Author name: Andy Lee

Why Is Budgeting So Important?

2 Comments / /

Why is budgeting so important? While people often associate the word budget with ‘restrictions’, that’s simply not the case. It is a financial tool that allows you to objectively look at your financial position, and gives you an easy way to plan how you can achieve your financial goals. No one creates a budget for the fun of it (ok, maybe some people do), but it is an important step if you want to achieve financial freedom. It is important for you to know how much money is coming into your bank account every week/month, and how much money is going out. But there are much more benefits to budgeting that you probably aren’t aware of. Benefits of Budgeting Financial freedom Achieve your goals Retire early Reduce your stress Makes you happier Helps you avoid or get out of debt. If you’re a budgeting noob, click here where we take you through the process of building a budget step by step.      1. Financial freedom Financial freedom is when your assets produce enough income to cover your expenses. In other words, your passive income generates enough money for you to live comfortably without working. But in order to be financially free, the cash that flows into your account must be greater than the amount that leaves. But how do you know if more cash is coming in than going out? That’s why you need a budget. A budget will give you a clear picture about your financial position. Once you know what your financial position is, you can plan a strategy to help you be financially free, whether that’s by increasing the amount of money-producing assets you own or by reducing your expenses. But you can only know what to do once you can see the picture clearly. That’s what the budget is for.      2. Achieving your goals What’s your goal for this year? What’s your goal in life? Is it to travel more? Or to buy a house? Or something entirely different? But setting goals is easy. Anyone can do it. But achieving your goals can be difficult. Which is why budgeting is so important. A budget can help you stay focused and keep you on track. You can easily tell if you’re on track, or moving away from your goal.      3. Retire early Building on the last point, a budget can help you retire early if that’s one of your goals. If your goal is to retire early, you need to know how much money you’ll need when you retire so you don’t have to work again. To do that, you’ll need to know how much you need in passive income and savings to cover your expenses. A budget will simplify that for you. Furthermore, because you have a financial goal (to retire early), you can budget accordingly so that you can make that dream a reality. A budget will tell you exactly how much you should save in order to meet your goal, and which expenses can be reduced in order to support your goal.      4. Reduce stress One of the most common causes of stress is financial issues. That’s because most people don’t have a budget and they don’t know if they can survive until the next pay day. They’re worried if they have enough money to pay off their mortgage or for emergencies. By having a budget, you can combat the stress by eliminating financial worries. If you live your life on a budget, you’ll never spend beyond your means and you will be well prepared for any unexpected expenses. With a budget, you will sleep peacefully at night knowing that you have got all your finances covered, even in unexpected circumstances.      5. Makes you happier Have you ever felt only wanting more? Are you ‘keeping up with the Joneses’? If you spend all your time focusing on the materialistic objects of other people, you’ll never be happy. You will spend money you don’t have, to buy things you don’t need, to impress people you don’t even like. Without a budget, you’ll find yourself in a negative spiral. But every time you sit down to record your expenses, you are making a conscious effort to focus on yourself instead of everyone else. And after a while, you’ll completely lose focus of what others are doing with their money. Instead, you’ll be focusing on yourself and what you have. And trust me, you’ll begin to appreciate what you have and you will no longer care about other people’s things.      6. Helps you avoid or get out of debt. If you want to build wealth, then you need to stop accumulating ‘bad debt’. Bad debt is any debt that you accrue buying things that you don’t need or doesn’t make you money. We’re not saying that you shouldn’t buy things that you enjoy, we’re saying that you shouldn’t buy these things with debt. Bad debt itself is bad. What’s even worse is that you’re paying interest on top of it. So you’re paying more for things that you don’t need. You shouldn’t confuse ‘bad debt’ with ‘good debt’. Good debt is any debt you accrue in order to increase your passive income. For example, you might get a low interest loan to buy a commercial building that will reward you with passive income. If the commercial building generates passive income that is greater than your loan repayments, then you’ve got an asset without actually paying for it. If you’re serious about building wealth, you first need to take a moment for self-reflection. Click here to find out if you have the right mindset to build wealth.

Why Is Budgeting So Important? Read More »

Young Australian’s Top Stories This Week (July 10)

Leave a Comment / /

The Top Stories This Week From A Young Australian’s Perspective.      1. The Reserve Bank of Australia raised the cash rate to 1.35%. What does this mean for young Australians? Just four weeks after announcing a cash rate increase of 50 basis points (0.5%), the RBA has announced another cash rate increase by the same amount. The cash rate now sits at 1.35% Similar to the cash rate increase from a month ago, a higher cash means a higher interest rate. And a higher interest rate is good for savers, but bad for borrowers. Not sure how increasing interest affects borrowers and savers? Click here to read our explanation from the previous cash rate hike. So if you have a mortgage or personal loan, this means that you’ll be paying more interest to your banks. Which means less discretionary spending for you. But if you have a high-interest savings account, then the bank will pay you more for having your money in the savings account. Read how interest rates and inflation go hand in hand here.        2. House prices continues to fall What does this mean for young Australians? House prices have been falling since April and it doesn’t look like it’s stopping soon. Last month, Sydney recorded a 1.6% drop in home prices, the largest since 1989. For young Australians, this is probably music to your ears! With house prices finally coming down, the dream of owning your home might actually be possible in the years to come. But with potentially more cash rate increases still to come, house prices might fall even further. Many economists expect that by the time the housing market reaches its lowest point, house prices will have fallen by more than 15%.

