Aren't you glad that the end of the financial year doesn't come at Christmas time? Instead, June rolls around and we have to be prepared for all the extra work necessary to sort out our finances, find details of those managed funds investments and get receipts in order. But why not be a wise owl and get in ahead of time? You can save yourself a bit of stress by being prepared. Get all your receipts to hand and do that bookwork right now. And to start with, how about trying to save money? If you inspect all those phone plans and electricity or gas and insurance bills you may find that switching to another provider can save you heaps. Of course, you know to always read the fine print so you don't sign up for something unpleasant.
You can often save in the home, too by donning warmer clothes before turning on the heater or working with the weather to dry clothes instead of using that convenient but costly clothes dryer. Looking at your saving accounts is another way you may be able to save money and make more interest. Electronic accounts are often fee-free and give wonderful rates of interest compared to ordinary savings accounts.
If you've been putting off buying that new monitor or printer for your business, remember that it is tax deductible. But there have been recent changes to what you can claim, so check that out too.
Wednesday, August 27, 2008
Money Management for Women
Most women can manage their day-to-day finances admirably. In fact, according to experts, they are highly skilled at budgeting and finding ways to reduce spending and building up their savings accounts. This is really important, since women traditionally don't get as much money as men do. Where their skills don't match up to those of the menfolk is in the areas of investment and retirement savings. Nor do they understand financial terminology as well as men. But they are eager to learn and should make every effort to do so if they are to take full control of their financial future.
Reports show that many women don't feel that money is necessary to be happy in life. And while this sentiment is admirable, it is also likely to cause them to have less money than they need as they get older and cannot work. If women were to work on building up their confidence in investing, they would find that the stress and boredom of handling money in this way would be gone and they would soon be able to see all the benefits.
Women have gradually broken through many male dominated barriers in the past; now they need to hone their skills in the area of money management and investments. But first they must change their attitudes. Money is not the be-all and end-all of life, but we do need a certain amount of it and it is good to know the difference between a managed fund and a term deposit. And it's only wise to work towards protecting your future. Women live longer than men, so they cannot expect to have a man around into their old age to take care of finances for them.
Reports show that many women don't feel that money is necessary to be happy in life. And while this sentiment is admirable, it is also likely to cause them to have less money than they need as they get older and cannot work. If women were to work on building up their confidence in investing, they would find that the stress and boredom of handling money in this way would be gone and they would soon be able to see all the benefits.
Women have gradually broken through many male dominated barriers in the past; now they need to hone their skills in the area of money management and investments. But first they must change their attitudes. Money is not the be-all and end-all of life, but we do need a certain amount of it and it is good to know the difference between a managed fund and a term deposit. And it's only wise to work towards protecting your future. Women live longer than men, so they cannot expect to have a man around into their old age to take care of finances for them.
Be Aware of ID Theft
Identity theft is on the increase across the globe, with over 25% of all fraud reported in Australia involving false identities. In its simplest form, false identities are created using fake documents: much worse is when criminals take the identity of a real person and use his documents - such as credit cards - to run up huge bills in his name. Other crimes may also be perpetrated in the person's name. Very often, the first the innocent victim knows about any of it is when a debt collector comes calling. Or it may be when he is refused a loan or finds a great deal of money gone from his saving account.
The victim sometimes knows people who commit this kind of fraud; they can be family or 'friends'. Some people find the temptation to tap into the finances of another person just too big to resist. Never let your personal details such as credit cards numbers or PINs for bank accounts become known to other people, even those you trust. Don't give your details to anyone over the phone either, even if they sound friendly.
Credit card receipts should be torn into pieces or shredded by machine before disposing of them. Thieves often go through trashcans to get these details. When you receive bank statements, go through them carefully to make sure there are no purchases there that cannot be accounted for. And if you even suspect fraud, then contact your financial institution to cancel all your cards and prevent access to your accounts - and report it to the police.
The victim sometimes knows people who commit this kind of fraud; they can be family or 'friends'. Some people find the temptation to tap into the finances of another person just too big to resist. Never let your personal details such as credit cards numbers or PINs for bank accounts become known to other people, even those you trust. Don't give your details to anyone over the phone either, even if they sound friendly.
Credit card receipts should be torn into pieces or shredded by machine before disposing of them. Thieves often go through trashcans to get these details. When you receive bank statements, go through them carefully to make sure there are no purchases there that cannot be accounted for. And if you even suspect fraud, then contact your financial institution to cancel all your cards and prevent access to your accounts - and report it to the police.
Monday, July 21, 2008
What to Look for in a Savings Account
Each savings account has different features and what suits one person may not suit another. You may want your savings account to act as a place to stash that cash you are saving for a special treat like a holiday. In this case, you will look for high interest rates above other features. Low fees are always attractive, but if the fees are for transactions and you don't plan on doing any, then it won't concern you.
Compound interest is another thing to look for in a saving account, especially if you are simply saving for a rainy day and have no firm plans for a withdrawal date. While it can be tempting to withdraw and spend your interest, if it is left in the account you will be paid interest on your interest.
If you want your savings account to simply be a place where you keep all your money, and you intend to use it to pay all the bills that come in, then you will want other features such as free transactions and a chequebook. You may also want the choice of ATM, Bpay and other more modern ways of moving your money around. You will also need to be able to withdraw your money whenever necessary, so a cash-at-call feature is what to look for. Most accounts have a daily limit, so make sure yours has enough to service your needs.
Compound interest is another thing to look for in a saving account, especially if you are simply saving for a rainy day and have no firm plans for a withdrawal date. While it can be tempting to withdraw and spend your interest, if it is left in the account you will be paid interest on your interest.
