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Saving tips from an almost broke girl

If you want sound advice on how to spend your money right, I’m probably not the best person to talk to. In the last two months I’ve travelled between three different countries, graduated, moved out of home and successfully spent the rest of my money being overly generous during Christmas.

I’m not in the best place with money at the moment, but over this time of spending I’ve learnt more about saving than I have in all of my 20 years of life – and working around a pack of financial advisers helps too, I guess.

While I’m entering the new year almost broke, I know that if I stick to a few small lifestyle changes 2018 will be a year of financial stability.

1. Plan your food

Going to the grocery store without a plan is a dangerous situation to be in. We’ve all been there. You buy stuff that looks like it’ll brew up a good feed at the time, but when you get home you’ve got a bunch of stuff that needs to be consumed within four days and a complete lack of meal combos. Not good. Googling cheap groceries and writing up a list before heading to the super has saved my life.

Meal prep is also an incredible time and money saver. I’ve started setting aside an hour or so on a Sunday night to cook up a feast for five – except it’s all for me! Just like that, lunch is sorted for the entire week. No more lunch-break buying; that’s damn expensive!

If my mates are heading out for brunch and I don’t want to miss out, I’ll go! I just try to make smarter choices. I’m not a coffee drinker, so sometimes (when I’m strong enough to deny a BLT) I’ll just have water and a slice – $4 is practically the same amount as a coffee, right?!

2. Respect your possessions

I recently dropped my phone and completely smashed the screen. It cost $170 to fix and it shattered me (pun intended). Since then, I’ve bought a protective case for it because I know that a small expense on a case is better than a large expense on a completely new phone. Lord knows I can’t afford a new mobile device.

The same applies to all of your possessions, whether it’s making sure you wash your clothing correctly – it says ‘delicate’ for a reason, or keeping up with regular maintenance on your car because if you keep ignoring that weird rattling noise forever, your vehicle might blow up. Your things are important! Look after them correctly now and it’ll save you in the long run.

3. Drop expensive entertainment

Turns out there are plenty of cost-friendly ways to have fun with your mates. My sister took me to the local library recently and I was reminded of how wonderful those places are (you should see how they scan books these days… the future is now!). Best of all – they’re free!

It’s summer time, if the library doesn’t sound like your cup of tea, take a trip to the beach, have a picnic in the park or take advantage of free exhibitions! The world is your oyster. Just whatever you do, don’t spend $25 on a movie ticket.

4. Set a budget

Budgets are both horrifying and exciting. There’s nothing like the horror of sitting down and calculating how much money you’ve blown on snacks from 7/11 in the last 10 weeks. On the other hand, it’s really motivating (and exciting) adding up your costs and seeing how much you could be saving each month.

I wouldn’t go so far to say budgeting is fun, but I do feel like I’ve got my life together when I’m sticking to my budget.

These are some very basic tips that are helping me get off struggle street as we head into the new year, but if you want personal advice from an expert, speak to one of our financial advisers today!

General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

The cost of convenience

Did anyone else need a stint in the room of mirrors to have a good hard look at themselves post festive season silliness?

I certainly did.

I realised I’d spent all my savings, stacked on some Christmas kilos and had a large David Jones bill waiting to be paid on my kitchen table. Not the start to 2018 I’d hoped for.

So on my last weekend before heading back to work, I put down the Apple TV remote, binned the last of my Christmas leftovers and fired up the laptop to assess the damage of the year that was.

And I’ve realised there’s one word that pretty much sums up my 2017 – convenience. But at what cost?

I’m 34, ‘time poor’ and an active member of the Uber generation. I love the convenience of having everything at my fingertips. I don’t have to talk to people, I don’t have to provide cash or pull out my bank card – it’s just a matter of pressing a button on your phone and hey presto!

And it’s cheaper, right? Well maybe not . . .

A quick review of my expenses for the year showed that I’ve thrown a whole heap of cash at things that made my life easier; things that were convenient and clever but not necessarily cheaper.

Thanks to Xero, a cashflow and budgeting program that my colleague Rachel Williams, our Director of Accounting, set me up on, I was able to see where I was hemorrhaging money. And it was all about convenience . . . or what I now can identify as laziness.

And the biggest culprit? Uber.

You know the drill: you’re getting ready for dinner with the girls and wearing a killer pair of heels – there’s no way you can totter down to the tram stop in those bad boys. So Uber it is!

Or, you get home from the gym and you’re wrecked after spin class so can’t be bothered cooking. Let’s get UberEats!

Or, you go for a walk and end up in the supermarket buying supplies for the week and can’t carry them home. Book an Uber!

Or, your mate’s coming over for dinner to watch The Wrong Girl and the fridge is empty, it’s raining outside and you can’t be bothered battling the elements. All hail UberEats!

