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Master Your Money Now Blog by Chris Carlin - 4M ago

I strongly believe being self-employed is the second hardest occupation in the world (parenting is definitely the hardest).

When you are employed you have the luxury of only doing what you are good at doing and not having to worry about the rest.

If you are good at accounting, you are the accountant. If you are good at marketing, you are the marketer. If you are good at plumbing, you are the plumber.

You get the drift?

On the other way round, if you are self-employed, then you have to do everything! Regardless of your niche or skill set, you have to be across everything.

You are the accountant, the marketer, the HR consultant, the business strategist and even the plumber in some cases!

That is what makes being self-employed so difficult, there are so many areas of concern to be across.

In my experience, when you need to be across so many things something always gets missed.

In a lot of cases, it is Business You.

What is Business You?

I firmly believe that you should run yourself like a business. You should run yourself to maximise LONG TERM sustainable profit and reduce your expenses.

However, I find that many SME owners (both successful and unsuccessful SME owners) often fail to run Business You.

Imagine this.

You have a close friend (we always use close friend because this will never happen to you right!) who is running a business. However, it is not that clear whether what this business is, what is actually does and whether it is making money or not.

So, curiosity gets the better of you and you ask.

Friend: Ummm, well I do a few different things in my business, depends on what I feel like actually.

You: Okkayyy, so are you making a profit?

Friend: Ummm, not sure actually, truthfully I have no idea what sort of income I make and I don’t really keep track of my expenses. I seem to have enough in the bank account but not much else

You: Okkayyy, so where do you want to be in five years?

Friend: Ummm, I have no idea actually, I just take each day as it comes! Just want to keep paying the bills!

You: Okkayyy (makes up excuse to go to the toilet to avoid this awkward and confusing conversation!)

If you are a small business owner, would you expect this business to still be around in five years? Do you expect this business to grow? Do you expect this business to be successful?

I’m not a business coach, but I highly doubt it!

Can you imagine Jeff Bezos, Mark Bouris or Gary Vaynerchuk running their business like this?

If you are a successful business owner I am sure you have a plan about your long term goals and objectives. I am sure you have a good idea of your revenue and expenses and how much business you need to bring in each month to make a profit.

I am sure you have a good idea what you want your business to look like (not just financially but also from a lifestyle perspective).

If you are not across these areas, I would suggest you have hired someone to do this for you!

For the record, selling your business is not a long term plan. If you can make money from selling your business that’s fantastic, but this should not be your only wealth building plan. Just ask any taxi owner how that is working out for them…

So, here is the big question.

Why don’t you run your personal finances like you run your business?

As a financial planner, it brings me to tears how many business owners I know who have worked their guts out building a business but have failed Business You.

I can still picture the 55-year old electrician who built up a successful small business but didn’t have any personal assets to show for it. For health reasons he needed to retire in the next few years.

But he had less than $50,000 in super and a $250,000 mortgage on his home. Centrelink was not going to pay him what he needed to meet his living expenses in retirement.

For this successful business owner, it was all but too late.

There was no thought of retirement. There was no thought of building up an investment portfolio for when you cannot work. There was no thought into a personal insurances (what I refer to as a Plan B). There was no long term vision.

Employees get some of this (certainly not all) looked after via their employer or their super account by their employer.

Those who are self-employed are not that lucky. They have to do these things themselves. But when there is so many things to look out for when you are building your own business, Business You often gets neglected.

If you have the skills and capacity to run a successful business and a successful Business You, then hats off to you. Well done and I wish you every success.

However, if you know that Business You is not successful and there are things you should be doing but are not, then I think your Business You needs a Chief Financial Officer (CFO).

A Business You CFO will create a Plan A, ensuring you don’t work to age 90.

A Business You CFO will create a Plan B in case you are unable to work due to injury or illness, ensuring you and your family are financially looked after.

A Business You CFO can ensure your cashflow is structured so you can meet your ongoing expenses.

A Business You CFO can build confidence in your own financial situation and the comfort that you don’t have to be on the hamster wheel for the rest of your life.

A Business You CFO can help you ensure you don’t have to run your business by yourself.

I’m not here to tell you how to run your SME. There are other people much more qualified to do this.

But if you know your Business You is not where it needs to be, don’t put it off any longer. Get in touch today and let’s get your financial situation under control.

Don’t wait until it is too late. You deserve better.

If you want to become a member of Master Your Money Now and work one-on-one with a financial planner, please go to www.MasterYourMoneyNow.com.au/getstarted. We have a package to suit your needs.
If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:
Liked this article? Share it with your family, friends and work colleagues!
Disclaimer: This information is general information only.  You should consider the appropriateness of this information with regards to your objectives, financial situation and needs.
Master Your Money Now Pty Ltd (ABN 65 627 229 681) is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523

The post Business You appeared first on Master Your Money Now.

