Tag: money

Weekday discounts that will save you heaps

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When it comes to nabbing the best price on everything, it’s all about timing. You can save hundreds, even thousands, of dollars a year by knowing the best days to shop. We crunched the products, prices and times to compile a cheat sheet on when to find the biggest bargains.

Petrol

Historically, the cheapest day for petrol in Australian capital cities is Tuesday, according to the Australian Competition and Consumer Commission.  Midweek is when people are busiest and less likely to head to the bowser so buying petrol on a Tuesday or Wednesday could save you a few cents per litre.

Petrol stations have their own pricing cycle where the cost per litre rises and falls by the hour. Keep an eye on your local service station to find out how long their pricing cycle is and when they hit their lowest point to time your refills. Generally, it’s best to avoid the bowsers on Thursday and Friday as the end of the working week is the peak for petrol prices in most cities.

Groceries

The cheapest days for supermarket prices are Monday and Thursday. Stores often offer specials on staples such as nappies and laundry powder on Monday. Another round of specials usually happens each Thursday and again on Friday with fresh produce markdowns.

If you don’t know what time a supermarket puts the discount stickers on, just ask. Generally, supermarkets price their produce down at the end of the day if it’s perishable so buying your meat, milk or baked goods in the afternoon or at night instead of the morning can be kinder on your hip pocket.

Domestic flights

Flying on Monday, Friday and Sunday will increase the risk of paying more for your ticket as these are prime days for business travellers on the go, as well as families leaving or returning from weekend trips. Tuesday, Wednesday and Saturday are usually the cheapest days to fly. If you can’t control the day of the week you’re flying, then try to be flexible with the time. The most expensive periods tend to be between 6.30-9.30am, and 4-7pm.

Cars

Car yards are busiest with potential buyers on the weekend so you are more likely to negotiate a better deal during the week. Car salespeople typically receive bonuses at the end of the month so will probably work harder to meet their quotas then with discounted vehicles. December signals the start of the intense year-end sale period, with dealers focused on clearing current model-year stock while January is a carry-over month for discounts.

Tech devices/whitegoods

If you’re in the market for a new computer, TV, fridge or washing machine wait until the weekend rush is over. Quieter weekdays are when you are more likely to have the salesperson’s full attention and willingness to offer you a discount.

When it comes to electronic goods, manufacturers often release discounts on Mondays and, in turn, the retailer passes these on to the consumer at the start of the week. And if you have time to wait, savvy shoppers buy big-ticket electrical items and tech devices just before new model introductions.

Dining out and entertainment

Restaurants: After the weekend rush, Tuesday is usually quieter for most restaurants so they may offer more specials. Tuesdays are also typically the day most restaurants receive food deliveries as many are shut on Monday, so you’ll have the freshest meals too.

Kids meals: Tuesdays are by far the most popular day to find restaurants and some larger cafes where kids eat free. Many eating spots feature free meals for kids every day of the week so hunt them out but Tuesdays are predominantly the best day for family deals.

Movies: After cinemas raised their top tickets to $20 a few years ago, cheap Tuesdays became the obvious way to dodge rising prices. In general, the big cinema chains have clenched-cheek Tuesdays, while the art-house cinemas have cheaper tickets on Mondays and Tuesdays. Other perks of seeing a movie on cheapskate days might include a discount on your movie munchies with the purchase of a ticket. Look for early bird discounts where cinemas offer cheaper tickets before 5pm on weekdays.

 

9 common money mistakes to avoid

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Every so often it’s important to refocus on our financial wellbeing and make sure all the essentials are covered. The day-to-day grind of making ends meet can often be a distraction away from the main game. For us there are 9 key mistakes to avoid.

1. Waiting to buy a house

Yes we can provide a compelling financial reason to rent rather than buy as long as people invest the difference between what they pay in rent and what they would pay in home loan repayments. The problem is most don’t have the discipline to invest the difference. The temptation to spend it gets the better of them. The alternative is to buy a house and make extra loan repayments which increases your equity. In the end it’s investing in property and the extra repayments creates a savings habit.

2. Leaving superannuation too late

Only 20 per cent of Australians retire when they had planned. The other 80 per cent have the decision made for them at a time which is usually inconvenient. It could be retrenchment, ill health, permanent disability or a range of other factors. So it is a high risk strategy to leave extra superannuation contributions until the last minute because, in the end, you just might not be given that opportunity. It’s much better to start early and have the discipline of putting away a small amount on a regular basis so that you choose your retirement lifestyle.

