Money Mode

As we approach the deadline for contributions this financial year, it's essential to stay informed about your options, not just for now but for future financial planning.

Let me give you a bit of context about a strategy that's been gaining traction in recent years:

In the past, only self-employed individuals could make what was called a 'deductible' contribution to their super. My self-employed clients often sought advice towards the end of the financial year to optimise their tax situation by making lump sum contributions to their super (and claiming a tax deduction for them).

However, things have changed. Nowadays, employees can also make these tax deductible one-off contributions at any time during the financial year. It's a strategy that can save considerable tax for clients and help boost their wealth.

Here are some key points to know about making these contributions, now termed 'concessional contributions' →

Remember, while I've provided this information to educate you, it's crucial to consider your personal circumstances and possibly seek professional advice tailored to your situation. Financial decisions are personal, and thorough research or expert guidance can help you make informed choices.

Let's talk about foolproofing your finances against surprises: emergency funds.

Given the rollercoaster ride of the past year and the pressure on our daily cost of living, it's essential to prepare for the unexpected. Emergency funds might not sound exciting, but they help to foolproof our cash flow plan so that when an unexpected expense pops up we can continue on without the financial set-back or compromise.

Fan of “buy now/pay later”?

Yeah, I never have been. 🙅🏼‍♀️

The NOW part might sound good, it’s the LATER part that concerns me as it has the potential to set you up for multiple failures.

❌ You’re more likely to overspend because impulse buys are encouraged, especially as you head to the checkout online.

❌ You’re most likely purchasing something you can’t afford just *yet*emphasis on the yet because with financial planning comes financial power

❌ Interest-free looks good on paper but late fees very much still exist in the BNPL world

❌ If home ownership is a goal, this “convenience” is considered a line of credit.

There’s a reason why the government is currently looking to regulate this form of lending [bring it on] so please, pause and think about your later.

You know, sometimes it's easy to get caught up in the hustle and bustle of life without stopping to consider what truly matters. But here's a simple truth: what you need to live on directly influences what you need to do.

Think about it. Your basic necessities—like food, shelter, and utilities—form the foundation of your lifestyle. They determine the minimum income required to sustain yourself and your loved ones.

So, when it comes to setting financial goals and making decisions about your career, education, or investments, it's essential to keep your needs in mind. Understanding what you need to live on, I often refer to this as ‘knowing your numbers', gives you a baseline to work with.

Sure, we all have dreams and aspirations that extend beyond our basic needs. But by starting with a solid understanding of what you need to maintain your base level lifestyle, you can make more informed and intentional decisions about how to pursue your goals.

Ultimately, it's about finding a balance between living for today and planning for tomorrow. And your goals, values and priorities should inform how to divide your money wisely between the two.

It’s more often than not that when we hear any chat about superannuation, we don’t think it applies to us because we’re not retired.

Truth is, super conversations aren’t just for retirees.

To prepare you for retirement and set yourself up retire comfortably, the ground work you do in your 30’s and 40’s is just as important as the work you do with your super in your 50’s and 60’s and I’m not simply talking about the amount of super you put away month to month, I’m talking about understanding what super is, cutting through the jargon, getting advice on funds - all of those things.

The last thing you want to do is turn up to retirement unprepared because it is as big a life event as starting a family.

Start reading and start talking NOW.

By viewing super as your ‘investment’ and building it into your overall wealth building strategy now, your “in-20-years-from-now” self will love you for it.

I mean seriously love you for it.

And if you just don’t know where to start, well you’re in the right place!

This is your reminder that wealth isn’t defined by owning designer bags or luxury cars, flying first class to Europe or how big your home/s are.

While society often paints wealth (and financial success) as luxury holidays and designer items, true wealth is a richer tapestry. We need to remember it's deeply personal and multifaceted, and in my opinion, nothing to do with material possessions.

I believe that wealth is about having the freedom to pursue your passions and shape your life on your own terms. I believe in balance too, being able to enjoy your lifestyle now, while also building a solid foundation for the future. It shouldn’t be all work and no pleasure either, work out what’s most important and build your plan to incorporate this. Whether it be spending time with loved ones, pursuing hobbies that light you up or contributing to causes that align with your values.

That's why setting goals tailored to your personal aspirations is vital. Because financial success isn't a one-size-fits-all concept—it means different things to different people. By defining what wealth, financial security and financial success means to you, you can start to build your plan and pave the way for a journey toward both financial and personal fulfilment.

So, let's shift our perspective on wealth and know that you can be financially successful without the designer items!

As a financial advisor, I've seen firsthand how money issues can be at the heart of relationship challenges.

