How to enjoy the festive season without spending a fortune...

Whether you celebrate it or not, Christmas is a happy time of year full of holiday festivities. And if you plan ahead, you can avoid a New Year budget hangover when the bills arrive.

Here are seven tips to help you scale back on the festive season expenses.

1. Plan well ahead
This may seem obvious but once you have a plan and a budget, you have to stick to it to make it work. Divide your spending into the major categories of gifts, catering, entertainment and travel–list the necessary items in each. 

Work out how much you will have to spend overall then you can put a spending cap on each category.

2. Save
Set up a special Christmas bank account and put money into it each week or use a regular auto payment option from your pay so you are not tempted to spend it.

Start savings as early as possible. It could be worthwhile starting a savings plan as an option to help you reach your savings goals sooner.

3. Decide who is naughty and nice
First draw up a gift list so you can edit it if you need to, then work out the cost per item.
Consider giving thoughtful gifts such as a voucher for a home-cooked meal, lawn, garden or home handyman work to save money. 

Talk to friends and family about having a spending cap per gift. A ‘Secret Santa’ is perfect for work teams or bigger families as you buy only one bigger gift for someone in the group rather than buying for everyone.

4. Shop smart
Have a shopping list, as it’s easy to spend too much if you don’t have clear goals.

When you find something you like, be smart, compare prices and be prepared to bargain or at least ask if the shop will match cheaper prices elsewhere.

Pick up bargains in the sales during the year and put them aside. Reasonable alternatives for cheaper shopping are outlet stores if you can get to them.

Avoid last-minute shopping as it can result in rushed and expensive decisions.

Above all, make sure your head rules your heart and you stick to buying what you can afford.

5. Plan your meals
Christmas can be a time of overindulgence. Plan ahead so you don’t waste food or money.

Work out what events you will be catering and estimate a budget for each. Can you ask others to contribute by bringing a dish or drinks?

Yuletide treats such as Christmas cakes and puddings can actually improve with age, so you can make them ahead of time.

If you’re stuck for ideas, try some online meal planners.

6. Easy money savers
Look for savings around the home. Re-use decorations from previous years or consider making your own rather than buying them. 

School holiday prices can be expensive so this is a good time to use any discounted tickets or special deals to popular attractions such as theme parks, movies and zoos. And don’t forget a packed lunch will save you money too.

Try breaking up the school holiday boredom with free activities such as a treasure hunt around the house, a crafts day or a family cooking session.

7. Get away and travel smarter
​The holiday season is one of the most expensive times to travel as higher demand for transport and accommodation push prices up, so it may be worth considering house swapping or a staycation.

There are plenty of ways to take a break without breaking the bank.

Above all - enjoy the silly season!
 
Source - AMP

The New Year is always a good time to set some new goals and give yourself a fresh start. But where do you start? The answer could lie in the plans for your next holiday...
 
An easy way to think about setting goals is to imagine you’re planning a holiday. You decide on where you want to go, how you’re going to get there and what you’re going to do when you arrive. Then when you’re still glowing from the feeling of having ‘been there and done that’, you’ll want to start planning your next adventure.

But just like organising a holiday, you’ll need to take steps to make sure you reach your final destination:

• Develop SMART goals - (specific, measurable, achievable, relevant and timely) to help you improve your mental health, finances, relationships and even productivity at work. 
• Do your research – Work out how much your goal is going to cost. 
• Keep a record of your progress – Put milestone dates in your calendar to make sure you’re on track and review how you’re going.
• Do an annual review – Check that you achieved your goals, set new ones or cover off any that you overlooked last year.

Some flight-centred goals to think about for 2016
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• Getting your documents together – Just like you’ll need your visa, passport and tickets, it’s important to make sure you’ve got control of your super, search for lost super andconsolidate your super accounts. This can save you money on fees and give you that base to boost your super.
• Get ready for take-off – Make this the year you get your credit card debt in order. Reduce your balance by paying off more than the minimum amount monthly to avoid interest charges. 
• Put your life jacket on – Protect what’s important to you by checking what insurance cover you already have and figure out what you may need. 
• Keep fuelled – Eat, drink and exercise properly to keep your mind, body and soul free to meet life’s daily curve balls. Start yoga classes, go for a walk or just listen to some chill-out or lounge music if you can’t get away from your desk.
• Get ready for turbulence – Don’t max out your card on unwanted presents that will be resold on eBay by Boxing Day. Why not give a donation to a needy family in an underprivileged community instead?
• Keep your technology turned on – Get all your statements and bills delivered online and keep them all in one folder – very handy at tax time. Lose the paper and save the planet for our kids and theirs!
• Land safely – Seek advice if you want to make sure you’re on the right track with your goals.