3. Buying rubbish

Whether it’s shares, property, fixed interest or collectibles the key is to buy quality… always quality. So many people are lured in to dodgy investments by the prospect of massive returns. History tells us that dream rarely happens and it’s better to buy quality assets which produce solid dependable returns over the long term. Once the quality foundations have been set in your portfolio then by all means have a flutter on something speculative but only if you can afford to lose the money if things go sour.

 

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4. Not living within your means

Spending can so easily career out of control. Look for tell-tale signs like consistently not being able to pay off the monthly credit card balance or not having any surplus cash to add to savings. If this is the case, then it’s time to go back to the family budget and assess where costs can be cut or where extra income can be earned.

5. Forgetting an emergency fund

At least three months salary tucked away for safekeeping to meet any unexpected costs is a terrific safety net. The money can be kept in a separate savings account or as extra payments off the mortgage which can be drawn down later. It doesn’t matter where the emergency fund is stashed as long as it’s there and isn’t touched.

6. Too much debt

Credit is easy. Containing it is the hard part. If you only have enough cash to service the interest and not pay down overall debt levels, then you have too much. Focus on bringing debt levels under control. If you have debt you should have no savings. Any spare cash should be used to pay off debt rather than sit in a savings account earning tiny interest on which you have to pay tax anyway. Start a debt busting program by cutting costs or earning more income to pay down debt.

7. Lack of goals

Setting goals for your money provides the motivation and discipline to get things achieved. If you’re in a relationship goals mean you’re both on the same page and working toward a common dream. Set out your financial goals, work out the steps to achieve them and have the discipline to stick with it.

8. Ignoring insurance

Protecting what you’ve got is just as important as making money. That doesn’t just mean big assets like your home and car but it also means the breadwinner of the family. Loss of income means savings and spending can come to an abrupt halt and you’re plunged in to financial stress. Life and income protection insurance can ease the pain.

9. Dollar leakage

We’re talking that black hole where money just seems to disappear. You have no idea where it goes. It’s called” dollar leakage” and it’s usually all the little day-to-day items you don’t even think about. But it’s those little expenses which can add up. For a week, make a note of every time you pay money for something… a coffee, bus fare, magazine, lunch, ice cream etc. We bet you’ll be amazed at the end of that week where the biggest leaks can be and how easy it is to plug them.

How to talk money with your ageing parents before it’s too late

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It is a sad story which touches so many Australian families. Caring for elderly parents who are finding it difficult, or who are incapable of looking after themselves financially. Responsibility invariably falls to the children, which can often cause friction within the family.

We were recently approached by a Sunrise viewer in this predicament who was desperate for some guidance. Gwen’s 80 year old widowed father had entered a nursing home. The house had just been sold for $400,000 and she had no idea what to do with the money or how to organise her father’s finances. She is one of three daughters and the problem was starting to cause dissent within the family at a very emotional time. Each child had a view on what should be done, but their suggestions were all very different as they took their own individual counsel from spouses and friends.

We know it can be an uncomfortable situation, but the key to caring for elderly parents is to find out as much about their financial affairs before a crisis occurs. That terrible middle of the night phone call carrying news of a catastrophe can be a nightmare if preparations have not been made. For example; do your parents have legal documents and do you know where they are located? Where are the bank accounts and who do your parents rely on for advice? What are their other investments and are they held jointly or separately?

The first step is to discuss the issue with your parents as early as possible. It can be an uncomfortable situation as no parent wants to face the problems of old age and no parent wants to feel as though their children are putting them out to pasture. Try to relate the argument to other families which have been split because of the lack of preparation for a sudden crisis with a parent. Everyone can recall a story of a friend or relative where the dominant financial partner dies, leaving the surviving spouse with no idea of their financial situation.

Emphasise to your parents that your enquiries are not being made by a gold digging child but by a family concerned about caring for their parents in the best possible way if a disaster occurs. Ask to meet your parent’s bank manager. Make sure your parents organise the meeting and make the introductions. At the same time, sign an authorisation which allows the banker to talk to you about their accounts. This means the bank will be comfortable in keeping you up-to-date with your parent’s accounts and can provide an early warning system if irregularities start to appear.