Get the picture?

Going through my expenses, I could see I’d spent $622.24 across 43 trips on Uber for the year. They ranged in price from $6.97 to a whopping $50.85 per journey. Now, I live in Richmond which is probably the most well provisioned public transport hub in Melbourne so there’s no excuse for not using it – no, not even nights out in those killer high heels (you can pack flats in your bag, Kate!).

A one way tram or train fare within Zones 1 and 2 is $4.30 so I’ve calculated that for those same 43 trips, it would’ve only cost me $184.90.

That’s a difference of $437.34.

Sure sure, there were times when PTV wasn’t appropriate – like 2am on a Sunday morning or heading out to the airport (Melbourne, when will we get a train!?) – and a simple swap can’t always be made, but more often than not, I could be organised and train or tram – or even walk – into the city or Fitzroy or South Yarra and save myself a few bucks each time – or as it turns out, a few hundred bucks over the course of a year.

So can I be as ruthless and real and take the slasher to UberEats? Yes!

For starters, I’ve deleted the app from my phone. I live around the corner from some of the best dining strips in Melbourne (have you been down Swan Street lately!?) yet I still dialed up orders on my phone to have it home delivered at $5 a pop. This ‘cost of convenience’ cost me $95 across 19 orders last year – was it worth it? Nope, not when I live 112 steps from Fonda.

The biggest thing for me though, is the convenient access to some of my favourite meals from my favourite restaurants. Hello Meatball and Wine Bar on the couch. How I love thee, Spudbar in front of the telly.

But I love cooking, and I’m a capable cook, so why not take pleasure in recreating them myself – at a fraction of the cost!

I’ve started googling some of my favourite restaurants’ recipes to bring the magic into my home kitchen and you know what? It works! My usual go-to is George Calombaris’s ancient grain salad from Jimmy Grants with the gorgeous slow cooked lamb and tzatziki. Well thanks to the powers of the interweb, I’ve tracked down the recipes (or variations of such) and can now produce a feast fit for a king at home – at a fraction of the cost.

And do you know what I’ve found is even more convenient than UberEats? A fully stocked pantry and a fridge packed with leftovers! Winning!

Of course, the success of my efforts will depend on:

  • How organised I am with my weekly shop to ensure the fridge is stocked and meals are planned, and
  • How organised I am in the lead up to a night out to factor in the time of catching PTV.

But having now seen the costs in my Xero tracking, I can put a price on convenience and make a conscious decision about whether it’s worth it each time – and ask myself, am I just being lazy?

See you on the 70 tram down Swan Street, friends.

Recreate a delicious Greek feast yourself with these easy recipes!

Slow cooked lamb

Ancient grain salad

Tzatziki

Christmases past, present and future

They say Christmas is the most wonderful time of the year; but it can also be one of the most expensive.  Without careful preparation and planning, the festive season can quickly turn into a burden of mounding expenses, debt and stress.

With only five days until the main event now, many of us are at the peak of our Christmas pressures. With this in mind, you may be thinking it’s too late to be planning to ease the anxieties caused by the time of year.

Well you’re wrong.

While it’s probably true it’s too late to plan for this year’s Christmas, there’s something to be said for learning from past and present mistakes to plan for the future; Christmas is an annual event after all!

So, how can we prepare things ahead of time for next Christmas and reduce this financial anxiety? To answer this, let’s first look at how much we’re actually spending during the silly season.

How much are Australians spending on Christmas?

Research conducted by MoneySmart has found that on average we spend the following amounts per state on Christmas gifts for our loved ones;

(Infographic via MoneySmart. (1) Commonwealth Bank, Xmas Spending Survey – November 2016. Note: due to low sample sizes in ACT, NT and TAS, figures for spending in these areas are not included. (2) Finder.com.au, Festive season in full swing: How the nation will cope with financial pressures – December 2016)

But it’s not just Christmas that has us spending; with New Year celebrations, more often than not we are still catching up on the additional expenses rolling into the first few months of the new year.

If this all sounds familiar (and hits a little close to home), remember it’s never too early to start thinking about next year’s Christmas. By thinking ahead and putting a strategy in place for the future, you can try to avoid the stress you may be feeling now.

How can we learn from our Christmas past?

We’re right in the thick of the Christmas season at the moment. Shopping centre car-parks are like hell on earth and debts may be piling up like presents under the tree. As our stress levels peak, now is the time to take stock of what’s going wrong in the mad rush.

Just like Santa, it’s time to make a list (or two, or three…)

  • Write down everyone you need to buy gifts for
  • Place a dollar figure next to everyone on that list – at this point, it should be how much you’ve spent on that person
  • Write down how much you are spending on festivities (decorations, incidental gifts, food, drink)

Now you’ve got your lists, check them twice, three times even four times. Identify where changes can be made. For example, do you really need to buy gifts for all those people – or can the dollar figure next to their name come down for next year?

