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Teaching your kids to save is child's play

As parents we're constantly looking for ways to teach our kids. Whether thats through sharing our own culture, our beliefs and our understanding of how the world works or unconsciously by what we do, it seems that nothing teaches an impressionable mind, like watching.

But simply talking about savings money, can feel like a drag.

It's so important to remember that what and how we teach our children about money when they are young, will impact on their financial future. It's our responsibility to raise money smart kids.

So how do you actually start setting financial goals?

By now you’ve had a chance to read the ‘thinking’ part of making financial goals and decisions, it's time to start the ‘doing’.

It's no secret the COVID19 pandemic has hurt many Australians and has either derailed many of us from our financial goals or has forced us to re-prioritise our current situation.

With historically unusually low interest rates, many Australians are now prioritising their debt and looking for strategies to consolidate and pay down credit card debt much faster than they previously had planned.

This is a great step, but how do we make sure it's just not just another stand-alone opportunity to take and miss the chance to pause and refocus our thinking about what we all actually want to be doing?

Living happily ever after — in a rented house, maybe

At a recent business conference the presenter, a young speaker from Generation Millennial, made some insightful comments about changes he saw occurring in Australian - the rise of the sharing economy (ride sharing, home sharing and job sharing) and how these new approaches to ownership were changing the way people thought about traditional forms of ownership.

Some interesting insights I thought.

He went on to list emerging business examples of the new sharing and rent-on-demand economy including renting music through Spotify, accessing movies on demand from Netflix, renting a community car (or van) from the Car Next Door and renting movies online direct from YouTube.

Add to this ever growing list of rentables the prospect of renting a driverless car in the future and it was a great high level presentation; all until he made the rookie mistake and said,

‘So what's the point of owning a house today, when I can just rent one or rent an Airbnb whenever I want?’

Boom!

With that potentially naïve comment to a room of financial advisers his presentation fell off a cliff into irrelevance, all because he didn't understand the place family home ownership holds in the Australian economy.

Three high-stakes risks of being a Sole Trader

Most people going into business for themselves cite a desire to provide more opportunities for their family and greater personal freedom.

But working for yourself involves more personal decisions, greater risks and depending upon your business structure, greater personal liability.

And if you're making this decision based simply on cost alone, this is the question you need to answer, ‘What could possibly go wrong?’

Thinking about setting some financial goals this year?

Sounds simple enough right? But simple doesn't always mean easy

When it comes to managing our personal debts and credit cards, savings and investing, many people are quick to look for a sequence of simple steps to follow (or a three minute blog to read) to achieve what can usually be a complex outcome.

If a fast solution isn’t found, ‘it's obviously the wrong option’ so we quickly browse on elsewhere looking for that dopamine hit of ‘New’ and never really get to where we need to go.

Now that 2020 is behind us, it's time to check in on the emotional and financial damage suffered by the millions of Australians affected by COVID-19.

Job losses for some, reduced work hours for others, still others forced into early retirement - ready or not - many small businesses surviving one month at a time and families trying to make sense of lockdowns and restrictions - it’s safe to say there will be many COVID-19 flow on effects yet unseen.

We’ll all need to work through in some way.

What happens when business owners use their own money in the business?

Most small to medium business owners will tell you they went into business so they could provide for their family, in greater flexibility and free time, increased resources and a legacy.

Like most long term plans, building a self sustaining business takes time; time to mature, time to stabilise in the market and time to return the capital invested.

To achieve this, the majority of business owners use debt and overdraft facilities as an ongoing business tool.

And these types of tools can quickly work against you and your family if you're unprepared.

It's been a tough year… there's been some tough learnings

This year, 2020 has been a year where the Confidence of many people has been tested.

In Australia it started in January 2020 with;

  • unseasonably extreme bushfires that burnt over 46 million acres (or 186,000 square kilometres) with devastating effects on life; and then
  • major flooding over Queensland and NSW that saw a years worth of rain delivered in just a few days, with devastating effects; and then
  • the global coronavirus pandemic; (first declared a Public Health Emergency of International Concern in January 2020, and then a Pandemic in March 2020).

As we close out 2020, it's fair to say, ‘it's been a tough year’.

Can you still get life insurance with a history of drug use?

There's one thing we can all agree on and that's 'Life is complicated at times'.

Getting on with life today regardless of our decisions yesterday is even more complicated; so it's important to talk about what matters most and know where we stand.

  • In 2019, around 3.4 million Australians reported using an illicit (recreational) drug in the last 12 months.1

So how does having a history of personal drug use affect your ability to get life insurances and create a safety net for yourself and your family?

Here's what you need to know ahead of time, when getting your life insurances sorted and have previously used recreational drugs.

Living with depression or an anxiety disorder shouldn’t stop you from getting your life insurances sorted.

As if living with a mental illness, like anxiety or depression, wasn’t difficult enough - getting your life insurance sorted when you're living with these conditions can seem overwhelming too.

Thankfully good mental health is now becoming part of the regular conversations for many Australians.

Here are tips to help navigate the application process.

  • About 3 million Australians are living with a form of anxiety or depression (Beyond Blue, 2020) and at least 45 per cent of Australians will experience a mental health issue at some point in their lives. (SANE, 2019)

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Drew Browne

Sapience Founder & Director.
Simplifying Financial Complexity

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