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Your Checklist For Moving House on a Budget – 2024 Edition

Checklist For Moving House on a Budget
This is the all-in-one blog for moving house on a budget.

Moving to a new house can be an exciting yet stressful experience, especially when trying to stick to a tight budget. Proper planning and strategic decisions can distinguish between an affordable move and one that drains your savings.

This checklist for moving house on a budget provides practical tips and insights on moving without breaking the bank so you can enjoy a smooth and cost-effective transition to your new home.

We’ve also included a checklist with all of the potential costs of moving house in Australia at the bottom of this blog.

Moving House On A Budget – The Top 10 Considerations

1. Planning Ahead

Planning ahead is one of the most crucial steps in moving house on a budget. The earlier you start, the more time you have to make cost-effective decisions and avoid last-minute expenses. Here are some steps to help you plan effectively:

  • Create a Moving Checklist: Follow the guide below and list all tasks that must be done before, during, and after the move. This will help you stay organised and ensure nothing is forgotten.
  • Set a Realistic Budget: Determine how much you can spend on your move. Use the comprehensive checklist at the bottom of this blog to consider all potential costs, including packing supplies, transportation, and any professional services you might need.

Starting early and having a clear plan can spread expenses over time and reduce the financial strain.

2. Is Your New House Close To The Essentials?

Adapting to your new surroundings is crucial. Consider these factors:

  • Proximity to Essentials: Check the distance to the nearest supermarket, hospital, and other vital services. A closer location can save you time and transportation costs.
  • Schools: If you have children, research nearby schools. A school within walking distance can save fuel costs and provide a safer commute for your kids.
  • Public Areas: Evaluate the accessibility to parks, recreational areas, and other community amenities.
  • Bus Stops and Train Stations: Identify the nearest public transport options and consider how they fit into your daily commute. Public transport can reduce the need for a car, saving on fuel, maintenance, and parking fees.
Assess The Accessibility Of Your New House To The Essentials

3. Visit The New House To Check For Maintenance Issues

Before moving in, thoroughly inspect your new house for any maintenance issues. Here are key areas to check:

  • Utilities: Ensure electricity, water, cable, and internet services are installed and functioning.
  • Repairs: Look for any overlooked flaws that might need fixing, such as leaky taps, faulty wiring, or cracked walls.
  • Prioritise Practicality: Focus on essential repairs rather than luxurious upgrades. For instance, fix any immediate issues in the kitchen, living room, bathroom, and bedroom, and save major renovations for later when you’re financially stable.

4. Decluttering and Downsizing

One of the best ways of effectively moving house on a budget is by reducing the amount of “stuff” you’re taking. It’s important to view moving as an opportunity to declutter and downsize your belongings. Here’s how to go about it:

  • Benefits of Decluttering: Fewer items mean less packing, fewer boxes, and potentially a smaller moving truck, all saving money.
  • Strategies for Decluttering: Go through each room systematically and decide what to keep, sell, donate, or recycle. Ask yourself if each item is something you truly need or love.
  • Selling, Donating, or Recycling Items: Hold a garage sale, use online marketplaces, or donate items to charity. Recycling can also be an eco-friendly way to dispose of unwanted items.

By decluttering, you’ll save on moving costs and start fresh in your new home with only the essentials.

5. DIY Moving vs. Hiring Professionals

One of your biggest decisions is moving yourself or hiring professional movers. Each option has pros and cons, and the right choice depends on your situation.

  • Pros and Cons of DIY Moving: Moving yourself can be cheaper if you have friends and family to help, but it’s labour-intensive and time-consuming. It can also be risky if you don’t have experience moving large items.
  • Cost Comparison: Professional movers can be expensive, but they bring efficiency and expertise. Get multiple quotes and consider factors like distance, the number of items, and any special handling requirements.
  • Choosing a Cost-Effective Moving Company: Research thoroughly if you opt for professionals. Look for reviews, ask for recommendations, and get detailed quotes to avoid hidden fees. Facebook groups can be hidden gems for finding well-priced movers.

Balancing cost and convenience will help you decide the best approach for your move.

6. Packing Tips For Moving House

Efficient packing can save you time, money, and stress. Here are some tips to pack like a pro without breaking the bank:

  • Collect Free or Cheap Packing Supplies: Ask local stores for free boxes, use your suitcases and bags, and buy packing materials in bulk if needed.
  • Efficient Packing Strategies: Pack heavy items in small boxes and light items in large boxes. Use clothes, towels, and blankets as padding to save on bubble wrap and packing paper.
  • Labelling and Organising Boxes: Clearly label each box with its contents and the room in which it belongs. This will make unpacking easier and help movers place boxes in the right rooms.
  • Meal Prep with Unused Pantry Items: Before the move, plan your meals around what you have in your pantry to reduce waste and avoid extra grocery expenses.

These packing tips will protect your belongings and streamline the moving process.

Packing Tips

7. Saving on Moving Transportation

Transportation is often one of the biggest moving expenses. Here are some ways to cut down on these costs:

  • Choosing the Right Truck Size: Select a truck that fits your needs without being too large. Overestimating can lead to unnecessary rental fees.
  • Sharing a Truck or Using a Freight Service: If you’re moving long-distance, consider sharing a truck with someone else or using a freight service. This can be more affordable than renting a full truck.
  • Finding Affordable Rental Options: Shop around for the best deals on truck rentals. Look for discounts, compare rates, and consider renting during off-peak times.

By optimising your transportation, you can keep one of the biggest moving expenses under control.

8. Be Organised With Changing Your Utilities and Address

Managing your utilities and addressing change efficiently can prevent unnecessary costs and headaches. Here’s how:

  • Planning Utility Disconnections and Reconnections: Schedule disconnections and reconnections ahead of time to avoid extra charges. Ensure utilities are up and running in your new home when you arrive.
  • Avoiding Extra Charges: Avoid cancellation fees and overlap periods when paying for utilities in both homes. Timing is crucial.
  • Updating Your Address Efficiently: Notify important parties, including banks, insurance companies, and postal services, of your move. Use online services to streamline the process.

These steps will ensure a smooth transition and avoid any surprise bills.

9. Tips To Find Cheap Deals On Wi-Fi And Other Household Bills

Saving on household bills can significantly help when moving house on a budget. Here are some tips:

  • Compare Providers: Use comparison websites to find the best Wi-Fi, electricity, and gas deals. Look for bundle deals that combine multiple services for a lower price.
  • Negotiate: Don’t be afraid to negotiate with service providers. Often, they have promotions or discounts that aren’t advertised.
  • Usage Plans: Choose plans that match your usage. For example, a basic plan might suffice if you use the internet primarily for browsing and emails. Look for plans with higher speeds and data limits for heavy streaming or gaming.
  • Energy-Saving Practices: Implement energy-saving practices to lower your electricity bill. Simple steps like using LED bulbs, unplugging electronics when not in use, and setting your thermostat wisely can make a big difference.
  • Review Regularly: Periodically review your service plans and bills. Technology and offers change, so staying updated can help you switch to better deals as they become available.

Every little bit helps when moving house on a budget.

