Financial counselling and how it can help your financial woes.
If you're struggling with financial problems then it can help to have an objective, third party assist you. Financial difficulties may arise when you lose your job, have had your hours reduced, have an illness or have over committed. Don't wait until the problem is catastrophic, seek help early and you will have more options available. There are a few agencies around Australia that provide face-to-face counselling and also counselling by phone.
1)Financial Ombudsman Service (www.fos.org.au) 1300 78 08 08- Fair and independent dispute resolution for consumers and financial service providers
2)Care Inc Financial Counselling Service (www.carefcs.org) - Based in Canberra, offering drop-in programs and limited hours phone service
3)MoneyHelp Financial Counselling (www.moneyhelp.org.au) 1800 149 689 - A Victorian State Government initiative offering tools and advice for those who lost their jobs and struggle with bills and debts.
Some solutions that they may help you to negotiate if you don't know how to negotiate yourself include: budgeting assistance, negotiating a revised repayment schedule, extension of time on bills and debts due on certain dates, reduced interest rates, moratorium on payments for a period of time until you are able to meet your repayments in full.
It's may be too late to seek help when you're being serve a 'default notice' (borrowers have to pay overdue amounts within 30 days) or a 'statement of claim' which is calling in the loan due to failure to pay the default notice previously issued.
Never ignore your financial problems.
1) Contact your creditors straight away and request hardship variation. Most creditors will either assist you with organising a payment plan or a moratorium on their bills.
2) Prepare an income and expenditure statement (budget) list for your creditors. Submit your requests in writing.
3) Keep your creditors in the loop regarding your financial situation and do not ignore their correspondence. Seek help for anything you do not understand anything.
4) If they refuse to negotiate, request them to review their decision. If you are unhappy with their response, contact the financial counselling services listed above for assistance.
5) If they threaten legal action, ensure you see legal or financial assistance/counselling immediately.
6) Your Financial Services Provider may not alter your repayments and they don't have to. However, they 'must look at your current financial postion' and possibly ask you for more information 'to asses how they may be able to assist you.'
7) The Financial Ombudsman Service can award compensation on fees and interest if the Financial Services Provider has not followed procedures correctly.
Starting from January 2010, as a last resort, the Financial Ombudsman Service can now make the credit provider change the repayments for some credit contracts depending on the type and size of the credit facility:
* Most credit card contracts
* Personal loans
* Car loans
* Some home loans from January 2011 (if they are less than $500,000)
The will only pursue this option after they have analysed your financial situation and ability to meet a variation to the credit contract. Seek help as soon as you start experiencing financial difficulties. With a bit of good planning, you may beable to avert bankruptcies and financial disaster by negotiating new arrangements with creditors unti you can resume payment again.
Thursday, April 1, 2010
Superannuation contribution limits
Were you planning to make extra contributions to your super fund by salary sacrificing? Beware that you do not exceed your Contributions Cap.
Working Australian Residents:
There are strict penalties if you exceed your Contributions Cap - you will be personally liable for the new tax - Excess contributions Tax. It is your responsibility to monitor your contributions.
Calculating the amount of your voluntary concessional contributions allowable to prevent the Excess contributions tax:
2009/2010 Concessional contributions cap for individuals under 50 years of age = $25,000 - 9% SG portion
2009/2010, 10/11, 11/12 Concessional contributions cap for individuals aged 50 and over = $50,000 - 9% SG portion
2009/2010 Non-concessional contributions cap is $150,000/annum. In future, the cap will be calculated as 6 times the level of the indexed concessional contributions cap.
Temporary Residents in Australia
If you hold an eligible temporary resident visa (Visa), you must claim your super benefit from your super fun within 6 months after the Visa being cancelled/expiring and you have left Australia. If this is not done within 6 months after the Visa ceases to be in effect and you have left Australia, then the money will be paid to the Commissioner as 'unclaimed money'. This can still be claimed from the ATO on 13 10 20. Your super fund is not obliged to notify orgive an exit statement to you when they transfer your superannuation to the ATO after you depart from Australia.
There are also limited conditions of release available to all temporary resident members (irrespective of whether or not they have left Australia):
* Death
* Terminal medical condition
* Permanent incapacity
* Departing Australia permanently to Temporary Residents who apply in writing for the release of their benefits
* Trustee payments to the ATO under the Superannuation (Unclaimed Money and Lost Members) Act 1999
* Temporary incapacity and/or
* Release Authorities under the Income Tax Assessment Act 1997
Monday, March 22, 2010
Lure of gold and selling your old unwanted jewelleries
I read an interesting article from the SMH (author Lesley Parker) about steps you should take first before selling your unwanted gold jewelleries in order to obtain the best price for yourself.
"1. Make your own estimate of the value of the gold jewellery you're thinking of selling
2. Obtain at least three quotes.
3. Check that the buyer has a second hand dealer's licence and calibrated scales
4. Consider whether you'd get more selling jewellery intact rather than as "scrap" metal
... consumers should expect about 80 per cent of the spot price for gold per gram according to its carat value..."