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Hands up if you like dealing with Centrelink? Neither do we!

Centrelink can be a frustrating and confusing experience for anyone. Chris Carlin, founder and financial planner at Master Your Money Now, gives us some valuable tips on how to retain your sanity while dealing with Centrelink.

Whiteboard Wednesday 019 - Retain Your Sanity When Dealing With Centrelink - Master Your Money Now - YouTube

If you like this video, make sure you share it with your friends, family and work colleagues who can benefit from this video as well!

Whiteboard Wednesday is a series of short videos where we teach you how to Master Your Money Now.

At Master Your Money Now we help everyday people take control of their finances from the comfort of their own home. We offer one-on-one advice and access to our exclusive membership benefits from as little as $990 upfront and $66 per month ongoing. Best of all, you may be able to fund a portion, if not all, of your upfront and ongoing advice from your super account i.e. potentially no out of pocket expense for you!

Master Your Money Now was founded in 2018 by Chris Carlin CFP, a financial planner with over seven years experience helping everyday people take control of their finances from the comfort of their own home.

Based in Geelong, we regularly speak to everyday Australians both individually and in group settings, teaching and empowering people with practical financial skills we should have should have been taught in school. In short, we make money easy to understand again.

If you want to become a member of Master Your Money Now and work one-on-one with a financial planner, please go to www.MasterYourMoneyNow.com.au/getstarted. We have a package to suit your needs.

Liked this article? Share it with your family, friends and work colleagues!

If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:

The post Whiteboard Wednesday 019 – Retaining Your Sanity When Dealing With Centrelink – Master Your Money Now appeared first on Master Your Money Now.

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Who doesn’t like free stuff? Especially if the free stuff can help you save, manage or make money?

Chris Carlin, founder and financial planner of Master Your Money Now gives you his favourite money master tools you can use to help you take control of your finances.

Whiteboard Wednesday 022 - Free Money Master Tools - Master Your Money Now - YouTube

If you like this video, make sure you share it with your friends, family and work colleagues who can benefit from this video as well!

Whiteboard Wednesday is a series of short videos where we teach you how to Master Your Money Now.

At Master Your Money Now we help everyday people take control of their finances from the comfort of their own home. We offer one-on-one advice and access to our exclusive membership benefits from as little as $990 upfront and $66 per month ongoing. Best of all, you may be able to fund a portion, if not all, of your upfront and ongoing advice from your super account i.e. potentially no out of pocket expense for you!

Master Your Money Now was founded in 2018 by Chris Carlin CFP, a financial planner with over seven years experience helping everyday people take control of their finances from the comfort of their own home.

Based in Geelong, we regularly speak to everyday Australians both individually and in group settings, teaching and empowering people with practical financial skills we should have should have been taught in school. In short, we make money easy to understand again.

If you want to become a member of Master Your Money Now and work one-on-one with a financial planner, please go to www.MasterYourMoneyNow.com.au/getstarted. We have a package to suit your needs.

Liked this article? Share it with your family, friends and work colleagues!

If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:

The post Whiteboard Wednesday 022 – Free Money Master Tools – Master Your Money Now appeared first on Master Your Money Now.

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Who doesn’t love Christmas?

I am writing this between Christmas Carol shows my church runs every year. It is a fantastic production we put on as a way to give back to the community and celebrate Christmas. There are carols, dancers, LED lights, smoke machines and of course Santa always comes to visit the little and errr… big kids as well.

It is also a time that people take to enjoy the last few days of the year. There are celebrations but also lots of reflection as well. How was this year? How can next year better than last year?

But we also know that Christmas can be a very tough time of year for a lot of families as well. There are people who don’t have any family and friends that they want to celebrate with – these stories always sadden me greatly and make me appreciate the great family that I have.

But I know there are families that don’t enjoy Christmas due to the stress it places on their finances. It is a well known fact that credit card balances are always highest in January as people have overspent on Christmas in January. There is “pressure” to keep up with “the Jones’” and ensure that whatever little Johnny down the road is getting is similar to what your kid is getting as well. No one wants to be that parent who gives their kid a soccer ball when the neighbours kid gets an iPad.

Then there are other who go without, because they don’t have any other choice. When you are struggling to regularly put food on the table and keep a roof over your head, Christmas gifts is a very low priority.

Christmas can be the most enjoyable time of the year, but it can also be the most stressful. And those who do not have control of their finances it can be even more difficult. But I want you to enjoy Christmas this year, next year and every single year after this, and not be worried about money over this time.

