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Provision Newsletter

Are you taking cash out of your kids’ savings account?

Posted On:Feb 18th, 2019     Posted In:Provision Newsletter Articles    Posted By:Provision Wealth

Aussie parents admit to withdrawing a total of $1.3 billion from accounts that have been set up for their children.

While more than 50% of Aussie parents have set up savings accounts to help their kids get ahead financially, four in 10 admit to taking money out of these accounts (a total of $1.3 billion in fact)1.

At first glance, the figures

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Aussie parents admit to withdrawing a total of $1.3 billion from accounts that have been set up for their children.

While more than 50% of Aussie parents have set up savings accounts to help their kids get ahead financially, four in 10 admit to taking money out of these accounts (a total of $1.3 billion in fact)1.

At first glance, the figures are perhaps a little gobsmacking, but the main reasons parents said they were doing this were to cover everyday expenses, like buying groceries and meeting rent and mortgage obligations2 (so, rarely to fund a visit to the pub or nail salon in other words).

We look at what else came out of the 2018 Mozo survey and what potential things parents could do as an alternative to taking from their kids’ future funds.

What are parents spending their kids’ money on?

Some of the stats revealed the following3:

  • Around 50% were using kids’ savings on necessities (groceries, rent and mortgage)

  • Around 40% were spending this money on unexpected costs (hospital, vet, mechanical bills)

  • Around 30% were using the cash on big-ticket items (family holiday, TV, computer, new car)

  • Around 20% were using the money to renovate, with 10% using it to invest.

The research indicated that while parents were thinking ahead and recognising the importance of building up a savings fund to cover things like their children’s education, first car or even home deposit, parents were struggling with the rising costs of living4.

On top of that, one in five parents wasn’t putting the money back, creating a $268 million hole in the savings set aside for kids, which emphasised savingwas a struggle for many families5.

Handy hints that may help on the money front

Here are some possible tips that may assist on the money front if you’re not across them already.

1. Create a budget

If you’re looking for somewhere to start when it comes to creating a budget, try jotting down into three categories – what money is coming in, what cash is required for bills and what might be left over for the fun stuff. This will help you identify where there may be room for movement.

2. Avoid using your credit card where you can

Sure, credit cards can be convenient, but they’re often more expensive than other forms of credit as they usually charge higher interest rates, which means you could end up potentially paying back a lot more than what you initially borrowed.

3. Write yourself a grocery list

Writing a shopping list based on what’s at home and what you plan to cook during the week means you can avoid buying more than what you need and purchasing items you can probably go without.

With food wastage leaving the average Aussie household out of pocket by anywhere from $1,0366 to over $3,5007 every year, it’s worth some thought.

3. Take public transport

Estimates show that catching public transport may be up to four times cheaper than travelling by car, and it reduces the cost of buying, maintaining and running your own vehicle8.

4. Call your providers’ competitors

Research shows a typical household could save over $1,000 on their electricity bill every year just by switching from the highest priced plan to the most competitive on the market9.

Now apply that thinking to your mobile, internet, gas, car and credit card as well, and you realise the potential savings you could make annually, simply by shopping around.

5. Roll your debts into one

Multiple debts can mean multiple fees and interest charges, which is why consolidating debts into a single loan with a lower interest rate may save you a lot of money, depending on what you owe.

6. Sell your unwanted stuff online

According to the annual Second-Hand Economy Report, commissioned by Gumtree, 89% of Aussies have around $5,000 worth of unwanted goods just lying around the home10.

7. Change your light bulbs

Energy-efficient light bulbs use about 25% to 80% less energy than traditional incandescent light bulbs and generally last three to 25 times longer11.

Not only that, energy efficient appliances across the board—fridges, washing machines, microwaves and air conditioners—can literally save households hundreds of dollars a year in running costs, with such appliances accounting for up to 33% of people’s home energy use12.

8. Take your own food and drinks

If you’ve been to the cinema or a football game recently, you’ll probably agree, this is a sure way to reduce what you fork out on snacks and beverages.

Similarly, making your own coffee, buying a reusable drink bottle and taking lunch from home each day can make a huge difference to what you spend when you’re at work.

9. Cut down on the sneaky spending

If you wore a new outfit Saturday that you insisted you bought ages ago, you’re not alone—Aussies fork out nearly $3,000 a year on purchases they hide from their other half13.