Step one is the most complicated because it requires you to weigh and value your own jewellery yourself. First, the confusion of gold terminologies need to be cleared up:
Troy ounce = 31.1 grams and is the unit used for measuring gold
Avoirdupois ounce = 28.4 grams is the standard ounce that we typically use
24 carats = pure gold
22 carats = 916 = 91.6% pure gold (22/24=91.6%)
18-carats = 750 = 75% pure gold (18/24=75%)
14-carats = 585 = 58.5% pure gold (14/24=58.5%)
9-carats = 375 = 37.5% pure gold (9/24=37.5%)
Parker writes that using grams will simplify things and you can ask the buyer (second hand dealer) to to put their offer to you as a price per gram.
i) Separate your gold jewelleries into piles of the same purity and weigh those piles separately
ii) The amount of gold you actually have is achieved by multiplying the weight of the piles by the purity. Eg 300g of 9-carat gold jewellery would melt down to 112.5g in pure gold (300g x 0.375 purity).
iii) Now you can roughly estimate the value by multiplying the pure gold weight by the prevailing gold price. Using the example from above: 112.5g x $40/gram = $4,500 for the pure "gold" in your jelleweries.
Although gold prices are usually listed in troy ounces, Parker wrote that you can find the price per gram (instead of troy ounce) in Australian dollars at goldprice.org/gold-price-per-gram.html which would be useful if you're not great at converting grams into troy ounces.
Using the example from above, 112.5g is 3.62 troy ounces (ie 112.5/31.1).
Gold buyers usually do not want the stones and if they do, ask for an additional quote for the stone that is separate from the quote for the gold. If you're in Australia, then you can check the jaa.com.au guide for Jewellers Association of Australia for additional information.
If you're interested in buying gold as an investment then you can buy gold coins or bullions from www.perthmint.com.au or buy gold investments through the ASX.
"1. Make your own estimate of the value of the gold jewellery you're thinking of selling
2. Obtain at least three quotes.
3. Check that the buyer has a second hand dealer's licence and calibrated scales
4. Consider whether you'd get more selling jewellery intact rather than as "scrap" metal
... consumers should expect about 80 per cent of the spot price for gold per gram according to its carat value..."
Step one is the most complicated because it requires you to weigh and value your own jewellery yourself. First, the confusion of gold terminologies need to be cleared up:
Troy ounce = 31.1 grams and is the unit used for measuring gold
Avoirdupois ounce = 28.4 grams is the standard ounce that we typically use
24 carats = pure gold
22 carats = 916 = 91.6% pure gold (22/24=91.6%)
18-carats = 750 = 75% pure gold (18/24=75%)
14-carats = 585 = 58.5% pure gold (14/24=58.5%)
9-carats = 375 = 37.5% pure gold (9/24=37.5%)
Parker writes that using grams will simplify things and you can ask the buyer (second hand dealer) to to put their offer to you as a price per gram.
i) Separate your gold jewelleries into piles of the same purity and weigh those piles separately
ii) The amount of gold you actually have is achieved by multiplying the weight of the piles by the purity. Eg 300g of 9-carat gold jewellery would melt down to 112.5g in pure gold (300g x 0.375 purity).
iii) Now you can roughly estimate the value by multiplying the pure gold weight by the prevailing gold price. Using the example from above: 112.5g x $40/gram = $4,500 for the pure "gold" in your jelleweries.
Although gold prices are usually listed in troy ounces, Parker wrote that you can find the price per gram (instead of troy ounce) in Australian dollars at goldprice.org/gold-price-per-gram.html which would be useful if you're not great at converting grams into troy ounces.
Using the example from above, 112.5g is 3.62 troy ounces (ie 112.5/31.1).
Gold buyers usually do not want the stones and if they do, ask for an additional quote for the stone that is separate from the quote for the gold. If you're in Australia, then you can check the jaa.com.au guide for Jewellers Association of Australia for additional information.
If you're interested in buying gold as an investment then you can buy gold coins or bullions from www.perthmint.com.au or buy gold investments through the ASX.
Sunday, March 21, 2010
Understanding Credit Card Charges
If you buy $2000 worth on your credit card and don't pay that $2000 off by the due date, then you will be charged interest on the entire balance - even if you made a partial repayment of $1999.
If you pay the bill late, then most credit card companies will charge interest back to the purchase date (back dating interest).
If your bill is overdue, then most will cancel your interest free days until the overdue balance is paid completely.
Some credit card companies will charge interest on the entire balance even if you've paid a portion of your bill (even the new transactions that hasn't been billed to the statement yet). So until you pay your credit card statement in it's entirety, you will be charged interest even on the portion that you have partly paid off. And lose the interest free days on all the new transactions until the entire statement balance is paid off. This is entirely unfair but this is how they operate.
Balance transfer deals involves transferring your debt from one credit card provider to a new one who might be offering six months interest free deal. When the special period ends (in this example, it's six months) and there is a transfer balance remaining, the interest will be charged on that balance as if it was a cash advance. Cash advance rates are usually much higher than transaction rates.