That is why I have put together six simple ideas so you can enjoy a financially stress Christmas.

  1. Have a budget and stick to it

Everyone who is a regular follower of my blog and teachings must be sick of me talking about budgeting! I make no apology for this, as a budget is the cornerstone to getting more control of your finances, from everything from Christmas, saving for a house and retirement.

Firstly, write down everyone you want to buy presents for. Then write down how much is the maximum you want to spend on them. Now stick to it! This is the limit you are going to spend for Christmas. If you stick to it then you will be fine, if you don’t then you will have a “financial Christmas hangover” in January.

  1. Set money aside every week for Christmas

Following on from point one, you should be setting aside money each week for Christmas. When I sit down and go through someones budget I want to see Christmas listed as an annual expense, alongside their car insurance, holidays and council rates.

If you have gone through step one and discovered you are going to spend $500 for Christmas, then you need to be setting aside $10 every week to pay for Christmas. It may seem callous, but it makes sure you are able to enjoy Christmas for the right reasons, not worry about how you are going to pay for everything.

  1. Leave the credit card at home

If you have not followed points one and two, don’t get to December and buy presents on the credit card. If you do, you will be guaranteed to have a financially stressful New Year and you don’t want to start the New Year in this sort of situation.

If you are unable to buy Christmas presents in cash, then don’t buy presents at all. As harsh as it sounds, I would rather everyone be calling you a scrooge rather than be struggling with a credit card debt into the New Year.

  1. Less toys, more savings

Maybe it is because I was deprived as a child, but I swear kids are getting more and more presents each year. It may not just be the quantity but the overall price of presents are definitely going up. And to the frustration of parents most of them get forgotten about once February comes around.

Here’s an idea for you. Rather than your friends and family spending money on toys for your kids, ask them to make a contribution to your children’s school savings plan or something else you are saving for your kids. If you are not currently setting aside funds for your children’s future needs, start this now. That way your friends and family can contribute to a gift that lasts a lifetime.

Would you rather your friends spent $100 on a new toy for your child or $100 towards the deposit on your first home. You decide…

  1. Buy experiences, not gifts

I am grateful that people, especially Gen Y, are cottoning on to this idea. We don’t need more crap in the closets. Physically gifts do not make us happy over the long term.

But experiences last a lifetime. Whether it is a weekend to the Gold Coast, scuba diving a great barrier reef, swim with dolphins or doing a hotlap around Bathurst, this is the sort of experiences that bring us true joy.

  1. Buy a gift for someone in need

I hope that you are in the fortunate position where you don’t really need gifts. If that is the case, why not ask your friends and family to buy a gift for someone who is in need. Organisations like Kiva enable you to donate $50 to someone so they can buy equipment they need, such as a donkey for a farmer, in order to launch a new business venture to support their family and lift them out of poverty. $50 in Australia is a small amount in the scheme of things, but in a third world country it is everything. Isn’t this a much better gift than socks, jocks and a DVD?

I hope you are able to take a few of these ideas to make Christmas much more enjoyable for you and your loved ones. If you are reading this in December, it may be too late for you to implement these ideas for this year, but these are definitely something you can put into place for Christmas next year.

Christmas should be a time to be enjoyed, not one to dread. On behalf of everyone at Master Your Money Now I hope you have a fantastic Christmas this year!

If you want to become a member of Master Your Money Now and work one-on-one with a financial planner, please go to www.MasterYourMoneyNow.com.au/getstarted. We have a package to suit your needs.
If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:
Liked this article? Share it with your family, friends and work colleagues!
Disclaimer: This information is general information only.  You should consider the appropriateness of this information with regards to your objectives, financial situation and needs.
Master Your Money Now Pty Ltd (ABN 65 627 229 681) is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523

The post How To Have A Financially Stress Free Christmas appeared first on Master Your Money Now.

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Why have you not been taught to increase your income?

This is a great question – it is one that I have been grappling with for years.

Has it ever crossed your mind too why you were never taught about income – not in school, society or at home?

Yet, income is arguably one of the most important thing that has the biggest impact on your lifestyle, investments, health, food, assets and many more.

If you have also been wondering why you haven’t been taught about how to increase your incomes, here are 7 key factors that can be linked to it:

1. We think income is a private thing

Unfortunately, one of the reasons we were never taught about income is because we never talk about it. It is one of those taboo topics that is socially unacceptable to discuss at the dinner table.

Dare I say it (as I am not qualified to talk about this topic), it reminds me of how mental health was treated 20 to 30 years ago – just don’t talk about it and keep smiling. As a result, many people unnecessarily suffered as a result.