Plan your itinerary now

‘Life is a journey, not a destination’ said author Ralph Waldo Emerson. So make sure you enjoy setting your goals, achieving them and planning for your next adventure.

But if you need some help along the way, speak with one of our advisors to guide you on the right flight path in 2016.

Source - AMP

​Here are seven tips to help you stay on top of your finances as your family grows...

Growing your family can be one of life’s greatest joys, but if you already have one or two children, you’ll understand that raising kids can be costly. To cope financially with having more kids you’ll need to balance your income with the increasing expenses. 

Take a long-term view
When you understand the costs additional children can bring, you can be better prepared to meet them.
​
Calculate the costs over your kids’ lifetimes—page 9 of AMP.NATSEM’s Cost of kids report outlines the typical costs for additional children—stating that on average families spend $281 a week on one child, $232 on the second child and $193 on the third child up to the age of 24 years.

This is not to say however that the costs of larger families are not substantial, just that additional children don’t tend to cost quite as much, due to economies of scale.

Tips for making your money go further
Once you have an understanding of the budgeting challenges a growing family can bring, it’s time to get creative. Every little bit helps, so look for ways to cut expenses—you may even have some fun in the process!

Here are a few ideas:
​
1. Buy things once - When it comes to clothes, toys and baby equipment, put aside items you can re-use. Renewing items with a touch of paint or new fabric can create some personalisation for a new child without breaking the bank.

2. Cut your bills - Look for ways to cut your bills. You may be surprised at how much you save by turning off appliances at the wall, using energy efficient light bulbs and only turning on the dishwasher when it’s full. 

3. Grow your own - You can have fun with the kids and save money at the same time by growing your own veggies. Try planting a veggie garden from seed—you may even want to add some backyard chickens and collect breakfast eggs with your little ones!

4. Set up a savings account - Set up a savings account and regularly deposit some of the money you save from cutting down your living expenses. It could help with education costs or a family holiday down the track.

5. Call on others - With a bigger family, time for yourself will be valuable. Ask friends and relatives to babysit to save money and so you can do something fun for yourself now and then. Find ways other than cash to say thank you—return the favour or bake a cake for instance.

6. Entertain kids at home - Come up with fun activities you can do at home or nearby—pack a picnic lunch and go to the park or build a cubby at home and invite friends over to play.

7. Get some advice - Having a family usually brings a drop in income, as one or both of you take time off work. Speak with your employer about parental leave, leave without pay and job-sharing options. Look into any government benefits you could be eligible for.

And with one of our advisors bout the impact a drop in income will have on your super balance (the long-term effects can take years to recoup) and any insurance you hold inside or outside of super.

We’re here to help
When it comes to budgeting for your growing family, these online tools can help you manage your money:

• The TrackMYSPEND app at the MoneySmart website can help you understand your spending habits 
• Our budget planner can help you plan ahead and identify where you may be able to cut your spending
• Our cost of education calculator can help you factor in education expenses right through to university age
• MoneyBrilliant’s website can help make family budgeting easier by giving you a complete picture of your finances and a safe spending limit.

Source - AMP

Will you be a honeymooner, a go-getter or a relaxer?

The first year of retirement is one of transition in which you will need to adjust to major changes that can bring big rewards. Some of the changes may include preparing mentally for the shift to not working full-time, adjusting to not getting a regular salary, ensuring your money can last for about 30 years and keeping your mind and body active.

Three paths

Researcher Professor Robert Atchley identified a number of ways people react to leaving work permanently and split the period immediately after paid employment into three paths:

• the "honeymoon" path, for people who dive into many of the fun activities they did not have time for previously, especially travel
• the "immediate retirement routine" path, which covers people who had full and active schedules outside their employment that flow into busy lives soon after retirement 
• the "rest and relaxation" path, taken by people who choose to do very little in their early retirement after very busy careers with limited time to themselves.

What to consider

The phase before actual retirement, Professor Atchley says, usually involves disengagement from the workplace and planning for what lies ahead. If possible, you should use this period to transition to retirement by reducing your working hours or by changing your workload over time.

You should also determine what sort of retirement you want, using the three paths as a guide, and try to plan ahead for your lifestyle adjustment during the first year of transition.

