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Goals for a new fiscal year

Fri, 21 Oct 2011 06:43:00 GMT

The Sydney Morning Herald

The founder of financial modelling website PlanYourWealth, Aaron Greaves, says the start of the financial year is a great time to make decisions. ''The first thing you've got to do is get to that point where you've made the decision to be serious about your finances,'' Greaves says.

''Once you've made that decision, you have to know your numbers: know what your assets are, know what your liabilities equal and, just as importantly, know your cash flow, know where you spend your money and your savings potential. If you spend more than you earn, then you can't save.'' The best way to know your numbers is to draw up a budget, Greaves says. ''Very rarely people have actually prepared a budget and if you don't know those things you've got no idea and no confidence going forward,'' he says. ''How can you invest in property or super if you have no idea what you're able to achieve?'' Once you have a solid understanding of your financial position today, you can begin to make realistic projections. Greaves says most plans are based on bridging the gap between what people would like their future financial position to be and what it actually is.

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"old" beliefs

Mon, 24 Oct 2011 06:44:00 GMT

Generational beliefs when investing in property

New Property and Old Property

Mon, 24 Oct 2011 06:43:00 GMT

The difference between new property and older property cashflow

Tips to celebrate the new financial year

Thu, 20 Oct 2011 22:06:00 GMT

The Sydney Morning Herald

To start off the financial year financially sound you must look at whether you have a financial plan or strategy in place to become financially independent.

There are three keys to creating wealth, these are:

1. Cash flow: Good cash flow management is the foundation of wealth creation. It involves looking at your income and expenses and having a system in place to capture your profit or savings capacity. It’s this saving capacity that you can use to build your wealth.
2. Capital: It’s true what they say, money makes money. Having a lump sum or access to equity is where you need to begin when creating wealth. Once invested wisely your money should keep growing. If you don’t have any starting capital, go back to your cash flow and put in place a plan to build up a lump sum.
3. Time: Time is the magic ingredient in wealth creation – because investments in growth assets, like shares and property compound over time (that is, they grow exponentially). If you invest $20,000 into the share market at age 45 with a 10 per cent average return you will have about $52,000 by age 55. If you invest the same amount at age 35 you'll have $134,000. But if you invest at age 25 you will have almost $350,000 by the time you are 55 years of age. If you need a hand putting together a plan seek advice from a good coach and mentor. A mentor is someone with knowledge and wisdom who can guide you to make the right decisions, while a coach is someone to keep you motivated and on track.

Read the whole story: www.smh.com.au

All cashed up but not making money

Thu, 20 Oct 2011 22:06:00 GMT

The Australian

Women are earning more than ever and climbing the ranks of corporate Australia in bigger numbers, but when it comes to managing their financial future their track record remains ordinary.

Sunshine Estivo, co-founder of Omniwealth, says women are getting better at managing their financial future but they start doing so at a later age -- from their early 30s -- compared with men, who get under way from their mid-20s. Estivo says the seminar's title reflects women's reliance on men taking control of the household finances but stresses that attitude is less prevalent in the younger generations.

One of the common mistakes women make, she says, is striving for survival rather than wealth, so they aim too low. Other pitfalls are not doing anything with their money -- simply putting it into a bank account -- living beyond their means and ignorance of money and investment.

The key to wealth creation, says Estivo, is having a strategy, then identifying the steps that must be followed.

First, women need to be clear about what they want and where they see themselves in the future, she says. They also need to be clear about where they are right now, meaning knowing what their personal balance sheet looks like; that is, their monthly cashflow position, income and expenses.

"From there, you can identify what resources you have and you can do a strategy to help you achieve your outcome," she says. Estivo and Coates believe the goal for every person should be striving for financial independence, so that throughout their working life they are creating enough wealth to ensure a comfortable retirement.

To achieve financial independence, Coates says, women must be "committed to the process of creating wealth". She likens it to dieting.

Read the Australian Article

Can intuition help your investments

Thu, 20 Oct 2011 22:05:00 GMT

The Age

Intuition is a concept not often associated with the logical world of finance and investments. But once you have your facts straight, you might be surprised by how much you can benefit from following the deal that just 'feels good'.

Sunshine Estivo is a values-based financial planner and co-founder of financial planning group Omniwealth. Estivo has previously run seminars on the idea of intuitive wealth and she encourages her clients to employ their intuition when developing their financial goals. “So often people’s goals sound the same – it’s almost like they got them from society: ‘first I want to buy the home, then I want to upgrade the car, then upgrade the home’. You’ve really got to dig deep and find out what is really important for people – and that’s where intuition comes in.”

Estivo says it can be a difficult process for people – really nutting out what truly motivates them. “People say to me, 'how do I know what I love doing?' Or 'how do I know what’s important?' I say: ‘Where do you spend your time, your energy and your money and that’s probably what you’re most passionate about.”

When someone tunes in to their deepest passions there’s a buzz of energy in the room, Estivo says. When it comes to making investment decisions, Estivo agrees it should always be a two-step process. “When people make an investment decision, it needs to make logical sense but it also has to feel good. I hear that all the time from my clients, ‘I’m happy to go ahead, it feels good, it feels right.’”

Read The Age Article

Strategy first then investment

Thu, 20 Oct 2011 22:05:00 GMT

Lifestyle Trader

Before determining what you should invest into, there are several vital steps to work through. This process can save you a great deal of time and money and can ensure your investment success into the future!

Consider this: Let’s say you are a professional sports coach and you meet a young man named Steve who tells you his passion since childhood has been basketball ever since he saw Michael Jordan hanging in the air for what seemed an eternity. Steve continues to tell you that he would like you to help him to become ‘the next big thing’ within the sport! While you are impressed by his convictions, you can’t help but notice Steve is only 5ft 8inches tall and isn’t the most athletic person you’ve met!

As a coach, you have an obligation to help Steve realise that while he may be able to achieve this dream, he should probably stick to the side that doesn’t require him to be seven feet tall. With this level of passion, he should instead work with his strengths. So while slamming baskets isn’t possible, he could perhaps become ‘the next big coach’ instead!

I can’t tell you how often I meet people who approach me for advice only to reveal they are looking to invest only in property or shares. While this is well and good, the ‘product’ you invest into should be the last decision you make. Like Steve, you need to first and foremost work with what you have, using this as a framework to further build upon and create the wealth you desire.

Read the article from Lifestyle Trader