Tips To Find Cheap Deals On Wi-Fi And Other Household Bills

10. Budgeting For Mortgage Repayments

One of the biggest financial commitments when moving house is the mortgage. Here’s how to budget effectively:

  • Understand Your Repayments: Know the exact amount you need to pay each month, including principal, interest, taxes, and insurance.
  • Create a Mortgage Budget: Allocate a portion of your monthly income for mortgage repayments. Make sure this amount fits comfortably within your overall budget.
  • Emergency Fund: Set aside savings for unexpected expenses. Ideally, you should have 3-6 months’ living expenses in an emergency fund.
  • Refinance Options: Monitor interest rates. Refinancing your mortgage when lower rates can reduce your monthly payments and overall interest costs.

Be Financially Ready When You Move House

Following these tips can make your move more manageable and financially secure.

Financial preparedness is crucial when moving house on a budget. Budgeting can provide great relief if you are not financially ready or feel overwhelmed before moving house. If budgeting alone isn’t enough, a home loan could provide a helpful boost.

  • Budgeting: Create a detailed moving budget that includes moving company fees, utility setup costs, and any immediate repairs.
  • Consider a Loan: A home loan can help cover expenses if you’re short on cash.

If you need help financing your move, apply with the Australian Lending Centre. We provide effective support to ease the financial burden of moving.

The Complete Cost of Moving House Checklist

The Complete Cost of Moving House Checklist

Pre-Move Expenses

  • Building and Pest Inspections: Costs associated with inspecting the new home for structural integrity and pest control.
  • Property Valuations and Surveys: Fees for professional property valuations and land surveys.
  • Conveyancing Fees: Legal fees for a solicitor or conveyancer to handle the sale and purchase contracts.
  • Real Estate Agent Fees: Commission for the real estate agent, typically a percentage of the sale price.
  • Stamp Duty: State government tax on property purchases.
  • Deposit or Down Payment: Initial payment made when purchasing the new home.
  • Cleaning Services: Costs for deep cleaning the old and new homes.

Packing Supplies

  • Boxes: Purchase of new boxes or costs associated with acquiring used boxes.
  • Packing Materials: Bubble wrap, paper, foam peanuts, tape, and markers.
  • Specialty Boxes: Wardrobe boxes, dish packs, and custom-sized boxes for valuable items.

Moving Services

  • Professional Movers: Fees for hiring a moving company, including labour, transport, and insurance.
  • DIY Moving Costs include truck or trailer hire, fuel, tolls, and equipment rental (trolleys, furniture pads).
  • Special Handling Fees: Extra charges apply for moving large, heavy, or delicate items like pianos, art, or antiques.

Transportation Costs

  • Rental Truck or Trailer: Costs of hiring a moving truck or trailer.
  • Fuel: Petrol or diesel for the moving truck.
  • Tolls and Permits: Highway tolls and any necessary moving permits.
  • Travel Expenses: Accommodation, meals, and travel costs for long-distance moves.

Utility and Service Setup

  • Disconnection Fees: Charges for disconnecting utilities at the old home.
  • Connection Fees: Charges for connecting utilities at the new home.
  • Deposits: Security deposits for new utility accounts.
  • Mail Redirection: Fees for setting up mail redirection with Australia Post.

Storage

  • Short-term Storage: Rental fees for storage units if there’s a gap between move-out and move-in dates.
  • Long-term Storage: Costs for extended storage solutions.

Home Repairs and Improvements

  • Repairs in Old Home: Fixing any damages or required improvements before selling or moving out.
  • Repairs in New Home: Prior to moving in, immediate repairs or modifications are required.
  • Cleaning Supplies: Products for cleaning both the old and new homes.

Insurance

  • Moving Insurance: Additional insurance to cover potential damages during the move.
  • Home and Contents Insurance: Insurance premiums for the new home.

Miscellaneous

  • Pet Care: Boarding or pet care services during the move.
  • Childcare: Childcare services on moving day.
  • Temporary Accommodation: Hotel or rental costs if there’s a delay in moving into the new home.
  • Meals: Eating out due to lack of kitchen access during the move.
  • Time Off Work: Lost wages if taking unpaid leave for the move.

Post-Move Expenses

  • Replacement of Household Items: Buying new furniture or appliances for the new home.
  • New Locks and Security: Change locks and install security systems in the new home.
  • Decorating: Painting, new curtains, and other decor-related expenses.
  • Welcome Packages: Gifts or essentials for the first few days in the new home.

These potential costs can add up quickly, so planning carefully when moving house on a budget is crucial. The more organised you are in the buildup to your move, the smoother and more financially manageable the move will be.

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Budgeting Financial Planning

Budgeting For Loan Repayments – Techniques & Tips

Budgeting For Loan Repayments
Learn key tools and techniques to improve and develop your techniques when budgeting for loan repayments.

The aim of this article is to give you all the tools and techniques to improve and develop techniques for budgeting for loan repayments.

Do you have the resources to pay off your loan after taking one out?

A budgeting plan will allow you to do the following:

  • Be more in control of your finances
  • Avoid falling into a neverending debt cycle
  • Help to reduce stress
  • Enable you to better plan out your future.

Budgeting for loan repayments takes some organisation. Here is a step-by-step guide on how to do it.

Understand the real meaning of budget

A good budget should record the following:

  • Actual income
  • Projected income
  • Expenditures over a period of time

There are many resources out there to help you to budget, from apps to budgeting experts, to websites. We recommend Just Budget’s free online budget calculator because you receive a clear tangible solution at the end.

When budgeting for loan repayments, you should consider the following before making a decision about spending.

What is important to me?

Are you willing to trade off a comfortable retirement for a holiday in the Caribbean? Do you want to eat at nice restaurants and charge them on credit cards, copping interest in the process? Would you prefer to pay for your children’s education instead of purchasing an extravagant model of car?

Each of us have our own priorities. Someone else’s priorities may seem to be trivial to you. A simple event can be other person’s bucket list experience. Your choices depend upon what is significant for you. Sadly, a lot of people get into debt for things that do not really matter to them in the grand scheme of things.

How do I want to live?

Nobody wants to live below the poverty line and not everyone is comfortable with debt. But, when a crisis occurs, such as family breakdown, health issues or unexpected changes, you may be forced to go into debt — which may be too great for you to handle.

Thinking about creating a debt management strategy, could help you handle debts and free up a little income to meet your daily expenditure.

How can I accomplish my financial goals?

Visualise your future

By smartly utilising your income, you could live comfortably even if you have debts. The challenge is to bridge the gap between your present situation and your vision.

You can ask yourself, ‘If I want to be that person, what can I do right now to get there?” The answer may be uncomfortable for you at first, but when you see that you are getting through with it with flying colours, you will be encouraged to continue until you succeed.

Set realistic and achievable financial goals

What are your long-term and short-term goals?

Do you wish to save $50,000 for a down payment to your dream house or do you want to be totally free from debt in 5 years’ time? Your goals should be specific. Put a deadline for each of them and review or adjust those goals until you accomplish them.

For example, if you want to have a comfortable retirement, define ‘comfortable’. When do you want to retire? How much money do you want to receive each month? Where do you want to live?

Set short-term goals or those that you can accomplish in less than a year. Perhaps you want to pay off your $1,000 credit card debt in 6 months or save $2000 for a nice pair of shoes for Christmas.

Budgeting to pay off debts 1

Make a plan on how to accomplish your goals

When budgeting for loan repayments, there are three factors to consider when creating a strategy:

  • Income: How much money do you make? Do you have 1 income stream or do you have a side hustle? Could you find other ways to increase your income?
  • Outgoings: Consider your fixed (wifi, rent) and variable expenses (groceries, electricity), and your debt repayments. Also consider how much spending money you typically spend.
  • The result: If your monthly income is greater than your average monthly expenses + minimum debt repayments then you can decide what to do with the suplus. Will you put it towards paying off debts faster? Will you use it to treat yourself to material goods, holidays or dining out? Or will you put it aside for future savings or an emergency fund?

