Five tips for looking after your large household’s finances

Take the pain out of managing your family’s finances.

Taking care of household finances can be taxing, especially if you have a big family. But with proper planning and budgeting, there’s no need to stress.

Here are some tips to help you effectively manage your household finances.

1. Examine your finances

Sitting down as a family and figuring out how much money is coming in and going out may help you gauge the state of your family’s finances. A clear picture of your household income and expenses could set you up to manage your cashflow better.

2. Rein in spending

Keeping expenses under control can be tough in a large household. But if you’re spending as much as or more than you’re earning, you might want to consider limiting your family’s discretionary costs by buying only what you can afford.

3. Set financial goals

Setting financial goals as a family may help you work towards future aspirations instead of simply meeting current expenses. Whether it’s buying a bigger house or going on a dream holiday, having a financial goal may help your family set priorities and stay on track financially.

4. Keep a budget

Keeping track of spending may help you to better manage your family’s finances. By working with a professional financial adviser, you could create a budget that factors in not only income and expenses, but also your financial obligations.

5. Build up emergency and retirement funds

Unplanned expenses such as unforeseen medical bills can put a dent in family finances. By growing your emergency fund to cover six months’ worth of expenses, you may be better positioned to handle unexpected events.

While it’s easy to neglect your own financial future when providing for your family, saving for retirement should not take second place. Keep in mind that the earlier you start saving, the better chance you have to grow a sufficient nest egg.

Working with an adviser

Managing finances for a big family need not be a painful exercise. By working alongside a financial adviser to keep track of your spending, and discussing money matters and setting financial goals as a family, handling household finances is a task you can achieve.

Contact BlueRocke on 1 300 71 71 36 today.

The investment world can change dramatically from one month to the next. But these secrets of successful investors never go out of style.

Successful investing can be one of your biggest allies in the quest for long-term financial security. Unfortunately, unsuccessful investing can leave you wishing you’d kept your money in the bank.

So what are the secrets to making your investments achieve what you want them to achieve?
Here are some of the tactics used by successful investors around the world.

1. Start with a plan

Smart investors don’t just look for ‘good’ investments. They look for investments that will help them achieve specific goals.

You may be seeking a return above that available on cash or term deposits. In this case there are other investments such as shares and fixed income, which may be expected to generate higher returns than cash over the long term, however, they are also more volatile, so investors need to consider both the risk and return components of their portfolio.

2. Diversify widely

One of the main goals of investing may be to ensure you have a mix of assets that are likely to perform well at different times – helping you survive any downturn in a specific market or industry sector.

While many Australian investors are heavily exposed to Australian shares, a well-diversified portfolio will generally hold assets in each of the major asset classes (e.g. Australian and international shares, property, fixed income and cash).

3. Watch your costs

It’s easy to get fixated on the returns your investments can generate. But successful investors always keep track of, and seek to minimise, the fees and taxes associated with owning them.

A ‘buy and hold’ strategy can help you avoid transaction costs like brokerage, or buy and sell spreads from managed funds. It can also help you reduce capital gains tax, which generally decreases by 50% when you’ve held an asset for over 12 months.

4. Market Timing Risks

Attempting to time the market can be both difficult and dangerous to your portfolio. Market timing risks missing periods of strong performance, which can adversely impact a portfolio. Morningstar recently conducted a review of investment returns over 20 years, and determined that by being fully invested, investors generated a return of 8.7% p.a. However, the same investment that missed the top 10 returning days would have returned 6.1% p.a.

Despite periods of significant volatility on a daily basis, over the long term, investments in assets such as Australian Shares have generated strong returns.

5. Don’t panic

When share markets retreat (which they inevitably do), smart investors don’t hit the panic button and sell long-term investments based on short term volatility – this is made easier by following Step 1 “Start with a Plan”.

Instead, if you continue to invest during a market downturn, you may be able to buy high-quality investments at a lower price than you could if you waited for markets to recover.

Following the GFC, when the stock market bottomed in early 2009, many investors sold out of equities and held large proportions of cash in their portfolios. The opportunity cost of this decision has meant that some investors have missed a significant rally over the past decade.

6. Protect your assets

Even a carefully constructed investment strategy can come unstuck if you need access to your money in an emergency.

