Tag: Saving Money

10 experiences for $10

Written by on 14 May 2026. Posted in Budgeting. No Comments on 10 experiences for $10

1. Get near some water

If you live in Australia, you probably live within 50km of the coastline.ⁱ And if you don’t, there’s a good chance you live near another type of water source – a river, dam, lake or even the local pool.
Research shows that being in blue space (near a body of water) is great for your overall wellbeing. The smells and sounds can be a calming influence on your mind, while the body and immune system will benefit from being amongst nature.ⁱⁱ

2. Save by shopping in the local markets

You may be surprised about the number of markets held throughout the week that cater to different interests and needs. And you might pick up some bargains. For example, perhaps you’d like to check out the local farmer’s produce, pick up some art, or clothing from a designer who’s just starting out.

The easiest way to find the local markets in your area (or an area you’d like to visit) is to do an online search, then pop those dates in your diary so you know when they’re coming up. Most markets are held close to public transport and usually have reasonably priced food.

3. Go to the movies

Many cinemas have one day in the week that’s cheaper than the rest (usually a Tuesday, costing between $10-12). If you have a concession card, or are a member of a health fund or association, you may get even better deals.

Visit the website of your local cinema to find the best options, and since the snacks at cinemas can cost an arm and a leg, bring some from home.

4. Get walking

You may be across the range of walks available in national and state parks, but there’s likely to be some in and around the area you live too. Sydney and Melbourne have free walking tours, and many local councils offer self-guided walks (meaning you can download and follow directions to see and learn about different sites in your area).

Simply search for self-guided walks in your local area. And if you’re interested in joining a group, get involved in the free walking groups run by the heart foundation.

5. Discover your local community events

If you haven’t already, visit your local council’s website. They often list a raft of family friendly and interesting events that are happening in your area – usually all summarised in a calendar, to download and have at hand. And if your council’s events aren’t to your liking, you can also search for events happening in surrounding council areas or an area you’d like to visit.

6. Check out the local library

While we’re on the topic of things the local council offers, it can be a good idea to become a member of your local library (if you’re not already). And if you’re rolling your eyes at this thought, but it’s been a while since you’ve visited one, here’s why they’re good:

Most have regular events and movie nights, often with some great speakers
There’s usually free Wi-Fi, so you can search the net to your heart’s content without worrying about how much data you’re using
There’s access to the local and international paper and magazines to read at your leisure
If you have young children or grandchildren, there are usually free activities held there one or two days a week, as well as child friendly play areas
And that’s not to mention all the books.

To find out more about what events your local library has, look them up online, or just pop in and ask.

7. Visit a museum or art gallery

Research the galleries and museums in your local area. Sometimes, unless there’s a special exhibition, entry can be free, so all you’ll need to pay is the cost to get there. If you’re a member of a health fund or association, you could get other discounts too.

But, if you don’t live near a gallery or museum, don’t fret. Many of world’s best galleries have virtual online tours

For example, you could visit Paris’ famous Louvre museum. There are lots of other options too, simply search online for virtual gallery tour and you’ll see loads of different virtual tours, some with access to guided talks, and some that are interactive which can be a fun activity to do with kids.

8. Get into some online learning

While we’re on the topic of going online there are lots of other things you can do too. Like:

Signing up to free online courses like highbrow (gohighbrow.com)
Getting inspired by interesting people in the ted talks series (ted.com)
Or searching for free online study in a topic that interests you.

9. Have a picnic

For the days you just want to get outside in the nice weather, it can be easy to forget the humble picnic. Pack some food, coffee, your book and go to the local park to sit under a tree. You may be surprised at just how relaxing it is.

10. Go to a meditation class

It’s not for everyone, but if you’re interested in the health benefits that come with meditationⁱⁱⁱ, you might want to try a free class. Just search online for free meditation classes in your area – some require a donation to come along, but only what you’re willing to give.

Have some bigger goals you want to plan for?

