Tag Archives: Lifestyle

7 budgeting apps to help you save in 2018

By Robert Wright /June 01,2018/

Where does all that money go? A host of apps are available to help you easily answer that question and even budget better, so you don’t get caught short in the event of a ‘rainy day’ and can feel more comfortable and in control of your finances every day.

The best place to start is with your bank. Most major Australian banks offer their customers great tools to help improve how they manage their finances.

In addition, we’ve found these seven apps to help you get off to a great financial start in 2018:

TrackMySPEND

This free app allows you to track your personal expenses on the go and is very simple to use. Made available by the Australian Securities and Investments Commission’s MoneySmart website (www.moneysmart.gov.au), it will give you a better picture of what you are spending your money on.

You can use it to record expenses such as your weekly household budget, work or travel expenses, particularly those cash expenses that are difficult to record or the costs of a special event, such as a wedding.

You can also separate your spending into categories like “needs” and “wants” to identify areas where you can rein in your spending and start saving.

TrackMyGOALS

Also available from the MoneySmart website (www.moneysmart.gov.au), this free and easy-to-use app will help you set realistic savings goals and help you to prioritise them, making it easier to achieve them and providing you with positive encouragement by tracking your progress.

You can also use this app to track how well you are saving for a holiday, wedding, car, house, renovation, school fees or anything else you are dreaming of.

Pocketbook

Also free, this popular budgeting app integrates with many of the major Australian banks. This means you don’t have to manually enter all your expenses onto the app. Instead, you sync the app with your bank accounts and credit cards to track where your money is going.

You can use mobile photos and geo-location to input cash transactions like coffee or a beer, or add additional details like photo receipts, bills and invoices to help you track your transactions.

Pocketbook automatically organises your spending into categories like clothes, groceries and fuel, showing you where money is being spent.

You can also set up budgets for each category, see your balances and view your transactions. The app ensures all your bills are automatically detected and in the one place. Plus, you get notified when bill payments are coming up and if you have enough money to cover them.

Mint

Another free app, Mint brings your bank accounts, credit cards, bills and investments together so you instantly know where you stand. You can see what you’re spending, where you can save money and can even keep track of your credit score. Plus, it allows you to easily create budgets you can stick to.

You get bill reminders so that you pay bills on time. And, you can schedule payments on the spot or for later, ensuring you never miss a payment again.

Acorns

This app helps you to save and invest proactively, by using your digital loose change.

You simply connect it to your credit card, debit card or another funding source and allow it to round up each of your transactions to the nearest dollar. It will then invest the change into a pre-decided diversified portfolio of investments that takes into account your investment goals and your risk tolerance. The transactions are small so hopefully you won’t even notice them.

This app is free to download. Once an account is opened, there are no fees on $0 balances. After that Acorns charges $1.25 per month for accounts with a balance under $5,000 and 0.275% a year (charged monthly, computed daily) for accounts with a balance of $5,000 and over.

Expensify

This app is great for people with work expenses. Not only does it help you track and log all your work expenses, it also liaises with your office while you are away.

Expensify automates every step of the expense management process. Its technology will read and scan your receipts and then add these to an expense claim that can be automatically submitted to your employer and approved. You could very well get your expenses reimbursed in just a few minutes.

A very basic service is offered to individuals for free. All the bells and whistles are available for US$9 a month on a corporate plan.

Goodbudget

This app is a modern take on the time-tested envelope budgeting method, where the cash for each month’s expenses is taken out and divided into envelopes for each budget category – for example, groceries, transport, eating out or rent.

The idea is to stop spending on that category once you’ve emptied the envelope or before, if you’re really disciplined.

Goodbudget helps you to stick to your budget limits. Rather than discovering that you overspent when it’s too late, you can plan your spending beforehand and only spend what you have.

Because you can share a budget across multiple devices, the app can also help couples manage the combined household budget and check know how each partner is tracking.

There’s a free version that allows you to create 20 envelopes and share across two devices. However, for US$6/month or US$50/year you get unlimited envelopes and accounts, the ability to share these across five devices and to keep five years of history.

 

Source: Money and Life.