Topping the list for hidden purchases are clothing, followed by gambling, junk food and cigarettes14.

10. Look for dining out specials

If you like to go out and don’t see that changing anytime soon, the good news is there are plenty of places where you can find two-for-one offers and other cheap deals.

Apps like TheHappiestHour could give you ideas and you may even find some new venues you haven’t tried along the way.

11. Turn to fashionable friends

If you’ve got a special event coming up and want to wear something no one has seen you in before, raid your mate’s closet or go online where you can hire designer label outfits for a fraction of the cost. Accessories can also do a great job of making the old look new again.

12. Establish an emergency fund

You don’t want a busted phone or car tyre, let alone a bad landlord leaving you financially stranded, so try putting aside a little amount each week or where you can to create yourself an emergency stash of cash.

You may want to work toward having three months’ worth of your salary stashed away, but see what works for you.

13. Forget about the Joneses

The pressure to stay up-to-date with your friends (and even celebrities if you’re spending too much time on Instagram) can be a subconscious motivation behind many poor financial decisions.

Try to keep in mind the old adage—too often we buy things we don’t need with money we don’t have to impress people we don’t like.

Please contact us on |PHONE| if you seek further assistance on this topic.

Source : AMP February 2019  

 

1 – 5 Mozo: Cradle Raiders: Aussie parents take $1.3 billion from savings accounts set up for kids
Foodwise – Fast facts on food waste
7 ABC TV program – War On Waste – Series 1 Ep 1
TRANSLink – Benefits of public transport
9 Sick of high energy bills? Aussies willing to change providers could be saving over $1,000 a year
10 Gumtree – How much would you earn if you sold all your possessions, to travel?
11 How Energy-Efficient Light Bulbs Compare with Traditional Incandescents
12 Your Home – Australia’s guide to environmentally sustainable homes
13, 14 Finder: Australia’s hidden spending: The country’s $11 billion dirty secret  

 

Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page

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Five great charts on investing – why they are particularly important now

Posted On:Feb 14th, 2019     Posted In:Rss-feed-oliver    Posted By:Provision Wealth

Investing seems to be getting more and more complex. Ever increasing complexity in terms of investment products and choices, regulations and rules around investing, the role of social media in amplifying the noise around investment markets and the increasing ways available to access various investments are all adding to this complexity. However, at its core, the basic principles of successful

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Investing seems to be getting more and more complex. Ever increasing complexity in terms of investment products and choices, regulations and rules around investing, the role of social media in amplifying the noise around investment markets and the increasing ways available to access various investments are all adding to this complexity. However, at its core, the basic principles of successful investing are simple. And one way to demonstrate that is in charts or pictures. This note revisits five charts I find useful in understanding investing. They are particularly pertinent in volatile and seemingly uncertain times like the present, so they are worth a revisit.

Chart #1 The power of compound interest

My love of this chart came out of my good friend and well-known economist, Dr Don Stammer, regularly espousing the importance of the magic of compound interest. And it is like magic – but many miss out because they are too busy looking for disasters around the corner or assuming that once disaster hits it will be with us indefinitely! What it shows is the value of $1 invested in various Australian assets in 1900 allowing for the reinvestment of dividends and interest along the way.


Source: Global Financial Data, AMP Capital

That $1 would have grown to $238 if invested in cash, to $906 if invested in bonds and to $532,739 if invested in shares. While the average return since 1900 is only double that in shares relative to bonds, the huge difference between the two at the end owes to the impact of compounding or earning returns on top of returns. So any interest or return earned in one period is added to the original investment so that it all earns a return in the next period. And so on. I only have Australian residential property data back to 1926 but out of interest it shows (on average!) similar long term compounded returns to shares.

Blowed if I know where it came from, but the “Law of 72” is useful way to understand how long it takes an investment to double in value using compounding. Just divide 72 by the rate of return and that’s the answer (roughly). For example, if the rate of return is 2% per annum (eg, the interest rate on a bank term deposit), it will take 36 years to double in value (= 72 divided by 2). But if it’s, say, 8% pa (eg, what shares may be expected to return over the medium-term including dividends), then it will take just 9 years (= 72 divided by 8).