Having multiple lists can help you organise all the essentials for any occasion as well as prepare you for the outlay in which it will all cost.

How can we stay sane in Christmas present?

Take a breath. There are 168 hours in a week, so think about how you can use that time wisely.

In these days leading up to Christmas, try and find ways that you can make things easier for yourself. It may be as simple as freezing your leftovers from your Christmas feast, so you have ready-made meals into the new year, saving you time and money.

If you have regular bills that come in at this time of year, consider putting the money for these aside now so you’re prepared.

You could even organise to have your groceries home delivered, helping you avoid the supermarket during this hectic period and saving you time at the checkout – time you could spend doing other things to keep you sane!

How can we prepare for our Christmas future?

As the festive season winds down, we can start thinking about the year ahead, rebuild our savings and pay off debts from the year before. Once your Christmas present moves into the past, it’s time to start putting together a strategy so your Christmas future is a breeze.

Start off by creating a budget, consulting the lists compiled as you reflected on your Christmases past, to identify spending patterns and how much you need to save.

But before you set yourself a savings target, you will need to identify how much you earn and what expenses are set, so you can work out how much you can allocate to your Christmas savings goals. Be realistic with your targets, and remember there’s more to life than Christmas – you likely want to allocate savings to other things as well.

Think about separating your savings into different accounts – one can be dedicated to Christmas. Start putting money in this straight away.

When it gets closer to Christmas, look at your savings and try to spend only what you’ve put aside, and not just for the sake of it. But don’t worry, you don’t have to be a scrooge with your money; with early preparation and simple cash flow management strategies, there are still ways to have finances available for most of life’s little luxuries within the means of your budget.

To help you budget, consider taking advantage of cash flow management software, like Xero, which allows you to clearly see all your accounts, where your expenses are going and how much you are saving. This can be a very useful tool if you are juggling a few different budgets, saving for a range of different items/events or if you wish to have more control over your finances in general.

It can also map your progress with a series of graphs and visual prompts – a great resource to help you stay on track.

The beauty of Xero is that it allows you to quickly reconcile your transactions in an efficient manner, holding you accountable for where your money is going. For more information on Xero and how it can help you budget, please speak with one of our advisers.

Any other tips?

When it comes to gift giving, think of ways you can minimise your expenditure. Getting ideas from the table below is a great place to start.

Gift Savings Strategies Gift Fundamentals
  • Play Secret Santa
    Only buying for one family member or friend within your group will save you lots of money
  • Shop online
    This can save you time by getting items delivered to your home and avoiding queues at the shops
  • Use saved rewards points you have acquired over the year
  • DIY gifts
    Making your own gifts can be therapeutic to create and meaningful to the person receiving the gift
  • Gift vouchers
    If you have to send gifts interstate, this can be a method of saving on postage as they’re light to post or can be sent by email
  •  Re-gift
  • Donations
    You are eligible to claim on donations to an approved organisation for donations made between $2-$150
  • Manage expectations
  • Do not spend beyond your means
    Refer to your budget and understand your money commitments
  • Avoid getting caught up on impulse shopping
    Continue to refer back to your list
  • Remember you don’t have to keep up with the Joneses (or Kardashians)
  • Ask yourself what you value: gifts vs quality time with your family
  • Are the gifts a need or a want?
  • Be careful of interest free traps

 

Hopefully, by employing some of the tips in this guide, you can start your new year with a Christmas cracker bang and set yourself up not to break the bank next festive season.

If you would like more information on how you can budget for the festive season, or how to overcome debt, please do not hesitate to contact our office on 1300 726 082 and speak with one of our financial advisers today.

Sending your child to school – what’s the cost?

Deciding where to send your child to school can be a daunting task, especially for first time parents. Your child is entirely affected by your decision, the pressure is on – you’ve got to make the right choice!

Out of all the things to consider, the most important is whether you think your child will be happy at that school. Let’s face it – an unhappy child is the last thing you want, and they aren’t going to thrive in any kind of learning environment feeling that way.

As well as your child’s wellbeing, finances are a massive factor to consider. We all want the best for our children, but how much will it cost?

School fees

There’s more than meets the eye when you’re considering the price of sending your child off into the big, scary world of education. The first thing to get your head around? School fees. Fees can vary from a few hundred to several thousand dollars per year, but there are additional factors to consider on top of just the annual fee:

  • Is there an added enrolment fee to be paid up front?
  • Do the fees stay the same throughout primary school (allowing for CPI increases), or do they scale up each year as your child progresses through their school years?
  • Is there a discounted fee per child – when more than one of your children attends the school?
  • Are there any compulsory fees or levies – such as IT levies, building or maintenance levies?