Do you feel like there’s no way out of your current situation?

If you feel as though you are drowning in debt then things can get complicated.

You may choose that debt consolidation is the right solution for you. This entails taking out a loan whereby your current debt are combined into 1 repayment with fixed or no interest and lower total fees with a clear repayment structure.

If you are making less than the total of your expenses and debts then debt you may want to consider debt relief where your repayments are stretched out into lower amounts over a longer period of time, so you can afford them and stop being overwhelmed by debt repayments.

Some final notes when budgeting for loan repayments

If you are not already too deep in debt, then budgeting for loan repayments can be fairly straightforward. It just takes a clear vision, some careful planning and discipline to find your way out.

Sometimes, you have to make tough decisions to escape the debt cycle. If you need a hand with budgeting then Australian Lending Centre are only a phone call away.

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Budgeting

Top 10 Budgeting Tips This Easter

Top 10 Budgeting Tips This Easter
Enjoy this Easter period without worrying about the bank balance.

Are you ready to hop into Easter? It’s just around the corner, which means holidays, events, family gatherings and more are all upon us. For a time of year that’s so full of fun and celebration, it’s so easy to blow your budget and overspend.

While it might seem a good idea at the time, it eventually will catch up with you as you work to pay it off. So, let’s avoid going into debt with these top 10 budgeting tips this Easter.

Top 10 Budgeting Tips This Easter

Easter is almost here, which means now is the perfect time to tighten those purse strings and start saving. Here are our top 10 budgeting tips this Easter:

1. Shop the year before

This one takes a bit of planning, and won’t help you for this year! But, once Easter is over, stock up on decorations and outfits for the following year. They will be heavily reduced so you can grab yourself a bargain.

2. Take advantage of free and low cost community and local activities

Easter is the time of lots of school holiday events, and these can certainly add up. Look around for things you can do for free and opt for that instead. Like heading out to the beach for the day or going on a bushwalk.

Check your local council for Easter holiday activities within your community. The Budget Mom also has these ideas…

3. Look for Easter savings

Whether it’s food or decorations, specials are the key. Plan your Easter menu the week before and browse online before you shop so you can plan your purchases without impulse buying (it’s tempting when it is all so cute). Op shops may also have some great bargains – they will have their Easter decorations out.

easter craft toys kmart
Kids will love these “paint your own” Easter Decorations from Kmart $5

Kmart and Target are also great places to find low cost toys that the kids will love. If you want to take their minds off chocolate for a minute, there are loads of Easter activity toys and plush bunnies for them to treasure.

easter-bunny-toy-kmart
Easter Bunny Plush Toys $5 Kmart

4. Cull the excess without the fun

budget friendly easter gift
Guess How Much I Love You by Sam McBratney Deluxe Book & Toy Gift Set
$12.00

Kids don’t need loads of gifts at Easter – that’s what Christmas is for. Get back to basics with smaller, budget-friendly gifts from the Easter Bunny. Sometimes a book and a toy can replace some of the sugar. Children can build wonderful memories that remain long after you’ve found that last little egg in the sofa cushions.

5. Have everyone bring a dish

If you happen to be hosting this year, make your job easier by asking family and friend to bring a dish. This not only saves you plenty of time in the kitchen but also offers financial relief in the process.

easter cupcakes 159654 2
Easter Cupcakes from Taste.com.au

6. Buy low-cost Easter accessories

BP80540212 grey
Plush Easter Bunny Headband $1.50 from Spotlight

While it can be fun to dress up for Easter, but you don’t need a whole new outfit for the occasion. Find something in your cupboard in Easter colours and spruce it up with a pair of bunny ears for added fun!

7. Get cooking (on a budget)!

Easter treats can be expensive, so why not bake them at home instead? There are plenty of ideas over on Pinterest to get you started.

You can also check out these budget-friendly recipes…

8. Create a Easter budget plan

With the help of the Australian Lending Centre free budget planner, you can stay on top of your finances all year round! Take 5 minutes to fill it out here.

9. Get crafty for Easter

You can also save on the decorations with a few DIY projects at home. It’s the perfect way to keep the kids busy during the holidays while having the house filled with Easter fun.

10. It’s OK to say no

It’s all about setting your budget boundaries. If you’ve gone over your budget for the week, then reign the spending in the following week. Switch a trip to the cinema for a night at home with movies on the couch. You can make popcorn and treats and still have fun without blowing your budget.

While these top 10 budgeting are a great start for the holiday season, it’s important to have a budget you can stick to throughout the year.

easter-budget

Top 10 Budgeting Tips

Of course, these budgeting tips shouldn’t just be for Easter time. You can apply them to any holiday period and set yourself on the path of financial stress. If you’re after more top 10 budgeting tips, then go ahead and get this budget planner calculator.

It will help keep you on track with your finances all year long, so you are in the best position possible. Of course, life does come with unexpected surprises, and there may be times where you find yourself short of debt and needing to take out a loan to tide things over.

This is a great option to have! It can be just what you need to get back on your feet financially and give yourself a fresh start. If you do need a loan, make sure to factor it into your budget straight away so you can get on top of your repayments and make sure you don’t miss any along the way.

Taking Out A Loan

Despite our best budgeting efforts, sometimes we are left with no choice but to take out a loan to get the financial help we need. If you find yourself needing a loan, Australian Lending Centre can help you out.

We offer a variety of services from debt consolidation through to Bad Credit Loans, Debt Management and Refinance. No matter what financial position you are in, you can get access to the money you need – fast. This will help you get back on track with your budget and in control of your finances once again.

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Financial Fitness Financial Planning

6 Top Budgeting Tips To Get Ahead

top budgeting tips
Manage your finances effectively with these top budgeting tips. We break down the 5 top tips to help you budget better.

With a cycle of endless expenses and bills cropping up left, right and centre, it can be hard to get yourself ahead financially. The holiday period makes this even harder with work slowing down, parties to attend and presents to buy, it can almost feel like you are throwing all your money away as soon as it comes in. So how do you get ahead?

Here are our 6 top budgeting tips to help you get on top of your finances and put you back in control. With the right budgeting tips, you can plan for events like the festive season and set yourself up with a buffer, so you can still save and not fall too far behind.

6 tips to effective budgeting

6 Top Budgeting Tips

After some top budgeting tips to help you get ahead with your finances. Tackle these, one by one and you will find the money will slowly start adding up in your savings account. There is nothing more important than having a buffer to fall back on when expected expenses crop up. Here’s how you can manage it.

1. Keep track of your spending: this doesn’t mean just the big purchases. It’s amazing how fast the little things add up and go unaccounted for. Think about how often you buy a coffee when you are out? Or duck to the shops for some more milk? These are just small expenses, but they can add up over time.

You want to track every single expense and write it all down in a spreadsheet. Doing this over the space of a month or two will give you a great indication of where your money is going and what expenses are adding up unexpectedly. From here, you can start cutting down on some of those non-essentials (sorry coffee!) and making some changes to your spending habits. Rather than taking the time to create and update a spreadsheet, there are many apps out there to do it for you. Thebalance.com have an article comparing the best 10 expense tracker apps.

