Tag Archives: Savings

Savings & Momentum | Peter

I remember back in 2009 I ran the Melbourne Marathon, a whopping 42km run that took me over 5 hours, yep 5 long hours of continuous running (what was I thinking!?).  One day after completing the Marathon I went for a long run and asked myself, why am I doing this?  I’ve run the Marathon so why do I need to keep running, it just seemed pointless.

 

Fast forward to now and I constantly use this as a reminder that you need to keep setting yourself goals to allow you to keep up your momentum.  Over the past few years’ I set myself a budget (I know sounds boring) and goal to save up for a house, it did mean that I had to make some sacrifices, but I’m happy to say that in November 2016 my Fiancé and I bought our first house.

 

 

Now the key is to keep up my momentum on the savings to achieve further goals, I’m happy to announce I also got recently engaged, but with that comes the massive expense of a Wedding and Honeymoon (Yikes!).  To keep us motivated and the momentum going my fiancé and I keep thinking of the next big thing we need to save for.  Once the Wedding and Honeymoon is done and dusted, the focus will then be on getting that pesky loan down, having an enjoyable life (travel and new shiny things), and I guess at some point kids will pop into the picture (yep another big expense).

 

At the end of the day I find the best thing to do is continue to set yourself a goal, if you don’t I find you lose your momentum, and this is evidenced by me becoming lazy after the Marathon (yep the waistline has grown).  Now that I’ve continued to set myself new goals with my Fiancé, we are continually saving and working towards a common goal allowing us to keep up our momentum.  In the end this will hopefully allow us to enjoy our life and hit our goals, and hopefully I’ll get my nice new shiny Audi one day!


Keeping momentum with your savings

We’ve just passed the first quarter of the year and it’s also this time of the year that you may begin to see some of your New Year’s resolutions start to lose momentum. More specifically we’ll look at your savings goal and tips on how to ensure you maintain the momentum and consistently save throughout the year. Often the beginning of the year is when you look to commence a New Year’s resolution. One common New Year’s resolution is to come up with a savings goal. The issue however is that the momentum starts to slow down after a couple of months into the year. Here are some tips, which may assist you in ensuring you maintain the momentum and consistently save each month.

 

Use technology as it’s readily available now
One of the most common factors that prevent consistent savings is the tedious process of having to keep track of all the income and expenses from day to day. Having to remember what that $50 you withdrew the other week was for, or remembering to retain all the receipts from last month, so you can register the amounts can become very tiresome, very quickly. Luckily we now have technology to assist us in keeping track of all your income and expenses and programs which are able to link all your bank accounts and credits cards.  This means after the initial set up of the accounts, all you have to do is spend between 5 – 10 minutes each week checking your income and expenses online. You can even download an app to your phone, so you could categorise your expense and review your cash flow anywhere. Having a simple method of tracking your income and expenses will assist you in consistently reaching your savings goals.

 

Simplify expenses and income details
Another common mistake we see is having too many categories in your budget. In your expenses section you may have a category for fruit and veg, then another category for groceries and perhaps even another category for meat. Ultimately you could just bundle all these expenses together into groceries and reduce the amount of categories under expenses. Furthermore, consistently recording certain expenses the same each month / week is also crucial. This means do not record the costs of your fruit and veg as groceries one week and then the next week record it as shopping.  The same applies to your income. If you have income derived from several jobs, you could simply categorize all the income as salary, instead of recording each income individually. Having fewer categories will make it easier for you to analyse and compare your income and expenses from time to time.

 

Turn your savings goal into your lifestyle
One of the most important reasons why you should stick to your savings goal is that once you’ve consistently saved for a period of time, you will automatically change your daily spending habits. When you initially start to review your expenditure, it will feel very daunting and painful knowing you can’t buy that new phone that’s been released as it means you won’t reach your savings goal for the month. However over time you’ll find it becomes easier and easier to manage all your spending. This means that eventually you won’t even think of the savings plan as a painful task but rather something you just do naturally. The trick is to stay consistent each month.

 

Never lose sight of your original goal (Have a Cash Coach on your side)
Whether it’s to purchase a new car, your first home, or save for the next family holiday, we generally start a savings plan with a specific goal in mind. The issue arises when motivation starts to lack and our vision of the original goal starts to blur. There is also the issue of temptation, knowing that there’s now a certain amount saved up, it’s very tempting to make impulse purchases on things we don’t need. The important tip to remember is to never lose sight of your original goal and keep yourself disciplined and accountable in order to reach that goal. This may mean you get your partner, family member or friend to keep you accountable. Even better is to have a financial adviser in your corner. Similar to having a personal trainer at the gym, having a financial adviser on your side means you receive that additional support in order to achieve your savings goals.