Stationery

Getting your hands on a list of items your child will need in the classroom is a very wise move. You’ll know exactly what you need to buy, allowing you to budget and prevent any unwanted surprises. Some schools have very specific stationery requirements; you might need to buy specific pencils or maybe you’ll be required to purchase a schoolbag branded with the school emblem.

On top of the stationery is technology. Are you obliged to purchase an iPad or tablet for your child? Or are they provided by the school? Sometimes you’re required to supply your child with an iPad as early as prep – including some public schools! If you’re in this position, check to see if the school offers any kind of bulk buying arrangement as that’ll save you some cash.

Uniform

Many school policies dictate the entire uniform be purchased through their own uniform shop – right down to your child’s socks! If you’re able to purchase the basics from retail stores such as Kmart or Big W, this will save you a considerable amount of money. Grab a copy of their uniform pricing list as it is well worth calculating the cost of fitting your child out for school. Most schools will require their students to have a summer, winter and sports uniform. By the time you add in a hat, jacket and school shoes, it’s pricey!

Also remember that your child is growing and the uniform will need replacing as they get older. It’s an ongoing expense and certainly one not to overlook. To help save some money, ask if the school or parents association operates a swap and sell – second hand uniforms can get you through the early years while your child is still growing.

Transport

Choosing a school nearby that you and your child could walk or bike to will obviously save you money in terms of transport costs. But if your only options are public transport, driving or a school bus run by a private company, you’ll need to figure out the cost and add that to your consideration.

Co-curricular

Excursions and camps are another factor to add to the pile. Most schools consider these an additional expense on a pay-as-you-go basis. Every so often there are schools that include these as part of their curriculum and therefore part of their annual fees. But don’t forget hidden costs such as music lessons, dance classes and after school care – if they’re not included in your school fees, you could be slugged with some hefty bills.

As you can see, it’s worthwhile adding up ALL the costs of sending your child to school, not just the annual fee. A school that has higher upfront fees may seem like the more expensive option, but if they offer cheaper uniforms, provide the technology and you live close by, it’ll end up being cheaper in the long-run.

These days, a lot of schools are happy to offer a weekly or fortnightly direct debit scheme to make it easier for you to pay the bills throughout the course of the year. However, some schools still request payment upfront at the beginning of the year, semester or term.

With all things considered, you may need to start saving now and think about speaking to a financial adviser who can put you on the path to improved budgeting and cash flow management. With the right planning and structures in place, you can be prepared for any surprises thrown your way as your child embraces every opportunity presented to them over their thirteen years at school.

Call us on 1300 726 082 or send us a message to find out how you can make plans to help you afford the best education for your children.

Stepping into minimalism

Minimalism. When most people hear that word, they immediately think of hippies who sell all their possessions and live out of a suitcase. But in actual fact, minimalism can mean something different for everyone and in this day and age, most of us can benefit from minimising aspects of our ever so busy lives.

The Minimalists – a duo who run a popular minimalism blog – sum it up perfectly: Minimalism is a tool to rid yourself of life’s excess in favor of focusing on what’s important—so you can find happiness, fulfillment, and freedom.
Sounds pretty good doesn’t it? Unfortunately for a lot of us, our financial life is far from minimalistic. We are a generation that is obsessed with credit cards, Afterpay and spending money we don’t have. However, there are definitely ways we can streamline it all, to keep it simple so we can spend more time focusing on the things that actually matter.
1. Find your Super!
Remember your first job where you had to sign up for a super fund and you had absolutely no idea what you were doing? And then you did the same at your next job? Sounding familiar? A lot of us have multiple super funds in which we have money just sitting there, not knowing what we are invested in and how well our fund is doing. The problem with this is that you’re most likely paying administration fees for each of those funds, for no reason at all!
Nowadays, you can simply roll the funds into one single fund via myGov. However it is always beneficial to seek professional advice, as you do not want to close a fund that has a great insurance policy within it, or end up in a super fund that isn’t generating good returns.2. Go paperless
It’s 2017, get with the times! You can go without those paper statements that you always throw into the back of your drawer and never look at again. Most things nowadays are digital, so spend a couple of hours going through all your statements and bills and switch to paperless where possible. Trust me, it will be worth it – for you and the environment. And anything that needs to be sent via post, you can just take a photo of it and save it. This is also great for your receipts come tax time.
3. Say bye to buying
How often do you buy something just because it’s on sale? “There’s 30% off, I’ll just have a quick look…” you say. All of a sudden, you’ve maxed out your credit card again and have to live on tuna for the rest of the week. Minimalism is not about never buying new clothes and rotating between three t-shirts; it is about calculated purchases, quality not quantity, needs not wants. With that being said, no one needs that pair of Louboutins but it’s about finding that balance – taking a step back and asking yourself “will I actually use/wear these?” and “am I just buying it because it’s on sale?”You will find that by making more mindful purchases, you will spend less on things that just sit collecting dust. Beside from having less clutter, you will have more dollars to spend on things that will enrich your life . . . such as those highly coveted red soles.
4. Cut the card
One of the things that weighs us down mentally is debt, and it doesn’t help that we now have all the options available when it comes to spending money we don’t have: credit cards, Afterpay, personal loans… you know what I’m talking about. If you’ve managed to rack up an impressive amount of debt over the years, consider limiting yourself to just one card with a sensible and manageable limit so that you’re not paying multiple annual card fees and having to remember when eight different monthly bills are due.Simplifying your financial life and taking a few steps into the world of minimalism can help you on your way to achieving your financial goals. By applying a few of the points mentioned above, you can help relieve some anxiety that goes along with managing your money and sooner or later you’ll be able to bask in the glory of your stress-free financial life.