If you find that you have overlooked the bill and paid it 1-2 days late (or even up to 1 week late) by accident and you have a good payment history, phone your card provider to explain and request them (very politely of course) to reverse the late fees and interest charges as a courtesy to you. They will usually reverse it for you if you have a good reason or you have a good payment history. It is usually left to the discretion of the staff member that is working which is why it pays to be polite when calling them to reverse any charges and fees.
If that doesn't motivate you to pay off the credit card statement in full, then you shouldn't be using a credit card. Not when it's costing you 10-28% extra in terms of interest charges.
If you pay the bill late, then most credit card companies will charge interest back to the purchase date (back dating interest).
If your bill is overdue, then most will cancel your interest free days until the overdue balance is paid completely.
Some credit card companies will charge interest on the entire balance even if you've paid a portion of your bill (even the new transactions that hasn't been billed to the statement yet). So until you pay your credit card statement in it's entirety, you will be charged interest even on the portion that you have partly paid off. And lose the interest free days on all the new transactions until the entire statement balance is paid off. This is entirely unfair but this is how they operate.
Balance transfer deals involves transferring your debt from one credit card provider to a new one who might be offering six months interest free deal. When the special period ends (in this example, it's six months) and there is a transfer balance remaining, the interest will be charged on that balance as if it was a cash advance. Cash advance rates are usually much higher than transaction rates.
If you find that you have overlooked the bill and paid it 1-2 days late (or even up to 1 week late) by accident and you have a good payment history, phone your card provider to explain and request them (very politely of course) to reverse the late fees and interest charges as a courtesy to you. They will usually reverse it for you if you have a good reason or you have a good payment history. It is usually left to the discretion of the staff member that is working which is why it pays to be polite when calling them to reverse any charges and fees.
If that doesn't motivate you to pay off the credit card statement in full, then you shouldn't be using a credit card. Not when it's costing you 10-28% extra in terms of interest charges.
Monday, January 11, 2010
2010 New Year Resolutions
How hard is it to compile a list of 100 goals??
A few years ago, if I asked any friends whether they had resolutions for the new year or not, they had plenty. Lately, I've noticed that we don't seem to form that many resolutions as previously. Now if we have any resolutions, they are harder and more complex to achieve, and they even stretch over the years rather than being achievable in one year alone.
Perhaps we are consolidating. Paying off mortgages. Building relationships. Maintaining friendships. Working and paying off bills. Some are planning to have kids while others have the panicky look in their eyes whenever the thought of having babies arises. Some are still hunting for their first property or home.
Some have realised that their financial mistakes in their early 20s have led to no savings and a tedious day to day existence of working to pay bills and get by.
It really feels like I've just left school yesterday. As if the decade had not happened. But looking back, a lot has happened and I'm anticipating a lot more. I hope that's the story with everybody.
What are your resolutions? I realised how anal I was when 2010 arrived and I was itching to find a quiet moment alone to form my 2010 resolutions...flipped my notebook open and realised that I had already compiled my 2010 resolutions back in early December 2009! New Years Eve & New Years Day is really one of the best times to form memorable resolutions so if you haven't done so, try it now.
I have a few of my own which I always break up into categories:
FINANCIAL
* Build a larger stock portfolio
* Pay off P#1
* Build a property investment portfolio
* Contribute extra into superannuation for retirement (which is decades away)
* Pay off more of my student loan (aka HECS...something that I've been reluctant to do since the interest on the loan is indexed to inflation)
* Build up trading capital
* Start trading in stocks (again), CFDs, Options and open myself up to international markets as well
* Save up for my own side projects
PERSONAL
* Spend more time with friends & family
* Keep up with correspondence - calls, emails, social stuff
* Write more - creative writing (novels, poetry, articles), journaling, blogging (on finance and craft work)
* Save up for trips to England, Europe, China, Thailand, Cambodia, Vietnam, South America, Egypt and Tasmania
* Focus more on career and entrepreneurial ideas
* State of mind- happiness, relaxation, read more, allocate time for creative pursuits
* Throw more things out, hoard less
* Learn more- accounting, finance, personal finance, IT & web development, entrepreneurialship
* Be more environmentally conscious - buy things with less packaging, use grey water, less plastic, drive less and consume less
HEALTH
* Eat healthier (less junk food and snacks)
* Exercise more
* Increase fitness
As for coming up with 100 goals...that's something to think about!
A few years ago, if I asked any friends whether they had resolutions for the new year or not, they had plenty. Lately, I've noticed that we don't seem to form that many resolutions as previously. Now if we have any resolutions, they are harder and more complex to achieve, and they even stretch over the years rather than being achievable in one year alone.
Perhaps we are consolidating. Paying off mortgages. Building relationships. Maintaining friendships. Working and paying off bills. Some are planning to have kids while others have the panicky look in their eyes whenever the thought of having babies arises. Some are still hunting for their first property or home.
Some have realised that their financial mistakes in their early 20s have led to no savings and a tedious day to day existence of working to pay bills and get by.
It really feels like I've just left school yesterday. As if the decade had not happened. But looking back, a lot has happened and I'm anticipating a lot more. I hope that's the story with everybody.