 

Here at JBS we have a Cash Coach program, which assist clients in tracking their income and spending every day. More importantly JBS acts as a coach and will evaluate your performance each month, to ensure you’re still on track to meet your goal. If you’re thinking about starting a savings plan or just need someone in your corner to help you save, JBS can assist.

 

– Andy Lay –


Cash Flow Management

There’s something about starting a new year that brings with it a tonne of motivation. That fresh start where you can re-set, clean-up, and where energy levels are high and excitement at its peak. Where our passion for giving those dreams of ours a really good shot is reignited and our visions of living bigger and better are at the forefront of our thinking.

 

However, we get to March and the motivation starts to taper off and by April most goals have been abandoned or forgotten about. Research shows, in the end only about 8% of people stick with their good intentions.

 

So what do this 8% do differently? Are they just more willing to invest wholeheartedly to work towards their goals? Maybe, but experts say it has more to do with how they set themselves up for success. Specifically, they use January to re-set themselves and clean up any messes from the previous year, then invest the time and effort into effective goal planning.

 

So with the new year having now kicked off, here’s a list of the best results-driven tactics to ensure you are part of that 8% and make 2017 your best year yet:
Get Super Clear

Vague or generalised goals such as ‘save more’ won’t serve you. They need to be specific and well defined so that they can be measured.

 

–  What?

–  When?

–  And How?

 

Specific goals such as ‘pay off credit cards by March’ are easier to measure. By then mapping out the action steps required it is then easier to achieve the goal than not.

 

But there’s also the why? Connecting emotion with your goals will help you remember why they were important in the first place and will reignite your passion for reaching them when things get difficult.

 

Write it Down

Study after study has shown that those who write down their goals accomplish significantly more than those who don’t. Why? Putting pen to paper forces you to clarify what you want, it motivates you to take action and it makes it easier for you to see your progress and celebrate your successes.

 

Get Support & Accountability

We’ve all heard the importance of being around the right people, especially when chasing our goals.  When you’re in pursuit of a dream, there are many elements that can resist your path and block your forward motion.  Surrounding yourself with people that are genuinely cheering for you will help you disengage from this resistance and keep you moving forward.

 

That’s where JBS fits in. We believe (and know!) that the biggest influence of you achieving your financial and lifestyle goals is firstly to have clarity on what your goals are, then aligning your cash flow to help you achieve those goals. Fortunately for you we have a program designed to help you achieve this.

 

The JBS Cash Coach program is tailored to you, your needs, your goals, and the actions you need to take to achieve those goals.  We take the time to understand you, then design solutions to help you achieve your goals. We help you create a spending and savings plan that is aligned to your goals, and keep you accountable and motivated on a monthly basis to maximise the probability of achieving your goals so you can have the lifestyle you are entitled too in 2017 and into the future.

 

The early part of 2017 is the perfect time de-clutter your life of the excess build up from last year, clean up, clear your head, set motivating goals, and get moving towards those goals.

 

The JBS Cash Coach program will help you get the most out of 2017 but only if you take action. Make time and join the best support network around (aka JBS Cash Coach).


Tips to Start Saving Money

No matter where you are on your financial journey, you need to know that it’s possible for anyone to turn their financial life around. As with most things, sometimes that very first step is the hardest part. We have created a list of tips to start saving money today.

 

None of these tactics will be life-changing on their own, but they can make a difference over time if you are able to implement more than one. Some of these suggestions take just a few minutes, while others require a bit of regular effort. Still, they’re all incredibly simple – anyone can do them.

 

So here we go with our money saving ideas:

 
– Have a save buddy. Saving while hanging out with spenders can mean your money goes Tips for Saving Moneyon impulsive or unnecessary items

 
– Review your bank accounts. Are you paying fees? Are there cheaper offerings? Are you restricted on what you can do with your money?

 
– Master the 30-day rule, waiting 30 days to decide on a purchase can give you better perspective on whether it’s truly worth the money, often the urge to buy the item has passed

 
– Write a shopping list before you go shopping to avoid impulse buying

 
– Lock up your credit card for a month and only pay for things with cash

 
– Set a limit for birthday and Christmas presents and don’t go over

 
– Buy in bulk

 
– Have a portion of your salary paid directly into your separate savings account

 
– Set a savings goal

 
– Pay your bills on time to avoid late fees

 
– Shop around for necessities such as car insurance, house and contents insurance, gas, electricity, phone, etc.

