Money stress is a common problem for many people, and it can come from a variety of sources.
Here are five of the most common money worries that people face:
1. DEBT
Having a lot of debt, like from credit cards, student loans, mortgages, or personal loans, can put a lot of financial stress on you. Keeping up with monthly payments and interest on debt can be hard for many people and families.
2. EMERGENCY EXPENSES
Worrying about medical bills, car repairs, or home repairs that come up out of the blue can cause a lot of stress. Many people worry about how they would pay for these costs if they came up suddenly.
3. INSUFFICIENT SAVINGS
Not having enough savings for emergencies, retirement, or future goals can be a major source of stress. People may be concerned about their financial security and whether they will be able to meet their long-term financial goals.
4. JOB SECURITY
Concerns about job security and the fear of losing a job can cause financial stress. People may worry about how they will pay their bills if they lose their job or have their income go down.
5. LIVING EXPENSES
The rising cost of living, including housing, healthcare, education, and utilities, can put pressure on people’s finances. Meeting everyday expenses can be challenging, and this can lead to financial stress.
People often have to deal with more than one of these money worries at the same time.
Creating a budget, paying down debt, building an emergency fund, and getting financial advice when needed are common ways to deal with stress related to money.
It is important to deal with these worries ahead of time to improve your financial health and reduce stress.
At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire. Join our LEARNING HUB today!
If you have multiple high-interest debts, such as credit card balances or payday loans, you may choose to get a personal loan to consolidate them. By doing so, you can simplify your finances and potentially secure a lower interest rate, reducing your overall debt burden.
2. FINANCING A LARGE PURCHASE
A personal loan can provide the funds you need to make a large purchase, such as buying a car, renovating your home, or paying for a wedding. Rather than depleting your savings or relying on high-interest credit cards, a personal loan provides a structured repayment plan and a potentially lower interest rate.
3. COVERING UNEXPECTED EXPENSES
Life is unpredictable, and unexpected expenses can arise, such as medical bills, home repairs, or emergency travel. In such situations, a personal loan can provide immediate funds to cover these unexpected costs without disrupting your financial stability.
4. FUNDING EDUCATIONAL EXPENSES
If you’re considering furthering your education or pursuing a degree, a personal loan can be a viable option for covering tuition fees, purchasing textbooks, or paying for other education-related expenses. Personal loans can offer more favourable terms compared to student loans, especially for non-traditional students or those attending part-time.
5. IMPROVING CREDIT SCORE
If you have a limited credit history or a low credit score, managing a personal loan responsibly can help you improve your credit profile. Making consistent, on-time payments demonstrates creditworthiness, which may improve your credit score over time. A higher credit score can help you get better interest rates on future loans.
Remember that the decision to take out a personal loan should be based on careful consideration of your financial situation, repayment ability, and the terms offered by lenders. It’s important to compare loan options, understand the associated costs and fees, and ensure that borrowing fits within your overall financial plan.
At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire. Join our LEARNING HUB today!
What business owners must do to ensure they don’t have a tax debt at the end of the financial year.
As a business owner, there are several steps you can take to manage your money effectively and minimise the risk of having a tax debt at the end of the financial year.
Here are some tips on how to do this:
1. MAINTAIN ACCURATE FINANCIAL RECORDS
Keep detailed records of all your business transactions, including sales, expenses, invoices, receipts, and bank statements. Accurate record-keeping is crucial for preparing your tax returns correctly and minimising errors.
2. SEPARATE PERSONAL AND BUSINESS FINANCES
Establish separate bank accounts for your personal and business finances. This separation will help you track your business income and expenses more effectively, making it easier to calculate your tax obligations accurately.
3. TRACK AND CATEGORISE EXPENSES
Categorise your business expenses properly to ensure you claim all eligible deductions. Common expense categories include office supplies, rent, utilities, travel, marketing, and employee salaries. Consider using accounting software or tools to streamline expense tracking and categorisation.
4. PLAN FOR ESTIMATED TAX PAYMENTS
Depending on your jurisdiction, you may be required to make estimated tax payments throughout the year. Estimate your tax liability and make timely payments to avoid penalties and interest charges. Consult with a tax professional or accountant to determine the appropriate amount to set aside for estimated taxes.
5. UNDERSTAND DEDUCTIBLE EXPENSES
Familiarise yourself with the tax deductions and credits available to your business. Deductible expenses can include equipment purchases, professional services fees, training costs, and business-related travel expenses. Keep receipts and documentation to support your deductions.
6. SEEK PROFESSIONAL ADVICE
Consult with a tax professional or accountant who specialises in small business taxation. They can help you understand the tax laws specific to your industry and provide guidance on maximising deductions while staying compliant.
7. USE TAX PLANNING STRATEGIES
Explore tax planning strategies that can help you minimise your tax liability. For example, you may consider deferring income or accelerating expenses into the current financial year, where appropriate. Again, it’s essential to work with a tax professional to ensure you’re utilising these strategies correctly and legally.