If you live far away from your parents, find someone who can help locally. Convince your parents to maybe settle in to a retirement village sooner rather than later because the longer they leave it, the harder it will be to settle in. Your parent’s church minister may also be able to recommend a trustworthy helper if your parents are more independent.

Some parents can be reluctant to share financial information with grown children because they are fearful of giving up their independence. But once parents have suffered a stroke or moved into the advanced stages of Alzheimer’s disease, they may not be able to give you legal authority to act on their behalf. It is critical a power of attorney is arranged to enable you, a friend, relative or solicitor to take control of your parent’s finances when needed. It is not a pleasant thought but one which must not be neglected. This is the most important document of all, it’s the one that will let you help your parents if help is needed.

Power of attorney empowers one person or party to act on their behalf, taking into account any wishes conveyed to them. However, an important point is that the capacity of a person must be taken into account at the time they execute the power of attorney. Many people only think of a power of attorney at the first sign of mental deterioration. This is really too late.

Financial safety checklist for elderly parents

When it comes to your parent’s affairs, the problem is you can’t be around all the time. So it’s important to remind your parents of the following:

  • Don’t do business with anyone they don’t know
  • Don’t let unannounced visitors through the door
  • Don’t make snap financial decisions. Think about it and get advice
  • Don’t buy anything over the phone
  • Don’t divulge credit card or any banking details
  • Don’t invest in anything you don’t understand
  • Discuss decisions with the family
  • Keep the wills updated

Is it ever OK to lie to your partner about money?

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Relationships and money. It’s fair to say it’s never easy but the reality is it can be incredibly destructive as well.

At one end of the scale we’d all be guilty of buying ourselves a little treat which we’ve not admitted to our partner out of guilt or not wanting to start an argument. But when it gets to a stage where you’re telling big lies, which amounts to basically defrauding your partner, then the whole fabric and foundation of your relationship is in jeopardy.

Over the years we’ve seen them all as people have contacted us for guidance. Would you believe 15 per cent of middle aged Australians lie to their partner about their salary and a surprising number of people keep a secret stash of money in case of divorce. These are the top money lies which have been revealed to us and we believe have the potential to destroy your relationship.

Lying about your job… or not having one

Employment is generally the primary income source of most relationships. It’s the foundation on which you develop your household budget, plan your dreams around and build your goals as a couple.

The lies can start from exaggerating your income to pretending you’re worth more than you are, to understating your salary and skimming off the excess to a secret account. Either way you’re deceiving your partner and it’s serious.

The saddest lie we’ve seen in this area is when a partner is retrenched or fired and they’re too scared, or embarrassed, to tell their partner. They then lead a fictional life of pretending to go to work and living with that emotional burden. It melts your heart.

In every one of these types of cases we’ve encountered the other partner is generally so understanding and distressed their spouse didn’t trust them to be supportive.

Lying about being financial equals

This is a very dangerous lie. Where one partner takes full control of the household finances, jealously guards that position of power and constantly argues everything is under control, it’s the best thing for the relationship and they would never do anything to hurt them.

But they are lying. They aren’t doing it in the best interest of both of you, only in the best interests of themselves. As a means of power and controlling you.

Don’t fall for it. And don’t get sucked in by an indignant “don’t you trust me”. Frankly, if they give you that line then you know you shouldn’t trust them. When it comes to money in a relationship, it has to be completely transparent and equal.

Lying about having a punt or making a secret investment

Yes that little online betting account you keep to yourself. “But it’s so small it’s not worth talking about,” we hear you say. Well, if it’s not that significant you won’t mind sharing it with your partner!

The problem comes when that little online account has a losing streak and you need to feed it cash by stealth. Losses can build on losses to a point it becomes significant and an embarrassing secret which will cause huge ructions. The same goes for that risky investment you kept hidden and it goes sour. The risk simply isn’t worth it.

Lying about paying your share of the bills on time

In our household, Libby looks after the household expenses and David pays the mortgage and superannuation. A lot of couples split expenses on the understanding that you trust each other all commitments will be paid on time. When they’re not, be honest and work together on a plan to get back on track.

 

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Lying about how you earn money

It might be moonlighting at a second job or freelancing on the side. Either way lying about where the money comes from has two problems no matter what form the lie takes.