Thankfully, we are more open to discuss about mental health now. This has led to better treatment, better access to care and a society that is willing to listen and learn.

I wish we have reached this point when it comes to our incomes. I believe we don’t talk about it due to either coming across as boastful because our income is so high (also referred to as “tall poppy syndrome” or the “force of average”) or embarrassment because our income is so low.

In the right environment, we should be talking more about our income. That is when we can learn ways to master it.

2. We think income is our salary only

One of the common misconceptions is that “income” relates to salary only.

This is complete crap!

If your only source of income is your salary, then you need to have a conversation with a financial planner about your options.

There are multiple ways you can earn an income, while you are awake and while you are asleep. If you want to build your wealth, you need multiple sources of income.

3. We think income is linked to education

Many people believe that in order to increase their income (salary) they need more education.

This is partially true, but far from an absolute rule.

There are numerous studies that indicate that those who went through tertiary education have higher salaries than those who are didn’t have it , but you need to be aware that this fact is not valid at all times.

There are many people that I know who have no formal qualifications and have dropped out of school and became multimillionaires before the age of 30. They learned the key skills needed to increase their income, invested wisely and are living the good life.

I also know many people that have tertiary Education who are still stacking shelves at Woolworths and Coles. These people have the book skills, but not the valuable skills to help them lead successful lives in the 21st century.

Education does give you a leg up. Formal education does open more doors than those who don’t have formal education. But, you can significantly increase your income without formal education. Saying otherwise is simply an excuse.

4. We think income means more work

Again, this is partially true but not completely true.

In order to increase your active income (generally your salary), you need to either increase your hourly rate or increase your hours worked (i.e. do more work).

You may need to work more hours in the short term – it may be the quickest short term way to increase your income.

In the long term, we work on ways for you to increase your hourly rate and also make money while you sleep.

5. We think income is out of our control

I think that a lot of people believe that they are unable to control their income.

They believe their income is set from their employer, the government or some other source and there is nothing they can do to increase it.

I do not believe this is the case, because there are so many ways that you can increase your income, you just need to be a bit creative about it.

6. People have not been “incentivised” to talk about your income

As you are probably aware, most people are incentivised to take a particular course of action.

The foundation of this is very sound – the government and/or a company wants us to work so we get a financial incentive to do this.

However, when we look at this closely, you can see that the results you achieve can be altered to increase someone else’s incentive not yours.

What do I mean by this?

For example, how do education providers at any level get paid? They get paid when you enrol in their course.

Therefore they try and convince you to enrol in the course. They tell you how their course can change your life.

Now, think about this: Do they get paid more if you use what you have learnt in the course in order to increase your income, get that promotion or other predetermined objective? The answer, at least directly, is a huge resounding no.

Sadly, this is repeated throughout most industries.

The medical industry gets financially incentivised convincing you are sick.

The fitness industry gets financially incentivised convincing you are unfit.

Do you get the idea?

Unfortunately, this does apply to traditional financial planning as well. Back in the “good old days” (good old days for financial planners, not for you) whenever you rolled into a bank owned super account the financial planner received a payment (better known as a commission) of 3%.

Therefore, the financial planning industry spent most of their time convincing clients WHO ALREADY HAD HIGH BALANCES to rollover their super accounts into a bank owned fund.

If the client had $100,000, the financial planner received $3,000. If the client had $1,000,000, the financial planner received $30,000.

But if the client only had $10,000, the financial planner didn’t really want to waste time on you.

Thank heavens this practice was banned back in July 2013!

My point is, there has not been anyone who has been incentivised for you to increase your income. Except, perhaps the government who usually earns more tax if you increase your income.

7. Income is our sole responsibility – and people in general don’t like to take responsibility

This can sound harsh, but it is very true!

We have a tendency to blame everyone else for our problems.

Overweight? Blame fast food companies.

Stressed out? Blame your employer.

Don’t earn enough income? Blame your boss, parents, teachers, government and kids as well!

I’m not a qualified psychologist, but what I do know is that if you want to master any area of your life, the first step is to accept full responsibility for it.

Your income is your sole responsibility. As the saying goes “If it is to be, it is up to me!”

If you want to learn about ways to increase your income, please go to www.MasterYourMoneyNow.com.au/getstarted to book in your 30 minute complimentary discussion with one of our team.

If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:

Master Your Money Now – Facebook – www.facebook.com/MasterYourMoneyNow.Com.Au/

Master Your Money Now – Instagram – www.instagram.com/masteryourmoneynow

Master Your Money Now – LinkedIn – www.linkedin.com/company/masteryourmoneynow/

Master Your Money Now – YouTube – www.youtube.com/channel/UC7ulBKKq3i-gAPWzhNmerNQ

The post Why Haven’t I Been Taught About This? appeared first on Master Your Money Now.