It can really help to create a financial roadmap of where you want to go. Why not call us to arrange an appointment on 02 9328 0876.

i Australian population review 2017. www.worldpopulationreview.com/countries/australia-population
ii Benefits of water. Lifehack blog. www.lifehack.org/424336/ science-explains-how-staying-near-water-can-change-our-brains
iii Benefits of meditation. Psychology today blog, 2013. www.psychologytoday.com/blog/feeling-it/201309/20-scientific-reasons-start-meditating-today

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

Reduce your bills with these household items

Written by on 14 May 2026. Posted in Budgeting. No Comments on Reduce your bills with these household items

1. Energy-efficient products

Energy-efficient appliances-fridges, washing machines, microwaves and air conditioners, can literally save you hundreds of dollars each year in running costs, with such appliances accounting for up to 33% of people’s home energy use, Australian Government figures show.ⁱ

The energy rating label is mandatory for a range of equipment so you can easily assess the energy consumption on the appliances you’re looking at.

Likewise, energy-efficient light bulbs often use about 25% to 80% less energy than traditional incandescent light bulbs and generally last three to 25 times longer.ⁱⁱ

2. Water-efficient appliances

The Australian Government estimates by 2021 Australians could save more than $1 billion on their water and energy billsⁱⁱⁱ by using more water-efficient appliances and fixtures, specifically water-efficient

In addition, rain water tanks, which can be just as useful in urban areas as they are in rural zones, can generate cost savings. Tanks range from around $700 to $2000^iv and rebates may apply.

3. Solar power systems

Solar power systems, which generate free electricity, are becoming increasingly popular, with about 1.63 million roof top systems installed across the country as
at 1 January 2017.^v

While there are upfront costs involved, solar power systems are becoming more affordable. Plus, they require little maintenance and generally last 20 years or more. Rebates here may also apply.

Marcus Dorreen, Director of Retail at energy services company Evergen (co-owned by CSIRO), says pre and post-retirees are showing increasing interest in solar batteries, with 50% of inquiries coming from people over age 55, with owners of solar battery systems reporting electricity-cost savings of up to 80%.

4. Programmable thermostats

On average, 40% of energy used in homes across Australia is for heating and cooling.^vi Using thermostats and timers to make sure you’re only heating a room as much as you need (and as required) can save you considerable money, depending on your usage.

5. Vegetable and herb gardens

Data from The Australia Institute shows 52% of all Australian households are growing some of their own food, with a further 13% intending to do so.^vii

Of the top five reasons to grow food at home, saving money was the second most popular response at 62%. Statistics indicate however that it’s not until people are saving more than $250 a year (which only 16% of people are), that real cost savings are achieved.

6. Beverage supplies

If you’re in the habit of buying a $4 bottle of water, coffee or smoothie every day, then your take-away drink of choice is costing you over $1,400 over a 12-month period.

Investing in a reusable drinking bottle, blender or espresso machine could save you hundreds of dollars per year.

7. Extended warranties

Extended warranties cost you a little more upfront but if you have a home appliance or device that breaks, particularly an expensive one like a fridge or laptop, you’ll be comforted to know you won’t be slogged with a high repair bill. Plus, if the equipment can’t be fixed, the company will usually replace it.

Saving money and the environment

There are big and small investments you can make around the home today that will pay for themselves and help save hundreds, or even thousands of dollars, over the months and years ahead.

An added benefit is that many of these investments can lessen our impact on the environment at the same time!

Looking for more guidance on budgeting?

We can review your current situation and help you get to where you want to be. Call us to arrange an appointment with one of our advisors on 02 9328 0876.

i http://www.yourhome.gov.au/energy/appliances
ii http://energy.gov/energysaver/how-energy-efficient-light-bulbs-compare-traditional-incandescents
iii http://yourenergysavings.gov.au/water/water-home-garden/water-efficient-appliances-fixtures
iv https://www.choice.com.au/home-improvement/water/saving-water/buying-guides/rainwater-tanks
v http://yourenergysavings.gov.au/energy/solar-wind-hydro-power/solar-power
vi http://yourenergysavings.gov.au/energy/heating-cooling/understand-heating-cooling
vii http://www.tai.org.au/content/grow-your-own>

Wealth building tips x 4

Written by on 14 May 2026. Posted in Wealth Creation. No Comments on Wealth building tips x 4

We all have to start somewhere right? Some people are trying to build wealth from ground zero, while others may have been gifted with a head start from the likes of an inheritance. Either way, the following four tips apply to everybody, regardless of where you currently are in your financial journey.

