Introduction

Generally speaking, we Australians are pretty financially savvy, that is, we understand the how and why of effectively managing our money. Unfortunately, that doesn’t mean we’re actually putting that know-how into practise and making astute financial decisions.

According to the Australian Bureau of Statistics (ABS), the average Australian household debt has risen by 7.3% (over $260,000) in the 2021-2022 financial year. As of July 2023, Australians were paying $18.4 billion – that’s billion with a B – in credit card interest every year.

Introduction

In the ever-fluctuating world of economics, recessions are an inevitable part of the financial cycle.

While they can be daunting, understanding their nature and preparing for their impact can make a significant difference in weathering the storm.

Understanding Recessions

At its core, a recession represents a period where economic activity contracts, often reflected in consecutive quarters of negative GDP (Gross Domestic Product) growth. This contraction is not just a statistic on a chart; it resonates through various facets of the economy.

Introduction

Spring is the perfect time to rejuvenate your financial habits as well as your garden!

Here are 5 ways to set you, and your garden, up for success:

1. Plan your garden: Start with deciding what type of garden you want. In other words, get clear about what goals you want to achieve and by when. Once you have your list of goals prioritise them, so you know where to focus your efforts.
Tip: If a goal is large and will take some time to achieve, set yourself some smaller goals with shorter timeframes along the way.

Introduction

Think back to when you got your first job and that sweet taste of financial independence. Regardless of what age you started working, it's unlikely you knew how to manage that first paycheck.

Let's face it; our world isn't particularly adept at teaching financial literacy to the younger generation.

I don't know about you, but when I was in school, we learned trigonometry (SOH-CAH-TOA is still permanently etched in my brain), which has been helpful for all the times I've needed to solve the missing sides and angles of a right triangle, but not so much for managing my financial affairs as an adult.

Introduction

Ever heard of zero-based budgeting? No? Originally developed in the late 1960s, zero-based budgeting is an accounting method that has experienced a revival in recent times.

In conventional budgeting, expenditure from previous periods is used as a starting point and raised by a set increment, resulting in many costs and expenses not being reviewed for years.

Conversely, zero-based budgeting does not assume increased costs are a matter of course. Instead, it involves redrafting the budget from scratch every period by analysing and justifying all expenses.

Introduction

Budgeting for retirement is like preparing your suitcase for an epic journey! Packing the right items and planning ahead is essential to ensure you don't run into any unexpected surprises along the way.

Why plan for your golden years

Just like a trip, when you're ready to retire, it's essential to have enough money saved to buy the things you need and do the things you want to do.

According to the Retirement Confidence Report, 38% of the 1,500 Australians surveyed over age 50 felt some anxiety about not having enough retirement savings.

Introduction

Now and then, Jodi borrowed $100 from her parents. She’s good for it, and always paid it back, but her situation was not uncommon.

5.9 million Australians live pay-to-pay

A study by Deloitte between November 2021 and January 2022, surveyed over 14,000 Millennials (born 1983 – 1994) and Gen Zs (born 1995 – 2003) worldwide.

The results were alarming: over 30% of respondents indicated that they did not feel financially secure, while 47% of millennials and 46% of Gen Zs lived paycheque-to-paycheque.

Introduction

We work hard to earn our income and even harder to save it to achieve our dreams. Even a few dollars saved on different types of bills over the years can compound to something meaningful. Let’s go through some of the ways that can help achieve these savings.

1. Track your expenses

Why should you track your expenses? To understand where you spend money so you can stop the unnecessary expenses. First, review your past expenses and then track the future ones.