What are your resolutions? I realised how anal I was when 2010 arrived and I was itching to find a quiet moment alone to form my 2010 resolutions...flipped my notebook open and realised that I had already compiled my 2010 resolutions back in early December 2009! New Years Eve & New Years Day is really one of the best times to form memorable resolutions so if you haven't done so, try it now.
I have a few of my own which I always break up into categories:
FINANCIAL
* Build a larger stock portfolio
* Pay off P#1
* Build a property investment portfolio
* Contribute extra into superannuation for retirement (which is decades away)
* Pay off more of my student loan (aka HECS...something that I've been reluctant to do since the interest on the loan is indexed to inflation)
* Build up trading capital
* Start trading in stocks (again), CFDs, Options and open myself up to international markets as well
* Save up for my own side projects
PERSONAL
* Spend more time with friends & family
* Keep up with correspondence - calls, emails, social stuff
* Write more - creative writing (novels, poetry, articles), journaling, blogging (on finance and craft work)
* Save up for trips to England, Europe, China, Thailand, Cambodia, Vietnam, South America, Egypt and Tasmania
* Focus more on career and entrepreneurial ideas
* State of mind- happiness, relaxation, read more, allocate time for creative pursuits
* Throw more things out, hoard less
* Learn more- accounting, finance, personal finance, IT & web development, entrepreneurialship
* Be more environmentally conscious - buy things with less packaging, use grey water, less plastic, drive less and consume less
HEALTH
* Eat healthier (less junk food and snacks)
* Exercise more
* Increase fitness
As for coming up with 100 goals...that's something to think about!
Monday, November 16, 2009
Poor health can send you broke
Everyone knows someone who has been or is currently sick. If it's just a passing flu or virus, that's not a huge problem. However, if it's something terminal or something that will affect you for the rest of your life, such as cancer or disabilities, then it will drain your finance and could send you broke.
Personally, I've been blessed and fortunate that I have been born with relatively good health. A recent injury whilst snowboarding and over a year worth of stomach pains gave me a taste of what I was missing out on medically and financially.
First health problem of the year:
The snowboarding injury to the shoulder (compacted/compressed shoulder joint) required a visit to the Physiotherapist and several weekly visits thereafter.
Initial consultation $69
Each visit thereafter $57
Total cost of physio $ 426
Total cost out of pocket $228.50
I finally had the opportunity to use my private health insurance (besides the obligatory trip to the dentist for a checkup), so that meant I was out of pocket for $228.50
Bearing in mind that private health insurance fees are now about $1100 per annum and rising.
Second health problem of the year and still ongoing:
Stomach pains and aches. This health problem is a pain in the arse and ongoing. It's random...meaning the pain onsets at random moments...after I eat and not necessarily all the time. It's irregular and can happen whenever which is highly annoying because it's hard to pinpoint whether it's a gastro, allergy or organ problem.
So a trip to the doctor for blood tests - covered by Medicare
A trip for an ultrasound $50
Out of pocket $25
Unfortunately the stomach problems are still ongoing and still need additional tests with specialist doctors to find out what the problem is.
So far, medical bills out of pocket are $1353.50 and that's not counting the cost of travelling, time wasted in medical waiting rooms, and the actual cost itself in lost working days or hours.
Colds, Flu and Viruses
A trip to the doctor is typically covered by Medicare. A box of prescription medicine is typically $30-$38 for a packet. If you don't get paid for sick days that you take off, then the total cost of being sick each day may range from $100-$200 for each day and more. I find that if I'm stuck out and about somewhere, and it starts raining - it's much cheaper to just buy an umbrella for $7 or $30 rather than rushing around in the rain and increasing the probability of getting sick.
Broken Bones and Terminal Illnesses
Now we're talking big bucks. Huge bills. Specialist and hospital bills. Out of pocket costs are typically a few thousand dollars and I've heard of bills up to $35,000 for injuries involving ambulances, hospitals and no private health insurance. Even worse, having no travel insurance and injuring yourself badly overseas. Repatriation costs are several thousands of dollars and you could be left stuck, in that country that you've injured yourself in, with no way home.
Getting sick isn't cheap. Being continuously sick will end up costing you a lot. That's why it's important to eat healthy and exercise regularly. Something that we have to try to do more often.
Personally, I've been blessed and fortunate that I have been born with relatively good health. A recent injury whilst snowboarding and over a year worth of stomach pains gave me a taste of what I was missing out on medically and financially.
First health problem of the year:
The snowboarding injury to the shoulder (compacted/compressed shoulder joint) required a visit to the Physiotherapist and several weekly visits thereafter.
Initial consultation $69
Each visit thereafter $57
Total cost of physio $ 426
Total cost out of pocket $228.50
I finally had the opportunity to use my private health insurance (besides the obligatory trip to the dentist for a checkup), so that meant I was out of pocket for $228.50
Bearing in mind that private health insurance fees are now about $1100 per annum and rising.
Second health problem of the year and still ongoing:
Stomach pains and aches. This health problem is a pain in the arse and ongoing. It's random...meaning the pain onsets at random moments...after I eat and not necessarily all the time. It's irregular and can happen whenever which is highly annoying because it's hard to pinpoint whether it's a gastro, allergy or organ problem.