2. Set yourself a weekly budget: you should have a budget set up for all your income and expenses. It should include insurances, school and daycare, Foxtel, groceries and more. Every little detail needs to be budgeted for. On top of this, you need to set yourself a weekly spending limit. This is a great way to allow yourself to indulge on a few luxuries, without going overboard. Clean Credit breaks down the top 3 best money-saving apps in this article here.

You can even save up your spending limit between weeks for bigger purchase items. The idea behind this is being aware of your spending, rather than just ‘allowing’ yourself to make lots of small purchases. Having to save for items will make you much more aware of their real value and have you questioning whether you really need them.

budgeting tips

3. Leave the cards at home: Another one of our top budgeting tips is to leave your credit cards at home. How easy is it these days to just tap and go! It’s so convenient, but it is also quite dangerous as well. All these little purchases can add up without you even realising. The best idea to control those impulses? Leave the card at home. Simply carry cash that’s within your budget, so you don’t even have the means to spend beyond it. It’s simple, easy and a great way to curb that spending.

4. Pick up a side gig: do you find yourself spending your nights out, socialising and spending far too much money? Why don’t you keep yourself busy with a side gig instead? Consider putting up a spare bedroom on Airbnb, taking up some freelance writing, or helping with babysitting. Instead of going out and spending money, you can put your spare time to use earning a little more. It will help build that savings account of yours and will leave you better off in the long run.

5. Plan your meals: just a little planning can go a long way in helping you stick to your budget. Think of how often you resort to takeaways because there is no food in the fridge? Or buy lunch out as there is nothing at home to bring with you. Planning your meals for the week will help prevent this and save you the dollars.

6. Get a better deal on your mobile and utility bills: look at your current phone plan. Have you paid off your phone, are you nearly at the end of your current contract? Do you need all the data that your have? Do really need to upgrade or can you stay with your current phone and use prepaid? Talk to your energy company about your current plan. Ask if there is a more budget friendly plan where you can save money. Shop around.

Think ahead to what you are doing each day and try and stick to one weekly shop. Grab everything you need and make an effort to cook and eat it all during the week. You will save plenty of money by managing your meals this way, and it’s much healthier too.

budget effectively

Budgeting Tips & Finding Help

With these top budgeting tips under your belt, you will be able to start saving and get ahead with your finances. If you are finding yourself pulled down by debt and need a little extra help getting out, then contact the professionals at Australian Lending Centre.

With services such as debt management and debt consolidation, we are here to help. We can take a look at your individual circumstances and find a solution to fit your needs that will see you out of debt and back in control of your finances again.

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Debt Consolidation Debt Management Financial Planning

10 Steps To Get Out of Debt Fast

debt free
As daunting as it may feel, there are ways to escape debt (and it's easier than you might think).

If you find yourself in debt, it’s important to remember you aren’t alone. Whether you have made bad financial decisions, or things beyond your control have occurred, such as unemployment, injury or illness, there are ways to get out of debt quickly.

There are many benefits to getting yourself out of debt, such as an improved credit score and improved mental health. So while it may feel daunting at first, a simple few changes can make a huge difference to your lifestyle. Here are 10 steps to get out of debt fast.

10 Steps to get out of Debt

1. Put your debt in perspective

The first of 10 steps to get out of debt fast is to look at where you currently are. Answer the following questions:

  • How much debt am I in?
  • What interest am I paying on these debts?
  • How many debts do I have?

If you can make a note and get a clear head about where you stand, you can prepare a way forward to get on top of it.

2. Set a budget

This is the best way to oversee your finances. It takes into account how much you are spending each month and on what. Start by writing down your income, and all your fixed expenses each month. This includes insurance, medical and food, dining out and entertainment.

Take this away from your income and see how much is less. If it’s less than zero, then you can clearly see you are spending more than you earn and need to make some changes. See where you can cut down. Then, allocate a certain amount to paying off your debts. If you are after a spreadsheet to note all this down, there are plenty of free options on the internet.

3. Start paying!

Start paying off from highest interest rates to lowest, this will save you money in the long run. It is referred to as ‘avalanching’.

This means paying off the debts that are costing you the most in interest will be done first, before tackling the next one.

4. Lower your interest rates

Next, it is worth looking at whether you can lower your interest rates. Having high interest rates can make it much harder to pay off the debt. The easiest way is to contact your lender, and simply ask.

If you have a good history of paying off your payments, it can help you succeed.

5. Consider Debt Consolidation

If you don’t manage to lower your interest rates, consider debt consolidation. This is the process of taking out a single loan to pay off all your other loans.

It has the advantage of getting you a better interest rate and helping you keep on track with paying off your debt. Everything is in one place, and you make one payment a month – not multiple.

get out of debt

6. Pick up a side hustle

One of the fastest ways to get out of debt is to make more money. Ever considered renting out a room in your home? Perhaps you have a hidden talent that can get you some extra work on the side? Now is the time to pick up as much work as possible to pay back your debt in a timely manner.

7. Put away those credit cards

The one thing you don’t want while trying to pay off debt is to go into even more debt. Hide those credit cards so that the temptation won’t even be there. Out of sight, out of mind.

8. Sell, sell, sell

Another great way to earn some fast cash is to sell things you no longer need around your home. You can use eBay, Gumtree or even Facebook marketplace to list your unwanted goods. This could give you a good cash injection boost to get you started.

9. Ask for help

If you have made all these changes but are still struggling, ask for help. Speak to your lender and see if you can renegotiate the terms of your debt.

You may even reach out to the family for a helping hand to get you through a bad period. Getting a boost to start you off can be all you need when getting out of debt.

10. Debt Relief Services

After exhausting all of your other options, there are a few other avenues you can go down to get out of debt. These include:

  • Informal Debt Arrangement:
    • This form of debt relief helps to make your debt repayments affordable and manageable.
    • A debt administrator acts on your behalf to combine debts and reduce repayments (therefore stretching out loan term).
    • Doesn’t leave a mark on your credit file. Instead, it can improve your credit score over time.
  • Part IX Debt Agreement:
    • This is under the Bankruptcy Act 1966.
    • Involves a formal agreement being put in place between you and your creditors.
    • Your total debt amount is reduced and payable between 3-5 years.
    • Qualification criteria apply.
  • Bankruptcy:
    • This should always be a last resort.
    • Bankruptcy is a legal process for insolvency.
    • You are discharged from most or all debts, but there are significant consequences, including difficulty with employment and rental application approval.
    • Bankruptcy stays on your record for 5 years.
    • Always seek professional advice before considering bankruptcy.

Get support for your debt-free journey

Looking for some professional debt help? Speak to the experts at the Australian Lending Centre.

We could help you pay off your debts and get back on track. By following these 10 steps to get out of debt, you will be able to change your lifestyle and live within your means in no time.

Categories
Financial Planning Debt Management

Budgeting Tips – Learn How to Manage Your Finances

Budgeting Tips to manage finances||Budgeting Tips||Budgeting Tips
Budgeting Tips to manage finances||Budgeting Tips Budgeting Tips

There are many benefits that come with budgeting. Creating a budget is something that everyone can do. It doesn’t matter how much you earn, what expenses you have, or which stage you are at in life. They can be created specifically for your needs. In this blog, we share budgeting tips to help you to manage your finances, but first, here are some reasons you might be considering a budget:

Set and meet a savings goal

Have a big trip on the horizon? Looking into high schools for your kids? There are plenty of expenses in life that add up fast, and creating a budget is a great way to work towards them. You may even have a bigger goal in mind, such as buying your first home. Every little bit counts and budgeting will help get you closer.