1. Spend less than you earn

You will hear plenty of professionals, institutions and the press talking about ways to boost your investment returns. At the same time, there are always apparent experts warning you to stay away from the stock market, or suggesting that property is immune from risk. Ultimately, boosting your return and the art of timing the market are neither important – at least, when you’re starting out. Instead, you should focus on your money habits and spending less than you earn – no other factors will have a greater impact. Sydney Financial Planning has written an entire blog on ways to spend less than you earn.

2. Get some structure. How is your money being invested?

‘Asset allocation’ is financial lingo for how your money is divided up between cash, fixed interest, shares and property. Years of research, wisdom and countless professionals suggest that 90% of the investment return an investor will receive is dependent on their asset allocation i.e. how much of your money is in shares, property or cash and fixed interest. Past performance suggests that shares and property have a higher rate of return than cash, term deposits and fixed interest. Obviously though, shares and property carry a higher risk. If time is on your side (at least 7 – 10 years) it might be worth restructuring your asset allocation – an investor who holds a higher allocation to shares and property should outperform an investor that has less allocation to shares and property.

3. Stick to your plan – Time in the market as opposed to timing the market

There will be times when you will want to steer away from the plan. For example, when the market is going well, people generally want to be more aggressive and more subdued when the market is down. Many investors give into temptations which are sometimes based on emotions as opposed to sound strategy and planning. The danger of acting on emotions is that often it leads to buying high and selling low, which if repeated will lead to failure. To avoid this, block out the media noise and stick to your plan. Don’t let the news of the day change your mind!

4. The 8th Wonder of the World – Compound Interest

Let’s assume you would like to be save a million dollars by age 65. Using a flat rate of 6% in the figures below, these are the monthly contributions you would need to make based on the age you start saving:
–         Age 25: $499.64 per month
–         Age 35: $990.55 per month
–         Age 45: $2,153.54 per month
– Age 55: $6,071.69 per month

The message is simple. The earlier you start, the easier it is to build wealth. Even small amounts that are regularly invested can transform into large sums over time. Be warned though; compound interest can also work against you when you have debt. It is amazing to see that over a 30 year mortgage term, you generally pay (depending on interest rates) up to 3 times the amount originally borrowed. By making extra repayments (however small), you can save significant amount of penny’s over time.

You love this concept, but have a few more questions?

We are always here to help guide you on your financial journey. Contact us for advice on how to get started or have your current wealth situation reviewed, call us on 02 9328 0876.

General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.

Earn more, spend less

Written by on 14 May 2026. Posted in Income Strategies. No Comments on Earn more, spend less

Are you living from pay to pay? Sick of borrowing money from family? Do you own a credit card? Perhaps you’re drowning in debt? Maybe you just want some extra cash for weekend splurging? If you fit-the-bill for any (or all) of these categories, keep reading…

It’s time to get a grip on your financial affairs and rethink your values, particularly those related to money. Stop and ask yourself ‘what is truly important in your life?’ It’s so easy to get caught up in our lifestyles that we fall out of touch with our values system and subsequently we end up spending money on unnecessary things.

Below are five techniques to help you attain financial freedom and rekindle your values.

1. Clear out your casa.

Assign a weekend to go through your garage, cupboards and wardrobe to find things you can sell online. Create a profile on sites like Gumtree or eBay and list all of your available products. Not only will you earn more money, this exercise will free up room around your home and teach you to be minimalistic.

2. “A penny saved is a penny earned”.

Review your bank statements to sift out all of the random one-off expenses and ongoing, but underutilised direct debits. If you have a gym membership you never use, cancel it – outside is free! If you own a subscription to a magazine or smart phone apps that aren’t providing any value, get rid of them. If you’re spending a small fortune at restaurants and bars, make an effort to spend more time at home and away from temptation. You have to be brutal and disciplined when it comes to cutbacks.

3. Change your psych.

Instead of forgoing and giving things up – “savour” them instead. Giving up something to save money can make you feel deprived. That is, unless you shift your way of thinking to start “savouring” instead of “giving up.” Don’t feel you have to change your lifestyle; merely change the frequency of your indulgences. Go to the movies weekly? Try once a month instead. It’s psychologically much easier to tell yourself you’re not giving anything up, you’re just going to savour it more.