So a trip to the doctor for blood tests - covered by Medicare
A trip for an ultrasound $50
Out of pocket $25
Unfortunately the stomach problems are still ongoing and still need additional tests with specialist doctors to find out what the problem is.
So far, medical bills out of pocket are $1353.50 and that's not counting the cost of travelling, time wasted in medical waiting rooms, and the actual cost itself in lost working days or hours.
Colds, Flu and Viruses
A trip to the doctor is typically covered by Medicare. A box of prescription medicine is typically $30-$38 for a packet. If you don't get paid for sick days that you take off, then the total cost of being sick each day may range from $100-$200 for each day and more. I find that if I'm stuck out and about somewhere, and it starts raining - it's much cheaper to just buy an umbrella for $7 or $30 rather than rushing around in the rain and increasing the probability of getting sick.
Broken Bones and Terminal Illnesses
Now we're talking big bucks. Huge bills. Specialist and hospital bills. Out of pocket costs are typically a few thousand dollars and I've heard of bills up to $35,000 for injuries involving ambulances, hospitals and no private health insurance. Even worse, having no travel insurance and injuring yourself badly overseas. Repatriation costs are several thousands of dollars and you could be left stuck, in that country that you've injured yourself in, with no way home.
Getting sick isn't cheap. Being continuously sick will end up costing you a lot. That's why it's important to eat healthy and exercise regularly. Something that we have to try to do more often.
Sunday, November 15, 2009
Managing Cash Flow for Yourself, Business or Company
Cashflow is one of the most important concept for individuals and for businesses. If you're asset rich, but liquidity poor, then being unable to pay your bills or invoices could lead to a creditor taking you to court and this may force you declare bankruptcy if you haven't got the money to pay the creditor.
An interesting excerpt from Dun & Bradstreet Australia outlines how you can improve your cash position:
I agree with all of the above, having utilised them in practice. The point about re-arranging your annual payments to pay by small regular, frequent instalments...that one I'm not quite a proponent of. If you can get discounts for paying the entire sum upfront annually, then this may be a more attractive option if your cash flow is reasonably liquid.
If you are struggling in terms of your own personal cash flow, then you need to review your budget and cut back unecessary expenses where possible. Contact creditors straight away to see what options they provide for clients experiencing hardships. Firstly by pre-empting the difficulty ahead, some creditors will be more lenient and offer you different payment terms, some will be informed and thus, not bill you for late fees and debt chasing fees.
For businesses, it's important to delay making early payment on accounts payable. For accounts receivable, it's important to follow up as soon as clients miss the payment date. The older the account, the less collectable it becomes.
An interesting excerpt from Dun & Bradstreet Australia outlines how you can improve your cash position:
* Develop a cash flow projection and ensure you monitor and update it regularly
* Minimise bad debts through an established credit-assessment procedure
* Establish an accounts-payable policyat the outset of every credit
relationship
* Establish a deposit policy for work in progress
* Monitor
your customers' use of credit and adjust their credit limits accordingly
*
Closely manage your invoice process and collections practices
* Re-arrange
annual payments such as insurance so you pay small instalments frequently. This
will help smooth out lumps in your cash flow cycle
* Select an appropriate
source of funding for your requirements and pay the debt before the interest
kicks in
* Use short-term cash surpluses wisely. Don't keep them in accounts
that don't pay interest
I agree with all of the above, having utilised them in practice. The point about re-arranging your annual payments to pay by small regular, frequent instalments...that one I'm not quite a proponent of. If you can get discounts for paying the entire sum upfront annually, then this may be a more attractive option if your cash flow is reasonably liquid.
If you are struggling in terms of your own personal cash flow, then you need to review your budget and cut back unecessary expenses where possible. Contact creditors straight away to see what options they provide for clients experiencing hardships. Firstly by pre-empting the difficulty ahead, some creditors will be more lenient and offer you different payment terms, some will be informed and thus, not bill you for late fees and debt chasing fees.
For businesses, it's important to delay making early payment on accounts payable. For accounts receivable, it's important to follow up as soon as clients miss the payment date. The older the account, the less collectable it becomes.
Resourceful Websites for Business, Money, Finance and Random Things.
Excellent resource links for entrepreneurs and business people:
START UP SUPPORT
Australian Retailers Association (www.retail.org.au)
Business Enterprise Centres (www.beca.org.au)
Business Entry Point (www.business.gov.au)
Department of Innovation (www.innovation.gov.au)
E-business (www.e-businessguide.gov.au)
NSW Small Business (www.smallbiz.nsw.gov.au)
SMExcellence (www.smexcellence.com.au)
NSW Department of State and Regional Development: offering inventors and small business innovators support to plan and commercialise their innovations. Original concepts, new or improved device, product, material, business process or service falls witin the definition of innovation may be eligible for assistance at NSW Innovation Advisory Centres.