Key message: to grow our wealth, we must have broad exposure to growth assets like shares and property. This is far more important than second order issues like which particular stocks to have in your share portfolio. While shares have been volatile lately and the short-term outlook for Australian housing is messy, both will likely do well over the long term.

Chart #2 The investment cycle lives on

The trouble is that shares can have lots of setbacks along the way as is particularly evident during the periods highlighted by the arrows on the share market line. The higher returns shares produce over time relative to cash and bonds is compensation for the periodic setbacks that they have. But understanding those periodic setbacks – that there will always be a cycle – is important in being able to not miss out on the higher returns that shares and other growth assets provide over time. The next chart shows a stylised version of the investment cycle.

The investment cycle


Source: AMP Capital

The grey line shows the economic cycle from “boom” to “bust” to “boom” again. Just before the low point in the economic cycle, shares invariably find a bottom and start to move higher thanks to attractive valuations and easy monetary policy and as smart investors anticipate an eventual economic recovery. This phase usually sees scepticism and disbelief as economic conditions are still weak. Shares are eventually supported by stronger earnings as economic conditions improve, which eventually gives way to a blow off phase or euphoria as investors pile in. This ultimately comes to an end as rising inflation flowing from strong economic growth results in ever tighter monetary policy, which combines with smart investors anticipating an economic downturn and results in shares falling. Often around the top of the cycle real assets – like property and infrastructure – are a better bet than shares as they benefit from strong real economic conditions. But that’s not always the case. Once the downturn starts, bonds are the place to be as slowing growth gives way to falling inflation which sees bond yields fall producing capital gains for investors. At some point, of course, easing monetary conditions and attractive valuations see shares bottom out and the whole cycle repeats.

Key message: cycles are a fact of life and it’s usually the case that the share market leads the economic cycle (bottoming before economic recovery is clear and topping before economic downturn hits) and that different assets do best at different phases in the cycle. Of course, each cycle is a bit different. Some are short but some, like the big bull market in US shares since 2009, are long because the recovery is slow and so it takes longer to build up excesses that end the cycle.

Chart #3 The roller coaster of investor emotion

Its well known that the swings in investment markets are more than can be justified by moves in investment fundamentals alone – like profits, dividends, rents and interest rates. This is because investor emotion plays a huge part. The next chart shows the roller coaster that investor emotion traces through the course of an investment cycle. A bull market runs through optimism, excitement, thrill and ultimately euphoria by which point the asset class is over loved and overvalued and everyone who is going to buy has – and it becomes vulnerable to bad news. This is the point of maximum risk. Once the cycle turns down in a bear market, euphoria gives way to anxiety, denial, capitulation and ultimately depression at which point the asset class is under loved and undervalued and everyone who is going to sell has – and it becomes vulnerable to good (or less bad) news. This is the point of maximum opportunity. Once the cycle turns up again, depression gives way to hope and optimism before eventually seeing euphoria again.

The roller coaster of investor emotion


Source: Russell Investments, AMP Capital

Key message: investor emotion plays a huge role in exaggerating the investment cycle. The key for investors is not to get sucked into this emotional roller coaster: avoid assets where the crowd is euphoric and convinced it’s a sure thing and favour assets where the crowd is depressed and the asset is under loved. Of course, doing this is easier said than done which is why many, if not most, investors end up getting wrong footed by the investment cycle. Getting sucked in during the good times only to panic out during the bad times.

Chart #4 The wall of worry

There is always something for investors to worry about. The worries ramped up last year with concern around inflation, the Fed, rising bond yields, trade wars, US politics and President Trump generally, Italy, the ongoing Brexit soap opera, Chinese debt and slowing growth, the surging and then plunging oil price and in Australia with the Royal Commission and falling home prices. And in a world where social media is competing intensely with old media and itself for attention on the nearest screen right in front of you it all seems more magnified and worrying than ever. But of course most of this stuff is just noise. The global economy has had plenty of worries over the last century, but it got over them with Australian shares returning 11.7% per annum since 1900, with a broad rising trend in the All Ords price index as can be seen in the next chart, and US shares returning 9.8% pa. (Note that this chart shows the All Ords share price index whereas the first chart shows the value of $1 invested in the All Ords accumulation index, which allows for changes in share prices and dividends.)