8. BUDGET AND SAVE FOR TAXES
Create a budget that includes setting aside funds specifically for taxes. By saving for taxes throughout the year, you’ll have the necessary funds available when it’s time to make payments, reducing the risk of a tax debt.
Remember, while these steps can help you manage your money and minimise tax debt, it’s crucial to consult with a qualified tax professional who can provide personalised advice based on your specific circumstances and the tax laws applicable to your jurisdiction.
At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire. Join our LEARNING HUB today!
What are 3 ways to change your poor money habits into good money habits?
Changing poor money habits into good money habits is essential for financial stability and success. Here are three effective ways to achieve this transformation:
1. Create a Budget and Stick to It
Developing a budget is the foundation for managing your money effectively. Start by tracking your income and expenses to get a clear picture of your financial situation. Categorise your spending and identify areas where you can cut back or make adjustments. Set realistic financial goals and allocate a portion of your income towards savings and investments. Regularly review your budget and make necessary adjustments. By sticking to your budget, you’ll develop discipline and make conscious spending decisions, which will help you break poor money habits.
2. Set Up an Emergency Fund
One of the reasons people fall into poor money habits is the lack of an emergency fund. Unexpected expenses or emergencies can derail your financial progress and lead to debt or poor financial choices. Establishing an emergency fund acts as a safety net, providing financial security and reducing the need to rely on credit or loans. Aim to save three to six months’ worth of living expenses in an easily accessible account. Start small, automate regular contributions, and gradually increase the amount over time. An emergency fund will help you break the cycle of poor money habits by providing a financial buffer.
3. Educate Yourself About Personal Finance
Improving your financial literacy is crucial for developing good money habits. Invest time in learning about personal finance concepts such as budgeting, saving, investing, and debt management. Read books, follow reputable financial websites, and listen to podcasts or watch videos that provide valuable insights into money management. Understand the principles of compounding, diversification, and risk management to make informed decisions. By educating yourself, you’ll gain the knowledge and confidence necessary to change poor money habits into good ones.
Remember, changing money habits takes time and consistent effort. Stay committed, seek support from friends or family members, and celebrate small wins along the way.
At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire. Join our LEARNING HUB today!
Yes, I believe there is, otherwise everybody would be living without financial stress and having no money problems at all.
But that’s not the case, so there must be a secret?
What is the secret to financial health?
Well, let me explain more what the term financial health means.
Having financial health is about having the money to enjoy things you love.
It means having money work to your advantage and not just to your bank or financial institutions benefit!
AND…… it certainly means not having any financial worries or stress relating to money.
What you were taught or brought up to believe about money, has shaped you today.
This means the difference between having awesome financial health where you’re able to pay your bills, have money in the bank and live without financial stress.
Or, living from pay check to pay check stressed out and worried that if something happens like loosing your income, you could be in some financial strife.
Here are seven ways to know if you are in good financial shape and have awesome financial health.
1 Firstly, you don’t spend every dollar you earn, but have money left at the end of pay day
2 Secondly, you have a savings account with money it and ready for “just in case” emergencies like loosing your job.
3 Thirdly you’re able to pay more than your minimum mortgage repayments and you are well on your well to paying this sucker down before the end of your loan term.
4 Fourthly, you are paying your bills on time and before the due date
5 Fifth, at the end of each month you have a zero balance on any credit cards
6 Sixth, have money regularly put into an investment portfolio, whether it be for shares, managed funds or for property investment for example, and
7 Lastly, annual holidays are saved up and paid in full before heading away.
Making sure you work towards good financial health will mean the difference between living a very comfortable and happy life during your retirement years OR relying on government support living in poverty.
So do you feel you have awesome Financial Health? No, then time to do something about it don’t you think?
What I offer is a full coaching service that’s super affordable while you get the support, knowledge and help you require to make better financial decisions.
If money stress is causing you problems then check out how you can work with me below.
If you’ve recently lost your job or you feel you’re about to, here are some things you can do right now to make sure you survive during the uncertain weeks or months ahead.
Okay so you need cash and you need to earn it fast.
There are 3 basic things you need to make sure you have secured during this rough uncertain and unpredictable time and that is:
Make sure you have food on the table for you and your family.
You have shelter. A roof over your head to weather out this nasty health disaster.
Protect your mental health and wellbeing.
Here are 5 ways to make sure you’re going to survive;
1If you have a mortgage broker now is the time to make contact with them if they haven’t already got in touch with you to discuss your home loan options.
If you feel you don’t have someone who you can trust in this area then I’ll drop you the name of a broker who is loyal, trustworthy and has the homeowner’s best interests at the forefront.
A point to note is that I don’t have any affiliation with this company, nor do I receive any kickbacks. I’ve just known them for a very long time and they’ve shared many tips with me to help my clients pay down their home loan debt as fast as possible, all without any strings attached.
2 If you’re not comfortable talking with a mortgage broker then get on the phone with your bank or lending institution and negotiate a deal that sees you freezing your monthly mortgage payments for the next couple of months.
What the bank will do in most cases is hold of taking payments for a short period of time, or they may even negotiate with you just paying interest-only payments.