Firstly, it leaves your partner unable to correctly estimate how much money there should be, and unable to notice any missing cash. Secondly, it can make a real mess of your taxes and any government benefits which are based on total household income. As for earning money secretly AND illegally… that is a lie which can have dire consequences.

Lying about your level of debt

Alarmingly statistics compiled from Galaxy Research reveal 52 per cent of Australians either lie about their debts or hide their spending from those close to them.

Money you put toward paying off debt is money that can’t be used elsewhere, for you or your partner. Debt lies can range from whether you have any, to how much, to how long you have to pay, to whether you’re making the payments regularly.

The harsh reality is that as a couple you can, in many circumstances, inherit someone else’s debt. If they skip out of the relationship, you could be left holding the responsibility for paying. It’s called Sexually Transmitted Debt. Secret debt can also be a telling insight into how your partner handles money and whether they have the right financial discipline.

Lying about loaning money to friends and family

The sob story is always compelling, and you’ve known them all your life, but lending to friends and family can be fraught with danger. Especially if you keep it secret from your partner and, especially, if it isn’t their friend or family.

The problem with lying about loaning money without your partner’s go-ahead is pretty basic.

Lying about having bank accounts your spouse didn’t or doesn’t know about

A lot of couples have separate bank accounts for a whole range of reasons… and that’s fine. But having a secret bank account isn’t about independence or having a stash to buy gifts for each other. It’s lying and it’s deceptive. Have separate bank accounts if you want but be open with each other about them.

Should you put off having kids until you “can afford them”?

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“We just can’t afford to have a baby”.

It’s an increasingly common, and one of the saddest, comments we’re hearing from friends of our adult children and nieces and nephews. Young Aussie couples excluded from the joys of raising a family purely because of cost.

But it doesn’t have to be that way. Careful planning and a rearrangement of priorities can achieve the best of both worlds.

We were a bit old fashioned, and naive, when we decided to have our four kids. We didn’t really think about the costs. We just did it and adjusted our life to manage. But times have changed. Young Australians now have different priorities, lifestyle expectations and career paths to consider.

One part of us thinks it’s a shame to be so clinical about it, while another part of us admires the focus and analysis.

THE FINANCIAL PAIN

This is the bit which spooks everyone. The sticker shock can be a bit scary;

. Out of pocket expenses for a private health pregnancy and birth are between $2,500 – $8,500.

. Research has calculated raising two children to adulthood will cost $500,000 to $1 million depending on your income, housing and cost of lifestyle.

Yes, it’s a lot of money but the average full time wage is $75,000 (per person and before tax) and the wealth of Australian’s has never been higher. The problem is that our houses and superannuation have gone up in value while wages haven’t risen nearly as much. So we’re asset rich and cash poor.

THE FINANCIAL PLAN

Before you and your partner even tackle the question, get a rough sense of your costs, which may not fall neatly in line with the national average. You don’t need to calculate the next 18 years of expenses, but you can at least focus on the short term.

Baby Center has a great online tool to help you get started, and you can modify it for your own particular situation. Yes it’s American but is a nifty calculator. It factors in prices for one-time buys like a crib as well as recurring expenses like “diapers” (nappies). Use it to get a rough budget estimate. ASIC’s Money Smart website also has a budget calculator with a good cost of children section.

If you have friends who’ve recently started a family, ask them about the costs they’ve incurred, especially any surprises. Remember that while a baby adds some major new expenses, it also cuts spending in other areas, like entertainment and dining out. Also, learn what maternity and paternity benefits your employer offers because that will affect the extent to which your income could take a hit.

THE TALK

Share any financial anxieties about starting a family and ask whether your partner shares them, or has different ones. For many couples, the greatest anxiety comes from not understanding their current habits, so track your spending and understand what you could give up.

Here are a few questions to kickstart the conversation:

. “Is there anything we want to do before we have a child?”

You may be able to reduce some shared anxiety by framing the conversation as when, not if. Do you have any other goals (traveling, going back to study, paying off credit card debt ) that you want to achieve before a child’s arrival? Separately, list three to five things you want to accomplish that could derail your family plans. Then talk through them together to prioritise and use those lists to create a timeline.

But, if having a child is a priority, don’t set up so many roadblocks that you delay it indefinitely.

. “I think I would want to take at least a few months off work when we have a baby — if not a couple of years. What do you think?”