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Earning $100,000 seems very hard for a lot of people. But for others it is very simple.

Chris Carlin, founder and financial planner of Master Your Money Now gives you some ideas as to how you can increase your income to over $100,000 per annum.

Whiteboard Wednesday 023 - How To Earn $100,000 Per Annum - Master Your Money Now - YouTube

If you like this video, make sure you share it with your friends, family and work colleagues who can benefit from this video as well!

Whiteboard Wednesday is a series of short videos where we teach you how to Master Your Money Now.

At Master Your Money Now we help everyday people take control of their finances from the comfort of their own home. We offer one-on-one advice and access to our exclusive membership benefits from as little as $990 upfront and $66 per month ongoing. Best of all, you may be able to fund a portion, if not all, of your upfront and ongoing advice from your super account i.e. potentially no out of pocket expense for you!

Master Your Money Now was founded in 2018 by Chris Carlin CFP, a financial planner with over seven years experience helping everyday people take control of their finances from the comfort of their own home.

Based in Geelong, we regularly speak to everyday Australians both individually and in group settings, teaching and empowering people with practical financial skills we should have should have been taught in school. In short, we make money easy to understand again.

If you want to become a member of Master Your Money Now and work one-on-one with a financial planner, please go to www.MasterYourMoneyNow.com.au/getstarted. We have a package to suit your needs.

Liked this article? Share it with your family, friends and work colleagues!

If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:

The post Whiteboard Wednesday 023 – How To Earn $100,000 Per Annum – Master Your Money Now appeared first on Master Your Money Now.

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Please sir, can I have some more?

What?

Please sir, can I have some more?

More?

You get the idea.

Oliver Twist became famous for these movie lines in his search for more food.

But what about your finances? What is the one thing that you need more of?

It doesn’t matter if you are on Centrelink benefits or if you are an investment banker earning squillions, you need more of this.

It doesn’t matter if you are Gen Y just starting out in the workforce or a baby boomer looking to retire.

The one thing that you should be focusing on is so simple you will roll your eyes, yet it is so surprising that we don’t talk about it.

Every day, we talk about getting more knowledge, more assets, more returns and more growth.

All of these things are extremely useful, but ultimately it is not the one thing we should be primarily focused on.

It is not talked about at school. It is not talked about at the university. It is not talked by “traditional financial planners”. It is not talked about around the barbeque.

If you want to Master Your Money Now, the number one thing you should be focusing on is INCOME!

You can build up your wealth as much as you like, but if you are unable to generate an income from it, it doesn’t matter. We refer to this as being asset rich and income poor.

This often occurs with farmers who often own multi-million dollar farms but are unable to generate a sufficient income from the farm to meet their living expenses.

You can build the greatest budget in the world and reduce your expenses down to nil, but if you don’t have a good income it will be in vain.

Income is the number one thing you should be focusing on when it comes to building your wealth and living the lifestyle that you want to live.

The more income that you bring into your household, the better life you are going to live and the more wealth you will be able to build for you and your family.

Are you rolling your eyes yet about how simple this is?

I totally agree it is simple, but as the saying goes “it is often a simple thing that screws us up”.

When people think they are doing the right thing as that is what they have been taught. But they have been taught to focus on the wrong thing.

As an example, have you ever asked yourself or a financial expert, how much in super and/or assets do I need to retire? Is it $500,000? Is it $1,000,000? Is it $2,000,000?

Wrong question.

The question you should be asking is how much INCOME do I need in retirement? Once we know this, we can then ask how much super and/or assets do you need in order to generate this income.

The key to financial freedom is not your net worth or capital, it is your income that you generate each year which will determine what lifestyle you lead both now and in retirement.

In order to Master Your Money, you need to Master Your Income.

Hang On, I Thought All I Needed Was A Good Budget And Then I Would Be Sweet?

If you think this, you have been lied to.

Don’t get me wrong, you need a good budget. A good budget enables you to track your expenses to ensure the money coming in is more than the money going out.

I will never forget one of the first clients I sat in on as a trainee financial planner. The advisor had given them an income of $200,000 per annum and they were still living way beyond their means!

The pinnacle was when the client says “I don’t understand how we are spending all of this money, we have stopped our monthly weekend away to Mildura (which is about a six hour drive from Geelong, total cost for the weekend let’s say $1,000).

The advisor (with the patience of a saint) goes, “that is true, but you still took holidays to London twice, New York, Los Angeles, Singapore and Tokyo this year, which you told me you want to do again next year!”