Source: ASX, AMP Capital

Key message: worries are normal around the economy and investment markets but most of them are just noise. It all seems louder and more worrying now because it’s getting magnified by social media screaming for attention. Try to turn it down.

Chart #5 Time is on your side

In the short term, investment markets bounce all over the place. Even annual returns in the share market are highly volatile, but longer-term returns tend to be solid and relatively smooth as can be seen in the next chart. Since 1900, for Australian shares roughly two years out of ten have had negative returns but there are no negative returns over rolling 20-year periods. (It’s roughly three years out of ten for US shares since 1900.)


Source: Global Financial Data, AMP Capital

Key message: the longer the time horizon, the greater the chance your investments will meet their goals. So in investing, time is on your side and its best to invest for the long term.

 

Source: AMP Capital 13 Feb 2019

Important notes: While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided.

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7 tips to improve your financial health

Posted On:Feb 13th, 2019     Posted In:Provision Newsletter Articles    Posted By:Provision Wealth

With financial stress impacting one in five Aussie workers, see what steps you could take to improve your financial wellbeing.

Some days you might feel confident you can meet your needs within the boundaries of your current income, whereas other days you may feel like you don’t have nearly enough funds in order to do so.

The truth is, you’re not alone.

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With financial stress impacting one in five Aussie workers, see what steps you could take to improve your financial wellbeing.

Some days you might feel confident you can meet your needs within the boundaries of your current income, whereas other days you may feel like you don’t have nearly enough funds in order to do so.

The truth is, you’re not alone. Nearly 2.5 million Aussies say they feel moderately to severely financially stressed, even though financial stress has been decreasing year-on-year in Australia1.

If you’re interested to know more, we take a look at some of the findings that came out of AMP’s 2018 Financial Wellness in the Australian Workplace Report, in addition to what steps you could put in place to potentially improve your financial position and wellbeing.

Findings from the 2018 financial wellness report

Some of the figures that came out of the report revealed the following2:

  • The number of Aussie employees feeling financially stressed across the board in 2018 was 19%, down from 22% in 2016.

  • In comparison to 2014 research, Aussies also indicated they had greater disposable income than in years gone by and were spending more money.

  • Research participants in 2018 also said they felt more confident in dealing with financial matters and with their own levels of financial understanding.

  • Compared to two years ago, fewer people said they were engaging in negative financial behaviours, such as making late repayments on bills and credit cards. At the same time however, there was a decline in positive financial behaviours, such as people making additional repayments on mortgages and putting aside savings for a rainy day.

  • Of those working Aussies that did indicate that they were financially stressed, this was being felt across all industries, income levels and roles.

Actions that could improve your financial wellbeing

On a positive note, research identified that those who have been financially stressed in the past were often able to recover through changes to their behaviour and mindset3.

Here are some suggestions of things you could do (if you aren’t already) which may help you to improve how you feel financially.

1. Create a budget that works for you

When it comes to creating a budget, try jotting down into three categories – what money is coming in, what cash is required for the mandatory stuff (such as bills), and what dough might be left over (which you may want to put toward existing debts, savings or your social life).

Writing up a budget may take an afternoon out of your diary, but it will help you to more easily identify where there’s room for movement. For instance, could you reduce what you’re spending on luxury items, subscription or streaming services, eating out or clothing?

2. Consider rolling your debts into one

If all the small debts you once had, have multiplied and grown into bigger debts – you could look to roll them into a single loan, and reduce what you pay in fees and interest.

This could help you to save a significant amount of money (depending on what you owe) and make it easier to manage your repayments, as you’ll potentially only need to make one monthly repayment rather than having to juggle several.

The main thing to ensure is you are paying less than what you are currently when it comes to interest rates, fees and charges, and that you’re disciplined about making your repayments.

3. Try to save a bit of money regularly

Even a small amount of cash deposited on a frequent basis could go a long way toward your savings goals, with a separate research report indicating the average savings target for Aussies is a bit over $11,0004.

Some tips people said helped them along the way was transferring spare funds into an actual savings account, setting up automatic transfers to their savings account (so they didn’t have to move money manually) and putting funds into an account which they couldn’t touch5.

4. Set aside some emergency cash

With research showing that an emergency fund of between $4,000 and $5,000 is generally enough to cushion most working Aussies when it comes to unexpected expenses, it’s probably worth some thought6.

