Ink Financial Solutions | Specialist Finance

financial health

Knowledge is power

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Knowledge is power

Some helpful resources to increase your financial literacy.

See the websites below for more information:

Tax, Super and You

An educational resource for individuals, small businesses, students and teachers to help improve understanding of the Australian tax and super systems.

taxsuperandyou.gov.au 

Money Matters

Free group workshops for students to build their financial literacy, covering such areas as budgeting, saving and superannuation.

latrobesu.org.au

ASIC’s MoneySmart

Trusted, impartial financial guidance and tools to help all Australians, especially small businesses.

moneysmart.gov.au

ADF Financial Services Consumer Centre

Independent personal finance and consumer education for ADF members and their families, from initial recruitment to retirement.

adfconsumer.gov.au

Financial Information Service

A free service to inform and educate about financial matters.

humanservices.gov.au/fis

Super Scheme Smart

An initiative to help self-funded retirees and their financial advisers to recognise and stay away from potential tax avoidance schemes.

ato.gov.au/SuperSchemeSmart

Assisting Small Business

Client-focused education programs that support small businesses to engage with the Australian tax and super systems.

ato.gov.au/sbsupport

Broadening Financial Understanding

A program to help Australians make confident and informed decisions regarding their finances.

bankers.asn.au

Super Guru

An independent website that helps people of all ages and life stages understand and maximise their super.

superguru.com.au

Know Risk Know

Independent tools and information help individuals and small businesses to understand and make decisions about all types of insurance and risk.

risk.com.au

Information sourced from Australian Securities and Investments Commission NFLS Annual Highlights Report 2016–17

Mortgage stress

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Mortgage stress

The words on everyone’s lips, a news feed, and all over social media.

Yes, interest rates are rising and will continue to rise over the coming months.

The cost of living has increased, and lettuce is $10… It’s not a new thing. 

Flashback to the 1970s

The 1970s proved challenging for motorists around the globe, with the war in the middle east sparking an oil crisis that led to high fuel prices and fuel rationing in many countries. 

Fuel shortage fears led to smaller cars, including the Holden Commodore, which replaced the large Kingswood sedan.

Then, Treasurer John Howard used his budget to dramatically raise fuel taxes saying Australian fuel was too cheap and his tax prices increased fuel prices to around $0.21 per litre.

So, what’s my point:

  • Be prepared.
  • Understand your current situation.
  • Be proactive in moving your own situation forward, be your own cheer squad.

The general feeling seems to be one of gloom and doom, but it really is a great opportunity or a wake-up call, whichever way you want to look at it. To have a good hard look at what you are spending and how much it is costing you.

Do you know what you spend your pay on every week? That’s called a budget. 

Are you spending more than you earn? That’s being in debt.

How much is your debt costing you? That’s the interest rate the lender is charging you to borrow their money so that you can have it now.

What happens when things start to cost more than you expected including your mortgage? That’s stressful and can lead to mortgage stress.

My thoughts – take some time, without all the noise

Do a budget, look at all your debt but look a little closer and see what price you are paying for that debt.

Then put a plan in place for the items you can control and don’t worry about what you can’t.

Firstly, show yourself a little kindness, and congratulate yourself for not burying your head in the sand.

  • Revise your shopping can save on items.
  • Compare utilities: insurance, power, phone, gas etc.
  • Talk to a broker about debt consolidation or a simple refinance, not only could this help your cash flow but reduce your interest rates. Your broker can help you to put a strategy in place for your whole financial position for now and in the further.
  • Talk to a counsellor – don’t shoulder the burden by yourself.

Do you have a Green Box?

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Do you have a Green Box?

a pile of green boxes on an elevated platform

I recently attended a conference on the Gold Coast and had the pleasure of hearing a gentleman by the name of Mark Lewis speak. Mark talked about “Bernie’s Green Box’ and the tragic circumstance in which this green box helped Mark navigate an exceedingly challenging time.

So, you ask, what is a green box? During Mark’s speech, he referred to the green box as being a box that was green and that his parents had told him held all their information, should anything happen to them. 

Mark’s parents were both tragically killed in an aviation accident in New Zealand. While settling his parents’ estate, Mark was advised it would take quite a time before the matter would settle. Mark was given a list of documents that he needed to collect and return to the solicitor. Mark went home to that green box and within it was all those documents that solicitors said would take months, even years to sort out.

