Get Free Budget Planning Calculator Here. Powered by CalculatorHub

The post appeared first on Personal Finance Australia.

Get Free Personal Loan Calculator Here. Powered by CalculatorHub

The post Personal Loan Calculator appeared first on Personal Finance Australia.

Using Groupon’s Discount Codes, you can get incredible deals on gear from ebay and other retailers. Every day Groupon’s Discount Codes offer thousands of deals through hundreds of retailers. The deals change regularly, so you might want to check back often to see what you can find.

Perusing ebay’s Discount Codes page, you will notice that some items are 60% off. In addition, there are sales on electronics like Ipads and TVs, as well as home furniture sets and China porcelain.

Where does the income potential come in? Heaps of people are making cash selling items on ebay. What you need to do is find the best deals and then sit on the items for a little while. This becomes a huge investment opportunity. After sitting on the items for a few months, holiday discounts will have fizzled away and you can proceed to sell the items for regular price.

Of course, you need to be careful and not buy items like electronics, which quickly become outdated and their value is lowered immediately. But many items actually increase in value over time. Do some homework and find the best deals on items that will increase in value over time.

This can easily become a cottage industry. Do you need to work from home? This is a great way to make cash while working from home. If you have children, are taking care of an elderly relative, or are disabled, working from home is a great option. Even if you are none of the above, this remote investment opportunity is a great way to get your feet wet in investing and try your hand at speculating.

The post Great Deals and Income Potential appeared first on Personal Finance Australia.

Commonwealth Regulated Aged Care
You will need to complete an assessment in order to see what type of facility will best serve your needs and ensure that you receive adequate care.  If you are deemed “Low Care,” there is a good chance you will be placed in a Commonwealth regulated hostel.  Residents are able to walk to the common room for meals and activities, although the staff provides assistance with day to day activities such as administering medication.

Individuals who are classified as “High Care” require more assistance and will likely become residents of a nursing home.  There is always the option of private care, but residents are subject to commercial rates.  These nursing homes are referred to as Supported Residential Services and provide care on par with the Commonwealth regulated hostels, although the staff and facility can provide additional support.

Living Costs
The fees for daily care in hostels and nursing homes are determined by the Commonwealth and incorporate a means tested fee evaluated through Centrelink.  If you choose not to divulge your financial situation, you will be charged the maximum rates.  You can also schedule a consultation with Financial Care Services to determine what daily care fees would be based on your circumstances.

In addition to the testing fee, you can expect a daily Accommodation fee if you are moving from another home or hospital.  The amount charged depends on your assets the day you arrive.

New residents may be required to pay an Accommodation Bond.  The amount is negotiable since it is only subject to the Commonwealth’s requirement that you have more assets than the agreed upon amount.  The bond can be paid in a lump sum or in installments; however, if you make periodic payments you may accrue interest charges on the unpaid amount.

If you opt for a Supported Residential Service, the fees will vary between facilities.  Typically, the fees are comparable with Commonwealth regulated nursing homes.  Most will usually charge a flat weekly fee which covers accommodations and staff assistance.  Residents who require additional support may be charged additional weekly fees.  Some locations will require residents to “purchase” their apartment and charge a lower fee for other services.

Financing Aged Care
The fees for aged care must be paid monthly.  Many residents utilize their pension payments or savings to pay for the accommodations.  In some cases, these sources of income are not enough to cover the total monthly fees, so the family decides to either lease or sell other assets to finance aged care.  Be aware that if you decide to use your assets, it could impact the benefits you receive from Centrelink and your Age Pension.

If you are considering aged care, do you research to find the best facilities for your financial situation and personal needs.  Financial Care Services can offer guidance in finding facilities, estimating costs, and determining how it will affect your pension.  This is an important decision that you shouldn’t make alone; discuss your options with your family and arrange visits to prospective facilities to make sure it is the right fit.

The post Financing Formal Residential Aged Care appeared first on Personal Finance Australia.