Overview of your finances

You may think you are spending wisely, but often on closer inspection of where your money is going, you may discover otherwise. Often we spend blindly, thinking we are keeping track, but when we add up the numbers, it can be a shock. Creating a budget lets you see exactly where your money is going and what you are spending it on.

Improve your spending

Finally, with a budget, you can improve your spending. You don’t have to cut out the luxuries, but rather just look at cutting down in places to help you add more money to savings instead.

No matter which reason applies to you, creating a budget is a practical solution. It puts you in charge of your finances. Here are some great budgeting tips to help.

shutterstock 786266104

Budgeting Tips – Manage Your Finances

Start with the Past

This may sound draining, but it really is the best way to do it. It’s best to go back about a year, so you get a full overview of all your expenses. This might include insurance and other bills that come at different stages throughout the year.

Print out your statements and run through them with different coloured highlighters. For example, use yellow for household expenses, green for car expenses and orange for entertainment. Just being able to see this at a glance will give you a good indication of where your money is going each year. And remember, a budget isn’t about cutting out bad spending. It is about being aware of where you money is going and cutting down on areas. Maybe you didn’t realise you went out so much?

Set Achievable Goals

Look at where you are and where you want to be. There is no point cutting out all entertainment expenses, just to buckle down and save. This just isn’t realistic and you will end up slipping up, which will put you back at square one. Instead, set goals you can achieve, and always allow for ‘anonymous’ expenses, such as a couple of dollars for the cake stand at school. You need a bit of leeway for these small expenses that can add up.

Open a Savings Account

Now you have a goal in mind, make sure you have a savings account set up. The most important thing when it comes to your savings account is to ensure you are earning interest on the money. Opt for an account that has a good interest return, after all this is easy money in your pocket that will give your savings a good boost.

Use cash

By using cash instead of your credit card or bank card, you will become much more aware of your spending and less likely to overspend. This is one of the best budgeting tips out there. Take out a certain amount each week and watch where it is going – don’t let yourself spend beyond this. It is so easy to tap away on a card and not even consider where your money is disappearing too.

Ring all your providers

Another one of those golden budgeting tips. This one can be time-consuming, but it is so worth it. Ring around all your providers, mobile phone, internet, insurances, etc., and look for a better deal. Often all you have to do is ask, especially if you have been with them for a while.

Stick to It

Don’t let yourself go, as bad habits will come back really quickly if you find yourself giving up. If you have the odd slip-up, that’s fine, get back on track and go again. And if you are finding it is just too hard, this may mean you need to take a look at your goals and readjust them to make them more achievable. It’s all too easy to feel like a failure if you can’t meet your goals. However, if this is the case, it is more likely that your initial goals just weren’t achievable. Budgeting apps can be useful if you are struggling to budget yourself. Money Brilliant is one of the budgeting apps available in Australia.shutterstock 1120539272 Budgeting takes hard work and perseverance, but the results speak for themselves. Use these budgeting tips to help you to manage your finances and soon you’ll be in a good position to reach your savings goals. If you need a bit of extra help managing your money, get in contact.

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Financial Planning

10 Financial Habits That Will Enrich Your Life

saving money with a piggy bank

Financial freedom is not impossible; as a matter of fact its very achievable. All that is requires is smart long term financial habits.

Check out some of the best financial habits that will enrich your life.

50/30/20 Budgeting Rule

To control your finances, you must possess good financial habits. You can’t be a good budgeter if you don’t know where your money goes. The 50/30/20 budgeting rule is a good platform to help you get started. Track your spending to know the areas of excess expenditure. If you order Uber Eats too much, cut down on the home-delivered takeaway. If your credit card debt is high, consider debt consolidation. By following the budgeting rule, you can save more money.

Use financial management apps

Tap into a whole range of financial management apps. These useful apps can help you manage your finances and keep you on the right track to financial success.

Don’t use Buy Now Pay Later Services

Avoid Afterpay and Zip pay at all costs. If you don’t have the funds for whatever you want to purchase, wait till you do. It’s more than likely that you are shopping for a want; rather than a need.

Pay Your Bills Promptly

A desire to be in full control of your finances means that you have to manage your bills ahead of time. Late bills payment is a feature bound to stretch your paycheck frequently. So, here is what to do, pay your bills on time. If you have credit card bills, pay it before the interest accrues. That makes you save some cash, right? Let’s get rolling!

Avoid Credit Cards

When making purchases, pay using cash or your debit card. If you can manage this habit, do not use a credit card. You will spend less money when paying upfront compared to a credit card, which will have balances and extra fees as well. Avoid credit purchases if you can make the right decisions with real money while checking out.

Be Debt Free

Debts can drag you to your deathbed. It can anchor all your tragedies if not well checked. Come out of this menace. Start by minimizing your spending. Make a plan to eliminate your debts until you become debt-free!

Be fit

Staying fit is an enriching habit that can influence all aspects of your life. Whether it’s going for a walk, cycling or yoga, find what works for you. Keeping fit can help you clear your mind. A clear and open mind means better financial decisions. It a win-win really.

Have a side Hustle

Whilst a side hustle means more work and dedication, it also means more of an opportunity to set yourself up financially. Consider starting an e-commerce website, take up uber delivery, freelance on upwork or complete a task on air tasker. There are endless possibilities to make additional income.

Invest

There is no point in saving without making any investment. It’s useless swimming in cash shoved under your mattress. Make a point of making investments and be sure of getting some good returns.

Have Realistic Goals

You need to have goals, short-term or long-term. If you have unwavering lifetime goals, take a step, and accomplish the goals. Many people tend to save for emergencies or retirement. However, less understand that you can save for specific goals. You can save money for your child’s education, your dream car, or do your dream home. You will only achieve your goals if you are a determined, resilient, and hard worker.

Incorporating these simple habits are steering to your financial freedom. Enrich your life fully by only doing such practices and have a good financial habit.

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Tips Financial Planning News

How To Save Money When Online Shopping

how to save money when online shopping

Online shopping has become a convenient and easy way to buy what you want when you want..  Crazy bargains, heavy discounts, fast delivery, and convenience are only some of the reasons why people are shopping online. With all these ‘crazy’ bargains we are seeing an influx of people overspending. Consumers are buying anything and everything. Now – this is not necessarily bad; but if you find yourself turning into an online shopaholic, it may be time to start thinking about how you can save money when online shopping.

Here are some of the ways to save money when online shopping

Be quick or have patience

Have you hopped on to an online retailer to see the entire page full of Sales? You quickly find a nice pair of shoes. They are reduced by 15%, oh and they only have one more in stock. Luckily it’s your size. You cannot miss out? Can you? You add the shoes to your cart and away we go.

Finding a bargain can well and truly save you money, but sometimes, you’re really just falling for digital psychology – yes this is a thing!  Rather than buying with your emotion, stop, take your time and assess whether you need the item or not. If you really do need them and they are cheaper than competitors then go ahead. If however, you wait, you may see a further discount online. This discount may come later on through an email notification so don’t forget to register for their email notifications and then wait.

online shopping for shoes to save money
online shopping for shoes to save money

Search for coupons and use them prudently

The majority of people now are aware of registering to receive the seller’s email promotions. In saying so there are still a variety of online coupon providers such as Groupon that can help you save that extra cash. Search online for online coupons and use them at your disposal. Sometimes you may even be able to combine multiple discount codes. Win-Win.