After Mark’s talk, it made me think about what I needed to put in my green box. Here’s my list with a little help from Mark Lewis; oh, and the green box is the place where you put all this information. 

Also important! You need to tell someone where that green box is.

Here are a few ideas of the items you should include: originals or certified copies:

  • Legal and Estate Documentation
  • Banking and Investment
  • ID Documentation
  • Insurance
  • Contacts
  • Other 

Legal

  • Wills and where they are lodged/ held
  • Enduring Power of Attorney
  • Advance Care Directive
  • Letter of wishes
  • Directions for Guardianship
  • Marriage Certificate/ Divorce decree
  • Court orders
  • Company constitutions
  • Contracts agreements

Banking and Investment

  • Details of Bank Accounts
  • Photocopies of credit/ debit/ ATM cards
  • Term Deposits
  • Instructions for short-term access to financial resources
  • Mortgage Title/ Documents
  • Statement of assets and liabilities
  • Details of super funds including binding death nominations
  • Details of share portfolio’s managed funds, bonds etc

ID Documentations

  • Drivers Licence details/ copy
  • Passport details
  • Membership card details
  • Details of medical history and medical info of significance
  • Photos of tattoos and other ID marks
  • Your last resume/ CV

Insurance 

  • House/ contents/ car insurance policies
  • Other general insurance policies
  • Life insurance policies
  • Income protection/ trauma policies
  • Health insurance policies

Contacts

  • Doctors’ & Dentists’ contact details
  • Lawyers’ names and contact details
  • Accountant’s name and contact details
  • Name and contact of trusted Advisers
  • Other names and contact details

Other Items

  • Jewellery valuations and photos
  • Letters and videos to loved ones 
  • Prepaid funeral details
  • Funeral instructions
  • Family structure
  • Notes for Eulogy
  • Keepsakes
  • Instructions for items
  • Subscriptions information (mail/ online)
  • Social media account details and instructions
  • Email account details and instructions
  • Locations of stored data including photos and video

Have a listen to Mark’s story here. I would love to hear your thoughts and comments.

International Women’s Day – what does it mean to me?

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International Women’s Day – what does it mean to me?

Why celebrate? 

After a long two years of lockdowns and restrictions, it is a lovely thought to be able to finally catch up with others in person.  

Having the space to stop, recharge and connect with other women is always refreshing. Listening and learning from their stories, forging new connections, and bonding over the shared female experience, is what International Women’s Day is all about for me.

As 21st-century women, we are often juggling both our professional and home lives, with little time or space for ourselves. We pour our energy into everything and everyone around us, with no thought of any repercussions to our own physical, emotional, or mental health. It is not until we are faced with adversity, be it large or small, that truly makes us reconsider and reprioritise, the areas in our life that deserve our energy.

A predominant trait of many successful women is their ability to pursue a goal despite obstacles or ‘FAILURES’. They don’t see their failures as dead ends or signs to give up, but rather as a First Attempt In Learning, and they continue to show up each day and kept working away at their dream. One step forward, 3 steps back, then one day they just get ‘lucky’ and that dream starts paying some bills, giving them hope and making them feel proud for all the days they showed up and failed.

It is this tenacity, that those women who have gone before we have displayed, that has afforded us the opportunities we have today, and it is our tenacity that drives an even more expansive future for the women that follow. 

So for me, International Women’s Day is about connecting, reflecting, being grateful, and enjoying a beautiful space and a meal while being inspired to keep showing up every day! 

PS – I wrote this BLOG the week before IWD and I did not get to make it to my chosen event, in fact, many events were cancelled or postponed due to flooding. My contribution this year was to source and create our beautiful flowers. I am still flooded in, but I have the pleasure of enjoying all these beautiful creations. I am grateful that I am safe and dry with my family.

2022 and the Interest Rates

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2022 and the Interest Rates

What are the economists really saying? 

There has been a lot of talk and countless opinions in the media around interest rate movements for 2022.

At times ‘the economists seem to be speaking a foreign language when all we really want to know is “What does this mean for me?”. Unfortunately, nobody seems to have a crystal ball, so for the past few weeks, I’ve listened to addresses from Westpac senior economists and the head economist from the Bank of QLD.  My key takeaways are:

1. Interest rates are going to rise; and
2. Borrowing money will become tighter.

Ok. This seems logical.

My first thoughts as someone who is not an economist kicked off with, “I need to check the current rates on my home loan!”  This was soon followed by a visit to my mortgage calculator so I could consider the impact of a potential rate rise of 1.5% to 2% over the next two years.