To jump start your journey to a life of minimalism, speak to a financial adviser on 1300 726 082 who can help map out ways to reduce your spending and declutter your finances.

 

General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

The dangers of a desk-bound lunch

Have you ever eaten lunch at your desk? If so, you’re not alone. I know I’m guilty of it; at work, I’m a regular desk-bound diner.

It’s not because I want to show my boss that I’m a hard worker – I just want to be as productive as possible during my work day.  For most of us with busy days and hectic schedules, eating lunch at our desks seems like the easiest solution. But we should really change that mind set!

As it turns out, eating your lunch at your desk isn’t all that good for you; and there are a few good reasons backing that up, including hidden health dangers. Let’s find out what these are.

Your desk is gross

Be warned, you may not even want to touch your keyboard – let alone eat near it – once you read this fact.

Dr Charles Gerba, PhD, a professor of environmental microbiology at Arizona discovered that “desk top surfaces, computer keyboards, mouse and telephone receivers are more contaminated than a restroom toilet seats”. The research found that the keyboard alone is 20,000 times dirtier than a toilet bowl!

With this in mind, it’s best to keep your food well away from your desk, so you’re less likely to transfer germs from the keyboard to your lunch.  It also helps to keep your workspace clean.

You’ll be more productive and better at your job

When you’ve got a lot to do, a quick sandwich at your desk may seem like a good idea. But if you’re considering multitasking, think again!

There’s only so much you can do in a day. Taking a break is a great opportunity to let your mind wander, which can lead to new ideas, spark inspiration and potentially provide solutions to problems that were bothering you while your mind was active.

As the Fast Company writes, “even if we think we’re awesome at multitasking, we’re actually terrible at it.  Because quality work is deep work, and deep work is free of distraction. Sandwich included”.

Stress, sore joints and long term health risks

It’s important to move around every now and then to get your blood pumping and oxygen flowing.

When you eat lunch at your desk you’ll stay seated longer, and sitting for a long period of time can lead to problems like:

  • tension in your muscles and sore joints, leading to leg disorders
  • weakness in your hip and core muscles, leading to back pain
  • increased risk of heart disease
  • high blood pressure and high cholesterol, and
  • increased stress levels.

Distracted eating leads to sneaky weight gain

In order to enjoy your food, you need to pay attention to what you are eating. Otherwise, your body and brain don’t properly process the amount of food you are consuming; as a result you take in more calories than you need.  A sure-fire way to stack on the kilos!

Furthermore, don’t expect peace when you’re eating at your desk; unless you have a “go away” or “do not disturb” sign on your desk, your colleagues will assume that you’re working and may pepper your lunch with questions, help and problems to deal with. Hardly an enjoyable experience, is it?

You’ll build better work relationships with colleagues

Relationships at work are important.  You should learn how to build and maintain a healthy connection with those around you in order to enhance your job satisfaction.

That doesn’t mean that you have to eat lunch with your colleagues every day, know everything about them, or make them your best friends. But it doesn’t hurt to make the effort every now and then!

If you go out to lunch with your work colleagues occasionally, you might improve your rapport with them, which may lead to a more enjoyable work environment.

You can catch up and accomplish personal tasks

If you’re the type to eat lunch at your desk to save time, you’re probably looking for more hours in your week to get through your life admin as well. So why not use your lunch break to catch up on those personal tasks that you usually don’t get a chance to do because you’re so busy with work and family obligations? These tasks could be things like:

  • Catching up with friends that work nearby
  • Scheduling a meeting with an adviser from The Hopkins Group to take care of your financial future (and maybe even free up some more time by getting them to take care of things like your tax return, find the best home loan rate, manage your investment property, or just generally help you sort out a strategy to manage your overall financial wellbeing)

By now, you should be convinced that stepping away from your desk at lunch break is definitely worth it. It is full of benefits not only for your health, but your quality of work too; so we should all take full advantage of having a break.