Young Australian’s Top Stories This Week (July 10) Read More »

8 Easy Side Hustle Ideas While You’re Still Studying

1 Comment / /

We could always use a little more money. But earning money can be difficult if you’re also studying full time. Whether it’s studying for an upcoming exam or finishing off your assignments, finding a dedicated five or six hour block in the day for part-time work can be really challenging. It’s even more difficult during exam periods, where every hour of study and revision can have a big outcome on the grade you receive. This is why some people choose to start a side hustle instead of getting a part-time job. With a side hustle, you get to set your own hours; choosing when to work and for how long. This way, you’ll be able to earn money without sacrificing your university grades. As a side hustler, you get the option to choose. You might choose to work 20 hours a week during the semester, 40 hours a week during the holidays, and none at all during the examination period to focus solely on your courses. But you probably want to have a side hustle that’s easy to do. After all, your courses are already stressing you out. You don’t need a side hustle that builds on that stress. So we’ve compiled a list of the easiest side hustles that you can do right now, with little to no skills involved: Blogging Secret Shopper Driving for UberEats/DoorDash Babysitting/Dog Sitting Tutoring Handyman Flipping goods Writing/Copywriting Side Hustles That Are So Easy That Anyone Can Do It      1. Blogging Blogging is simply creating and self-publishing content online. Writing is the most common form of blogging, although photography blogs and videography blogs (vlogs) are popular as well. You can blog about anything. You can write a blog about anything and everything, although most people blog about their hobbies and interests. If there’s a hobby or a topic that you know a lot about, you can write about it. To start a blog, you need a website. You can either create your own website or you can use a website builder like Squarespace. You make money blogging from ad revenue. Google AdSense is the go-to web monetization platform, although there are others out there as well. You can also make money blogging from affiliate marketing. In affiliate marketing, you earn a commission for marketing another company’s product.      2. Secret Shopper Secret shopper is one of the easiest ways to make some extra money. As a secret shopper, you are hired to shop in stores and collect information about your experience. You are essentially a ‘undercover customer’. You shop, and provide feedback on your experience. The questions are really simple and doesn’t take too long. Some mystery shopping assignments also pay a fairly good compensation. And hey, you get paid to shop!!      3. Driver for food delivery platforms If you’ve got a car, then you can definitely consider driving for food delivery platforms like Ubereats, Menulog, and Deliveroo. If you’ve got some free time, simply log in to the app and get started. And when you’ve had enough, simply log off and call it a day. While you can make good money during peak times, just remember you’re also including fuel expenses when working out your take-home pay. Additionally, you’re also adding additional wear and tear on your vehicle. We recommend driving for food delivery platforms instead of rideshare (Uber, Lyft, Didi, etc) as there are more restrictions when driving for rideshare and you won’t need to worry about customer interactions.      4. Babysitting/Dog Sitting Get paid to look after a child or dog. How hard can it be? Depending on the child, their age, and their requirements, it can either be the easiest job in the world or the hardest. But most likely it’s going to be somewhere in between. An advantage to baby/dog sitting is that you can also study whilst you’re babysitting. Essentially, you’re getting paid to study! Just make sure to have all rules and expectations set out with the parents beforehand. You should sort out beforehand stuff like: when the kids are expected to go to bed; how much screen time the kids are allowed; what time the parents are expected to be back; and if the kids have any allergies. Dog sitting is pretty much the same as babysitting, but just much easier. Easy Side Hustles With Some Skill Involved      5. Tutoring Tutoring is also a common method for students to make money. The pay can vary slightly, but if you’ve achieved the highest mark in the subject, you can often charge top dollar. This option isn’t limited to tutoring school subjects. You can also offer to teach other people skills that you have learnt. This includes teaching others how to play instruments, speak different languages, and private sports coaching. However, you also need to be an excellent communicator as well. Even if you achieve the highest mark, that doesn’t matter if you can’t effectively communicate to the student.      6. Handyman If you’re handy with your hands and tools, you can put it to use. From assembling furniture to fixing up curtain railings, there’s heaps of jobs around the home that other people would gladly pay you to do. Websites like Airtasker are the best place for you to earn some cash helping people with jobs around the home.      7. Repairing and reselling goods Are you good with your hands but also have some specialised knowledge? In that case, you can put that knowledge to good use by restoring old furniture, cars, or even renovating entire rooms. If you find antique furniture that looks like it has seen better days, why not take it home, give it a face lift, and resell it?      8. Writing/Copywriting Do you have a way with words? If the answer is yes, then you might want to consider working as a freelance writer. There is always a demand for good creative writers to generate ad copy, social media