Hunter Innovation Advisory Centre at Newcastle
LEGAL
Law Society of NSW (www.lawsociety.com.au)
LEADR (www.leadr.com.au)
Legal Issues Guide for Small Business (http://sblegal.industry.gov.au)
FORMS & LICENCES
Australian Business Register (www.abr.gov.au)
Business Licence Information Service (http://bli.net.au)
GovForms (http://govforms.business.gov.au)
GOVERNMENT
Austrade (www.austrade.gov.au)
Australian Competition and Consumer Commission (www.accc.gov.au)
Australian Copyright Council (www.copyright.org.au)
Australian Government Workplace Ombudsman (www.wo.gov.au)
Australian Securities and Investment Commission (www.asic.gov.au)
Australian Taxation Office (www.ato.gov.au)
Australian Workplace (www.workplace.gov.au)
Department of Employment and Workplace Relations (www.dewr.gov.au)
Department of Immigration and Citizenship (www.immi.gov.au)
Human Rights And Equal Opportunity Commission (www.humanrights.gov.au)
IP Australia (www.ipaustralia.gov.au)
NSW Office of Fair Trading (www.fairtrading.nsw.gov.au)
NSW Office of Industrial Relations (www.industrialrelations.nsw.gov.au) (http://www.industrialrelations.nsw.gov.au/awards/controller.jsp?awardCode=135)
Office of the Privacy Commissioner (www.privacy.gov.au)
WorkCover (www.workcover.nsw.gov.au)
Workplace Authority (www.workplaceauthority.gov.au)
Workplace Ombudsman (www.wo.gov.au)
Importing websites:
(www.syndication.business.gov.au/Business+Entry+Point/Business+Topics/Importing+exporting/)
(www.customs.gov.au)
(www.austrade.gov.au/overseas/layout/)
MENTORING
National Mentoring Association of Australia (www.dsf.org.au/mentor)
Australian Mentoring Institute (www.australianmentoringinstitute.org)
FAVOURITE WEBSITES FOR RANDOM STUFF
Government grants (www.ausindustry.gov.au)
Investing/Buying Gold (www.perthmint.com.au/gold)
A news gathering website (http://wotnews.com.au)
Property Investing (www.somersoft.com/forums/)
Property Management for Apartments (www.strataman.com.au)
Property Finance & Advanced Calculators (www.yourmortgage.com.au)
Property Newsletters (www.masteringwealth.com.au/newsletters/)
Mortgage Site (www.amrinteractive.com.au)
Business News (www.associatedcontent.com)
Business Articles (www.bestmanagementarticles.com)
Business Articles (www.businessday.com.au/business/money/)
Forums and money articles from one of the largest US site (http://moneycentral.msn.com)
Sales Articles (www.top10salesarticles.com/)
Personal Finance Blog (www.moneyandme.com.au)
Small Business Articles (http://smallbusiness.smh.com.au/starting/index.html)
#1 Internet Marketing Forum (www.warriorforum.com)
Affiliate Marketing Forum (www.wickedfire.com/)
START UP SUPPORT
Australian Retailers Association (www.retail.org.au)
Business Enterprise Centres (www.beca.org.au)
Business Entry Point (www.business.gov.au)
Department of Innovation (www.innovation.gov.au)
E-business (www.e-businessguide.gov.au)
NSW Small Business (www.smallbiz.nsw.gov.au)
SMExcellence (www.smexcellence.com.au)
NSW Department of State and Regional Development: offering inventors and small business innovators support to plan and commercialise their innovations. Original concepts, new or improved device, product, material, business process or service falls witin the definition of innovation may be eligible for assistance at NSW Innovation Advisory Centres.
Hunter Innovation Advisory Centre at Newcastle
LEGAL
Law Society of NSW (www.lawsociety.com.au)
LEADR (www.leadr.com.au)
Legal Issues Guide for Small Business (http://sblegal.industry.gov.au)
FORMS & LICENCES
Australian Business Register (www.abr.gov.au)
Business Licence Information Service (http://bli.net.au)
GovForms (http://govforms.business.gov.au)
GOVERNMENT
Austrade (www.austrade.gov.au)
Australian Competition and Consumer Commission (www.accc.gov.au)
Australian Copyright Council (www.copyright.org.au)
Australian Government Workplace Ombudsman (www.wo.gov.au)
Australian Securities and Investment Commission (www.asic.gov.au)
Australian Taxation Office (www.ato.gov.au)
Australian Workplace (www.workplace.gov.au)
Department of Employment and Workplace Relations (www.dewr.gov.au)
Department of Immigration and Citizenship (www.immi.gov.au)
Human Rights And Equal Opportunity Commission (www.humanrights.gov.au)
IP Australia (www.ipaustralia.gov.au)
NSW Office of Fair Trading (www.fairtrading.nsw.gov.au)
NSW Office of Industrial Relations (www.industrialrelations.nsw.gov.au) (http://www.industrialrelations.nsw.gov.au/awards/controller.jsp?awardCode=135)
Office of the Privacy Commissioner (www.privacy.gov.au)
WorkCover (www.workcover.nsw.gov.au)
Workplace Authority (www.workplaceauthority.gov.au)
Workplace Ombudsman (www.wo.gov.au)
Importing websites:
(www.syndication.business.gov.au/Business+Entry+Point/Business+Topics/Importing+exporting/)
(www.customs.gov.au)
(www.austrade.gov.au/overseas/layout/)
MENTORING
National Mentoring Association of Australia (www.dsf.org.au/mentor)
Australian Mentoring Institute (www.australianmentoringinstitute.org)