Maximising your retirement benefits

By Robert Wright /June 01,2018/

After working hard for so many years, naturally you want your retirement to be as comfortable and enjoyable as possible. That’s why it’s worth knowing which types of government support you may be entitled to when you’re transitioning into this new phase of life.

If you’ve been putting money into super throughout your working years, this is likely to be your main source of income when you retire. However, you might also be able to access other allowances and concessions that can help you reduce your living costs.

And let’s face it – when you’re a retiree, every dollar counts. With this in mind, let’s take a look at some of the main government benefits on offer.

Age Pension

Once you reach age pension age (between 65 and 67 depending on your date of birth), you can apply for the Age Pension if your income and assets don’t exceed certain levels. Depending on your financial situation, you could be eligible to receive a full or partial Age Pension from the federal government.

There are different income and assets test thresholds for singles and couples, as well as for homeowners and non-homeowners under the assets test.

Under the assets test, if the value of your assets (not including your home) is below the lower threshold, you could receive a full pension – and if it’s between the two thresholds you may be eligible for a partial pension. However, if you’re above the upper threshold, you won’t receive any pension at all.

These thresholds are currently:

• Single homeowner: $253,750 to $556,500
• Single non-homeowner: $456,750 to $759,500
• Couple homeowner: $380,500 to $837,000
• Couple non-homeowner: $583,500 to $1,040,000

Your income (eg. if you’re still working) may also reduce the value of your pension. As a single pensioner, you can earn up to $168 a fortnight without it affecting your pension entitlement.

A couple can earn a combined fortnightly income of $300. Every dollar you earn above these thresholds will reduce your fortnightly pension by 50 cents.

Your age pension is the lower of the assets test and income test calculation.

Other allowances

On top of the Age Pension, you may also be able to access additional government payments, such as:

Carer allowance – if you give daily care to an elderly person or someone with a disability or serious illness.

Rent assistance – to help cover your rent if you receive an eligible government benefit and are renting privately.

Energy supplement – to help manage household costs if you receive an eligible income support payment.

Affordable health care

Even if you’re not eligible for the Age Pension upon reaching age pension age, you can still get a Commonwealth Seniors Health Card – as long as your annual income is less than $53,799 for singles and $86,076 for couples.

This card offers reduced cost medicines under the Pharmaceutical Benefits Scheme, bulk billing for doctor’s appointments and cheaper out of hospital medical expenses through the Medicare safety net.

Other discounts and concessions for seniors

You can apply for a Seniors Card once you reach 60 (or 65 for Queenslanders), as long as you’re working the required number of hours a week and you’re a permanent resident of your state. With your Seniors Card, you’ll get exclusive offers and significant discounts on a range of different services, as well as holidays and entertainment.

Different businesses in each state offer Seniors Card discounts. To find out what you’re eligible for, check the government website for your state or territory, or look for the Seniors Card sign in stores.

Additionally, if you’re receiving the Age Pension or another government allowance, you may also qualify for a Pensioner Concession Card. This card provides lower cost medicines under the Pharmaceutical Benefits Scheme, bulk billing for doctor’s appointments, cheaper out of hospital medical expenses through the Medicare safety net and assistance with hearing services. In addition, this card allows you to access many state based concessions.

These are just a few of the many benefits available – but the eligibility requirements are different for each one.

To find out more, please contact us.

 

Source: Colonial First State

The power of investing in yourself

By Robert Wright /November 23,2017/

What do you really want out of life? Investing in yourself is an important way to prepare for achieving your personal goals. Here are 5 ways to make sure you’re ready to meet the future as your very best self.

1. Take care of your body and mind

Being in poor health can make almost anything feel like an impossible challenge.  That’s why making a commitment to your physical wellbeing is one of the most important ways of investing in yourself.  For some of us that means slowing down and making time to walk, sit and reflect. For other it’s about firing up your energy and drive with exercise in whatever form that takes – a run, swim or session at the gym.

All these activities also hit pause on the constant planning and preparation, stress and anxiety we can all get caught up in. But as well as giving your brain a break now and again, take some time to explore new interests with your mind too by taking a course or reading books that are inspiring and informative. And if reading isn’t your thing, there are thousands of podcasts available that can feed your mind with amazing stories, facts and opinions on hundreds of topics.