A smart strategy is to ensure you maintain a sizeable cash reserve, and put in place appropriate insurance such as income, TPD and life insurance. Having appropriate insurances in place can help prevent the need for a ‘fire sale’ of your investments if you suffer a serious illness or accident.

Tip: Income protection typically replaces up to 75% of your income if you can’t work due to an illness or accident.

In your 40s? Here’s what you need to consider to financially get ahead.

Being in your 40s often involves balancing many responsibilities that it becomes easy to neglect your own financial wellbeing. But it’s not too late to secure your future. Here are some tips that may help you financially make the most of your 40s.

1. Create a plan

If you don’t have a financial plan, it’s time to get one. Ensure that it’s based on your needs and priorities. By working with a professional adviser, you may be able to tailor a plan that helps you optimise your ability to save and invest.

2. Grow your savings

Your 40s could be your peak earning years, so it may be a good idea to ramp up your savings and funnel some of your income into your superannuation or investment accounts. But be sure to do your homework and consult with a professional financial adviser about your options.

3. Give your super a health check

A quick super health check may help you optimise your retirement savings. For example, by choosing a different investment option or type of risk, you may be able to earn better returns on your super. If you have multiple funds, consolidating your accounts may help you save on fees. Again, seek advice from a professional adviser before acting.

4. Avoid lifestyle creep

People generally have a tendency to inflate their standard of living as they earn more and can afford more things, such as a better car or house. While it’s only natural to want the finer things in life, you’ll likely end up with little to no financial gain if your spending rises as quickly as your income. Try stick to your long-term financial goals and remember the big picture.

5. Consider investing more

Your 40s may be a good time to invest more – or diversify your investments – to help you grow your long-term savings. But keep in mind that it’s important to choose instruments that suit your risk appetite and time horizon. Developing a strategy with your financial adviser might make it easier achieve the return required to reach your financial goals.

Get in touch with Dev Sarker today on 1300 71 71 36 and start planning!

We all like a good cost saving tip, even if it is something we already know, it never hurts to revisit some top tips and take a look at our current situation to see if there are savings to be made.

Any little savings we make throughout the year can be diverted to a bigger savings pool such as an investment portfolio or term deposit to help build wealth over time.

Check your super

If you are not completely aware of what you have in your super fund and how it is performing now is the time to do a quick investigation. Having one fund, instead of multiple funds may save you on fees. Being with a top performing fund rather than a default fund could mean a higher return on your investment, which really adds up over time. Making sure you are only paying for what you need is important, if you are paying for insurance when you have a separate insurance policy this could be an expense you get rid of. However, there is not a one size fits all approach, which is why tailored financial advice could help to find a super solution that suits your individual circumstances.

Salary sacrifice

This is a good way to reduce your taxable income and boost your super. Some of your pay is diverted to your super fund, hence reducing your taxable income, and this money is taxed within the super fund at only 15%. The other benefit of course is that it boosts your super fund and with the power of compound interest over time you can set yourself up for a nice retirement lifestyle.

Utility costs

Reviewing your utility costs each year can be a great way to make little savings add up. By reviewing the contracts you are on, asking the provider for a better deal or getting onto a pay-on-time contract that offers a discount are simple ways you can save on utilities. Consider ways you can be smarter with your utilities at home – buy energy efficient appliances, turn of lights when you are not using them, take shorter showers, install a water tank, be conscious of your use of utilities.

Consumption

Whilst you don’t want to deny yourself too many little luxuries or conveniences, looking at your levels of consumption could expose some cost savings. Consider walking or taking public transport rather than driving everywhere, only buy what you need at the grocery store rather than stockpiling, reduce the number of times you eat out or buy coffees by one less a week, don’t rotate your wardrobe items until you have worn out existing items, take advantage of free activities in your local area such as the library, beach, bushwalks which will connect you with the community and save money on entertainment.

A professional financial adviser can help you with cash flow and budgeting and then help you divert your savings into a vehicle that will start making you some money. Get in touch with Dev Sarker today on 1300 71 71 36.

There is a lot to keep track of when running a small business, including your finances. They can make or break your business, so here are some pointers to help you keep them in check.

Don’t lose out

Ensure you are taking advantage of recent tax and regulatory changes. Businesses with turnover of less than $25 million are eligible for the lower 27.5 per cent company tax rate from the 2017–18 financial year.

