Tag: family finances

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Financial Planning

Financial Planning For New Families

financial planning for new families

Making the decision to start a family is both exciting and daunting. There’s so much to think about in terms of caring for a whole new little person in your lives, as well as setting yourselves up financially to ensure you can take the time off work you need and meet all the expenses that come with bringing a baby into your family.

Many couples put off starting a family until they are financially stable. But this idea of being financially comfortable is different for everyone, and for some, it would mean putting off a family for years and years, which isn’t always ideal. Here are some ways you can plan for a new baby and see whether you are ready to take the leap.

What Is Family Financial Planning?

  • The idea is simple. It’s about taking a look at where you stand financially, and seeing how things might change once you have a baby together. Here are some things to look at:
  • How much time you or your partner might take off work once the baby is here.
  • What your joint household income will drop to with this time off.
  • Cost of big-ticket items for the baby, such as car seat, pram, etc.
  • Cost of daycare once you do go back to work and how this affects your bring home pay.
  • Cost of weekly expenses, such as nappies, wipes, formula, that need to be factored into the new family budget.
  • What sort of pregnancy care you are looking at. Are you wanting to go private? Consider the cost of ultrasounds, obstetricians, etc.

How To Financially Prepare For Starting A Family

Here are some steps you can take to ensure you are in the best financial position possible when it comes to welcoming a new baby into your home:

Build Up Savings

This is often easier said than done. Simply start putting away a little bit each week into savings, no matter how small that amount is. You have to start somewhere. Over time, you may be able to increase this amount, but if not, at least you are putting something away.

Don’t Overspend

It is so easy to go just a little crazy with all the baby products out there, but it’s important to realise you don’t need the most expensive product each and every time. In fact, it’s worth jumping on Facebook marketplace and having a look at second-hand items on there. Lots of baby items only get used a handful of times and are in great condition to purchase second hand. You can save so much money on them as well.

Budget

Take a look at where you are right now and how much this might change when you bring a baby into the family. Factor in all these potential costs and look at how you might be able to make ends meet. Are there areas you can cut down on? Can you start cutting down on them before the baby comes?

Research Your Entitlements

Check out what money you may be entitled to either from your workplace, your partner’s workplace, or the Government. Many people aren’t aware of the benefits offered, such as maternity leave from both work and the government, paternity leave and family tax benefits that you may be eligible for. Look into all of these before you start your family, so you know what you can apply for, can do it straight away and factor this into your budgeting.

Prioritise Your Debts

If you have any outstanding debts you are in the process of paying back, prioritise these and reduce them as much as possible before the arrival of a new baby. In fact, preparing for a new baby is the perfect time to take a good look at all your finances and see that you are getting the best deal possible. Here are areas to consider:

  • Are you getting a good deal on your credit cards? Could you shop around and find better?
  • Are you getting the best deal on your phone contract? Do you research and see if there are better plans more suited to your needs?
  • Look into your insurances and check that you have the level cover you need.

Remember That Money Isn’t Everything

Welcoming a new addition into your family is an exciting time, so don’t let your finances overwhelm you. While there are plenty of things you can do to make sure you are in the best place financially, don’t forget to enjoy the time and every minute that comes with it. You will blink, and your kids will be moving out of home and starting families of their own!

Categories
Debt Management Financial Fitness

Debt Relief Tips For Smart Borrowers

Debt Relief Tips For Smart Borrowers
Debt Relief Tips For Smart Borrowers

Are your finances stuck in a rut? Are you wondering how are you ever going to get yourself out of this frustrating financial state? Fortunately, there are debt relief strategies that can help you get your finances in order and get you back on the road to financial freedom.

Debt relief tips to stay ahead

Take a day off to clear your head

Sometimes it can just get all too much. We are only human. A clouded mind won’t help you make smart financial decisions. Take some time off to relax. Find a park, a waterfall, cafe or your happy place. Spend some time clearing your mind. Log out of Facebook, put your phone on aeroplane mode and whatever you do; don’t look at your bank account!