Find the right days

Most companies have conducted their research into when shoppers are most likely to purchase. It is on those days that they will offer brains to draw customers in. For example, research suggests that the best time to buy clothing online is a Monday. Shoppers may save anywhere up to 50% on pants. Using that to your own advantage can be helpful. Buying your stuff on the right day will help you save. All it takes is a little research and patience.

save money online shopping 2
save money online shopping

Showcase your loyalty

Register for loyalty reward programs if you are a frequent shopper of a particular site. Your reward points on discounts and gifts will accumulate as you purchase your products. However, avoid going overboard when purchasing products to accumulate the points. The last thing that you want to do is buy something only for the sake of accumulating points. Save them and use them when you really need to.

Utilise social media

For the quickest and easiest way to catch a bargain, make sure you follow your preferred online shopping sites on social media platforms. Press the like icon on their Facebook page, start following influencers on Instagram and get on board their Twitter page. This is the easiest and greatest way to find out when products are on special. There are always giveaways and discount codes that get are available online.

Avoid overpaying on shipping

Thousands of companies allow you to jump the shipping fee if you buy goods worth a certain amount. Rather than making single purchases, consider creating a list of stuff that you need and order then all at once. When shopping online, look for websites that offer free shipping and whatever you do stay away from express shipping – unless you really need to.

Try to outwit dynamic pricing

A smart way to save money when online shopping is to take advantage of dynamic pricing. Dynamic prices can be defined as a fluctuating price that is shown to consumers depending on various factors.  These factors can include location, spending habits, current demand, and browsing history.

For example, if you’re shopping for an airline ticket, you may notice the price will change. You may have paid $500 for your first flight but when you check back on a different browser or your friend’s phone, the price has increased or decreased. There are two ways in which you can outwit the dynamic pricing.

  • Clear browsing history and cookies. This will make you appear like a new client on the site
  • Sign out all your account and use incognito mode to browse anonymously

Final word on online shopping

Use these tips to save some cash on all online purchases you make.  That can be via discounts, cash-back sites, smart tactics, shopping vouchers, and coupons. Above all avoid using buy now pay later services such as Afterpay. These services can lead you to a pit of debt.

Categories
Financial Planning

Save Money With The 50/30/20 Budgeting Rule

save money with the 50/30/20 budgeting rule||||the 50, 30, 20 budgeting rule

Do you find yourself asking, how much money should I save? If you are already aware of your spending habits, then a budgeting plan can help you tighten your strategy and help you focus on the road ahead. The 50/30/20 budgeting rule was created by Harvard bankruptcy professor and Senator, Elizabeth Warren. In her book titled “All Your Worth: The Ultimate Lifetime Money Plan”, Warren discusses the idea of a 50/30/20 rule to help manage your budget.

The 50/30/20 budgeting rule is designed to help you organise your finances and start saving.

After-tax income.

The first step is to calculate your after-tax income. This is the amount of money that you receive on your payslip after your tax has been taken out. If you have a regular income this is extremely simple to calculate. Your payslip will outline the amount.

If you are however self-employed, your after-tax income will equate to your gross income minus any business expenses. This includes money set aside for tax repayments.

Needs

Once you have established you’re after-tax income, it is important to assess how much you are spending on your “needs” per month. To help you understand what a need is, think about the bills that you must pay each month. These bills are crucial for survival. Without these bills, it will be extremely difficult to live and work.

Some common needs include groceries, home and utility bills, transport and automotive bills, debt payments and medicine. A need does not include items such as eating out, Foxtel or your Spotify subscription. A budgeting calculator can help you go through each of these needs. It will also calculate the total amount that you are spending per month.

Wants

Do you need a new pair of runners? How about 2 week trip to Italy? Or maybe you just want to enjoy a 10-course degustation. Remember these are not defined as needs.

Your wants are just that, things you spend money on, but are not absolutely necessary. A want may include ordering uber eats, going bowling or buying those fancy runners. Wants include lifestyle upgrades. For example, you own a 10-year-old Toyota Corolla that works fine, but you are thinking of upgrading to a Mercedes.

Allocating 30% of your income to your wants may seem easy on the surface, but it requires a high level of self-discipline.  A want drives enjoyment. A want entertains you and sometimes this need for pleasure and entertainment may outweigh the need to save money. It is for this reason that saving becomes a mental struggle.

Savings

According to Warrens 50/30/20 rule of thumb, you should spend at least 20% of your after-tax income on savings. This includes allocating money into your savings accounts, paying off debt and keeping an emergency fund in place.

The minimum payment that you allocate towards repaying your debt is also considered a need. This is not included in the 20% savings. If you are saving well, you can consider making extra contributions to credit cards, mortgages or even car finance. Start by quickly paying off any high-interest debt and then move towards lower interest debt. Remember that extra contributions are part of your 20% savings contribution.

  • the 50 30 20 budgeting rule 2
  • 50/30/20 rule

Calculate your 50/30/20 budget.

Use our handy calculator to see how much money you need to be saving each month. Simply enter your after-tax income to get started.

Is saving 20% of your income enough?

Whist Warrens 50/30/20 rule of thumb is a great tool to get you started with budgeting, it may not be an exact guide for everyone. Your financial situation plays a large part in whether 20% of savings is really enough.

Gary

As a low-income earner, Gary still has many responsibilities. He has to pay weekly rent, top-up his opal fees and purchase groceries. At the same time, he still needs to enjoy himself. Gary likes to eat out and visit museums. As a low-income earner, a 20% saving per month is quite difficult but it is manageable.

Susanne

Susanne, on the other hand, is a high-income earner. She has her own property and pays the mortgage. Susanne is single and has a range of needs that she must pay each month. These, however, do not cost anywhere near $6,600. After inputting her needs into a budget planner, she realised that she is only spending $3600 per month. This already includes her minimum debt repayments. Besides her interest in travel and video games, she does not really splurge. As such her wants are only at $2400 per month. In Susanne’s case, she would rather put the unused $4,200 towards her savings so that she can quickly pay off her mortgage.

The bottom line

As you can see, the 50/30/20 rule of thumb is a great tool for setting a budget, but it may not be entirely useful for every person. As a budgeting tool, it is helpful in building the foundation for budgeting. Chances are that if you are reading this article, you are already thinking about budgeting. Now, all that you need to do is calculate your budget and stick to it.

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Financial Fitness

Saving Money On a Lower Income

saving money on a lower income

There is a range of strategies you can employ to make saving money o. One of the major areas that can save you a lot in the long term is debt consolidation. There are also some other lifestyle choices you can make to improve your financial situation.

Many people think it is all too hard, but everything you do will help, even small changes can make a huge difference. We can all employ a range of measures that will prevent budget blowouts without sacrificing all the things you like doing.

If you are finding yourself on the roller coaster of no savings, bad debt management, poor (or no) budgeting and everything is a bit chaotic, Australian Lending Centre has some tips and tricks to get you out of bad debt employing activities such as debt consolidation, saving and feeling in control again.

First things first – Where Does Your Money Currently Go?

If you don’t yet have a budget, keep a financial diary for your pay period and track how you are spending your money. The Money Smart website offers a great money tracking app to make this easier. This will give you valuable insight into your habits and areas you can save.