This hits a couple of key issues. Not only the desire to spend more time with a new baby, but also changes to family income and the cost of care. Often, spouses start out with different assumptions. So share your own childhood experience, outline what you would ideally like to do — and then ask the same of your partner.

If one parent stays at home, at least for a while, you’ll need to discuss both the short-term hit to your income and any longer-term effect on career goals. If both parents continue to work, you need to think about both logistics and cost of childcare, which can be huge even after the Government rebate.

. “Do we really need all this baby stuff?”

Once you start looking at costly baby supplies, it’s easy to feel overwhelmed. Plenty of retailers are happy to make you think that you need the latest of everything to be successful parents. But you don’t. Focus only on the necessary — a car seat, clothes, feeding equipment, and crib.

Your baby will never know that your stroller or crib is second-hand or you bought all the toys from Gumtree.

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5 Things Baby Boomers Can Learn From Millennials About Money

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The financial generation gap can at times seem huge.

Us baby boomers think we are the font of all knowledge, particularly when it comes to money issues, while the younger generation just roll their eyes and nod politely at our pearls of wisdom… well, that’s the way it happens in our family.

Yes, experience does count when it comes to managing finances but times are changing rapidly and there are some things we old codgers can learn from our 20-something friends and family.

1. Spend money on experiences rather than on stuff

Unlike us baby boomers, millennials aren’t focussed on “keeping up with the Jones’s” by showing their wealth for prestige. Instead of loading up on material goods, such as a big house or fancy car, millennials are more likely to spend their cash on intangibles like experiences or events.

They generally aren’t as ostentatious as the Kardashians. Most young Australians believe excessive materialism is pretty lame and view the recent robbing of Kim Kardashian as Karma.

Oldies fret about appearances while youngsters travel, have destination weddings, volunteer for an international charity or invest in their own wellbeing at the gym or yoga.

Millennials live very much for today and are happy to live like paupers quite often to achieve their travel or experience goals. Those experiences develop them personally and professionally. They don’t feel shackled to having to work for material comforts.

Their outlook on life can make sense financially. That new car or boat drops 30 per cent in value as soon as it leaves the showroom. And new furniture or appliances generally have no or very little value after you’ve bought them.

We can also provide a very convincing financial argument which says it is better to lease a house, and invest the difference between the rent and a mortgage, than to finance a house to live in.

2. Don’t own… share

Instead of buying stuff, millennials share what they need.

A massive new “collaborative consumption” industry has emerged to cater for this change to a sharing lifestyle. Everything from accommodation (Airbnb) and transport (Uber and GoGet) to garden tools (?) and everything in between.

Thanks to this trend people can, at a cost, rent everything from clothes to bikes through websites and apps. Plus, networking sites like Gumtree make it easy for people to connect with others locally and share goods like garden equipment or power tools.

Take a look in your garage or attic at everything you’ve bought, and rarely used, over the years, and I bet you’re thinking it would have made better sense to rent when needed and give it back.

3. Do your own research… it’s all there

Millennials make better decisions because they’re better informed. They are far more likely to hop on the internet and do research which makes them more engaged in their financial planning and decision making.

That’s not to say us Baby Boomers don’t care or aren’t engaged, but the younger generation access better more timely information on which they can make a better decision. Mind you, there is a point where they have an overload of information which can swamp them and prolong making a decision.

Rather than rely on traditional old fashioned sources of information, Baby Boomers need to switch to online news websites, apps and comparative shopping sites to super charge their information and make better decisions.

4. You don’t have to have deep pockets to get financial advice

Senior Australians often view their skills with online banking or tap and go payments as a badge of tech savviness honour. But they may not realise technology is also changing how financial advice is delivered and investments are accessed.

Now things like robo-advisors make it simple for people with portfolios of all sizes to get professional wealth management and, in some cases, even personalised advice. While it’s definitely not the same as sitting down with a financial advisor for a one-on-one consultation, millennials don’t seem to mind, especially since robo-advisers eliminate many of the high fees associated with professional portfolio management.

They really want to be involved and are willing to use technology so they don’t have those fees. Tech-savvy boomers can take a page from the younger generation and find expert help online as well.

5. Fail fast and cheap… but make a decision

There is no shortage of apps and websites devoted to managing your money and wealth creation. However, unlike millennials, Boomers may be hesitant to use these resources. The main challenge the older generation has is that they’re still looking for an instruction manual.

