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How to create good habits in business

If you’re like most small business owners, there are never enough hours in the day to complete every task on your list. Often you’re faced with prioritizing what you need to do right now – deal with a customer, meet a deadline, attend an event – and the things you know you should do for the ongoing growth of your business. Scheduling time to attend to these business activities on…  Read more

How to turn your hobby into a business

Thinking about turning your passion into a paying gig? These steps will help you avoid some common mistakes as you set out to earn an income from your favorite pastime. Do you have what it takes? Unless you’ve run a business before, it’s easy to get carried away with the idea of how perfect it will be to get paid for doing what you love. Reality check: the stress of…  Read more

There is such a thing as a happy loser!

Imagine yourself at the races. You study the field, choose your horse and then place your bet. And then you hope that your horse run stone cold last! Sound crazy? Well, if you’re betting on horses, it is. But there are other kinds of ‘bet’ where this is exactly what you want to happen. Those bets are also known as ‘life insurance.’ Some people call life insurance a ‘grudge purchase.’…  Read more

Repaying deductible debt? Here’s a better idea.

Here’s something you might not expect to hear a financial planner say: maybe repaying your debt is the last thing you should do. We should explain. Not all debt is equal. Financial planners divide debt into two broad types: deductible and non-deductible. As these names suggest, deductible debt lets you claim a tax deduction for the interest that you pay. Non-deductible debt does not. This means that you have to pay the…  Read more

Opportunity Cost

We will start this blog with a question. When you spend money, how often do you ask yourself what you won’t be buying as a result of your spend? After all, you can only spend a dollar once. Whenever you buy something, that means there is something else that you cannot buy. Financial advisers call this the ‘opportunity cost.’ Instead of expressing the price of something in simple dollar terms, the price…  Read more

What makes debt deductible?

Financial planners divide debt into two types: deductible debt and non-deductible debt. Deductible debt lets the borrower claim a tax deduction for the interest incurred on the debt. Non-deductible debt does not. Whether interest is deductible or not can have a massive impact on how expensive that debt actually is. When interest is not deductible, you have to pay tax before you pay the interest. You can see this with…  Read more

Not all debts are the same. Even if the interest rate is.

Not all debt is the same. Even if the interest rate is. One of the main differentiators between debt is whether or not you can claim a deduction for the interest. If interest is not deductible, then the interest rate paid is much higher than you might think. When interest is not deductible, you have to pay tax before you pay the interest. You can see this with an example:…  Read more

Preparing your finances for the New Year

I know what you’re saying; “We have barely got through Christmas and now your talking about the New Year”!  If you are like me, it only felt like a few weeks ago that we were ringing in 2017 and now it is nearly done.  In all seriousness, managing your finances should be a year round responsibility however the New Year is the perfect time to review, evaluate and reset.  In…  Read more

100% off everything!

Here is an idea for you. There is no such thing as a discount. There is just the price. As we head into Christmas, many people will be lured into retailers with the promise of discounts or price reductions. Many people can’t resist the potential for a bargain – a sign promising 30% off is simply impossible to ignore! Often, these people are giving in to a cognitive bias called anchoring.…  Read more

More on mental accounting

Last week, we introduced the concept of mental accounting. We want to continue the theme this week as part of our ‘behavioural economics month.’ Mental accounting can be seen every day with little expenditures like gift vouchers. However, sometimes people apply mental accounting to much bigger parts of their financial management. And that is where it can get expensive. To recap, mental accounting is a common mistake people make with…  Read more

The best gift voucher in the world

Christmas is coming and you probably know someone who is really hard to buy a present for. You might be tempted to buy them a gift voucher. Can we suggest you think again? Unfortunately, gift vouchers are generally a really bad idea. We know, we know – we sound like the Grinch. But let us explain. You’ve probably heard of the Nobel Prize. This year’s peace prize was awarded to…  Read more

Thinking about the First Home Super Saver Scheme?

In our final article this month on managing family wealth, we look at the First Home Super Saver Scheme.  This is relatively new with the scheme having been announced in the last Federal Budget and legislation only recently being enacted. We have put together a quick fact sheet on the topic which you can access here.  Whether it is you, a child, grandchild or a friend that could benefit, please…  Read more

How do you pass wealth to the next generation?

This is a topic that everybody will eventually think about.  Whether it is the transfer of modest savings to children through to more significant amounts of money, the issues that are faced are generally similar. We have put together an eBook that looks at the topic of passing wealth to the next generation which you can access here.  We would love to receive your feedback on this.  Read more

Teaching kids how to manage money

A couple of weeks ago, we shared with you some thoughts on how you can help older children into a property.  We must have struck a chord with a few of you as we received a number of calls to chat further. This week, we thought it would be a good idea to look at the very young members of your family.  The topic of teaching kids about money is…  Read more

Tax & the Sharing Economy

The traditional business model has changed significantly in a very short period of time with many now operating in the online or “sharing” economy.  Whilst the channel for the delivery of outcomes may have changed, it does not necessarily mean an alteration to the tax implications of the business. If your business has moved into the sharing economy, make sure you avoid the big stick of the tax office.  The…  Read more

Business Matters – October 2017

When business is going well, many owners look to expand their business.  We take a look at the most important factors to consider to make sure your expansion is a success. Have you ever received negative feedback?  How did it make you feel?  In a perfect world, every customer your business works with will be pleased with how the transaction went but we know that this is not always the…  Read more

Making the most of negative gearing

Negative gearing is a common strategy adopted by persons wishing to build their long term wealth in a tax effective manner.  In recent years, negative gearing has become more prevalent through the advent of record low interest rates and in some parts of the country, increasing values of property. Whilst it can be an excellent wealth building tool, it does have restrictions and risks if not used properly.  In our…  Read more

Positive Gearing. What is it, how does it happen and do you want it anyway

You have probably heard the term ‘positive gearing.’ It is a similar concept to negative gearing, which is certainly in the news a lot these days. We use the term ‘gearing’ whenever debt is used to fully or partly finance an investment. If you have $90,000 of your own and borrow $10,000 to buy an investment asset worth $100,000, you have ‘geared’ the investment. Similarly, if you borrow $100,000 to…  Read more

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