An emergency stash of cash could give you peace of mind and reduce the need to apply for high-interest borrowing options should you be faced with a busted phone, car tyre, or bad landlord or lover leaving you financially stranded.

5. Be open to talking money with your partner

One in two Aussie couples admit to arguing about money7, so if you haven’t already, it might be worth sitting down to ensure you’re on the same page and that both parties’ goals are being considered.

Understandably, it may not be the easiest topic to broach, so if you’re looking for some tips, check out our article – 10 money conversations to have with your other half.

6. See if you can get a better deal with your providers

You more than likely have several product and service providers, and figures show you could save more than a grand annually on energy alone just by switching from the highest priced plan to the most competitive on the market8.

Again, this may take a couple of hours out of your day, but the savings you could potentially make may make a real difference to what you cough up throughout the year.

7. Don’t be afraid to seek financial assistance

If you are struggling to make repayments, you may be able to seek assistance from your providers by claiming financial hardship.

All providers must consider reasonable requests to change their terms in instances where you may be suffering genuine financial difficulties and feel help would enable you to meet your repayments, possibly over a longer period.

Please contact us on |PHONE| if you seek futher assistance on this topic.

Source : AMP January 2019

1, 2, 3, 6 AMP’s 2018 Financial Wellness in the Australian Workplace Report, pages 7, 8, 14
4, 5 MoneySmart – How Australians save money infographic
7 Finder – Heated conversations: 1 in 2 Aussie couples argue about finances paragraph 1
8 Mozo – Sick of high energy bills? Aussies willing to change providers could be saving over $1,000 a year paragraph 2 

 Important information:This information is provided by AMP Life Limited. It is general information only and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances and the relevant Product Disclosure Statement or Terms and Conditions, available by calling 13 30 30, before deciding what’s right for you. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek professional advice before making any financial decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability for any resulting loss or damage of the reader or any other person

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8 important money tips for when you land your first full-time job

Posted On:Feb 13th, 2019     Posted In:Provision Newsletter Articles    Posted By:Provision Wealth

If you want to ensure you’re getting the right amount of super and not paying more in tax than you have to, this list is for you.

I’m yet to hear anyone say they get a thrill from filling out forms or love reading long documents full of financial mumbo jumbo, but there’s likely to be a bit of that when

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If you want to ensure you’re getting the right amount of super and not paying more in tax than you have to, this list is for you.

I’m yet to hear anyone say they get a thrill from filling out forms or love reading long documents full of financial mumbo jumbo, but there’s likely to be a bit of that when you land your first full-time job.

To get you up to speed with some of the important money-related stuff, here are some important tips, which – good news – we’re going to give you in plain English.

What you need to know

1. Your bank account details and tax file number

You’ll need to give your bank account details to your employer if you want to get paid, so this’ll no doubt be high on your list of things to do.

On top of that, you’ll need to provide your tax file number as well, because if you don’t, you may end up paying a lot more tax on the income you earn1.

If you need a tax file number, contact the Australian Taxation Office (ATO) about applying for one.

2. Whether you can choose your super fund

Super is money set aside during your working life to support you in retirement.

You’ll generally be able to choose your own super fund but check with your employer or the ATO. If you can choose, you’ll typically have a choice between your employer’s fund or a fund you select.

There are things you’ll want to consider though, such as what fees you might pay, how the fund performs and your investment preferences, which could see you earn more or less money.

In addition, super funds generally offer a few types of insurance cover as well, which you could pay for using your super money, so it’s worth looking into whether this is something you want.

3. What tax you’re going to pay on the income you earn

You mightn’t be pleased, but you’ll have to pay income tax on every dollar over $18,200 you earn. And, on top of that, many taxpayers are also charged a Medicare levy of 2%.

The amount of tax you pay will depend on how much you earn. If you’re not sure how much you’ll fork out, the below table includes income tax rates for the 2018/19 financial year2.

Taxable income

Tax they’ll pay on this income

0 – $18,200

No tax

$18,201 – $37,000

19c for each $1 over $18,200

$37,001 – $90,000

$3,572 plus 32.5c for each $1 over $37,000

$90,001 – $180,000

$20,797 plus 37c for each $1 over $90,000

$180,001 and over

$54,097 plus 45c for each $1 over $180,000

 

Meanwhile, if you’re lucky enough to receive an annual bonus, you’ll also pay tax on this (I hear you, life isn’t fair).