While boomers may wait for someone to explain how technology is used, millennials are willing to jump in and learn from experience. That’s something more boomers need to do. Don’t cling to 20th century thinking and tools. Flexibility and adaptation are needed.

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How to Spot the Warning Signs of Financial Infidelity

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It’s that feeling in your gut, that intuition that something isn’t quite right.

Things just don’t add up financially. Infidelity in a relationship isn’t necessarily sexual … it can be financial as well and equally devastating. We know of one couple where the wife had that intuition something was awry, did nothing about it and was confronted by the Sheriff evicting her from the family home.

He’d bet everything they had on a dodgy investment which went bad and they lost everything.

Financial infidelity comes in many guises. Hiding a new clothing purchase (“this old thing”), having a small secret TAB account to have the occasional punt or splurging on a good night out with friends is one level of financial infidelity.

But then there’s operating secret credit cards, taking out loans to make risky investments and hiding sources of income.

This is a much more serious and damaging level of financial infidelity. Yes, couples need their own financial space. It allows you to breathe and spoil yourself with little pick-me-ups which are so important to keeping life in perspective.

Keeping you financial sanity with little indulgences keeps you motivated and on top of things.

But there is a limit. When financial infidelity gets to a stage where large amounts of money are involved, either earned or spent, without a partners knowledge then that “cheating” becomes a serious breach of trust.

So what are the warning signs that you have a serious problem with your partner?

• Your money questions are met with evasive or defensive responses which leave you none the wiser. Responses like “no need to worry, don’t you trust me” or “I’ll check on it but it’s under control”. Even more worrying is an angry response out of proportion with the question.

• Your partner refuses to go through your finances. Even if you explain it’s for your peace of mind, you’re not included in managing finances.

• Financial statements start to disappear. You can’t find recent credit card or bank statements or investment files. Even worse if your partner won’t produce them or denies anything to do with them.

• There are unexpected cash withdrawals or transfers from accounts.

• Your partner asks you to sign documents without explanation or a chance to review.

• Strange phone calls or letters and emails demanding payment that you know nothing about.

• You discover a secret account or credit card you never knew existed and you’re partner doesn’t explain it properly.

If a couple of these red flags start to appear together then you must confront the situation immediately. Often the guilty partner will be relieved to unburden their secret which could have been tearing them apart.

To sort the mess out;

• Agree on financial goals and a budget.

• Discuss your money styles. If you have different styles of spending, consider creating separate accounts.

• Forgive and forget. Within reason. But your partner should make some financial sacrifices to get the family budget on track.

4 investing lessons we can all learn from grand final footy

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For sports nuts last week’s Grand Final weekend was footy heaven. When you looked at the teams involved across both AFL and NRL, there were traditional finals regulars the Sydney Swans and Melbourne Storm being challenged by the young gun disruptors the Western Bulldogs and Cronulla Sharks.

Despite the results, all four teams absolutely deserved to be challenging for the ultimate prize. Their success has been built around some key principles and strategies which you soon realise can be easily adopted by all of us in building a winning financial plan.

So we thought we’d move away from everyday finance this week to look at the four investing lessons to learn from successful football coaches.

 

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1. Stars can provide a foundation for consistent success

Just as the Buddy Franklins, Marcus Bontempelli’s, Cameron Smith’s and Paul Gallen’s turn up week after week and deliver consistently high quality performances, investors need to put quality investments at the core of their portfolio and build the rest of their portfolio around them.

That’s not to say you can throw darts at the board after that in the hope of landing the next Isaac Heeney, because speculating is a dangerous game in investing. However, if you do have quality investments at the foundation, the other potentially rising stars can complement them rather than be relied on to carry the portfolio’s performance.

2. Focus on the game in front of you

The old coaches’ cliché is to “take it one week at a time”. And while this sounds like a bit of a cop-out to avoid looking too far ahead, it’s a rock solid approach that carries weight in investing too.

As Doggies coach Luke Beveridge or Sharks coach Shane Flanagan will tell you, there’s not a lot of value in dwelling on the past or looking too far into the future, because to deliver your best performance you need to be completely focussed on the game in front of you.

The same goes for smart investing. Don’t anchor your investment decisions in the past… whether that’s the price you paid for something or the past performance of a company… because that information rarely matters. Instead, put your energy into making the best decision for the future based on the situation you’re in today.