 
– Unsubscribe from sale email alerts. This is just constant temptation

 
– Stop buying bottled water! Buy a water filter instead if you can’t drink tap water

 
– Only purchase classic clothing that you can wear again. If you know you’ll only wear it once or twice, consider borrowing from someone rather than buying that sequent and lace floor length ball gown

 
– Empty your pockets and wallets of coins at the end of each day into a jar. But make sure to deposit into your savings account and not dive into because you want a coffee

 
– Double down. If you do have to buy luxury items, like makeup, wine or clothes, try saving the same amount. $15 on that gorgeous red lippy you had to have might not seem so great when it comes with another $15 savings requirement. If you can’t afford both, then you have to step away.

 

If you struggle to manage your money and wonder where your savings disappear to each month, fear not! Our comprehensive program will put you back into the driving seat, using high impact track and reporting technology teamed with expert advice. We’ll help you get your finances on track, so you can achieve your goals, plan for the future and say hello to a happier, healthier life where YOU are in control.

 

Cash Coach is a program run by JBS Financial Strategists. We believe that the biggest influence on achieving your goals is how you use your cash flow, so we start from there and help you develop great money management skills. Our aim is for you to consistently have money left over at the end of the month, so you can direct it towards the stuff that really counts!

 

If you’re not sure where to start – contact the team at JBS and we can run through a financial health check with you. This is a great way to understand your financial position and the team can identify any trouble areas, offer possible solutions and could also find growth areas you may not have considered.

 

Happy Saving 🙂


Tips to Save for a House Deposit

Buying your first home has never felt harder and it’s clear that people could use a helping hand.  Australian’s typically approach their finances with a ‘do-it-yourself’ attitude, and have quite a reactive, last minute approach when facing up to life-changing events such as home ownership.  House Deposit

We understand Australians have a high emotional drive for property ownership and we see the importance to satisfy this driver to create life satisfaction.

Here are some tips to help make it happen:

Tip 1 – Determine / Cut Down your Expenses:  Saving the house deposit is going to involve some sacrifice.  Try cutting down on a little luxury each week.  It all adds up.  As a first step, determine what your living expenses are so you are happy, whilst also ensuring there is money left over to save.

Tip 2 – Start Now:  It doesn’t matter if you don’t know exactly where you will buy.  It’s going to take some time to save for a house deposit, so start a regular savings plan now and sort the finer details later.

Tip 3 – Stash your Cash somewhere Sensible:  Investing short term in the share market is not usually a good option.  Whilst an online savings account doesn’t pay much in interest, it is most likely the right place to save for your house deposit.

Tip 4 – Avoid Paying Rent:  One of the hardest parts about saving for a deposit is saving cash whilst also renting.  Living with your parents is not always an option, however if this is possible it will supercharge your savings.

Tip 5 – Save like you’re paying a mortgage:  Many people say they find it hard to save because they’re renting and still have all the other expenses as well.  If you have to rent, then as a minimum you should be saving the difference between your rent and expected mortgage repayments.

Tip 6 – Don’t forget Lenders Mortgage Insurance (LMI):  If you can save 15% – 20% of the purchase price you will generally avoid paying LMI.  The aim should be to avoid LMI because the insurance isn’t actually for you, it’s to protect the lender.

Tip 7 – Allow for Other Extra Costs:  Costs such as Stamp Duty and conveyancing add up and need to be factored in.  The Stamp Duty amount will depend on the purchase price and the State in which you purchase, whilst conveyancing costs will range somewhere between $800 – $2,500.

How JBS can Assist

We believe the biggest influence on you achieving your financial and lifestyle goals is how you best utilise your cash flow.

This has driven us to develop the JBS Cash Coach program which aims to assist the Generation X & Y demographic, and anyone else requiring advice / coaching / mentoring / tracking / accountability regarding their cash flow and financial goals, such as purchasing a first home / debt reduction / retirement planning etc.

We assist clients to develop great money management skills.  This puts you back into the driving seat, using high impact track and reporting technology teamed with expert advice.  We help clients get their finances back on track, so they can achieve their goal.

We have helped around 10 clients this year purchase their first home, and this was achieved through the JBS Cash Coach program.

If this is something of interest and you are looking for accountability and ongoing advice around achieving your savings goals / house purchase please give JBS a call.

Please refer to this brochure for further details.