With predicted interest rate increases, it is more important than ever to be aware of your current options and those moving forward.

Here are some questions I considered, and then I looked at the pros and cons for my specific circumstances:

  1. Should I fix a portion of my home loan? 
  2. Should I leave it variable and pay off more on my loan?
  3. Would a mix of fixed and variable be a better choice? 

Once any concerns about my home loan were squared, it was time to look at any other loans and debts I might have. Rinse and repeat. I’ll confirm my current interest rates for each, and then see what I can do to improve my situation. 

 Some options to consider are:

  • Debt consolidation; or 
  • Make extra payments 
  • Pay your smallest loans first, this can be a quick win and then that extra money can be moved to your next loan.

That takes care of anything we might currently owe. Now it’s time to think about any future lending we might want. For example, is 2022 the year I set up a home, car or business loan?

As mentioned, borrowing is likely to become harder as interest rates increase. Lenders will want to see how you conduct your financial matters, which means it is time to review your credit rating.  

Your credit rating is one of the tools a lender will use to decide whether you are a safety risk. If you haven’t looked up your credit rating before, there are a few options online such as Equifax.

Once you have your report, check for any defaults and late payments. Did you know late payments show up on your credit file and can be seen for two years, even if your account is closed?

Don’t forget to check your savings habits. Can you show a regular savings plan? Consistency is the key! Putting something aside each week is another tick for many lenders.

No matter what the economists are predicting, it is important that you are in the driver’s seat of your financial position. 

Take responsibility for your money. Pay on time – set up BPay. 

Have a budget and stick to it. A budget is a road map to tell your money where to go. Understanding where your finances are currently at and taking a little action often, will assist in your overall financial health and well-being.

Festive financial hangover

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Festive financial hangover

Are bills starting to land in your inbox from your Christmas spending?

Don’t panic. Now is the time to take stock of your finances and put actions in place to:

  1. Pay off your Christmas splurge hangover, and,
  2. Set realistic 2022 financial resolutions to break the debt cycle and get ahead.

The festive season is a time when budgets can go out the window. The next minute, your savings are depleted, your credit limits are maxed and your debt is sky-high.

Here are our top tips for paying off that seasonal spending splurge:

  • Gather all your statements and bills – bank statements, loan statements, credit cards, AfterPay bills etc. Once you have them all, make a list of all your outstanding amounts.
  • Become friends with your debt. You can’t hide from these bills, so, for each bill make a note of the outstanding amount, due date and interest rates.
  • New debt = time for new budgets. Create a 2022 budget. Calculate your income and expenses. Remember to also include the likes of annual fees on credit cards and bank account fees etc. All these ‘incidental’ amounts make a difference to your budget – and potential saving options.
  • Map your financial picture: what you own, what you owe, how much you earn and what you spend.
  • Now that you have a solid budget, look at potential ways of reducing debt sooner – can you consolidate your debts into one lower-rate loan? Which debt has the highest interest rate? Consider making extra payments on this debt to pay it off sooner.
  • Set up BPAY through your Internet banking to ensure debts are paid before the due dates to avoid unnecessary late fees.
  • Be patient – paying off debt can take some time. Constantly chipping away at it pays dividends in the long run.
  • Avoid taking on any more debt (if possible) until your existing debt is reduced or manageable.

Now that you have a budget and plan in place for paying off your debt, here are some 2022 finance resolutions for you to work towards to help save money. Write down your 2022 financial goals – saving for a car, home loan, business improvements or starting a new business?

Next, how can you achieve these goals?

  • Reduce debt (which if you have taken our advice above, you already are working towards this – yay, go you good thing!)
  • Build your passive income. Side hustle or second employment perhaps?
  • Set up a rainy day and/or emergency saving account and contribute each pay cycle.
  • Insurances. We all have them, but are we getting our money’s worth? Shop around, compare and if there is a better deal elsewhere, change providers.
  • Have you checked in on your superannuation lately? Do you know how it’s performing, or is it underperforming? 2022 could be your year to rekindle the spark with your super. 
  • Join some like-minded Facebook pages such as – the Australian Debt Free Community.
  • Have you got a will? If not, get one. If you do have a will, check to make sure it is updated for your current life situations – you might have upgraded your home, and have accrued more super since you last looked at your will. It’s important your intentions and financial credentials are sorted in your will. 

The above is a snapshot of some of the ways you can work towards financial freedom in 2022.

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