  • What are you spending your money on?
  • How much is left over at the end of the pay period?
  • What money needs to go out on payments and bills?
  • Are there any areas of waste or unnecessary spending?
  • Are there areas where you are going backwards and getting into arrears?

Planning and Budgeting  – Where Will Your Money Go?

Once you have a record of what your current spending entails, get online to the Money Smart website and complete the budget tool. Be sure to include all your debts, payments, bills, and income. Mark payments and amounts in your calendar.

Most bank online apps have the ability to schedule payments, so they come out when they are due, but if these are also in your calendar you won’t get any unexpected payments coming out. These regular payments can including things like:

  • Mortgage or rent
  • Car payments, car registration and insurance
  • Household/health insurance
  • Credit card payments
  • Loan repayments
  • Store card payments
  • Afterpay/ZipPay (remember that defaulting on these can effect your credit score)
  • Utilities such as gas and electricity (you may want to discuss bill smoothing with your provider – this is a regular payment over time rather than a massive and shocking bill each quarter)
  • Internet and phone

Bad Debts? Talk to the Credit Provider

The bottom line is that companies want to be paid. They are always receptive if you explain your situation, especially if you have, or are, experiencing financial hardship.

You may be able to negotiate with them to reduce or put a hold on payments until you get back on top of things. Of course, you still have the pay the money back, but a hiatus on payments can help in the short term.

Some credit providers will allow you to reduce the final figure if you can pay the debt outright. If they offer this, it may be time for debt consolidation. If you are too overwhelmed by the phone calls and letters, then talk to us about negotiating on your behalf.

Next Steps – Take Control With Debt Consolidation

When loans and credit cards get beyond what you can cope with in terms of interest and late payments, it might be time to call in help from the experts. Companies like Australian Lending Centre can offer a solution for a bad credit debt consolidation loan.

This is where you negotiate with lenders for a reduced payout figure and then apply for a single loan that will cover all your bills in one payment with a lower interest than general credit cards and late payment fees.

Having one simple debt consolidation loan payment to go out eat pay period is going to be a lot easier than trying to remember everything. The sooner you simplify your payments, the sooner you will be in an easier financial situation.

Money-Saving Tips

Turn off the TV

Are services like Netflix, Foxtel, Stan, Hayu and the iTunes store getting beyond ridiculous? Try cutting out all but the most popular one, to cut back.

Turning off the TV will also help cut back on power and expose you to less spend-inducing ads. You might also have app subscriptions that you don’t need. Although these are small they can add up in a month.

Stop Hoarding and Start Selling

If you have closets full of unwanted clothes, try selling them online. A good clean out also helps you to see what your wearable wardrobe looks like so you can plan your clothes shopping to maximise your shopping budget.

Also if you buy anything make sure it goes with the other items in your wardrobe. Take advantage of sales, why pay retail when most clothes will go on sale towards the middle of the season.

Look for those habits that add up

You can cut back on your habits, such as drinking alcohol during the week, smoking (probably goes without saying but your health and budget will thank you), buying coffees, can all save a surprising amount as well as having general health benefits.

Limiting your drinking to the weekend can save hundreds a month, depending on your drink of choice. That bottle of wine after work at $15 a night can really add up over the week. Similarly, a $4 coffee each day is $20 a week. Make coffee at home in a keep cup and save money and the environment.

Stop using your credit card

By switching to using your debit card or cash for purchases, you will be more aware of your spending habits. It will also prevent the slide into bad credit debt.

Be frugal at the supermarket

Most of the time, buying in bulk or larger sizes are cheaper over time, so check on the prices for the larger sizes. Don’t shop with kids. Pester power is a thing and can increase your spend at the checkout. Never shop when you are hungry. Buy less meat, which is expensive, and opt for more meat-free alternatives, such as tofu, beans, and pulses.

Eat Smarter

With a busy life, planning meals can be a real chore, but while using services like Uber Eats seems like a good alternative, you are actually paying $5 on top of takeaway prices and it really can add up at the end of the pay period. By shopping in bulk, cooking healthy meals and taking the leftovers to work for lunch, you can save quite a lot each day.

Are You Missing Out On Government Payments You Are Entitled To?

Lastly, make sure you check all your entitlements with regards to government payments. As a low-income earner, you may be eligible for some form of financial support if you aren’t already receiving a government benefit.

When every dollar counts it’s worthwhile claiming all you can. To check on payments and entitlements, check out the Department of Human Services. Even a small additional payment may ease your financial burden. Living on a low income is hard, but these payments are designed to help.

Small Changes with Big Returns

Once you have a clearer picture about where your money goes, you make changes to your lifestyle and start on the path to greater financial control, the happier, healthier and less stressed overall you will be.If you need help with debt consolidation, please get in touch. We’d love to hear from you.

Note: This information is general, and doesn’t take into account your specific personal and financial circumstances.

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Business Loans Financial Planning

Importance of Budgeting the Proceeds of Business Loans

Importance of Budgeting the Proceeds of business Loans
Budgeting the proceeds of business loans reduces the chance of you falling into a debt cycle or spending business income unwisely.

Most business owners understand the importance of creating and sticking to a business budget; especially when they are using borrowed money—like business loans. It is the best way to make sure that the business expenses do not exceed the working capital and the income during the month, forcing you to resort to debts to meet operational needs.

Budgeting the proceeds of business loans reduces the uncertainty that often accompanies business operations, especially in terms of balancing income and expenses. It also provides a stable fiscal framework when making financial decisions.

Here are the two important benefits of creating a budget for your business loan proceeds:

Predict cash shortfalls

One of the reasons why you need to create a budget is to have an idea of the possible income and expenses. While you can estimate the income through the sales volume, it is still dependent on the expenses and how you manage it to meet the orders. When you understand the possible cash shortfalls, you can make plans on how to address them, using your financial resources.

For example, you can plan in advance on how to use the financing you obtained, or to recognize when top secure additional financing. You can also check if there are lines of credits that you can tap into.

Another good strategy is to project your income every month. This way, you can shorten the collection period of payables. Instead of 30-day payment, you can shorten it to 15-days so that you will have enough cash to cover the foreseen expenses for that period. It is very important to realize that there is a huge difference between sales and income. While you may have increased your sales for January, your income may still be the same if you are not able to collect payments from your customers.

Plan large expenditures

Business expenses are categorized into two—fixed and variable.  You can plan on how to meet overhead costs such as office space rental, administrative expenses and payroll, which are consistent and fixed expenses. But, you may not be able to do so, when it comes to variable expenses that usually depend on sales volume.

The higher is the sales– the more expensive the inventory. So, instead of being surprised with large expenses, why not create a budget for your business loan so you can meet large variable expenses when the need arises? You can also make a budget that includes the purchase of one-time capital expenditures such as equipment and buildings.

Reduce costs by budgeting the proceeds of business loans

Calculate the debt-to-income ratio of your business by dividing the total monthly payment for your business debts into after-tax business income. Let’s say, you are self-employed. You are paying $350 each month for your business line of credit. On average, your business earns a monthly net income of $2,500. That means, your debt-to-income ratio is .14, still lower within the 15% debt to income ratio limit.

By planning your financing in advance, you can choose a loan product that best matches the debt repayment style of your business. Let’s say, you usually receive payments for accounts receivables on the 29th of each month. That means, you also have to get a loan that falls due on the same day or the day after. If you generally make payments on the 15th, there is a big chance for you to miss payments. This means you will have to pay additional interests or penalties.