FAVOURITE WEBSITES FOR RANDOM STUFF
Government grants (www.ausindustry.gov.au)
Investing/Buying Gold (www.perthmint.com.au/gold)
A news gathering website (http://wotnews.com.au)
Property Investing (www.somersoft.com/forums/)
Property Management for Apartments (www.strataman.com.au)
Property Finance & Advanced Calculators (www.yourmortgage.com.au)
Property Newsletters (www.masteringwealth.com.au/newsletters/)
Mortgage Site (www.amrinteractive.com.au)
Business News (www.associatedcontent.com)
Business Articles (www.bestmanagementarticles.com)
Business Articles (www.businessday.com.au/business/money/)
Forums and money articles from one of the largest US site (http://moneycentral.msn.com)
Sales Articles (www.top10salesarticles.com/)
Personal Finance Blog (www.moneyandme.com.au)
Small Business Articles (http://smallbusiness.smh.com.au/starting/index.html)
#1 Internet Marketing Forum (www.warriorforum.com)
Affiliate Marketing Forum (www.wickedfire.com/)
CASH BACK HOME LOANS (get rebates on upfront/annual/trailing mortgage commissions)
Peach Home Loans & YourShare. Average upfront commissions are typically 0.6% and average trail commissions are 0.2%
DESIGN INSPIRATION: WEBSITES
Design Sponge Online (www.designspongeonline.com)
Apartment Therapy (www.apartmenttherapy.com)
Remodelista (www.remodelista.com)
James Merrell (www.jamesmerrell.co.uk)
Design Squish (www.blog.designsquish.com)
Decorno (www.decorno.blogspot.com)
Fine Little Day (http://finelittleday.blogspot.com)
Ikeahacker (http://ikeahacker.blogspot.com)
Loving Living Small (http://lovinglivingsmall.blogspot.com)
The Design Files (http://www.thedesignfiles.net)
Unhappy Hipsters (www.unhappyhipsters.com)
This Is Naive (www.thisisnaive.com)
Monday, October 26, 2009
Picking low hanging fruits first
A fruit tree or a tomato plant will ripen at the bottom first before the fruits at the top starts to ripen later. If you waited till the fruit at the top ripened, the lower ones will be picked by others to be enjoyed now and you've missed out.
This is just like investing. If you wait and wait for the right moment to invest or the right thing to invest in, you'll have missed the low hanging fruit in the wait for the fruits up high. Other investors will have pounced on the opportunity while you dither over your decision.
Sometimes, the waiting game pays off. That is, the fruit ripens, is perfect, clean and beautiful. Sometimes, the waiting game is a loss because that fruit that you were waiting for... the birds and the worms got to it first, or the weather wasn't ideal and the fruit rotted and fell off.
What's the solution?
You pick that low hanging fruit. And then you pick the fruit up the top when it ripens.
That's an analogy for investing.
You invest in those blue chip stocks with your funds, and when you learn and save up additional funds for investing further, you can dabble your extra funds with investments that are pie-in-the-sky type if you desire. Or you can plonk some funds into exploration firms or small capitalised firms. Those deemed to be riskier prospects.
The low hanging fruit, that is, the blue chips such as Coca Cola, Caterpillar, the banks (CBA, WBC, NAB), the mining royalties (BHP, RIO) and the retailers (David Jones, Woolworths, Wesfarmers) are examples of low hanging fruit. They're already ripe for the picking. They will provide you with a meal via their juicy dividends year after year unless they collapse.
The high hanging fruit such as the small capitalised firms and the exploration firms... they may eventually one day, ripen and provide you with something tasty such as dividends and massive capital gains, or on the other hand, there is also the possibility that they could rot before they ripen, becoming as sour as a lemon and cause you to cringe about how you could be so gullible, so naive, so silly and so crazy as to buy into a sucker stock.
Those elusively high hanging fruits are just that...a gamble. Leaving you hoping that with the perfect weather, they will all ripen up successfully. It's akin to you hoping, that with the right economic and trading conditions, those small caps and those explorations stocks, will also deliver something worthwhile.
If you pursue those high hanging fruits, don't forget to cover your bases so that you won't ever starve - pick some of those low hanging fruits first. Then you can make your move, buy some promising stocks that may or may not deliver.
Friday, October 23, 2009
Extreme Frugality Sucks
Being too frugal will make you miserable.
I've been reading hundreds of blogs lately. It's like my new addiction. I've noticed a few recurring themes now when it concerns financial blogs. The blogs with massive subscribers are either a) Informative, interesting and useful or b) Not so informative, but the blogger's story and background is dramatic and harrowing ... such as "This blog is about my journey in paying off my $159,000 debt."