4. Overtime.

Ask your boss if you can put in a few extra hours at work each week. If this isn’t possible, look for an additional part-time job that will bring you in extra money or sell your products and services online.

5. Compare the Market.

Make sure you’re paying as little as possible for your credit cards loans, utilities, insurance, and phone and internet connections. Use price comparison services to find out if you’re paying over the odds. If you’ve been with the same service providers for many years, there’ll be a good chance switching could save you money or you might be rewarded with a loyalty discount.

Don’t know where to start?

For more help and to take a fresh look at the way you manage your money, speak to your financial adviser at SFP. Or if you don’t have an adviser yet, contact us on 02 9328 0876.

Be savvy with your spending this Christmas

Written by on 14 May 2026. Posted in Budgeting. No Comments on Be savvy with your spending this Christmas

Take control of your spending so you can enjoy quality time with friends and family.

Here are some easy ways to spread Christmas cheer without burning a hole in your pocket.

Create a budget for your seasonal shopping. Segment your spending into smaller categories such as presents, food, decorations, travel and donations. Important household expenses should be a key priority. You don’t want to miss a payment on your mortgage, insurance, or car. These should be taken care of first before you splash your cash.
Make a list and check it twice. Write a list of the people you need to buy for and what you intend to buy them. This will give you a good indication of what you can and can’t afford. Don’t forget those that look after you during the year such as your local barista, dry cleaner, gardener etc. A little can go a long way.
Spare a thought for those less fortunate by volunteering time if monetary gifts aren’t an option or a donation isn’t enough.
Get in early. Don’t get caught out making panic purchases at the eleventh hour because you’ve put off buying gifts and supplies. Spread your spending over the month(s) by shopping early, and make sure you tick items off your list as you go.
Try to avoid using your credit card and resist the temptation of spending beyond your means. Credit card interest rates can add 20% on top of the purchase price if you don’t meet the due date on your credit card statement.
Shop with cash and only go into a store if you have your list with you. This will help keep your budget in check and eliminate unnecessary spending.
We all have our favourite shops. Make sure you follow them on social media and subscribe to their email alerts so you can be the first to know when they have a sale or special offer.
If you can send a gift digitally such as a card, e-book or gift voucher, then do it. This will keep your postage costs down, especially if you have friends and family overseas.
If you’re Christmas shopping online, be frugal. Before you start, google your way to a discount or coupon codes that you can use at the checkout.
Want versus need. Sure, we all love a bit of splurging and spoiling, but if you find yourself second-guessing a purchase at the checkout, chances are you already know it belongs back on the shelf. This is also a great question to ask yourself when buying for kids – don’t go over the top on expensive gifts they have a short life span, buy them something constructive and long lasting.
Don’t be roped in with store card discount offers or special options to pay over a longer period of time. Whilst these offers may seem like a deal, they could end up costing you over time. Remember: If it sounds too good to be true, it probably is!
Great presents don’t have to be pricey. If you’re an exceptional cook or home brewer, whip up a batch of tasty treats.
Start a new tradition with a family Secret Santa! This way everyone gets a gift and nobody breaks the bank. A great idea for the adults in the family.
Minimise meal costs by asking everyone to bring a plate of food and a bottle of wine.
Ditch the expensive wrapping paper and gift bag. Replace them with handmade gift decorations – get the kids on the job.
Recycle your gifts. If the red wine your neighbour bought you doesn’t tickle your fancy, re-gift it to someone who would appreciate it. Don’t let these gifts go to waste.
If you’ve accumulated frequent flyer or rewards points over the year, now is a great time to redeem them for trips, accommodation and gifts.

The Christmas-New Year period should be relaxing and enjoyable rather than financially stressful. The easiest way to alleviate any financial pressure is to plan in advance and work within a budget.

Make your Christmas fun – not a financial burden?

It can really help to create a financial roadmap with the help of a professional. Why not call us to arrange an appointment on 02 9328 0876.

The opportunity called being ‘Young and Free’

Written by Sydney Financial Planning on 30 April 2021. Posted in Money Management. No Comments on The opportunity called being ‘Young and Free’

Because I think it’s really easy NOT to manage your money differently to people around you – to simply do what everyone else is doing. Ok, this may be completely fine if you’re only surrounded by successful people with happy life and balance. If this is the case, no need to read further.