4. What tax you can claim back when tax time rolls around

If you spend some of your own money on work-related expenses (uniforms, safety equipment, or education), there is some good news. At the end of the financial year, you may be able to claim some of this money back when you do your tax return (which yes, you have to do).

You will however need to have a record of these expenses, such as receipts, but in some instances if the total amount you’re claiming is $300 or less, you may not need receipts.

Meanwhile, if your expenses are for both work and personal use, you’ll only be able to claim a deduction for the work-related portion. Check out the myDeductions tool in the ATO app to save records throughout the year, so you don’t have a bag full of receipts to go through.

Meanwhile, if you’re lodging your own tax return, you have until 31 October each year to lodge it, or maybe longer if you use a tax agent.

5. What’s in your contract and what you’re entitled to

An employment contract is an agreement between you and your employer that sets out the terms and conditions of your employment. It’s a good idea to know what’s in your contract should questions ever arise around what you’re actually entitled to.

Regardless of whether you sign something or not, your contract cannot provide for less than the legal minimum, set out in Australia’s National Employment Standards, which covers things such as3:

  • Maximum weekly hours of work

  • Requests for flexible working arrangements

  • Parental leave and related entitlements

  • Annual leave

  • Personal/carer’s leave and compassionate leave

  • Community service leave

  • Long service leave

  • Public holidays

  • Notice of termination and redundancy pay.

While National Employment Standards apply to all employees covered by the national workplace relations system, only certain entitlements will apply to casual employees. For more information, check out the Australian Government Fair Work Ombudsman website.

6. How to read your payslip so you’re across potential errors

Payslips have to cover details of your pay for each pay period. Below is a list of what a pay slip typically includes:

  • Your before-tax pay (also known as gross pay)

  • Your after-tax or take-home pay (also known as net pay)

  • What amount of money you’ve paid in tax

  • The amount of super your employer has put into your super fund

  • HELP/HECS debt repayments (if you have an education loan).

Meanwhile, mistakes can happen, so if anything doesn’t look right, chat to your employer and if you’ve raised an issue you’re not satisfied with, you can also contact the Fair Work Ombudsman.

7. How much super is coming out of your pay package and if it’s correct

If you’re earning over $450 (before tax) a month, no less than 9.5% of your before-tax salary should generally be going into your super under the Superannuation Guarantee scheme.

If you’re under 18 and work a minimum of 30 hours per week, you may still be owed super. For this reason, it’s important you check your payslip and if something doesn’t look right, that you speak to your boss as soon as possible, or contact the ATO.

Another thing to note is if you do change jobs, this is when super accounts can start to multiply. It might not sound like a big deal, but multiple accounts can often mean multiple sets of fees, which means less money in your pocket, so you may want to ensure you only have one account, not many.

8. How to budget and save so you can get what you want in life

Budgeting may sound boring as, but jotting down into three categories – what money is coming in, what cash is required for the mandatory stuff and how much cash might be left over for your social life (or saving), could make a massive difference to what you do in life.

If you’re paying off debts, or on a more exciting note, want to buy a car or go on a holiday, getting a grip on your cash habits early on could see you have a lot more fun!

If you seek further assistance please contact us on |PHONE|

Source : AMP January 2019 

 Important information:This information is provided by AMP Life Limited. It is general information only and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances and the relevant Product Disclosure Statement or Terms and Conditions, available by calling 13 30 30, before deciding what’s right for you. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek professional advice before making any financial decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability for any resulting loss or damage of the reader or any other person

 

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8 healthy road-trip snacks

Posted On:Feb 13th, 2019     Posted In:Provision Newsletter Articles    Posted By:Provision Wealth

A pie and sauce washed down with soft drink from a roadhouse. Or maybe a burger and fries at a fast-food joint. Do these sound like your go-to options when on a road trip?

It might seem like a hassle to eat healthy food when you’re on the road, but it’s actually a breeze. Simply check out our list of healthy

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A pie and sauce washed down with soft drink from a roadhouse. Or maybe a burger and fries at a fast-food joint. Do these sound like your go-to options when on a road trip?