“Furthermore, you still insist on travelling first class meaning that your travel bill for the year is in excess of $80,000 per annum and you haven’t spent anything on accommodation or other holiday expenses.”

“Keep this up and you will be bankrupt in five years’ time”.

That was about five years ago. I would love to see how this client is going, but I have a funny feeling the message didn’t get through…

Then you also hear stories about “The Wealthy Barber” who became a millionaire while never earning more than $40,000 per annum. They did it by reducing their expenses down to nil.

I totally agree that it is far better long term to earn $40,000 per annum while living off $20,000 per annum than it is to earn $200,000 per annum while living off $250,000 per annum.

But in my view, a budget won’t make you rich, it will only stop you from going broke.

For the person earning $200,000 per annum, if we are able to reduce their expenses to a very generous $150,000 per annum, they will still have $50,000 per annum to save and invest.

In comparison, I would dare say that the people earning $40,000 per annum cannot reduce their expenses any further. They will only be able to save and invest a maximum of $20,000 per annum.

You can reduce your expenses to nil and live like a caveman for the rest of your days, or you can enjoy life – you decide.

While it is important for you to know how to make an excellent budget (In fact, Master Your Money Now has created an 8-part budgeting course, you can go to http://masteryourmoneynow.com.au/budgeting/ to get started), the next major step for you is to learn how to increase your income.

You deserve to be healthy, happy, and in great relationships with your family, friends and neighbour, and for you to do these things without grumbling or stress, you have to start taking action that will help you increase your INCOME – yes, more of this please!

If you want to talk about ways to increase your income, please go to www.MasterYourMoneyNow.com.au/getstarted to book in your 30 minute complimentary discussion with one of our team.

If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:

Master Your Money Now – Facebook – www.facebook.com/MasterYourMoneyNow.Com.Au/

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The post More Of This Please appeared first on Master Your Money Now.

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Happy New Year! I hope you were able to spend some quality time with your family and watching the Boxing Day test!
 
I always love this time of year as I get excited about the opportunities that the new year will bring, but it is also a good time to reflect on the year just gone and think about what we did well and what we could have done better. It is a great opportunity to ask ourselves what can we do better to make this year even better than last year, not just with Mastering your Money, but also with your overall lifestyle, friends/family, physical health and career.
 
In order to start the year off on the right foot, lets look at five financial resolutions to ensure that this will be your best financial year yet!
 
Resolution Number One: Review Your Budget
 
You will never be able to Master Your Money unless you have a budget in place. A budget is a itemised summary of what money is coming into your bank account and what money is going out. It should include everything from your annual bills to your daily coffee run and it should have a savings plan or buffer built into your budget.
 
Do you have any lump sum expenses planned for this year and if so how much money do you need to set aside each week to ensure you have enough money saved up for those expenses? A budget is a great way to ensure you always have sufficient funds for those expected and unexpected lump sum expenses.
 
Resolution Number Two: Pay Down Personal Debt
 
If you have any personal debt such as credit cards, personal loans or any debt that than an interest rate in excess of 10% you must make it your number one priority to ensure these debts are cleared as soon as possible. Australians have approximately $32.2 billion outstanding on their credit cards – this is one of the reasons why your Big Four banks still make exorbitant profits through your interest repayments. If you want to make this year your best financial year yet you must make it your priority to clear your personal debts – your wallet will thank you (but bank shareholders may not…)
 
Resolution Number Three: Save and Invest
 
Linking in with Resolutions One and Two, it is essential you write down all of the things you want to purchase over the next few years and create a plan to save for them, rather than make impulsive decisions to purchase these items on a credit card. These things may include:
  • Home Renovations
  • New Car
  • Holiday
  • House Deposit
If you have a couple of things listed down, firstly calculate how much it will cost, when do you need it buy and how much you need to save every week in order to save those funds. Then set aside in your budget that amount this week into a separate account for these expenses.
 
For example, if you have a goal of purchasing a house in five years time and need $50,000 for this, you need to set aside $200 per week for the next five years in order to achieve this.
 
I would also set up a buffer account (I call it the ‘oh ship’ account) for those unexpected expenses, regardless of whether you do or do not have some savings goals this year or not. Did you know that nearly a third of people would not be able to find $500 in an emergency? If you don’t have an ‘oh ship’ account set up, I would set setting aside as little as $30 per week into a separate account or make an additional repayments on your mortgage (which you can access with either an offset or redraw facility). You will then have $1,500 at the end of the year and being in a better financial situation than most of the country!
 