The blogs that I choose to subscribe to would be the informative and interesting one. Is it really beneficial to read about someone who racked up over $100,000 in stupid credit card debt and heavy bouts of consumption binge? Sure, it's gripping and interesting, but you are really wasting your time unless you're in the same situation and trying to pay off the same silly consumption debt.
I have never had any consumption debt. Have never wanted to follow the crowd and buy a gazillion number of shoes and Louis Vuitton handbags. The sheer crowd of females in the city carrying LV bags proudly... there are so many of them that it's almost like an Louis Vuitton Brown Bag Army Brigade. I love good quality bags or shoes and pretty things just like any typical female but I just will not buy an LV Bag that will lump me into that category.
I have one credit card. If I need larger credit, I contact the bank to have the limit increased. It's so pointless to parade around with 5 or 15 credit cards. I have some investment debt. A positive net worth. A bit of student debt left to pay off which I don't choose to pay off with a lump sum payment because it's indexed to inflation and I can earn a better return elsewhere.
I hesitate at taking or reading financial advice from anyone and any blogger who has racked up consumption debt.
Would you consult an acoholic about how to quit drinking when they are still drinking heavily?
In order to progress and develop your skills in finance and investing, you need to take a good look inside yourself. You need to focus more on earning passive income than trying to learn how to be super frugal.
The bloggers with massive consumer debt, they will blog about selling things on ebay, craigslist, how to save money here and there and how to be so frugal that you live your life miserably. If you have debt, then yes, it's probably a good guidance for you.
But if you have savings and a positive net worth, your time is better spent reading websites and blogs where the bloggers have a positive net worth as well. That way you can learn more about how to invest, the type of assets you can invest in, how to calculate returns, the terminology and the financial geek speak etc.
But things like, never eating out, always cooking your own food from scratch, spending all your weekends cutting out coupons to save $3 or $5, growing your own vegetables, driving all over town to find discounts and bargains, signing up for 15 credit cards that have 0% introductory interest just so you can arbitrage and place it into a bank account and earn 3-4% interest and all those time consuming activities.
Is your time more valuable if you used it on productive matters such as starting your own business, improving your professional skills and working on increasing your income via a better paying job or improving your investing skills so that you can grow your passive income?
Extreme frugality is not the road to riches. It's the road to feeling miserable and cantankerous. Spend in moderation and focus on reading materials that will improve your business, professional or investment skills and you will discover what I've discovered... the bliss of earning income passively from investments and multiple income streams.
I've been reading hundreds of blogs lately. It's like my new addiction. I've noticed a few recurring themes now when it concerns financial blogs. The blogs with massive subscribers are either a) Informative, interesting and useful or b) Not so informative, but the blogger's story and background is dramatic and harrowing ... such as "This blog is about my journey in paying off my $159,000 debt."
The blogs that I choose to subscribe to would be the informative and interesting one. Is it really beneficial to read about someone who racked up over $100,000 in stupid credit card debt and heavy bouts of consumption binge? Sure, it's gripping and interesting, but you are really wasting your time unless you're in the same situation and trying to pay off the same silly consumption debt.
I have never had any consumption debt. Have never wanted to follow the crowd and buy a gazillion number of shoes and Louis Vuitton handbags. The sheer crowd of females in the city carrying LV bags proudly... there are so many of them that it's almost like an Louis Vuitton Brown Bag Army Brigade. I love good quality bags or shoes and pretty things just like any typical female but I just will not buy an LV Bag that will lump me into that category.
I have one credit card. If I need larger credit, I contact the bank to have the limit increased. It's so pointless to parade around with 5 or 15 credit cards. I have some investment debt. A positive net worth. A bit of student debt left to pay off which I don't choose to pay off with a lump sum payment because it's indexed to inflation and I can earn a better return elsewhere.
I hesitate at taking or reading financial advice from anyone and any blogger who has racked up consumption debt.
Would you consult an acoholic about how to quit drinking when they are still drinking heavily?
In order to progress and develop your skills in finance and investing, you need to take a good look inside yourself. You need to focus more on earning passive income than trying to learn how to be super frugal.
The bloggers with massive consumer debt, they will blog about selling things on ebay, craigslist, how to save money here and there and how to be so frugal that you live your life miserably. If you have debt, then yes, it's probably a good guidance for you.
But if you have savings and a positive net worth, your time is better spent reading websites and blogs where the bloggers have a positive net worth as well. That way you can learn more about how to invest, the type of assets you can invest in, how to calculate returns, the terminology and the financial geek speak etc.
But things like, never eating out, always cooking your own food from scratch, spending all your weekends cutting out coupons to save $3 or $5, growing your own vegetables, driving all over town to find discounts and bargains, signing up for 15 credit cards that have 0% introductory interest just so you can arbitrage and place it into a bank account and earn 3-4% interest and all those time consuming activities.
Is your time more valuable if you used it on productive matters such as starting your own business, improving your professional skills and working on increasing your income via a better paying job or improving your investing skills so that you can grow your passive income?
Extreme frugality is not the road to riches. It's the road to feeling miserable and cantankerous. Spend in moderation and focus on reading materials that will improve your business, professional or investment skills and you will discover what I've discovered... the bliss of earning income passively from investments and multiple income streams.
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