According to Relationships Australia, financial stress is a significant factor in relationship breakdowns, with 7 out of 10 couples experiencing tension due to financial matters.

Our emotional needs often manifest in how we handle money. Tension, anger, resentment, or blame about finances usually stem from deeper issues related to our dreams and fears, not the money itself.

Here are some tips for starting the money conversation in a relationship. ➡️

No need for secrets or complex strategies when it comes to financial success. Let's keep it simple and focus on the basics:

✨ Spend Less Than You Earn: It's the fundamental rule for financial stability. By living within your means, you create room for saving, investing, or paying off debt.

✨ Have a Strategy for Debt: Debt can weigh heavily if not managed wisely. Prioritise paying off high-interest debt, consider consolidation, and negotiate repayment terms to regain control.

✨ Invest in the Long Term: Investing isn't about quick gains; it's about building wealth over time. Stay patient, diversify your portfolio, and align your investments with your long-term goals.

✨ Set Goals: Clear financial goals provide direction and motivation. Whether it's saving for a dream vacation or planning for retirement, having a roadmap helps you make intentional decisions.

✨ Avoid Keeping Up with the Joneses: Resist the urge to overspend to impress others. Focus on living authentically and align your spending with your values and priorities.

With these simple principles in mind, you can navigate your financial journey with confidence and clarity.

moneymanagement

You know, it's a common misconception that not earning enough money is what holds people back from getting ahead financially. But let me be real with you—it's not always about how much you make. The real issue often lies in something much simpler: budgeting.

Yep, you heard that right. Budgeting—or rather, the lack thereof—is often the culprit behind financial struggles. It's not about having a huge income; it's about how you manage the money you do have.

Think about it. Without a budget, it's like sailing a ship without a compass. You might have some idea of where you're going, but you're bound to hit rough waters sooner or later.

But here's the thing: budgeting doesn't have to be complicated or intimidating. It's about being honest with yourself about your income and expenses, and then making a plan to allocate your money wisely.

So, if you're feeling like you're stuck in a financial rut, take a moment to reflect. Are you budgeting effectively? Are you making the most of the money you have? If not, don't worry—you're not alone. And the good news is, it's never too late to start.

Budgeting is the foundation of financial success, and it's something that anyone can learn to do. So, let's ditch the excuses and start taking control of our finances together. Trust me, you'll thank yourself later.

And hey, to help you get started, I've got a free budget template that you can download. It's designed to make budgeting simple and straightforward, so you can start making progress towards your financial goals today.

It's not uncommon for clients to feel ashamed or embarrassed about seeking financial guidance.

There's often this misconception that if you're earning a decent income, money shouldn't be an issue, and you should inherently know how to manage it.

But here's the truth: financial literacy isn't innate, and it's okay to ask for help regardless of your income level.

At Money Mode, we understand the weight of financial stress and the stigma surrounding it. That's why we're here—to dismantle those barriers and provide accessible, understandable financial advice. Our mission is simple: we genuinely want to make a difference in people's lives, irrespective of where they are on their financial journey.

So, if you're feeling the pressure or shame, I want you to let go of that burden.

Asking for help is not a sign of weakness; it's the first step towards building a secure financial future—one that offers freedom, not stress.

Remember, you're not alone, and we're here to support you every step of the way.

If your New Year's resolution was to get your finances in order, but it's already May and you're still telling yourself:

"I'm too busy,"

"I'm too overwhelmed,"

"I still have time,"

"When things calm down,"

"After the next holidays,"

Or whatever your reason may be...

Maybe it's time to stop delaying and just take that first step.

Stop putting it off, stop overthinking, stop analyzing every detail, stop merely wishing for change, and stop pretending everything's okay. Instead, let's start taking action.

In other words, let's stop overcomplicating things and join forces.

Think of me as the pain reliever for your financial headaches, the boost of nutrients for your financial goals, and the powerful tool to tackle your debt head-on.

Many households have been hoping for rate decreases this year, but that is looking very unlikely right now.

It’s prudent to get a handle on your personal cash flow to absorb any potential rises that could occur.

If your plan is to hope for the best, let’s change that for you.

In a time of rising interest rates and cost of living pressures, it’s more important than ever to be on the front foot and have a plan.

And the best place to start is with a budget.

I know, the 'B' word - but it is a critical step to managing money! Having a budget, or a spending plan, is going to help you know where your money is going and have a sense of control over it. It might sounds simple, but making sure you have room to move in your budget and buffers in place is essential right now.

By understanding your numbers and completing a spending plan, you have the greatest opportunity to TELL your money where to go!

I have a FREE spending plan template that you can download to get you clear on where your money is going and how you can take control of your finances to help reduce the stress and worry of potential rate rises and cost of living pressures.