If you know what you want, you will be able to take stock of your finances and take advantage of final opportunities to boost your superannuation if there are gaps in your savings plans. Remember, your retirement funds may need to last 30 years.

Make your life satisfying

A study by the Australian Institute of Family Studies shows there is little change in life satisfaction for both men and women in the year immediately following retirement as they adjust to their new circumstances but thereafter, it improves for both sexes.

Once you have ensured that your savings are on track for retirement, you should start thinking about how you will handle the loss of the worker role and what you can do to improve your life satisfaction.

Will you be one of the "honeymoon" phasers, or will you fall into an "immediate retirement routine"?
It may help to try new things before you retire to decide if they will be right for you, such as hiring a caravan for a short jaunt before buying one for a big trip. If you are considering a sea change or tree change, rent in the area you fancy before making the final leap.

Be fit and healthy

Recent research suggests you need to be fit to retire to age well. Try getting into an exercise routine before you retire that you will be willing to continue when work no longer dominates your life.

The health benefits of regular exercise cannot be overstated as it keeps you mentally fit and helps you ward off disease and disability, even if you start late in life.

And try to do more than just exercise, such as being careful with your diet, as it will increase your health and wellbeing.

We're here to help

Now might be a good time to review your finances and boost your super. If you would like help with planning for your retirement, Contact Us.

 Source - AMP

With the prospect that more Australians will live well into their 80s, planning for our future has never been more important. Compulsory superannuation provides a good head start, however it’s been said that this may not be enough to maintain the standard of living we see for ourselves.
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Beyond superannuation there are many avenues to help prepare us for our future, with life savings and life insurance being two common ones. The suitability of each to your financial plan will vary according to circumstance, though it’s important to know their strengths and understand their differences.

At A Glance: Life Insurance and Life Savings

What is it?
LI: A life insurance policy provides a lump sum of money to a person or estate in the event of death or serious illness or injury. The amount of money paid will vary depending on the policy that is taken out.

LS: Savings is money that has been put aside from the household budget or other source, usually for a particular savings goal.

How much does it cost?
LI: Policyholders pay a monthly premium, much like car insurance. The premium is dependent on factors such as medical history, occupation, past claims and level of cover. As a guide, the average cost of life insurance for a non smoking Australian male aged 35 is $566 per annum.

LS: According to the ABS, Australians currently save 9% of household net disposable income, savings amounts will vary from person to person, and are dependent on the individual being able to save.

How much does it pay?
LI: The lump sum from life insurance payouts will vary across policies. For the average income earner with an appropriate level of cover, a payout is around $500,000 for life insurance, and around $5,000 for funeral insurance. For high-income earners payout amounts can be as high or exceed a $1.5 million lump sum

LS: Australian household savings have been rising steadily since hitting their lowest point during the GFC. A recent survey found 56% of Australians claim to have $10,000 or less in cash savings, while 16% have savings of between $10,000 and $30,000.

What do we use it for?
LI: A life insurance policy is used primarily to provide financial assistance to the dependants or estate of a policyholder. Used for mortgage repayments, replacing income, paying off debt and future expenses, it ensures you can maintain your lifestyle, while meeting your financial obligations.

LS: Savings is spent according to how the saver wishes to spend. A 2014 study from Money Smart found that of the people who do save, the majority spent on big-ticket items such as a house, or holidays for the family.

Key strength
LI: By providing financial assistance when it’s needed the most, life insurance protects the lifestyle and assets you have created for yourself and family. The claim amount is tailored to the financial requirements of the policyholder, so you are afforded the choices you enjoy today, in the event of illness and injury in the future.

LS: Life savings provides the saver a choice in how they wish to spend their money. Savings are also readily available and can be accessed at any time.

The verdict
Without knowing what lies ahead, good preparation now will mean greater certainty and options in the future. Savings and life insurance play a role in growing wealth and protecting it, respectively. As such, both should be considered as part of any robust financial plan.

What’s your biggest savings goal? Contact Us to speak with one of our advisors and together we can create a plan to help you work towards those objectives.
 
1 http://www.aihw.gov.au/deaths/life-expectancy/
2 http://www.news.com.au/finance/superannuation/australian-superannuation-savings-wont-be-enough-for-retirement-hsbc-report-shows/story-e6frfmdi-1227189972820
3 http://www.tradingeconomics.com/australia/personal-savings
4 ME Bank’s Household Financial Comfort Report
5 MoneySmart online 'Money Goals' poll July 2014. https://www.moneysmart.gov.au/managing-your-money/saving/how-australians-save-money
 
Source - TAL