In addition, if your turnover is less than $10 million, you are eligible for the $20,000 instant asset write-off threshold. The government extended the deadline for eligible businesses to 30 June 2018. This means that if you buy an asset for less than $20,000, you can claim an immediate deduction of the portion of the asset you use for business purposes in your tax return. But you must use the asset, or install it ready for use, in the financial year in which you are claiming it.

If you are seeking to raise equity, you could benefit from a new crowd-sourced equity funding regime that reduces the costs and regulatory requirements for public fundraising.

Brush up on the basics

Sound budgeting is important to ensure your business stays on track. Have a clear understanding of your income streams and expenses – and keep a close eye on your cash flow. It doesn’t hurt to overestimate expenses, and it is wise to have an emergency fund in case something goes wrong.

Regularly review your budget as your business and the market evolve.

Remember that cash flow is the fuel that keeps a business running smoothly, and you need to keep a constant watch. If you have surplus funds, explore options to make them work for you.

Get help with bookkeeping

You might save money by doing your own bookkeeping, but if you aren’t good at it or you put it off because you are too busy, it can hurt your business. If you can afford it, hire a bookkeeper or accountant to dissect your numbers, pay your bills, help you calculate your deductions, organise your cash flow and, of course, ensure your records are in order.

Also, consider how new technologies and apps could help. For instance, cloud accounting solutions could provide real-time insights into your finances while also saving you time.

Be proactive

Whether you need goods or services for your business, don’t be afraid to try to negotiate better terms with your suppliers. If you are unhappy, shop around.

Also, encourage your clients to pay as quickly as possible. Send your invoices via email, which is instant, and set clear payment terms.

Most importantly, take time off to work on your business, rather than just working in it.

Get in contact with Dev Sarker today on 1300 71 71 36 and start planning!

Read more

https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/Reducing-the-corporate-tax-rate/

https://www.ato.gov.au/Newsroom/smallbusiness/Lodging-and-paying/$20,000-instant-asset-write-off/

http://asic.gov.au/regulatory-resources/financial-services/crowd-sourced-funding/

Holidays should be a well-deserved break from worry. Here’s how to minimise your stress and have a relaxing time away.

Plan ahead

Doing your research may be one of the best ways to save money on your holiday. Even with the summer holidays just around the corner, it’s not too late to do your homework – and you can always start planning for 2019 as well.

The earlier you start planning and booking, the more money you can save. Thinking ahead will allow you to take advantage of promotions throughout the year, and you’ll have more time to save. And when it comes to peak travelling times such as December, typically the earlier you book your flights and accommodation the better your account balance will be.

Create a budget

Whether you choose Bali or the bush, create a budget. Account for expenses such as flights, petrol, accommodation, food and activities, such as visiting museums or a spa.

Research what activities your destination offers and see if you can book early. The more you can book and pay for beforehand, the less you’ll need to worry about overspending. Plus, you may come across free activities to add to your experience.

Start saving

When you’ve worked out how much you will need for your holiday, start saving. Even putting a small amount aside each week can add up, so you could enjoy some great experiences you may not have thought you could afford. A good tip is to open a high-interest savings account and set up an automatic transfer on your payday.

Hunt for bargains

There are lots of useful websites that compare deals on everything from flights to tours. Check out skyscanner.com.au and groupon.com.au. And don’t worry if you have left things to the last minute – there’s a website for that too: lastminute.com.au.

Just make sure you turn on private browsing when researching online. Some travel sites track users and raise prices on the things you are researching if you return repeatedly.

Take a look at credit card promotions. You may be entitled to a few holiday perks that you’re not aware of, from hotel room upgrades to frequent flyer points and insurance.

Also, follow travel agencies, airlines, hotels and other travel-related companies on social media. You never know when they might post a special deal.

While you’re on holiday…

It can be easy to splurge – you’re on holidays after all. But to avoid spending the new year paying it off, keep track of your finances while you’re away.

Set yourself a daily spending limit – or use a travel app to help you stay on track. If you’re travelling in a group, there are apps that can track how much each person is contributing to shared expenses.

Or if all that’s too much of a buzzkill, transfer the exact amount you’ll need into a bank account just for your holiday. This may help you stay out of your other savings or everyday accounts unless it’s absolutely necessary.

Talk to your adviser

Your adviser may help you create a financial plan tailored to help you achieve the holiday you want. Get in contact with Dev Sarker today on 1300 71 71 36!