Resolution Number Four: Take Control Of Your Super
 
C’mon now, when was the last time you actually looked at how much was in your super? If you haven’t, don’t stress as a MoneySmart Poll recently suggested that over 40% of Australians have no idea how much they have in super, let alone how much they need going forward.
 
Did you know that in order to live a comfortable lifestyle in retirement now, a couple will need over $1 million in super (or similar investments) in order for them to live comfortably in retirement. If you are under 30, you will need approximately $3 million by the time you retire. Scary thought?
 
Don’t panic, there are things you can do every day such as utilising the Power of 30, consolidating your super and reviewing your investments which can make a huge difference in regards to the lifestyle you will live in retirement or not. Make this year the year you master your super. If super is something you find complicated, consider getting an independent advisor on your side who can assist you in making the right decisions from the comfort of your own home.
 
Resolution Number Five: Review Your ‘Plan B’
 
I still have not met anyone who has made a New Years Resolution for things to go wrong. We all make plans for things to go right, but unfortunately that is not often the case. The fact is there will be everyday (often young and healthy Australians) who will be unable to work for a long period of time due to an accident, injury or illness. It is important to have a discussion with an independent advisor about protecting your most important asset – you and your ability to earn an income.
 
On the flip side, I have met plenty of customers especially in their 50s who were unaware they were paying exorbitant insurance premiums in their super. I recently met a teacher (who had an industry super fund) who was paying over $15,000 per annum in insurance premiums, and had been for the last five years! Imagine if they had spoken to someone five years ago about this?
 
What do you have in place to protect you and your loved ones if things did go wrong? Seek independent advice about the various different covers there are out there. I would also strongly advise NOT having all of your insurances funded through super. If you are concerned that your insurance cover may not pay out, you can obtain superior cover for a similar cost you are currently paying for your mobile phone.
 
Bonus Resolution: Subscribe
 
If you want to make this year your best financial year ever subscribe to our blog at www.masteryourmoneynow.com.au/blog and follow us on Facebook and Instagram!
 
Here’s to your best year ever!
 
If you want to become a member of Master Your Money Now and work one-on-one with a financial planner, please go to www.MasterYourMoneyNow.com.au/getstarted. We have a package to suit your needs.
 
If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:
 
 
Liked this article? Share it with your family, friends and work colleagues!
 
Disclaimer: This information is general information only.  You should consider the appropriateness of this information with regards to your objectives, financial situation and needs.
 
Master Your Money Now Pty Ltd (ABN 65 627 229 681) is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523

The post Five New Year Financial Resolutions appeared first on Master Your Money Now.

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Wishing you all a very Merry Christmas and a Happy New Year! Looking forward to sharing more ideas with you to take control of your finances in 2019!

Whiteboard Wednesday 020 - Merry Christmas And A Happy New Year - Master Your Money Now - YouTube

If you like this video, make sure you share it with your friends, family and work colleagues who can benefit from this video as well!

Whiteboard Wednesday is a series of short videos where we teach you how to Master Your Money Now.

At Master Your Money Now we help everyday people take control of their finances from the comfort of their own home. We offer one-on-one advice and access to our exclusive membership benefits from as little as $990 upfront and $66 per month ongoing. Best of all, you may be able to fund a portion, if not all, of your upfront and ongoing advice from your super account i.e. potentially no out of pocket expense for you!

Master Your Money Now was founded in 2018 by Chris Carlin CFP, a financial planner with over seven years experience helping everyday people take control of their finances from the comfort of their own home.

Based in Geelong, we regularly speak to everyday Australians both individually and in group settings, teaching and empowering people with practical financial skills we should have should have been taught in school. In short, we make money easy to understand again.

If you want to become a member of Master Your Money Now and work one-on-one with a financial planner, please go to www.MasterYourMoneyNow.com.au/getstarted. We have a package to suit your needs.

Liked this article? Share it with your family, friends and work colleagues!

If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:

The post Whiteboard Wednesday 020 – Merry Christmas And A Happy New Year – Master Your Money Now appeared first on Master Your Money Now.

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Personal insurance is not a one-size-fits-all thing – there are different packages for you and your family that will match different situations in your life.

It is likely that you have once checked some insurance policies and providers when you want to get life insurance. In your search, I am sure you must have come across just too many insurance providers all over Australia.

Yet, it is surprising, on the flip side, to know that among the developed nations, Australia ranks as one of the countries that are most uninsured.

One of the crucial steps to making the right choice about your personal insurance cover is to start by understanding each insurance policy and what it offers.

Note this article is a bit “techy” and summarising the complex world of personal insurance in a thousand words is not possible. This article does not cover issues like ownership, cost of cover, estate planning, tax considerations and the impact that personal insurance can have on your super.