Do you have any suggestions for how to spend your lunch break, or reasons why taking a break is important? Let us know over on our Facebook page.

 

Are you scared of the future?

Are you scared of the future?

With what is happening in the world at the moment, I can see how you could be.

Take this recent headline from an article sent to me by Deakin University, as an example of something that could elicit fear:

“Automation, ‘technopanic’ and the future of work.”

An ominous subject made even scarier with the sub-title; “Manual labour will disappear in the future as robots take over most menial tasks.”

On the other side of the world, Kim Jong-un has his finger poised on the trigger of destruction; throwing rocks at western allies. Trump sits in the other corner, ready to retaliate.

Despite their differences, both news events can be seen as frightening. Could you have better reasons to freeze up? What do stories such as these they mean for your decision making?

Closer to home, we are starting to consider recent statistics from last year’s Census.

Population growth across Australia is substantially up, compared to previous decades, with expectations it will double to 50 million within the next 50 years.

The population will age and the balance of growth is expected to be away from NSW and Sydney to Victoria and Melbourne. Presently Victoria and Melbourne are growing at a rate 12% faster than NSW and Sydney; Melbourne is increasing 1,859 people per week while Sydney increases at 1,656 people per week.

Are these statistics scary? What do they mean for our property markets? How many hundreds of other major and important questions can we ask about this, and the impact it has on the future? Many hundreds, I am certain.

In my experience many people worry so much about what is to come that they freeze and do not take action to secure their future financial security in the present.

In reality, the only difference between the present and the past decades and centuries is the rate of change.

World population growth, growing economies, determination to improve the socio-economic circumstances for the billions in China, India, Indonesia the Middle East and other parts of the world, globalisation, and the geopolitical balance of necessity; all these factors together underpin sensible and conservative investment strategies.

We live in a world of change and there’s always someone with their finger on a trigger of some sort; it’s up to you to decide whether you’ll let the world pass you by or if you’ll seize the day. You cannot let fear hold you back.

To remain pessimistic and inactive will doom you to relying on government handouts.

Procrastination is the biggest of the financial evils that you can commit.

Correct and conservative financial planning, balance throughout your portfolios into secure shares and property, and the careful and most definitely positive use of appropriate financial leverage are the foundation stones of building wealth. These are as appropriate today as they were every year for many years into the past.

The trials and tribulations of funding conception

For many, the decision to start a family and bring a baby into the world is a time of joy and excitement. However for an increasing number of Australians, it can also be a time of worry, financial burden and emotional turmoil.

Unfortunately, what should be the most natural thing in the world – conceiving a child – can be really hard. As many as one in six couples have trouble getting pregnant.

For women, once you hit 36 years of age your chance of conceiving naturally is halved compared to the chances you have at age 20. There is also a gamut of other female fertility issues to contend with besides the effects of age including issues with ovulation, uterine fibroids, endometriosis, to name a few.

And let’s not forget the gentlemen in this discussion; a little known fact is that male infertility is the single biggest factor influencing a couple’s chance of conception (with 40% of cases a sperm related cause).

As the reality sets in, many need medical support in their quest to become pregnant. In vitro fertilisation (IVF) is one such treatment that many couples struggling to conceive explore.

However, while IVF provides hope – it can also bring with it a financial burden that can take a toll.

How much does IVF cost?

IVF costs vary greatly depending on the treatment provider. Out of pocket expenses (the gap between actual cost and what is covered by Medicare) for an IVF cycle in Victoria can range from around $485 for Healthcare Card Holders (Medicare safety net met) to upwards of $4,501 (Medicare safety net not reached) for everyone else. And that’s before considering any additional screening/testing which a specialist may order.

On top of costs of the cycle, the treatment may also involve a day hospital procedure, of which Medicare may not cover the cost of – however it may be covered by your private health insurance (if applicable under your level of hospital cover).

Often, it takes more than one cycle for success – and then, success is not always a guarantee.

Funding treatment – what are my options?

For some, trying IVF comes after many attempts at other, less invasive, treatment options which have already taken a hit to the hip-pocket. For others, IVF is the only treatment option available to them. Whatever the case, there are a number of options that may be available to fund your treatment. These include;

  • Savings
  • Securing a loan
  • Early release of superannuation benefits

Saving to conceive

If you’re thinking about having a baby, it makes sense to start saving. Birthing and raising children can be an expensive exercise in itself, but as we have discovered earlier in this piece, it can also be expensive trying to conceive to begin with.

It might be overly simplistic, but dedicating a portion of your savings entirely to the goal of conceiving, is often the first step to funding fertility treatments such as IVF.

Do your research into the different IVF providers and the different costs you may encounter and calculate your savings goal. Work out how much you can afford to save and put this aside.

