the need for any third party oversight such as a regulator or bank. The underlying technology that makes all cryptocurrencies possible is the blockchain.

Bitcoin’s ‘wild run’

Bitcoin’s value has oscillated wildly. It peaked at US$20,000 in mid-December 2017, lost 40 per cent of its value within a week, then bounced back and hasn’t stopped bouncing since.

What are the risks?

Bitcoin certainly has all of the hallmarks of a ‘speculative bubble’ and history is littered with plenty of examples of speculative fevers that ultimately collapsed. Another risk is regulation. Some cryptocurrencies are becoming the preferred medium of exchange for criminals due to anonymity, if governments can find a way to crack down they surely will.

Want to know more?

There’s lots of information now available.  Have a chat to your financial adviser who can help you work out if Bitcoin or cryptocurrency, merits further investigation or is worth leaving behind.

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.

The Gift of a Story!

If you believe in romance, then Ann-Marie’s story may take your fancy…

From a private airline hostess in Australia to the Amalfi Coast, Ann-Marie’s saga started the way of most fairy tales!  Swept off her feet by a German Count, she said goodbye to Australian shores, moved to Germany and proceeded to deliver luxury cars around Europe for her new father-in-law’s dealership.

A Champagne lifestyle followed as she jet set her way through Europe living it up as part of the Von Douglas Clan, the European branch of the Scottish Black Douglases.  Life was good, the Douglas women didn’t work… and travel to exotic locations was an integral part of the life she now led.

However, it turns out that not all fairy tales end with ‘and they all lived happily ever after…’

Anne-Marie has been kind enough to share her story with me in my book of how she went from the jet set, moved back to Australia to raise her daughters and to living on a much more modest ‘beer sized’ budget today.  She shares the best financial advice she’s ever been given and how to prepare for the unexpected.

And if you want to find out how Annie and I stay connected, I guess you’ll just have to pick up a copy of Financial Secrets Revealed.  I have plenty of stock on hand (just in time for Xmas) or good book stores and online shops all have copies.

 

Thanks Foxy!

Well, today’s the day that I received my final copy of my manuscript back from the publisher!  How cool is that??

I’ve cast my eye over the final copy, the book cover and we’re ready to hit the print button.  Can’t hardly wait!

I’ve had some amazing mentors through this writing journey with the fabulous Andrew Griffiths coaching along the way and Michael from Hanrahan Publishing providing guidance and accountability along the publishing path.

I’d also love to do a shoutout to Brad Fox for putting together the Foreword of my book Financial Secrets Revealed.  We first met ten years ago when Brad was starting out in advice and it’s been great to see his journey and transformation over those years.

As he points out, you won’t find any get-rich-quick schemes in the book, but it’s all about questioning your relationship with money which is something we all need to do – and preferably sooner rather than later.

As Brad says, ‘money is an enabler’ so what will you find to do with it?

Hopefully, I’ll be giving you the link to purchase in the very near future!