The federal budget has just been handed down. This is like a financial advisor’s Met Gala. 🤩

But if you’re not an absolute finance nerd like I am, reading through the 2024 budget can be a little dry.

There were plenty of proposals in this years federal budget, however here are my top 5 take-outs that I think my clients will be excited about:

- Cost of living relief through energy rebates
- Super on paid parental leave
- A cap on student loan indexation
- A ‘deeming’ freeze for Age Pensioners
- Extension of small business write-off concession

The above might provide some immediate financial relief for households, however the burning question many of us have is: What is going to happen to interest rates and inflation?

Swipe across to learn more about these key takeaways and find out what's in store for interest rates and inflation.

A common question I get asked is how can we improve the dynamics of our relationship regarding cash flow?

How can we make this work in our relationship?

If you're in a relationship, navigating your cashflow might feel a little more complicated. It's not just the practical side of the money (managing all the dealing with money), it's also the emotional side that can be new territory to navigate. Competing priorities and different money stories are the common things that pop up.

It’s quite common that one member of a relationship will take on more of the admin role when it comes to our finances, such paying the bills and managing the bank transfers for example. This is totally OK, however this doesn’t mean the person doing the admin has to carry the mental load of your financial situation.

Here are my tips to help navigate money in your relationship:

💸 You both need to be on board with the way you manage your money and both understand the roles that you play.
💸 You should both be across the numbers and both agree on any parameters around spending from various joint accounts.
💸 Having shared goals is a really great way to have you united and empowered with your finances.
💸 Have regular money dates, check in on how things are working and tweak what you need. Celebrate your wins and turn the money conversations into rewarding ones.

Remember, the success of your system always lies in the outcome.

The secret to managing your money is to automate it. By this I mean allocating amounts of money based on your budget (or spending plan, as I like to call it) to separate bank accounts as an automatic transfer each pay cycle.

You should break your spending, or allocations, into 3 categories.

✅ Group 1: Essentials

✅ Group 2: Living

✅ Group 3: Lifestyle

This ensures your most important expenses are ALWAYS taken care of, you always have some money for fun stuff set aside, your goals are taking care of themselves and you can say goodbye to living paycheck to paycheck.

What’s your money story?

Your money story is integral to your financial health and well-being.

Your money story is your history with money. It’s the feelings, memories and emotions surrounding events where money was a key player whether it was the just-moved-out-of-home-with-friends-late-night-laundromat-slash-two-minute-noodle days [aka survival], the monthly discord when your parents balanced the home books [fear], your very first job [empowerment], gifts as rewards.

Your story led you to your current relationship with money.

It might be why you spend when you’re low or why you don’t allow yourself to enjoy what you have built.

Up for the challenge to uncover your money story - the good and the not so good?

It could be a catalyst for change.

Ask yourself, what emotion does money stir within you? Where do you believe this comes from?

Cashflow is the most important foundation of a financial plan and mastering this is the most certain way to build your wealth and take control of your financial future.

Here are some of my top tips to guide you from A to (financially) free.

Wealth accumulation has more to do with how you use your money than how much money you earn and I’m sharing this because I think it’s something we often lose sight of.

More money, more problems?
Yes if good habits aren’t in place.
Yes if there is no plan, not even a budget.
Yes, you still need an element of discipline.

You might be feeling the pinch right now but building healthy financial habits, with a plan and determination goes a long way to buffering you from the current economic climate.

If you’re looking to create good money habits, then you’re in the right place! 👏

This is a crucial step for anyone who wants to achieve financial success. ✨

I prefer to call it a spending plan, as it's a much friendlier term than the somewhat off-putting 'budget', but essentially, they are the same thing—and it's vital!

Here's how you can create your spending plan:

💸 Determine exactly where your money is currently going. Understanding what needs changing is the first step to making a change.

💸 Develop your spending plan – refine your budget based on the above to intentionally direct your money where you want it to go. Ensure you're considering your goals, values, and priorities when assigning amounts to different categories.

💸 For all the expenses that are staying, give them a spring cleaning – negotiate better deals where possible.

💸 Track your spending – after creating a spending plan, it's important to monitor your actual expenditures against it. This practice helps you hold yourself accountable and adjust the plan as needed.

Finally, always ensure you are spending less than you earn! 😊

If you just don’t know where to start with creating a spending plan, I’ve got a free budget template that you can download.

It’s simple and easy to use and a great step in the direction of financial freedom as you direct your money with intention!

Just click the link to download it: https://linktr.ee/moneymode_

Grab a cuppa, and let’s sit down and talk money and goals.