Securing a loan

While having enough money in savings to cover IVF is an ideal scenario, it isn’t always the case – especially if you have depleted savings on multiple failed cycles or exploring other treatment options.

In cases such as these, securing finance is an option you may want to consider. There are a few different loan options available including;

  • Unsecured personal loans
  • Medical loans

Depending on your eligibility for credit, you will usually have a range of different loan options available to you.

But be wary of interest rates and potential hidden fees and charges – you don’t want to pay more than you have to.

Aside from formal loan agreements, it may be worth talking to family and/or close friends who may be in a position to help out. This option certainly isn’t for everyone but if you are lucky enough to have this available to you, it could lessen your burden.

Accessing your super

If multiple failed attempts at trying to conceive has taken a toll on your mental health, you may be eligible to apply for an early release of superannuation benefits on compassionate grounds, to help pay for IVF treatment. The Department of Human Services (DHS) oversees such applications and will only approve applications by those unable to pay for the expenses by other means, such as savings, and all applications require supporting evidence.

However, while it may be possible to access funds in this way, taking from your super should only be considered as a last resort. IVF success rates in Australia range from around 40.1% per embryo transfer leading to a live birth for patients under 30 years, to 8.5% per embryo transfer leading to a live birth for patients over 40 years. There are no guarantees; so even if you are successful in acquiring funds from your super, there is a chance you still might not be successful in becoming pregnant.

It’s also important to consider that women, on average, retire with around $92,000 less than men – a super gap of 46.6%. The only way to recover these lost super funds is with time and work, or to make a contribution to your super fund out of your own pocket. Are you prepared to take away from your future self when there is no guarantee of present success?

The struggle to conceive can be a very emotional and trying experience – one that is only compounded by the stresses of financing the process. However you don’t have to suffer through this alone. At The Hopkins Group, our mortgage and finance team may be able to assist you in finding an IVF loan that is right for you. If you have any questions about financing IVF, why not speak to The Hopkins Group today?

General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

How to keep financially healthy with a baby on the way

What does growing your family mean for you? For me, it’s a wonderful time that brings to mind thoughts of those tiny, glorious, bundles of joy that are babies.

But then, what about the financial costs?

Scans, tests, a cot, pram, nappies, monitor, car seat and more; these all cost money and often lots of it. It can be stressful to think about, but if you get your family budget in order early on, your impending costs of parenthood can be less stressful and more fulfilling over time.

With baby number two on the way in my household, this topic is front of mind so I want to share with you my top tips to staying financially fit while your family grows.

1. Consider your hospital expenses

One big thing you need to consider before you give birth is how and where you want your baby to be born. Ask yourself; who would you like to care for you? Can you afford private care? Which is better for you and the baby?

Going Public

Choosing to have your baby in the public health system is the most budget friendly option; there is no charge for labour or birth care in public hospitals. Your birth will be attended by a midwife or the obstetrician on duty, and all costs are covered by Medicare.

With this option, the costs to watch out for are potential out-of-pocket expenses during your post-birth hospital stay, such as use of the hospital’s disposable nappies, or costs for pregnancy care provided by your local GP who doesn’t bulk bill.

Going Private

If you choose a private obstetrician in a private or public hospital, private health cover is strongly recommended.

The costs of your care under the private system will vary greatly depending on a number of different factors, so it’s best to do your research into what these may be based on your ideal birth plan.

It’s worth double checking with your health fund before you get pregnant to see what exactly your policy covers. Remember that most policies have a qualifying waiting period of 12 months, so it’s best to plan ahead and make sure these options are added at least one full year before you conceive.  And watch out for “gap” costs (the shortfall between your policy coverage and the charged cost of a service) that you may have to pay for things like obstetrician appointments.

2. Are you ready for two to become one? Managing your income during maternity leave

Mothers-to-be, who are often in the peak of their earning career, have to stop work to look after their tiny human.

Will your family be able to adjust to dropping to a single income stream?

It can be a big adjustment, so here a few things you can do to make the adjustment as painless as possible.

Prepare a plan
Crunching the numbers to determine how much it costs to live safely in the suburbs, turn the lights on and keep the cat warm can be scary, but it will ensure your money stretches further.

Work out your household expenses and how much you need to sock away for food, mortgage or rental payments, car and bills. A detailed budget can really benefit your bottom line.

Start saving

Allocate some of your hard-earned money to savings. And by savings, I mean money that you can’t touch until baby is born. This is your buffer behind you for emergencies.

You have about nine months from the time that you find out you’re pregnant until the time you welcome your new arrival, so start putting money aside while you have two income streams coming in. Set up a high interest savings account and be disciplined with how much you regularly contribute.

Learn to spend less

Scaling from two incomes to one could be dangerous if your spending habits remain the same despite your reduced income.