When you have an idea of how much you can spend on a certain period, it will be easier for you to design your own payment schedule. For example, repay your business loans within 2 years, on a monthly schedule. By knowing how much you can afford to pay each month, and by getting the dates when you are most likely to have enough money to repay the loan, you will be able to repay more than the minimum required each month.

Financing Plan

A sound financing plan makes it easier to avoid debt traps or those that greatly increase the cost of borrowing. There is no need to worry about late fees. You don’t have to pay late, nor the over-the-limit fees because you will not exceed the credit limit.  You can also avoid making cash advances that quickly charges interest. On top of it all, if you know how to maximize your loan proceeds, you can look for ways to negotiate better repayment terms. This will possibly allow you to get a discount from lenders. Who knows? You may be able to request a reduction in interest rates and annual fees.

When managing your business finances, it is important to remember the budgeting principles that define your company’s basic financial structure. How your business loans will be managed determines whether your business will be able to overcome the uncertainties that often accompany expense and income forecasting, which are essential in making effective and successful financial decisions.

Tools

To receive more help when it comes to budgeting the proceeds of business loans, check out Australian Lending Centre. We offer a range of budgeting and loan repayment tools that will allow you to easily manage and stay ahead of your loans. We also offer support for people with a poor credit rating through our bad credit business loans.

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News

Staying on Holiday Budget with Prepaid Credit Cards

how to make a holiday budget

Wondering how you’re going to stay on holiday budget? Prepaid credit cards could be a wise alternative to starting the year without a massive blow to your bank account or credit line.

You are using your own money.

AusPost has a Load & Go prepaid Visa card that is accepted anywhere Visa is accepted, you can reload online or in-store, no reload fees, no monthly fees, no credit checks, no interest charges and no application form. They make it so easy a toddler chewing on an iPhone could load money and start shopping online before you finish reading this post!

Prepaid credit cards can be loaded with the funds you want to allow yourself to spend. You can safely know that once the funds are depleted, you are cut off. There is no going over the limit or a going over-limit fee. There is no interest charge because the money is all yours.

Once it’s gone, it’s gone.

You can safely spend money knowing that you are not dipping into the rent, mortgage payment, or household funds. Think of the relief you’ll have when you open that pesky credit card bill and see that you didn’t blow your entire credit line partying like a pop diva in Bali!

You saved for this holiday and you want to have fun. Load up a prepaid credit card with the funds you want to use and travel safely without the wad of cash in your back pocket and without draining your bank account or credit line dry!

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Budgeting

Common Budgeting Mistakes to Avoid

money budgeting and management

Budgeting is always a good idea because this way you can control your financial resources and expenses. But there are a few mistakes that can make a budget go awry. If you don’t want this to happen, make sure you avoid the following ones.

Budgeting Mistakes

Making it too strict

Even though budgeting is not fun at all, the feeling you get when starting it is quite exciting because you believe you can spare a lot of money. Because of this feeling, many Aussies tend to make a budget they cannot afford or respect because it’s too strict.

Many articles advise people to use the money in order to achieve the things they want, but in most cases, they also recommend to cut the budget allocated for fun, discretionary spending, or indulgences. When reading such an article and being excited to spare more for your goals, you can easily be tempted to allow no money for these activities. But not spending at all on your entertainment is not possible so that you will do it anyway. In the end, you will still dispense an amount of money for these needs, but you will be disappointed because this will affect your budget. Why end up frustrated because you were too excited at the beginning? When planning your budget, try to be realistic and avoid making it too strict. Allow yourself “fun money”, but not too much.

Planning it without a purpose in your mind

Having a goal is an excellent way to motivate you to stick with the budget you made. So what is your purpose? Why are you saving money? For instance, if you still have to pay your student loans, or you have debts, budgeting is undoubtedly a wise choice. When you know that you must save money for a particular goal, your motivation is boosted. On the other hand, it is easier not to respect a budget when you don’t have any purpose. You don’t need debts to have a substantial reason to spare money. You can think about your house renovation you have dreamed for so long, a new car, a motorcycle, etc.

Not considering irregular expenses

When budgeting, keep in mind that you must include the irregular expenses, even though they do not “pop up” monthly. Some are quarterly, others are annual, and so on. For instance, consider the holiday spending, car insurance premiums, school supplies, car maintenance, home repair projects, and pet vaccinations. Additionally, don’t forget that utility bills are higher in winter and summer.

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News

How Pet Owners Can Save on Pet Food

money management tips

Owning a pet can be incredibly rewarding, fulfilling and fun over the course of your furry friend’s life, but it can also get quite expensive. We don’t always consider the long-term costs of pet ownership because let’s face it; they’re cute and cuddly so the benefits usually take precedent over the practicality. Adding a bag of dog food and treats to your shopping list won’t break your budget but there are always ways to save on pet food. Here are a few ways, and why they’re financially viable for you:

How to Save on Pet Food

1. Cook it yourself
Cooking your pet’s food sounds like extreme dedication, right? You might think that only people with plenty of free time and plenty of spare cash would bother to cook for their pets but it’s not the case. Cooking for animals can be cheap and a set-and-forget approach if you do it right. It’s very, very similar to meal preparation for yourself (or any human) – basically you purchase some cheap meat cuts, veggies that your pet can eat, and voila. Throw it all in some stock and you’ve essentially made a cheap soup that you could eat if you wanted to! Freeze it in portions if you’ve got freezer space, or keep it in the fridge and dish it out each night. They’ll love it, and it will work out better for their health and easier on your wallet. You can also make your own treats for little cost and effort! There are various recipes online for the keen owner who’d like to try making their own pet food.
2. Pay for ingredients
So if you’re not into the idea of cooking food yourself, make sure you’re not ripping yourself off by being drawn into a fancy name-brand food that is actually made of the same ingredients as its cheaper counterparts. Do some research, read some labels and don’t overpay. On that note, find out what brands or ranges of food is the best value for money. You’ll find that higher quality foods equate to smaller portions for your animal, so although you feel like you’re spending more at the time, you won’t need to replace the food as frequently.
3. Buy in bulk
This is a rule for either buying food in store or making it yourself. Keep track of specials at the supermarket as well as the pet shops to maximise how much you can save, sometimes it works out cheaper to grab a huge, seemingly endless bag of dog-chow because it will last you for four months instead of the smaller bag you’re replacing each fortnight. If you’re buying ingredients, buy in bulk when you have fridge or freezer space.

Pets are fun, but man do they eat. If it feels like your animal is eating you out of house and home – take a look at their diet. Better food can save you money; not only at the checkout but on the vet trips you won’t have to take because your dog or cat is less likely to suffer from skin conditions and organ problems. Plan ahead, save some money and make you and your furry friend’s life just that much better!

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Financial Planning

Having a Financial Plan vs. Day to Day Approach

financial management tips

In a month, your income may or may not be fixed. But your basic expenses can be constant. To many people, a financial plan is necessary. It can serve as a guide on how an individual can spend and manage his resources. Not all people realise the advantage of having a working financial plan, though. There are those who prefer to spend without planning and handle their money on a daily approach.

Money management logically does not naturally or easily come to everyone. A financial plan will always be helpful whether you have tremendous or little experience with managing and handling wealth. Financial planning can generate numerous advantages that can cover different aspects of your life.

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