If you’re still reading though, you need to realise one thing – most people around you can’t help you – they’ve done more money mistakes in their lives they would ever admit to…

They’ll tell you things like – ‘You’re young, enjoy life, you have plenty of time…’

What they don’t say is – ‘You’ll end up like us – having to slave for forty odd years working in the jobs you hate (but you’ll turn up to anyway because you have to pay the bills somehow), all just because you leave important money decisions for later’.

I wonder how many of them would say – ‘Don’t copy what we did. Learn how to prioritise with your money. Learn how to save and invest when you get your first job. It’s when you have much less commitments and much more flexibility. Don’t waste your early years and use your time potential to your advantage.’

If you form your good money habits and start early, your life can be full of options later. Options like working doing what you love (most likely owning your own business), living closer to your work and being home early every night so you can read your kids a book before they go to bed. Isn’t that what life is all about – spending memorable moments with your loved ones?

In order to get there, you need to stop living for today only. Although it sounds great and hippy, what it’s going to create for you is money slavery.

Instead, start looking at your life in ten-year blocks. This means looking at a consequence of every decision you make with your money – what will it be in ten years’ time?

For example – How much do you spend on coffees, lunches, dinners, drinks, parties, clothes every week? Let’s make assumptions, but be fairly conservative, shall we? One coffee a day ($4), three lunches a week, including weekends ($60), trendy café brunch on Saturday ($20), one dinner a week ($40), drinks on the weekend ($100), one new outfit per month ($150).

Putting all the ad-hoc expenses aside – trips, buying of new gadgets, birthdays, holidays etc. our regular assumed expenditure totals at staggering $282 per week! Once that $282 leaves your wallet, it’s gone forever. The opportunity you had is lost.

Now, let’s imagine you’ll keep doing some of those things, but only spend $132 per week – meaning you save and invest $150 every week.

Starting at zero, investing in a low-cost diversified share fund, in ten years, you’ll end up with a portfolio worth over $145,000! Boom!

Who said it’s hard to buy a home in Sydney? It can be, if you do what everyone else around you is doing. But if you start this exercise at 18, you’ll have some options available to you at 28, right?

Ok, you may not want to buy a home, but you can invest this money for income and have a perpetual portfolio generating over $7,000 per year income (whilst still fully preserving the capital). It’s a great way to fund your annual holidays – with no extra work required. Ever.

These are pretty basic concepts which are simple and easy to understand. But are they easy to do? No way!

Two main reasons:

We get lost in details – the best time to invest, the best investments, the best performance – we live in the timing and selection culture which is putting us through so much pressure and noise we get confused.
Even simple concepts can be hard to do (or to keep doing consistently for long time) – patience and discipline is not taught at schools.

That’s where you need clarity, focus and a constant push from someone else to make sure you stick to your plan and you don’t mess it up. After all, it’s worth every cent – have options to live your life the way you want it.

What are you planning to do with your opportunity? One thing is clear – it’s never too late to start.

Need some help getting clarity and focus with your money?

Why not book an appointment with one of our planners to review your opportunity to get ahead, contact us on 02 9328 0876.

NB: Numbers are based on 2015 prices (written in 2015), however the same principles apply.

Photo by Krists Luhaers on Unsplash

7 tips to improve your financial wellness

Written by Sydney Financial Planning on 27 December 2019. Posted in Financial Behaviour. No Comments on 7 tips to improve your financial wellness

This can be measured by the financial wellness index, which measures a person’s satisfaction with their current and future financial situation.

Some days you might feel confident you can meet your needs within the boundaries of your current income, whereas other days you may feel like you don’t have nearly enough funds in order to do so.

The truth is, you’re not alone. Nearly 2.5 million Aussies say they feel moderately to severely financially stressed, even though financial stress has been decreasing year-on-year in Australia.ⁱ

Improving your financial wellbeing

On a positive note, research identified that those who have been financially stressed in the past were often able to recover through changes to their behaviour and mindset.ⁱⁱ

Here are some suggestions of things you could do (if you aren’t already) which may help you to improve how you feel financially.