Get on board with finding new ways to save money.

Use websites to track when fuel is cheapest and only fill up on those days. Sign up for direct debit on your bills to get discounted rates. Look closely at your home loan and negotiate with the bank for a lower interest rate. Move to a cheaper suburb further from the city to save rent.

While you’re at it – get rid of your credit cards. It’s easy to fall into the trap of spending more than you earn if you pay with credit cards; you’re less likely to keep track of your spending and before you know it you’ve spent away your rent without even noticing. Cold, hard cash is a lot harder to spend. Paying in cash will reduce temptation and ensure you avoid making extra monthly credit card repayments to the bank.

Know your entitlements: Government help and employer subsidised Paid Parental Leave (PPL)

You could be eligible for government benefits such as Parental Leave Pay, a scheme in which you will be provided with minimum weekly wages up to 18 weeks if your income is less than $150,000 per annum.

Depending on your income and assets, you may also be entitled to other benefits such as the Child Care Benefit, Family Tax Benefit, Parenting Payment or a Health Care Card.

You might also be able to access to employer-paid PPL through industrial awards, or individual employment contracts. It’s well worth checking what you’re entitled to and incorporating these benefits into your budgeting.

3. Thinking ahead – child care and school fees

Now that you’ve started thinking about the initial costs of having children, it’s worth looking ahead.

If you intend to return to work and reinstate your dual income lifestyle, childcare is a hot topic –especially considering how important quality care is for the development of a child. Not only will you need to consider how difficult it is to find a placement in your preferred location, you’ll need to work out how much will it cost.

From nannies to day care facilities, childcare costs vary depending on where you live, what type of childcare you choose and how many hours a week your child will spend in childcare.

When it comes time to go back to work, you’ll need to revisit your budget and factor changes to your income along with the added expense of professional child care services. This will help you decide whether or not returning to work will financially benefit you.

And then comes school.

The reality is children only get more expensive the older they get, when education, transport, school excursions and sporting costs really start to take centre stage in a big way.

In fact, John Velegrinis, chief executive of the Australian Scholarships Group, says parents need to start planning school related finances from the day a baby is born.

If you opt to put your children in private school, school fees could take a large slice of your total income pie each year. That’s even before you consider the costs of soccer/ballet/chess classes, pens and paper, school shoes and backpacks.

The good news is that you’ve got a bit of time to plan for these larger ongoing expenses, so there is no need to fear! The earlier you get on board with applying a strategy to your financial future, the better off you’ll be in the long run.

Remember – while it can be scary to think about all these expenses, growing your family should be a time of joy and excitement. You also don’t have to look at the bigger picture alone. Talk with your family about their experiences and don’t be afraid to ask for help when you need it.

And if you would like professional advice, why not consider speaking to The Hopkins Group? Family is really important to us, and our team is experienced in providing advice in a number of areas including budgeting, financial planning, personal insurances such as life insurance and income protection, and estate planning. We can even help you get a loan for the big car you’ll need to fit all those kids you’re planning on having! Contact our team today.

General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

12 Days of Christmas

We’re well and truly into the festive spirit here at The Hopkins Group, and have asked around our teams to give you our very sensible yet sometimes outside-the-square take on the traditional 12 Days of Christmas.

From our family to yours, we wish you all the happiness this holiday period.

 

 Property management team

On the first day of Christmas, my financial planner gave to me … a handy glossary of terms to get my head around some investment jargon.

On the second day of Christmas, my property manager gave to me … ten reasons why their team is the best choice to look after my investment property.

 

On the third day of Christmas, my accountant gave to me … tips for how to determine whether or not my Christmas holiday is actually tax deductible.

On the fourth day of Christmas my property adviser gave to me … the best locations in Melbourne to see festive lights shining brightly.

 

On the fifth day of Christmas my mortgage adviser gave to me … a recipe to build my own house #mustkeepsaving

On the sixth day of Christmas, my financial planner gave to me . . . a link to download the TrackMySPEND app so I could monitor my festive budget.

 

On the seventh day of Christmas my property manager gave to me… ways to “décor-rent” this festive season while keeping my landlord happy.

On the eighth day of Christmas my accountant gave to me … answers to some frequently asked questions that could help me realise my financial potential.

 

On the ninth day of Christmas my financial planner gave to me … four tips to survive Christmas and stay debt free.

On the tenth day of Christmas my property investment adviser gave to me … hope that apartment living may be the answer to living happily.

 

On the eleventh day of Christmas, my financial planner gave to me … access to the Bubbles, Beers and Budgeting Facebook Group to connect with fellow Gen Ys starting out on their financial journey.

On the twelfth day of Christmas, The Hopkins Group gave to me … a playlist of festive tunes to enjoy with my family.

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