When I work with a client on financial goal setting, they are shocked when I tell them that their money goals should NOT come first in their goal setting! 🤯

What’s important is to set your big-picture goals first and prioritise these, so you can figure out what is truly important to you and the impact they're going to have on your life. Then, start setting your goals that way.

The reason is, sometimes we get so caught up in reaching a particular financial goal that we lose sight of WHY we are doing it!

If you're stuck on a financial goal you want to achieve, try applying the philosophy in reverse...

For example, by accumulating a set amount of money, what is that going to allow me or my family to do and feel?

How does having a certain level of money honour our values and meet our purpose?

This will help you understand the driving force (there has to be one!) behind the goal. You need to start seeing the financial side of goals as the enabler to realising your broader life goals.

Let’s say you’re stuck on a financial goal such as: I want to pay my mortgage off 10 years earlier...

Start to peel back the layers on what this is going to enable.

What is the purpose of this goal?

For example: It will allow us to have the security of owning our own home, handing control back to us, not the banks.

Because we will be working towards a more manageable (and then $0) mortgage, this will give us the flexibility to make choices about our work and family life because we are not making decisions around being beholden to meeting our debts.

This will provide us with the freedom of owning our home, providing stability and safety.

It will free up some of our cash flow, allowing us to make choices that could include traveling, working less, or saving for other goals.

It will provide us with choices, while maintaining security.

This approach to financial planning flips the script on traditional money management.

We craft financial strategies that enhance both your wealth and happiness, focusing beyond numbers to what truly matters in your life. 💛

The MoneyMode school is in full swing and recently we did a lesson all about future-proofing you and your family!

Future-proofing is a crucial foundation to a financial plan because without out, our best-laid plans can come unstuck and derail our financial future. There are many unexpected events that we can’t control, but with some planning and consideration, in most cases, we can have some control over the financial impact of them

So I wanted to share with you the key actions that you can take NOW to future-proof you and your family.

👉🏻 Start your emergency fund - do what you can to get it started. Then build it up to 3-6 months worth of living expenses!

👉🏻 Review your insurance cover - reaching out to a professional will help ensure you have adequate cover and quality policies.

👉🏻 Review your Estate Plan.

We don’t like to think the worst can happen, and let’s hope it doesn’t, but we’ve all heard or story or know someone who wasn’t financially protected through some of life’s twists and turns. Make sure that’s not you and add ‘future-proofing’ to the top of your to-do list, not just for you, but importantly your family.

We’re four months into the year, how are you tracking with the goals you set? 👀

Now is the best time to check in and revisit them.

I also want to remind you that adjusting the plan is okay!

Never lose sight of the fact that the role of our financial goals is to support us in achieving our life goals and to enable us to live life on our own terms.

One of the very first things I ask my clients to help them set their financial goals is to NOT think about the money but to think about their life plan and what they’d like to be working towards.

For those keen to set goals, I’m going to give you a spoiler: Goals should always be about your own passions.

Forget about other people’s expectations, and making comparisons with friends or family your goals are the things that set *you* on fire, they are aligned to *your values*.

So, what does your big picture look like?

What’s on the bucket list?

The “freedom list?

What does your life look like in a year from now? In 3, 5 ,10, 20??

How are you living your life right now?

Have a think about it. Dream big! 💭

Now for my friends who have set their goals, has the current environment changed anything? Has the big picture changed or the day-to-day?

You don’t have to decide tonight or tomorrow or next week, just think because putting meaning behind your approach to money makes all of the difference.

The Moneymode School ‘intensive’ kicks of on Monday!!! Hope to see you there (head to the link in my bio or site to join us).

What’s MMS all about?

To make it simple, I’ve broken down Moneymode School into three categories:

🌿 Where you are now:
This is money 101; the foundations. Together, we get your financial house in order, create money management systems and unleash some future proofing to protect what you’ve built.

🌿 Where you need to go:
This is the part that I believe is lacking in the conversation and why I’m so passionate about taking a holistic approach to money. This section is about understanding your relationship with money and how that in turn works in other aspects of your life: with your partner, your children.

It’s here where we get clear on your goals and start to map out a Life Plan

🌿 How you get there:
Is it with home ownership? Shares? Property? Investments? Super?

How is Moneymode School delivered?

Online with video and written lessons, regular mentoring and coaching calls, workbooks, resources, templates so you can dip in and out, work at your own pace, think a little, talk a little.

And 6 weeks worth of live group based calls and coaching to give you all the support you need.

Understanding money shouldn’t be inaccessible.

Understanding money shouldn’t be “hard”

Understanding money shouldn’t be viewed as intuitive, it is something we learn.

Let’s make 2024 the year you take control of your financial future.

Link’s in my bio to learn more

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