If you want your savings account to simply be a place where you keep all your money, and you intend to use it to pay all the bills that come in, then you will want other features such as free transactions and a chequebook. You may also want the choice of ATM, Bpay and other more modern ways of moving your money around. You will also need to be able to withdraw your money whenever necessary, so a cash-at-call feature is what to look for. Most accounts have a daily limit, so make sure yours has enough to service your needs.
Internet Banking Benefits
Internet banking is the way to go for any person who has their own PC and Internet access. How much better to sit at your computer and do your banking without having to queue up inline to wait your turn - having first had to get in the car, drive to the bank, find a parking spot and then get your banking done in time to pick up the kids from school. Life often seems just one daily rush, but with Internet banking and an online savings account you can cut a bit of slack time and relax.
Internet banking lets you keep up to date with payments in the easiest way possible and they can even be used for business savings. You can set your account to pay money automatically every day, week, month or whatever time slot is necessary. For those bills that vary in their payable balance, you can simply hit the Pay Anyone button and add their banking details just once. After that, they are there until you cancel them.
You can also set up your account to automatically transfer certain sums of money to other accounts or transfer funds to a term deposit, either in the same financial institution or in others. You can print out your own statements or receipts and you don't have to wait until the bank opens. You can have access to all your details 24/7. How good it that?
Internet banking lets you keep up to date with payments in the easiest way possible and they can even be used for business savings. You can set your account to pay money automatically every day, week, month or whatever time slot is necessary. For those bills that vary in their payable balance, you can simply hit the Pay Anyone button and add their banking details just once. After that, they are there until you cancel them.
You can also set up your account to automatically transfer certain sums of money to other accounts or transfer funds to a term deposit, either in the same financial institution or in others. You can print out your own statements or receipts and you don't have to wait until the bank opens. You can have access to all your details 24/7. How good it that?
Tuesday, July 15, 2008
An important finance lesson, savings goals
If you are not used to saving, the best way to pick savings goals is to start with something short-term and open a savings account. In other words, choose something that won’t cost you a fortune. This is because you will achieve your goal quickly and so be really encouraged to do it again for something a bit more expensive or long-term.
This small thing you save up for first could be an iPod, a digital camera or a weekend away. What ever you choose, make sure it is something your really do want. If you only half-want it, your enthusiasm will be difficult to maintain. Then you’ll find that before long, you'll be frittering your money away on small things like a coffee or chocolate instead of saving it. If you have a solid long-term goal then you might open a term deposit to make the money saved that little bit harder to access.
It's quite amazing how quickly money can mount up when you put a bit of effort into saving. You might like to save your money in a jar or a shoebox, just so that you can have the satisfaction
of seeing it mount up. But this is only good if the amount is small, otherwise you may get robbed. It’s also not a good idea if you are the impulsive type of person who is likely to blow the lot just because you had a fight with your boyfriend/hubby/ sister/mother. In this case it’s better to get a savings account at a bank.
This small thing you save up for first could be an iPod, a digital camera or a weekend away. What ever you choose, make sure it is something your really do want. If you only half-want it, your enthusiasm will be difficult to maintain. Then you’ll find that before long, you'll be frittering your money away on small things like a coffee or chocolate instead of saving it. If you have a solid long-term goal then you might open a term deposit to make the money saved that little bit harder to access.
It's quite amazing how quickly money can mount up when you put a bit of effort into saving. You might like to save your money in a jar or a shoebox, just so that you can have the satisfaction
of seeing it mount up. But this is only good if the amount is small, otherwise you may get robbed. It’s also not a good idea if you are the impulsive type of person who is likely to blow the lot just because you had a fight with your boyfriend/hubby/ sister/mother. In this case it’s better to get a savings account at a bank.
Learn about Self-Managed Super Fund and see if it is for you
Self managed super funds (SMSF) are one in which up to four people pool their superannuation for investment purposes. This gives them the opportunity to invest in a wider variety or resources than only one. Each person must become a trustee or directors of the fund. SMSFs are strictly regulated by the Superannuation Industry (Supervision) Act and Regulations (SIS) and the Australian Tax Office (ATO).
Some people like to have an SMSF because it gives them the flexibility to choose their own type of investment strategy, because they are in control and they have the flexibility to arrange everything to suit themselves. When properly set up, the fund can invest in a great diversity of products from property to art to online savings accounts.
If your SMSF complies with all the rules and regulations of SIS and ATO, a concessional tax of only 15% applies. The rules? There must be no borrowing to invest, and financial assistance to members or relatives is prohibited. Any assets acquired must not belong to members or relatives. It must meet the sole purpose test and document an investment strategy. The sole purpose test is that the fund exists to provide retirement benefits to its members.
In fact, while there are benefits to owning a SMSF, there are so many rules and regulations to which you must comply that many people use a specialist SMSF administrator - that costs extra, of course if you want to go beyond simple DIY investment such as term deposits and the like.
Some people like to have an SMSF because it gives them the flexibility to choose their own type of investment strategy, because they are in control and they have the flexibility to arrange everything to suit themselves. When properly set up, the fund can invest in a great diversity of products from property to art to online savings accounts.
If your SMSF complies with all the rules and regulations of SIS and ATO, a concessional tax of only 15% applies. The rules? There must be no borrowing to invest, and financial assistance to members or relatives is prohibited. Any assets acquired must not belong to members or relatives. It must meet the sole purpose test and document an investment strategy. The sole purpose test is that the fund exists to provide retirement benefits to its members.
In fact, while there are benefits to owning a SMSF, there are so many rules and regulations to which you must comply that many people use a specialist SMSF administrator - that costs extra, of course if you want to go beyond simple DIY investment such as term deposits and the like.
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