1. Create a budget that works for you

When it comes to creating a budget, try jotting down into three categories – what money is coming in, what cash is required for the mandatory stuff (such as bills), and what dough might be left over (which you may want to put toward existing debts, savings or your social life).

Writing up a budget may take an afternoon out of your diary, but it will help you to more easily identify where there’s room for movement. For instance, could you reduce what you’re spending on luxury items, subscription or streaming services, eating out or clothing?

2. Consider rolling your debts into one

If all the small debts you once had, have multiplied and grown into bigger debts – you could look to roll them into a single loan, and reduce what you pay in fees and interest.

This could help you to save a significant amount of money (depending on what you owe) and make it easier to manage your repayments, as you’ll potentially only need to make one monthly repayment rather than having to juggle several.

The main thing to ensure is you are paying less than what you are currently when it comes to interest rates, fees and charges, and that you’re disciplined about making your repayments.

3. Try to save a bit of money regularly

Even a small amount of cash deposited on a frequent basis could go a long way toward your savings goals, with a separate research report indicating the average savings target for Aussies is a bit over $11,000.ⁱⁱⁱ

Some tips people said helped them along the way was transferring spare funds into an actual savings account, setting up automatic transfers to their savings account (so they didn’t have to move money manually) and putting funds into an account which they couldn’t touch.iv

4. Set aside some emergency cash

With research showing that an emergency fund of between $4,000 and $5,000 is generally enough to cushion most working Aussies when it comes to unexpected expenses, it’s probably worth some thought.^v

An emergency stash of cash could give you peace of mind and reduce the need to apply for high-interest borrowing options should you be faced with a busted phone, car tyre, or bad landlord.

5. Be open to talking money with your partner

One in two Aussie couples admit to arguing about money,^vi so if you haven’t already, it might be worth sitting down to ensure you’re on the same page and that both parties’ goals are being considered.

6. See if you can get a better deal with your providers

You more than likely have several product and service providers, and figures show you could save more than a grand annually on energy alone just by switching from the highest priced plan to the most competitive on the market.^vii

Again, this may take a couple of hours out of your day, but the savings you could potentially make may make a real difference to what you cough up throughout the year.

7. Don’t be afraid to seek financial assistance

If you are struggling to make repayments, you may be able to seek assistance from your providers by claiming financial hardship.

All providers must consider reasonable requests to change their terms in instances where you may be suffering genuine financial difficulties and feel help would enable you to meet your repayments, possibly over a longer period.

Of course it also helps to have an expert on your side and we are here to support you to achieve and maintain financial wellness.

Need a hand with your financial wellness?

For more help and strategies on identifying your feelings on financial wellness, speak to your financial planner at SFP. Or if you don’t have a planner yet let us arrange an appointment, contact us on 02 9328 0876.

i, ii, v AMP’s 2018 Financial Wellness in the Australian Workplace Report, pages 7, 8, 14

iii, iv MoneySmart – How Australians save money infographic

vi Finder – Heated conversations: 1 in 2 Aussie couples argue about finances paragraph 1

vii Mozo – Sick of high energy bills? Aussies willing to change providers could be saving over $1,000 a year paragraph 2

Pocket money for kids?

Written by on 23 July 2019. Posted in Money Management. No Comments on Pocket money for kids?

Instead, try this.

Split the money for them into three pockets:

Spend pocket (40%)

Spend as usual now (lollies, toys etc.), pay for anything immediate. The key here is to allow them to buy whatever they want with this money. They are in charge of it. If they spend it all at once, they will have none left. Slowly introduce the basic save-spend conversation. Kids will learn the spending fundamentals fast.

TIP: Point out to them that once the money is spent, it’s gone forever.

Save pocket (30%)

Save for something big in the shorter timeframe, spend later.
Teaches them the concept of saving and having more to spend in near future. A more advanced version of this allows them to spend only half of what they saved, always keeping some money in the account.

TIP: Good old piggy works a treat here. Can be placed in their room. Point out to them that if they resist the temptation of spending all now, they will benefit from having visibly more later.

Invest pocket (30%)

Put away and invest to benefit from in 10 + years’ time (ideally buy and hold and never sell). This account should only allow only type of one transaction – buy. It can form an education plan, a property deposit plan or anything long term.