I have also not discussed why you need personal insurance cover. If you want to know why I strongly recommend you read “The Only Logical Reason You Do Not Need Personal Insurances

I would strongly recommend speaking to a financial planner to ensure you get the right Plan B in place for your particular circumstances.

Different Types of Personal Insurance

While there are several insurance policies and plan in the industry, they can be easily categorised into five major types:

  1. Life Insurance
  2. Total and Permanent Disability
  3. Income Protection
  4. Trauma Insurance (Critical Illness)
  5. Child Cover

All these plans come with their unique features, but they all tend towards the same purpose of providing peace of mind and protection to you and the members of your family.

Let’s take a closer look into each of these four types of personal insurance.

Life Insurance

Perhaps, this was the first form of insurance that was available in the market. It was introduced to cover you for death.

When you die, this type of insurance pays a lump sum benefit to your beneficiaries. Think of it like your “legacy” to your family.

Here is a list of other things that life insurance can also do:

  • Ensures your family has a debt free house
  • Fund the costs of your children’s future school fees
  • Pays for the funeral costs that your family incur
  • Provides an income for your spouse, while looking for a paid employment
  • Covers other extra expenses that your family might have.

Total and Permanent Disability Insurance (TPD)

This insurance protects you in the event you have an illness, sustained an injury or involved in an accident that resulted in total and permanent disability. A lump sum is paid out to cover discretionary expenditure.

This type of insurance can help you in these ways:

  • It helps to offset expenses as a result of the disability, for example, nursing care
  • This insurance saves you from financial and emotional stress your family could go through due to your disability
  • It gives you an alternative source of income if your partner had to quit work to take care of you

Income Protection Insurance

In a situation that you had to stop working due to injury or illness, income protection will ensure you receive an ongoing income to fund your ongoing expenses.

The benefit that you get paid can be up to 75% of your gross monthly income. The main purpose of this insurance package is to help you to look after the most important thing – your quick recovery.

Note that income protection is generally tax deductible if held in your personal name, but payments paid are taxed (regardless if held in super or in your personal name).

The income protection insurance help in more ways such as:

  • It helps to take care of your daily expenses, pays incurred maintenance costs and rent, then also settles mortgage and debt repayments.
  • You will be able to maintain your household lifestyle.

Critical Illness Insurance (also known as Trauma insurance)

If you are diagnosed with a critical illness, for instance, cancer, heart attack or stroke, the critical illness pays out a lump sum benefit.

Critical illness insurance (also called Trauma insurance) is structured in a way that to give you money when you have the most need for it.

Some of the other advantages of Critical Illness Insurance include:

  • Payment for medical rehabilitation and medical equipment
  • It helps to pay for medical bills and other expenses without causing extra financial stress to your family members
  • It gives you and your spouse an option to stop your job, in case you need extra attention

Trauma insurance is the most expensive cover in comparison to the other personal insurance covers. In addition, trauma cover must be held in your personal name – it cannot be held in super.

However, it is also the cover that is claimed the most. This cover is important so you don’t have to worry about their financial situation should they become unwell, they only have to worry about getting better.

Be aware that the definition of critical illness is different for each insurance provider, and it is ideal to understand what each package cover or doesn’t cover.

Child Cover

We have talked about cover for you, but what happens if something happens to your children?

As I write this article, I received a phone call from a colleague whose client’s two year old child has been diagnosed with leukemia and has been rushed from Sydney to the Royal Children’s Hospital in Melbourne. We don’t know if the client has child cover or not.

Child cover is a “basic trauma policy” which provides a lump sum payment if something serious was to occur to your child’s health. A $100,000 lump sum payment will set you back $10-$15 per month, which I personally believe makes it mandatory cover for any parents with children over the age of two (child cover is not available for children under two).

As you can see each personal insurance cover has its own advantages and disadvantages. However, put them all together and you will ensure that you and your family are comprehensively covered.

If you want to ensure you and your family are covered if something was to happen to you, please go to www.MasterYourMoneyNow.com.au/getstarted. We have a package to suit your needs.

If you want to know more about Master Your Money Now, go to www.masteryourmoneynow.com.au and follow Master Your Money Now on:

Master Your Money Now – Facebook – www.facebook.com/MasterYourMoneyNow.Com.Au/

Master Your Money Now – Instagram – www.instagram.com/masteryourmoneynow

Master Your Money Now – LinkedIn – www.linkedin.com/company/masteryourmoneynow/

Master Your Money Now – YouTube – www.youtube.com/channel/UC7ulBKKq3i-gAPWzhNmerNQ

The post What Is Personal Insurance? appeared first on Master Your Money Now.

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