  • Debt Relief Tips For Smart Borrowers
  • Debt Relief Tips For Smart Borrowers

Reflection can help to clear your mind and allow you to rethink about your finances in a more positive light. Take a notepad and write down your thoughts about debt. Evaluate your financial decisions and create a list of short term and long term goals. Whilst it may seem difficult to take time off, especially in a tough financial state; it may actually do you the world of good.  It can also help you gain a realistic perspective of your current financial concerns and fears.

Write down your assets, liabilities, and other pressing concerns surrounding your finances

A great debt relief tip is to document your financial state. If you are married or living with a partner, writing down all your financial issues can help you talk about sensitive financial issues without getting into a lengthy argument. Prepare the bills; write them down one by one-including their interests, due dates, late charges and other matters that need attention. Then, create a budget together-or propose one if the other spouse or partner is not so into budgeting. Exchange opinions on the matter and work on a budget that would fit both of your lifestyle and financial goals. Budgeting tools are available online. They help you keep track of your finances and better manage your cash flow.

Evaluate your financial plans

How do you want to live? It’s a no brainer that no one wants to live from paycheck to paycheck or end up in a multitude pile of debt. That’s why debt relief solutions are so tempting for borrowers. But before you seek debt relief, do some brainstorming to get a clearer perspective of what you want to achieve in life. Make specific plans for reaching your goals.

Look for alternative ways of paying off your debt

In theory, the answer to debt relief is pretty straightforward. The more money you put towards your debt, the quicker you will pay it off. Whilst budgeting can help you pay off your debt more effectively; you need to have the cash flow to pay it off. In today’s tech-driven society, it has never been so easy to make an additional income.

With services such as Uber Eats, Airtasker, Gumtree, and eBay; anyone can make extra cash. You can deliver food via Uber eats, build a flatpack from IKEA for someone or sell your PlayStation on gumtree for cash. Now, this is by no means the “Easy” way out. You need to be determined and motivated to work hard. The extra cash, however, can be extremely useful in quickly relieving your debt.

  • sell clothes on ebay
  • Uber eats delivery person earning extra cash

Stop creating more debt

Whilst this debt relief strategy won’t necessarily get you out of debt, it will ensure that you are not piling on more debt. Adding on more debt to your existing debt will only make you worse off. So if you are tempted to add another credit card to help pay off your bills; don’t! Rather than securing more credit, freeze your card or cut it up.

  • stop creating more debt and cut up your credit cards
    stop creating more debt and cut up your credit cards
  • stop unnecessary spending
    stop unnecessary spending

Compare debt relief solutions and choose one that best suits your financial situation

Debt relief solutions may assist in giving you that extra boost to get things rolling. Alternative lending agencies such as the Australian Lending Centre offers a variety of debt relief options. These debt relief options include;

Debt consolidation

You can combine all your existing loans into one big loan. This way, you can lower the interest rates; get affordable terms and easy-to-manage monthly repayment plan.

Mortgage Refinancing

Repay your current home loan using new or second mortgage to enjoy lower interest rates, a favorable term, or a lower monthly payment.

Debt Agreement

Try negotiating with your creditors to reduce your debts. Who knows? Maybe they can forgive some of the penalties to make your payment manageable. ALC also negotiates a favourable agreement with your creditors or loan providers to reduce your debt or make your payment requirement more affordable so you can quickly repay your debts.

Credit card debt relief

Consolidate credit card debts to save on penalties and interest rates. ALC’s credit card relief program allows you to pay off high-interest credit card debts and transfer the loan amount to another low-interest loan or credit card.

Debt relief is achievable. You need to be determined to get your finances in check. Fortunately for you, there are a plethora of services that are available at your disposal. With smart budgeting, determination and a clear mind you can quickly regain control of your finances.

Categories
Debt Consolidation Credit Card Consolidation Personal Loans

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.