3. Recruit coaches that complement your skill set

Just as every successful coach surrounds themselves with specialist assistant coaches in each facet of the game, every investor should leverage the expertise of people who know parts of the investing world better than them.

This is particularly important for casual investors, who often shy away from seeking professional advice, even when they’re unsure about an investment decision.

It might be paying for property inspections or getting the guidance of a sharp equities adviser, whatever the case, it’s crucial to recognise your strengths and weaknesses and use experts that complement your skill set.

And, if you can’t afford the very best financial coach, look for those who have worked for, and learnt from, the best. Luke Beveridge was an assistant coach to Hawthorn’s legendary Alistair Clarkson, as were current senior coaches Leon Cameron and Brendon Bolton.

4. Developing a style of play to suit your team

Similar to how Western Bulldogs and Melbourne Storm pursue a high tempo game to leverage their youth and the Swans kick a lot to take advantage of their great foot skills, you’ve got to find an investing style that suits you.

This means building a portfolio according to your risk profile, age and goals. Recognise how comfortable you are taking on risk, plan your investments to deliver the financial support you need at different stages of your life, and set firm goals to work toward and guide the way you invest.

Only once you’ve bedded down this profile and worked out an investing style that suits, should you pick up the financial footy.
We reckon we’ve become a better businessperson and investor for our short time being involved in the AFL, and hopefully taking on board a few of these lessons, you can become a better investor from football too.

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Image: The Lone Drainer

 

Love and Money: Why Do We Keep Financial Secrets?

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It’s one of those murky areas of any relationship. Money.

We don’t know of any relationship which is completely transparent about money. It’s just a matter of degree.

Research from ING shows one in five Australians keep financial secrets from their partner.

The report shows women are most likely to keep financial secrets in case the relationship doesn’t work out, while men are more likely to cover up larger purchases their partner could disapprove of.

And how about this for a stat; 40 per cent of Aussies don’t know how much their partner earns. As a nation it sounds like we’re not being entirely honest with each other.

So are these lies harmless, or are they something more sinister? And what’s the right way to handle money in a relationship anyway?

Here’s our take on the etiquette of love and money.

 

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Kochie’s 4 Week Money Makeover

 

Just starting out

The start of a new relationship is an exciting time, but should you be baring your financial soul? Amanda Gordon, psychologist and director of Armchair Psychology, doesn’t think so.

“At the beginning of a relationship money is none of their business; you’re getting to know each other and working out whether you’re suited to each other”, she says.

“I certainly wouldn’t be bringing money up on the first date, just like I’d avoid talking about values and religion and all those sorts of things.”

Our advice is to only share what you’re comfortable with. Split restaurant bills or weekends away down the middle (or do the chivalrous thing gents), and try to avoid rushing into joint financial commitments.

Getting serious

Ok, so you’re madly in love and officially an item. Now is the right time to sit down and have a proper conversation about your finances.

Financial problems are one of the leading causes of relationship stress. So you need to make sure you’re financially compatible and understand each other’s values.

As Amanda says, “you’re trying to work out whether you’re suitable for each other. Just like you would talk about your feelings on kids or living overseas, talking about money is important when things start to get serious… It shouldn’t be a taboo.”

“It may be that each of you are coming in with different expectations of what’s the right way to manage money. And money is very complicated these days, with people moving in together just to see”.

Take the time to understand your partner’s financial goals, needs and wants, and make sure they know yours. And talk through how you want to handle everyday joint financial commitments, from rent to groceries.

The last you want is a spend thrift in a relationship with a big spender.

There are no hard and fast rules on how to organise your money as a couple; the right way is one that works for both of you.

Settling down

By this stage you should already be on the same page about money and, ideally, open about your finances. You don’t have to be joined at the hip, but you’re on the same team and should be managing money together.

Money doesn’t need to be talked about all the time, but that’s different from hiding things. Being deceitful is bad for any relationship.

We’ve always been clear about how we handle the family finances.

She manages the household budget and bills, I do the investments and we make big financial decisions together. And to make sure we are both on the same page, we set aside 15 minutes every month to run the ruler over the finances together.

And while we are 100 per cent committed to our common goals, we both still have personal spending accounts which we can do what we want with. Like buying each other surprise gifts, right Libby?

Watch Kochie’s FREE video on How to Super Charge Your Savings!