8 Easy Side Hustle Ideas While You’re Still Studying Read More »

Young Australian’s Top Stories This Week (July 3)

1 Comment / /

The Top Stories This Week From A Young Australian’s Perspective.      1. Tax Time is Here What does this mean for young Australians? As the cost of living keeps skyrocketing with no end in sight, you might be keen to lodge your tax return as soon as possible so that you can get your hands on your tax returns. However, the ATO has urged Australians to hold off submitting your tax returns until later this month. This is because people are more likely to make simple mistakes or miss crucial information if you submit early. This is because all your income information needs to be filled out accurately. For most Australians, this means waiting until your income statement or payment summary has been done by your employer. This information usually arrives mid-July. Once the ATO has this information, it is automatically filled out for you when you lodge your tax return. So to avoid mistakes and missing information, the ATO recommends waiting until the end of July to submit your tax returns after this information has already been pre-filled. But just remember to submit your tax return by the 31st of October.        2. Queensland Increasing Fines For Seat Belts and Speeding What does this mean for young Australians? From July 1, Queenslanders who disobey road rules will be looking at significantly higher fines. These changes are part of the Queensland government’s new ten-year road safety strategy. The fine for being caught without a seatbelt has increased by 150%, from $413 to $1087. Running a red light will now cost you $575, up from $413. The fines for speeding have also increased, but the fine depends on how much you’re driving over the speed limit. So unless you’ve got a spare couple thousand of dollars lying around your house, make sure to follow the road rules. You can view the entire list of fines for traffic offences here.         3. Queensland will ban disposable coffee cups What does this mean for young Australians? Under a new five year plan under the Queensland government to reduce plastics, a lot more plastic products will no longer be available from September next year. The list of products include disposable coffee cups, polystyrene packing peanuts, plastic-stemmed cotton buds, bread tags, and sauce sachets. The mass release of balloons will also no longer be allowed. Queensland has already banned the use of plastic shopping bags back in 2018. While Queensland might be the first state to ban disposable coffee cups, you can probably expect the other states and territories to follow suit in the next couple of years as well. So be prepared to carry around your own coffee cups when you head to your favourite café

Young Australian’s Top Stories This Week (July 3) Read More »

Different Paths To Build Wealth

1 Comment / /

Nothing in life is free. Getting ahead in life means also making sacrifices. So if you want to build up your wealth, you also need to make sacrifices. But there are a lot of different ways to get rich, but they all require some sort of sacrifice. Here are the most common ways of getting rich. Which of these paths would you pick?      1. Live on as little as possible. It’s not how much money you make, but how much you keep. You can earn a million dollars a year, but that wouldn’t matter if you’re paying a million dollars a year in interest. Most people choose this way to build their wealth, and it’s a pretty safe and reliable path. But you also sacrifice a lot of experiences. Instead of driving a near-new car, you’re driving a 20-year-old beater that was given to you by your parents. Rather than travelling to an exotic country, you explore the natural wonderlands around the city. Instead of buying new clothes every season, you thrift and wear the same clothes year after year. Living on as little as possible is a safe and reliable way to build your wealth, but you also miss out on a lot of experiences.      2. Marry into wealth You can also choose to marry someone for his or her money. It’s a popular way to get rich quickly and live a lavish lifestyle, but you’re also sacrificing a lot. You might not even like your spouse. Everything they do and stand for irritates you. You might hate their guts. You might wish that you were alone by yourself instead. But you can’t escape. You’ve already grown accustomed to the lavish lifestyle. The only way out is by getting a divorce, but that would also mean giving up most of your luxurious lifestyle.      3. Being a Crook You can also choose to become a crook. A con artist, a scammer, a scum of society. You can also get rich quickly using this method, but there’s obviously a lot of consequences. The biggest sacrifice you’ll make is your dignity. You’ll have to acknowledge the fact that you are of no value to society, and everyone hates you. But you’ll also sacrifice a peaceful life. You’ll spend your entire life looking over your shoulder. It might be someone you scammed that’s out to get their revenge, or the authorities putting you behind bars. You won’t have a comfortable life, but at least you’ll have money, right?      4. Improve yourself The last way most people become rich is by improving their financial knowledge. They hold themselves accountable for their life, their decisions, and their money. They never stop learning,They are continuous learners who strive for personal development, to become a better person. But you’ll have to work hard. You need patience and a willingness to accept that you don’t know anything. But you’ll also have to make sacrifices up front. Instead of going to concerts or out with friends, you’re attending classes and conferences. But soon, all of these sacrifices will pay off. So which one of these paths will you be taking? What are you willing to sacrifice in order to become wealthy?    

Different Paths To Build Wealth Read More »