My working life (30 years) has been spent in the finance industry. During that time I’ve often had cause to wonder why people seem to accept that “getting by” is the best they should hope for from a financial point of view.

Think of it like this;

If you are feeling consistently physically unwell do you just put up with it, or do you go to the doctor to seek a diagnosis and treatment for your ailment?

If the plumbing is blocked at home, do you put up with not being able to use the toilet or do you call the plumber ASAP to get it fixed?

If the car is broken down, do you just leave it permanently at the side of the road and put up with catching the bus, or do you call the mechanic and get the car fixed?

I could go on with the examples but I’m sure you are getting the message…….therefore why do we tolerate just “getting by” from a financial perspective.

I would argue that good ongoing financial health is at least as important to the quality of life you are able to lead as any of the examples above.  

If at times you feel overwhelmed by managing your day to day finances, think about what benefits you could derive from seeking the coaching and assistance of someone who can demonstrate in simple terms the value of good money management.   

At Empower Money Management I have a working lifetime of finance industry experience and connections I can share with you.

Be prepared to do better than just “get by”.
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Make an appointment today by contacting Leigh Cassidy on 0407 439 827 or leigh@empowermm.com.au
 
 

How often have you been asked this question over the years?

Meeting new people at the school pick-up, or at kids sport etc., etc. I’m sure this is a question we have all been asked plenty of times over the years.

So, what is the answer?

To me there is a significant difference between who you are employed by and who you work for.

Your employer is who you receive your pay packet from each week.

To my mind where you pay packet goes each week determines who you work for.

Let’s take a minute to think about that…….
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According to the ABS (Australian Bureau of Statistics) as at May 2016 the all employees average weekly total earnings was $1160.20. This equates to a gross annual salary of $60330.40.Based on current tax rates this means a net weekly figure of $922.20, or if you prefer, a net monthly figure of $3996.20. 

From the $3996.20 you then need to deduct the ongoing fixed costs you have each month.

Obviously everyone will have a different level of fixed costs depending on individual circumstances; however I would define fixed costs as those commitments you must make each month to sustain your household.

Typically (but not exhaustively) these costs will include housing (either mortgage or rent), utilities, groceries, fuel, schooling costs and insurance costs.

Furthermore, if you have made the choice to borrow money via personal loans, car loans or credit cards you must also add the monthly cost of servicing these commitments to the fixed costs listed above.

………Now before you spend any money on actually doing something for yourself how much of the month’s income of $3996.20 is left?

So let me pose my original question to you once again.
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Who do you really work for? 
 
Don’t you think it’s time to take back control of your own financial affairs!
 
Do you feel like you could use some assistance crafting a monthly budget for yourself that is sustainable?
Would it help you to have someone who understands the broad range of products available in today’s financial marketplace provide you with some direction?
 
Contact Leigh at Empower Money Management on 0407 439 827 or leigh@empowermm.com.au

There have been many studies done over the years that show that anxiety about money is one of the leading causes of stress in contemporary society.

A recent (2014) survey performed by the Australian Psychological Society revealed that for 49% of survey participants financial concerns remain the leading cause of stress.  

Why is this so?

Let’s look at some current facts.

With the Reserve Bank of Australia currently setting the cash rate at 1.50%, most of us with an owner occupied mortgage are likely to currently be paying a variable rate loan somewhere around the 3.50% to 4.50% mark.

The current annual rate of inflation, (Inflation can be loosely described as the increase in the cost of living), is 1.3%. The Reserve Bank of Australia targets an annual rate between 2.0% to 3.0% on average.

With home loan interest rates at such historic lows and the rate of inflation low why are so many of us stressed about money?  
 
I believe the answer lies at least partly in FOMO (Fear Of Missing Out).

As an example, how many of us have fallen victim to having to buy the latest gadgets as soon as they are released (thus paying full retail price for something you didn’t actually need in the first place).

As a further example, how many of us have purchased something that is price advertised as save 50% (again, for something that you didn’t actually need in the first place). This form of advertising is my personal bugbear. You haven’t saved anything at all. You have actually spent 50% of what the item was originally advertised at. Real saving is putting money in the bank – not spending it.

I could go on and on with the examples, however I believe the point is clear.

Of course for everybody there will be times where you do NEED to spend money unexpectedly (e.g. your fridge has broken down, car needs repairs, vet bills etc., etc.), so I’m not for a moment suggesting that these expenses can be avoided.

What I am suggesting is that by controlling the WANT spending the vast majority of us can retake control of the household budget.

Most modern marketing techniques are designed to have you spend money that you don’t need to spend (generally with a FOMO type advertising campaign), and this type of spending is usually what causes the feeling of financial stress and unease referred to at the beginning of my article.

Crafting a monthly budget for your household and through coaching learning the skills to better manage your level of exposure to WANT spending will go a very long way to easing the level of financial anxiety in your household.

To learn more about the benefits that can be obtained from having a monthly budget for your household, and the benefits that can be derived from financial coaching contact Leigh at Empower Money Management on 0407 439 827 or www.empowermm.com.au
   

The relentless call to consume which seems to be the nature of most contemporary advertising and marketing has led me to pose the question at the head of today’s article.

I was watching the TV last night, and the ad of a well-known retailer came on. Word for word the script of the ad was as follows; “Buy now, pay later, have the goods when you want them”.

Whatever way you choose to spin that, it still means you have to pay! Choosing the pay later option generally means that you don’t have the capacity to pay now. I would argue that if you can’t “pay now” you shouldn’t be buying whatever the item is.

Paying later generally means that you are using money provided by a financier to fund your purchase. The financier does not lend you their money for free. Paying later will almost always mean you are paying more for goods or services than if you are using your own money.

Furthermore, if you fall into the trap of utilising buy now, pay later options for multiple purchases (e.g. fitting out and furnishing your new home) you run the risk of having entered into multiple consumer credit contracts that you have no hope of completing when they fall due.  

………….In essence what I am saying here is that you need to be able to distinguish how to live within your means.
Naturally every household has different means (i.e. different levels of monthly income), however we all need to be able to live within the financial means of our own house.

As my headline asks, “Who pays the bills at your house”?  

Of course the answer is you. Therefore it makes common sense that the spending commitments you make are based on the income you earn and have a comfortable ongoing capacity to fulfil.

Using credit to “Keep up with the Joneses” is not a sustainable spending strategy.
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Falling victim to advertising and marketing that attempts to convince you that you “need” things is not a sustainable spending strategy.
 
If you feel like you could use some coaching that can assist you to learn how to better manage the monthly budget, live within your means, & help you resist the “spin” involved in modern marketing contact me today on 0407 439 827.

You can also visit www.empowermm.com.au or my Facebook page.