It might seem like a hassle to eat healthy food when you’re on the road, but it’s actually a breeze. Simply check out our list of healthy road-trip snacks and you can start your journey off on the right foot (or wheel).

These goodies are simple to prepare, or to grab on the go, and won’t hammer the holiday budget. Enjoy!

 It’s true – popcorn can be a healthy road-trip snack.

1. Popcorn

Yes, you read correctly. Popcorn can be a healthy road-trip snack. There is a catch, though. The Heart Foundation states that ‘plain popcorn, popped without added salt or butter’ earns a nod of approval. So as long as you don’t pile on the butter or salt or opt for the coloured variety, you’ve got yourself a cheap, easy, and relatively mess-free snack to take with you on the road.

Tip: Add garlic powder or olive oil for more flavour without compromising on healthiness.

 Like Torvill and Dean, cheese and crackers are a winning combo.

2. Wholegrain crackers with cheddar cheese

This versatile and tasty option is a certain road-trip winner. Sure, this combo would be better accompanied by a glass of wine, but save that for when you’re sitting on the balcony of your BIG4 cabin. Just watch for crumbs.

On the right trail: DJ Healthy recommends putting out this mix. 

3. Trail mix

Whether you make your own or grab a bag from the supermarket, trail mixes are a great road-trip snack. With their combination of nuts, cereals, sunflower seeds, dried fruits, and more, they offer the palate plenty of variety. These ingredients have many health benefits, including being packed with protein that helps to keep you full. Better still, trail mixes have the ability to ‘keep’ for those longer journeys.

Warning: This snack is best kept away from small children when on a road trip, as they may make their own trail all over the backseat.

4. Rice crackers and dip

Not all rice crackers are made equal, and a bit of investigating will reveal that some brands are passable as a healthy option while others are not (note and compare sugar and salt levels). Once found, pair these crackers with a healthy yet delicious dip and you have a road-trip snack that’s sure to keep everyone happy.

Tip: Avoid consumption when driving over speed bumps or potholes.

Road-trip tip: if you simply can’t resist packing chips for your next road-trip adventure, compare brands when shopping and opt for a healthier product.

 

Fruit salad is loaded with goodness as well as deliciousness. 

5. Fruit salad

Quick and easy to prepare and bursting with flavours, a fruit salad makes a wonderful road-trip snack. Simply throw in your favourite fruits and mix up a masterpiece within minutes. As well as containing a host of vitamins and minerals, a fruit salad has the added benefit of helping to keep you hydrated.

6. Wholemeal pita wraps

Versatile, filling, tasty, easy to prepare – what more could you want in a road-trip snack? Suggested fillings include tuna or shredded chicken alongside a bunch of veggies; then wrap in alfoil to avoid mess.

 Ginger biscuits are ideal for those who suffer from travel sickness.

7. Cookies

Who doesn’t love cookies? We know what you’re thinking: cookies are full of sugar. Well put down that cup of judgement and keep reading – cookies can be both healthy and tasty, especially the likes of oatmeal and ginger varieties. There are many low or sugar-free recipes available that will help you whip up these cookies with relative ease.

Note: Ginger has the added benefit of minimising motion sickness.

 Carrot and celery sticks combined with a healthy dip make a great snack when on the road.

8. Carrot and celery sticks

Cheap to buy. Tick. Healthy. Tick. Easy to prepare. Tick. Tasty. Tick. Boring? Maybe. If you need to liven up this healthy road-trip snack, serve with hummus, salsa, or guacamole or combine with low-fat cheese. These additions mean you have a snack with plenty of flavour while retaining abundant goodness.

Other items to pack on your road trip…

  • Bottled water

  • Hand sanitiser

  • Ice packs and/or a small Esky

  • Antibacterial wipes

  • Plastic cutlery

Source : BIG4 Holiday Parks

Reproduced with the permission of BIG4 Holiday Parks. This article first appeared on BIG4.com.au https://www.big4.com.au/articles/8-healthy-road-trip-snacks and was republished with permission.

Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

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5 reasons why small businesses fail

Posted On:Feb 13th, 2019     Posted In:Provision Newsletter Articles    Posted By:Provision Wealth

By Flying Solo contributor John Refalo

For many people starting a business is a dream but, at the same time, a significant risk when not done properly.