2. Celebrate your creative side

When we feel like we’re stuck in a rut, doing something creative can remind you about all the sources of inspiration there are in the world. Being creative also opens up new learning pathways and new social groups too, so it’s a great way to expand your horizons and break out of your routine. If you don’t think of yourself as the creative type, just start by keeping a journal of things you notice that interest and inspire you.  It won’t be long before you’re making connections between these observations and your experiences to come up with your own creative ideas.

3. Work on your bucket list

You might think you’re too young for a bucket list. But if you wait until mid-life or retirement to seek out experiences that will make your life richer, you’ll already be running out of time to make them happen. And they needn’t be as complicated and costly as going on a cruise or cage diving with sharks. Try to include simple things on your bucket list that you can achieve in your local area. Growing a plant from seed, rock climbing or singing in a choir are all things that you might want to try for the first time.  It might take a little time, dedication and research to make it happen but you’ll really enjoy that feeling of satisfaction from your new experiences – and from ticking things off your list.

4. New ways to earn

You’re living in a time when change is a constant and this presents us with a wide range of opportunities as well as risks. One of those risks is losing the income you’re relying on from your job. So an important way of investing in yourself is to look at ways to secure new income streams.  This could mean putting money in property or other assets that will bring you extra income that you can reinvest, save or spend depending on your needs. Or you could be interested in setting up a new business on the side with the ultimate goal of selling it for profit or taking it up as a full-time role.

5. Get a coach

Figuring out what your most important priorities are and how to make time for them in a busy schedule can be challenging.  Working with a coach is a great way to review and set your goals, explore what’s holding you back from achieving them and create a plan and schedule to keep you moving forward. It’s important to find a coach who really understands and cares about what’s important to you so they can help you figure out what’s working and what’s not. Find the right coach and you’ll have a valuable partner who can guide you on the path towards success and wellbeing in your lifestyle and finances.

 

Source: FPA, Money & Life.

Who’ll inherit your family heirlooms, if not your kids?

By Robert Wright /November 23,2017/

If you’re a baby boomer, you may be considering passing down some of your treasured possessions to your children or grandchildren—especially if downsizing your home is on the horizon.  If you’ve already made the assumption that they’ll be willing recipients, you could be in for a surprise.

Increasingly, younger generations aren’t interested in inheriting such items. In fact, possessing lots of ‘stuff’ is out of fashion, leaving many parents to think about where their heirlooms might end up.

 People, priorities and tastes are changing

Just a generation or two ago, younger family members were grateful to receive the solid oak dining table and silver gravy boat—seeing such possessions as an extension of themselves and their family’s past.  However, with the rise of the internet, younger people today more often identify with their social profile than they do family objects from a bygone era.

The Australian dream of owning a house is also less achievable, as prices rise, leading an increasing number of people toward apartment living and leaving less room for family collectibles.  Being tied down by boxes filled with historical items is also not practical for people who are opting to work and travel abroad, but it isn’t all just about the inconvenience.  Over time, tastes and fashions change. Minimalism is in and clutter is out—and shelves that were once filled with ornaments and trinkets have been replaced by clean white walls.

 How to part with your prized possessions

It can be a struggle to accept that your children don’t want to hold on to items that have sentimental value to you. It’s not that they don’t love you—they just may not love your stuff.  So, how can you do a clean out without your past being lost?

• Ask your children to pick one or two items—no matter how small—that they want to keep.
• Consider donating big items, like furniture, to local shelters, hospitals or charities. There’s always someone in need who can benefit.
• Scan photo albums onto the computer to create a digital photo book which can be stored online. This way it can be shared with all your family without taking up physical space.
• Consider selling those items that you no longer want, need or have room for. Popular selling sites such as eBay or Gumtree can make it very easy.
• Finally, if you are going to sell any items, make sure you research their value first as you may be selling something of great value.

Looking beyond just your heirlooms

Finding a good home for your prized possessions is important and something you want to think about. What you do with your wealth and other assets down the track will also require thought. Addressing such things early on can give you peace of mind and discussing things with your family could avoid any possible controversy down the track should people not agree on things.

 

Source: AMP