TIP: Must be set up as Automatic Direct Debit. Point out to them that every dollar saved and invested will produce income for as long as we keep it.

This approach teaches kids to split their income purposely for different reasons, just like the grown-ups do when they get paid. Don’t get lost in options, the key is to pick one you can stick with or seek our professional advice

Maybe your re-evaluating your own saving habits?

Speaking with a financial planner and reviewing your own financial behaviour to better guide your kids may help. Make a booking or call us on 02 9328 0876 to arrange a meeting.

Article by Michal Bodi | Senior Financial Planner

Holiday budgeting tips – How to avoid a travel debt hangover

Written by on 28 December 2018. Posted in Money Management. No Comments on Holiday budgeting tips – How to avoid a travel debt hangover

What a trip…you’re not going to kiss the tarmac or anything but it’s good to be home! You post the final selfie to Instagram on your mobile but as you flick back to the home screen you notice your banking app. A nagging thought disturbs your post-holiday reverie.

You haven’t logged on since you left Australia. But it was all so slick. The days of sewing travellers’ cheques into your pants and wiring FedEx cheques around the world are long gone. Even the little Thai fishing village had a workable ATM that pumped out baht. And pretty much everywhere accepted your credit card. Luckily you extended the limit before you left, all it took was a few clicks. You also vaguely remember setting a daily budget…that didn’t last long. But hey, you’re not in Rome every day of the year.

Hang on though…you did hit it pretty hard in London’s West End. And then there were the five days at the Airbnb near Lake Como. After all, if it’s good enough for George and Amal, it’s good enough for you. Come to think of it, the previous week scooting up and down the French Riviera wasn’t cheap. And way back at the start of the trip those Sangrias in Barcelona kept on coming…

Slowly your heart sinks and you close the screen down, hastily shoving the phone back in your pocket. It can wait another hour at least, at least until you’ve got home and brewed a strong cup of coffee.

You’ve heard of jetlag, now brace yourself for debt-lag

We know how to avoid jetlag. Stay hydrated, get as much sleep as possible and go easy on the complimentary inflight beverages.

But what about debt-lag? You don’t want to arrive back home with a spring in your step but a hole in your wallet.

And it doesn’t have to be the trip of a lifetime. Even if it’s just the annual family holiday down the coast, it’s all too easy to let your spending get out of control.

Here are a few tips you might want to consider that could help you avoid a travel debt hangover.

Budgeting tips before you go…

Pre-pay the big-ticket items. Look for good deals and pay in advance for flights, accommodation and tours. The more you can pay for before you go, the less you’ll have to pay for at short notice with a potentially hefty local mark-up.
Do your homework on fees and charges. You may want to give yourself a choice of how to pay—a debit card with lower fees, a pre-paid travel card so there are no surprises and a credit card for emergencies.
Work out your holiday budget. Think about how much you’re willing to spend—it could help to set a daily limit and an overall limit (and stick to it!). Sometimes your choices about where to travel and where to stay can have a knock-on effect. If you’re based on a resort island or in a small hotel room with no kitchen facilities it could be difficult to source reasonably priced groceries and save money on food.

…budgeting tips while you’re travelling…

Keep track of how much you’re spending. If you’re good at budgeting, there’s no reason to let things slide just because you’re on holiday. And if you’re not so good at budgeting, a holiday could be the ideal time to start getting into the right habits.
Use the right card. Pre-loaded travel cards are getting more popular and mean you don’t have to stress about the exchange rate. Credit cards are convenient but represent temptation. If you’re going to use credit, make sure your card is appropriate for travelling. Some cards charge an international transaction fee as well as not giving you any control over your exchange rate.
Make smart choices. Sometimes local merchants will give you the choice of paying in the local currency or Australian dollars. Converting to Aussie dollars could cost you more as you may not get a favourable exchange rate.

…and budgeting tips when you get back

Pay off your credit card as soon as you can. Be wary of minimum repayments—this only drags out the debt for longer and increases the overall interest charges. If you can cut back in other areas you could potentially pay off your credit card debt earlier and avoid paying interest.

If you’re looking at budgeting for a holiday, we can help you manage your money more effectively.

Do you need help budgeting for a holiday?

Speak with one of our financial advisers on better ways to manage your money, book a coffee or contact us on 02 9328 0876.