While we see a number of clients citing issues with the Tax Office as the catalyst for problems that upend them, there’s many reasons why a business can fail.

Let’s now explore what I believe are the five

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By Flying Solo contributor John Refalo

For many people starting a business is a dream but, at the same time, a significant risk when not done properly.

While we see a number of clients citing issues with the Tax Office as the catalyst for problems that upend them, there’s many reasons why a business can fail.

Let’s now explore what I believe are the five most common reasons why businesses fail.

1. You had poor planning

We may be sick of that saying “Businesses don’t plan to fail, they fail to plan” but this rings true. This is why we need a business plan—a good start is the template found on www.business.gov.au. To summarise quickly, a business plan is a document that goes through every aspect of your business, from establishing your vision and mission statement, to industry analysis and all the way to specifics like budgeting, employees, and expenses.

Spending adequate time creating a business plan will give you complete understanding of your business. You may be reading this now thinking “I am the owner … of course I know my business”. That may be true but a business plan forces you to:

  • Consider your capital requirements;

  • Define the direction that your business is going to take (vision, mission statement);

  • Examine how your business is perceived in the market (quality, cost);

  • Consider how you set yourself apart from your competitors (unique attributes);

  • Deal with current and future threats to your business;

  • Manage your income and expenses through budgeting;

  • Consider finance arrangements to fund your part or all of your business;

  • Consider opportunities in the industry/economy; and

  • Define the employees’ roles and who is responsible for helping you achieve your direction.

This document is so important that even the banks require it when providing finance!

And while it’s up to you if you adopt one to this extent, or at all, spending some time looking at this (at least once a year) will hopefully change your focus on the ‘what’ you do in business to ‘why’ and ‘how’ you do business.

2. You failed to budget

Simply put, a budget will quickly tell you if you should be in business or not. It maps out your income and expenditure over a period of time which is especially crucial for those businesses that have cyclical or seasonal fluctuations (i.e. hospitality, agriculture, etc). By estimating the amount of revenue, or the peak periods when revenue is generated, businesses can see how much revenue is needed to keep the business alive during the slower months. On the flip side, focus on expenses is just as important (paying employees, meeting financial obligations, paying taxes) because it highlights what a business can afford.

3. You forgot to collect your cash!

Unless you are a ‘Not-for-Profit’, you are in business to make money. So when you complete a job, you expect to be paid for it … right?

These days, a lot of businesses operate on credit terms – sometimes necessary to secure customers. But when payment is due, a number of businesses are not doing enough, if anything, when collecting their debts!

I recently worked on the administration of a plumber that had a majority of ‘mum and dad’ customers on credit terms on its books accounting for $60,000 which was overdue. Had the owner followed up his customers and collected this amount, a lot of his short-term cash flow problems  could have reduced.

4.  You took (a big) wage

Business owners usually have a lot of sentimental attachment to their business, and for good reason. Some people pour their blood, sweat and tears into it. It’s for this reason that some business owners will use their business’ money as if it was their personal bank account.

This can have pretty serious consequences. For example I have seen businesses been used to pay for personal holidays, lavish lifestyles, mistresses, mortgage repayments and even a burial plot!

Diverting money from the business’ needs and focusing it on your own, limits the money available to grow your business, let alone to trade it! So next time, take a (reasonable) wage and once it hits your bank account, do whatever you want. We will revisit the seriousness of these personal transactions using a business’ funds in a future article.

5.  You didn’t set your price appropriately

A tricky question for business owners is: how can I price my product or service so I cover my costs but at the same time stay competitive? This is important because properly pricing your product or service determines how much profit you can make.

Specific budgets can help here on project-focused work where materials and labour are estimated, a percentage of meeting overheads (those costs not directly attributable to the job), provisions, and then applying a margin (a formal way of saying “the cream on top”).

If business owners take the time to price appropriately, they can see where their costs are being incurred and, more importantly, if they are undercutting themselves. There is no shame in walking away from a job because it is not profitable.

While there are many other issues that can be attributable to business failure, the above issues are what I believe are common for business owners, especially those starting out.

Source :Flying Solo  February 2019 

This article by John Refalo is reproduced with the permission of Flying Solo – Australia’s micro business community. Find out more and join over 100k others.


Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Any information provided by the author detailed above is separate and external to our business and our Licensee. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

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