Once this storm has passed, they will get you making small additional payments on top of your regular mortgage payments, once things go back to the “new normal” and you’re earning an income again.
3 Get in touch with your credit card provider and see what they can do for you to hold off making any monthly credit card payments. There may be something they can do to stop the cash bleed going towards paying your debts while your cash is in short supply.
4 If you’re renting then get on the phone and talk to your landlord to see what they will do to help take the strain of worrying about how you can afford to keep the roof over your head.
Most cases they are going to be in the same situation, worried that if you move out how will they afford to keep up their ongoing mortgage commitments on the property you’re living in. It’ll be up to them to negotiate with the bank to see what they can do on the other side to hold off future mortgage payments until things become a little more financial.
5 Now you’ve made contact with your bank or lending institution, next you have to see where you can find some cash or get some part-time work to make sure you survive during this traumatic time.
With the coronavirus pandemic impacting almost every business, some entrepreneurs are thriving and looking at ways to support their employees during this difficult time.
There are some industries that are still hiring and in fact looking to increase their staffing requirements because they’re in areas where they are in high demand during this time.
Supermarkets are one example as soon as they stack the shelves they are empty again. Some of the areas they are hiring and looking for are packers, bakers, customer service staff – check your supermarket’s website to see what they need.
Fast food deliveries have seen an increase in demand due to self isolation requirements and companies like Uber eats have seen an increase where they are looking for more drivers.
There’s a job board I discovered this week called Jora which is an Australian based search engine for jobs. Unlike traditional job boards, individuals can search through thousands of career opportunities, all sourced from many job sites from around Australia.
They list updates every 24 hours with new job opportunities. The site even breaks it down into job type, salary, location and job titles. Go check out it.
Here’s the link to Jora Australia just click on it and see if there’s something for you.
Other ways to get extra cash is;
You could look around the house to see what’s cluttering your home that you could sell online.
Or if you’re crafty and creative, how about sell your stuff online at sites like Etsy.
What about if you’re a cafe owner who a person who can bake. Why not teach someone how to decorate cupcakes, or another favourite baking item of yours and get paid for it by setting up a class online. People are basically in isolation looking for new creative ways to fill in their time.
You could also look to partaking in online surveys or focus groups and get paid to give your opinion.
Another is to sell your expertise online, whether you’re a tutor, teacher or have an expertise that you could share or teach online and get paid for it.
Why not look at some freelance work at sites like Fiverr, Upwork, Craigslist to name a few. Check out these sites as there may be something you’re good at and get paid for.
Affiliate marketing is another way, if you have a blog or website, you could get paid for advertising someone’s business on your site.
6 Okay next look to see where you can cut all unnecessary costs.
Go through your bank statement and see what you’re spending your money on.
What subscriptions do you have that you can go without for a while that will save you any money big or small?
I recently did this exercise as I often have things I’ve subscribed to that I don’t use any more. So because I hate giving good money away, I cut about 4 subscriptions and put $80 back in my pocket per month.
One of these was to suspend my audible account for the next 90 days as I have enough books in my library to keep me going for a year.
It may not sound like much but saving $50 or $100 will make the difference when you need to put food on the table or keep the roof over your head.
If you’ve got an iPhone go through the settings tab on your phone and check out your apple account to see what subscriptions have slipped through the cracks.
Gym membership is a big one at the moment because you can’t go out so why not suspend or cancel it if you can.
What streaming providers do you need? Do you need everyone that’s on offer at the moment like Foxtel, Netflix, Stan, Disney or even Amazon Prime to name the ones off the top of my head?
Maybe decide on one or two and cancel the rest. Wherever you can save a few dollars do it.
You’ve got to be ruthless and tough. Just as I am sitting here writing this our daughter came in wanting to buy an online game for her iPad.
It may have been only $5 and she said I’ll use my own money. That’s fine but as I said to her do you really need it right now and why not see if you can save that money for a bit longer to can go without for the next month before you decide to shell out your pocket money.
If we can teach our kids now the importance of saving, when a time like this comes up in THEIR working life, they’ll have the skills to knuckle down and not spend on non-essentials.
Now is the time to teach your kids about the value of money and how looking after the cents will amount to huge amounts of dollars later in life.
Look at what you’re spending your money on and see where you can cut down on things.
Sadly, most don’t have 6 – 8 months worth of emergency money so look at ways to get some dollars in the door fast.
You’ll need to make sure you have about 90 days worth of money to see you through.
Your job right now is to get a job if you’re not working and bring in some money to take the pressure off.
This will help keep your spirits high and look after your mental well being and health.
There is nothing more stressful than financial worry and pressure, so do what you can and see if any one of the suggestions I’ve offered above helps you out.
If you need emotional support or looking for more information on how to take the financial pressure off, then join my FB Group where I will be here for anyone needing an ear, as well as, sharing more tips and information.
I look forward to hearing from you.
In the meantime stay safe and healthy.
Reference: Mortgage Broker – Harry Bozin CLICK HERE for more info.
