Tag: insurance

5 easy ways to change your money mindset forever

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Humans are creatures of habit, and unfortunately when it comes to money many of us have picked up a few bad traits over the years.

However, we all have the power to change, and if you make an effort to ingrain positive financial habits into your life chances are they will end up sticking.

Here are five easy ways to change your money mindset forever.

1. Save 10 per cent of your income… without fail

Every time you get paid, send at least 10 per cent of your income to a high interest savings account that you simply don’t touch. If you receive a salary, set up an automatic debit from your transaction account to a separate investment account to make sure this always happens. This may not be enough to achieve all your financial goals, but it’s a great start.

2. Become a year-round negotiator

From bank fees to televisions, gym memberships to insurance, you’d be amazed at how many things are negotiable. You’ll be even more amazed how much you can save when you commit to negotiating on every transaction you make.

To do this, you need to be informed about the product or service you’re buying, leave any emotions at the door and always be prepared to walk away. Yes, it takes up a bit of time and confidence, but the savings will be more than worth it.

3. 15 Minute Monthly “Money Love”

We understand that learning about money isn’t everyone’s cup of tea, but you’re doing yourself no favours by staying in the dark about finances. Take the time to think about your financial goals and how you will achieve them, then build a basic budget and make sure you’re living within your means.

If you have amassed big credit card and other bad debts, put a strategy in place to pay them off as quickly as possible. My Money Makeover can help you do this.

Every month set aside just 15 minutes to THINK about your money and give it some love. Not to pay bills or do financial admin, but to set goals, assess how you’re doing financially, or adjust behaviour. In other words, working on your finances rather than in them.

Kochie’s advice on how to ask for a pay rise

4. Take super and insurance seriously

When it comes to money, superannuation and insurance are often put in the too hard basket. They seem complicated and you don’t benefit in your regular day to day life today. However, superannuation and insurance are vital to your long-term financial well-being.

For many people, their superannuation account is their single biggest asset. It will determine your lifestyle for 20 or 30 years of retirement. How much thought have you given to how it’s invested and the fees you’re paying. The Money Makeover will show you how to get informed and take an interest in your superannuation to maximise your nest egg.

Meanwhile, insurance could be the only thing standing between you and financial ruin. Make sure you understand your policies and read the fine print. Are you adequately covered?

5. Set-aside an ‘opportunity’ fund

An emergency fund is money you set aside and don’t touch unless you really, really need to, and we think this is a great idea. But instead of thinking about this as money for an emergency, we prefer to think about it in terms of the opportunity it affords you.

We recently heard a story about an American named Matt Becker who lost his job, but used the financial flexibility that his “opportunity” fund gave him to take a chance and start his dream business… a financial advice firm for new parents.

It’s a good story, and goes to show that improving your money mindset isn’t just about having a bulging bank balance.

It’s also about giving yourself the opportunity and flexibility to make good decisions in your life.

Money tips for flood victims

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Australians caught up in the devastation of Cyclone Debbie may face extreme stress long after the massive mop-up operation as they address major financial decisions around their flood-ravaged homes and businesses.

Livelihood disruptions in the wake of a natural disaster can be eased with some key steps aimed at reducing victims’ financial uncertainty. Personal finance expert Olivia Maragna, co-founder of Aspire Retire Financial Services, offers six tips to help residents recover and move on.

Take time out

Don’t make important financial decisions in the wake of a disaster as these can sometimes be made irrationally. A little bit of time will give you clarity. Take time to think through your situation, absorb what has happened, and seek advice.

Assess your finances

The first step on the road to recovering financially is to formulate a plan to manage your income, expenses and any loans you may have. If you’re in need of cash, determine whether you’re eligible for disaster relief funds from federal, state, or local governments. Ensure you make every effort to keep up with bills and if you are struggling, contact suppliers to explain the situation and consider a payment plan.

Contact your insurer

Assess your losses and contact your insurer to lodge your claim quickly. Don’t panic if you don’t have your policy numbers or documents as your insurers will have these records. Claims are frequently settled in the order in which they are received so be as helpful as you can with any documentation they require. If you do not have a list of all household items, check your photos taken in your home that may help to support your claim. If you require more information, contact the ICA disaster hotline on 1800 734 621.

Consider your work

Ensure you keep your employer informed of your situation if you need some extra time off. If you’ve been injured and can’t work, check your personal insurance.

Replace documents

Assess the loss of important documents such as your driver’s licence, passport, concession cards, bank statements, investment documentation and recent bills. Make a list of such documents as best you can and make the phone calls necessary to obtain copies.

Emergency fund

Once you have recovered from the disaster, take some steps to ensure you have a buffer or emergency fund equal to three to eight months of your living expenses. Keep these funds secure and easily accessible in a high interest account or offset account.

5 ways to change your money mindset forever

Posted on

We reckon old dogs can learn new tricks. Here are five ways to change your money mindset forever.

1. Save 10 per cent of your income… without fail

Every time you get paid, send 10 per cent of your income to a high interest savings account that you simply don’t touch.

If you receive a salary, you can set up an automatic debit to make sure this always happens.

We’re not saying that saving 10 per cent is the magic number or will be enough to achieve all of your financial goals, but it’s a great start.

2. Become a year-round negotiator

From bank fees to televisions, gym memberships to insurance, you’d be amazed at how many things in this life are negotiable.

And you’ll be even more amazed about how much money you can save when you commit to negotiating on every transaction you make (which can be as simple as just asking for a better deal).

To do this, you need to be informed about the product or service you’re buying, leave any emotions at the door and always be prepared to walk away. Yes, it takes up a bit of time, but the savings will be more than worth it.

3. Stop ‘winging it’ when it comes to money

We understand that learning about money isn’t everyone’s cup of tea, but you’re doing yourself no favours by staying in the dark about finances.

So take the time to think about your financial goals and how you’ll achieve them, then build a basic budget and make sure you’re living within your means. And if you’ve amassed bad debts like credit cards, put a strategy in place to pay them off as quickly as possible.

4. Take super and insurance seriously

When it comes to money, super and insurance are probably the two things that most people know the least about.

They’re also two of the most important aspects of your finances.

Thanks to our aging population, the government can’t afford to keep providing generous handouts to retirees as they have in the past. This means super is what you’re going to live on in retirement. Is yours appropriately invested?

Insurance meanwhile is the only thing that stands between you and financial ruin if something bad happens (it’s even more important if you have a family or financial dependents). Are you adequately covered?

5. Set up an ‘opportunity’ fund

An emergency fund is money you set aside and don’t touch unless you really, really need to, and we think this is a great idea.

But instead of thinking about this as money for an emergency, we prefer to think about it in terms of the opportunity it affords you.

We recently read a story about an American named Matt Becker who lost his job, but used the financial flexibility that his opportunity fund gave him to take a chance and start his dream business – a financial advice firm for new parents.

It’s a good story, and goes to show that improving your money mindset isn’t just about having a bulging bank balance. It’s also about giving yourself the opportunity and flexibility to make good decisions in your life.