The same goes for debts, with lots of reasons why it’s great to consolidate and deal with debt.

Here are the main ones we’ve identified. Compiled into a neat group of seven, obviously.

High interest rates
One of the top reasons to consolidate is high interest rates. It doesn’t take a mathematical genius to figure out that a rate of 6% for a loan will mean less interest than a 12% rate on a credit card, for example.

It can often be cheaper to get a few high-rate credit card balances together into one loan at a lower rate. In fact, many loan providers can offer much lower rates as you’ll simply be paying off a debt and not using a complex (and expensive) financial transaction system that is ultimately funded by the card holders and retailers.

Annual fees
More and more credit card companies are reintroducing a relic from the early days of the industry; the annual fee. They have previously been able to cover their running costs in their interest rates they charge, but with those rates at record lows, rising competition and users demanding more for less, this is becoming more and more  difficult for the poor dears. So if you’re facing the prospect of annual fees being slapped on your cards, maybe it’s time to consider a consolidation.

Carrots
The variety dangled in front of you to persuade you to transfer your balances to one credit card. Yes, it’s becoming more and more common for credit card companies to offer to reduce the combined balance if you transfer it to them. But when it comes to crunch, they won’t be doing it for the good of their health. Higher interest rates and hidden charges may well be used to offset their generosity, so beware those companies who come bearing gifts.

Bad credit
People struggling to keep up monthly payments will sometimes fall behind, affecting their credit rating which will ultimately make things more difficult than they should be. Tying up the loose ends into one loan means fewer chances to tarnish your credit record.

To cut monthly payments
When we add up what we’re paying to service each existing loan and credit card, there’s often not much left over. One payment towards a consolidation loan can often be lower than the combined outgoings for a spread of debts, leaving a little left over for the things that you may have cut back on to come in on budget each month.

Of course, this may come at the expense of time spent repaying, as many consolidation loans will be based on longer repayment period. But for many people, less financial pressure over a longer period is a preferable alternative to spending every spare penny each month.

To keep life simple
Staying one step ahead of multiple debts can be tricky and is most definitely time consuming. Depending on how many monthly payments you’re making, it can feel like a full-time job and it can be easy to miss a payment leading to extra charges, bad credit scores (yet again) and a general feeling that life is far too complicated.

To look forward to D-Day
That’s debt-free day to you and me. A single consolidation loan will, if payments are kept up, decrease over time to the day when it’s paid off and the borrower (if that’s their only debt) will become free of debt. Our old friends the credit cards, however, are often kept ticking over by minimum payments that just cover the interest accrued and don’t tackle the money owed. For many, this is the single best reason to consider consolidating and start making headway to the shore rather than treading water.

Image by Stuart Miles

The post The Consolidation Game appeared first on Personal Finance Australia.

Although the Australian Bureau of Statistics contends that youth unemployment rates are holding steady at 12.70 percent, those living in areas such as north and west Tasmania ; parts of Queensland; in Cairns; , and even northern areas of Victoria and Melbourne are being hit hard by youth unemployment. Rates there are ranging from 17-20% for workers between the ages of 15-25.

Who’s being Hardest Hit?
Areas that have traditionally relied on industry to support youth employment are seeing its youngest workers struggling to find a job these days. As industry scales back (or in some cases relies more heavily on high-tech innovations to stay relevant), young workers are being displaced by more experienced – and educated — ones.

Education is the Key to Success
Education is another factor, experts say. As the economy changes, so do its jobs. As the world’s economy changes, so does Australia’s. This means keeping up with industry changes throughout the region and the world. These changes often require a more educated workforce. This can leave many younger, uneducated workers (or undereducated) scrambling to find worthwhile jobs.

Experience Counts
Experience too matters a great deal when it comes to landing a job in today’s high powered markets. As the job market changes, employers are looking for applicants with real life experience. This can be tough for a young worker to get, especially with unemployment rates soaring. Even those with higher education degrees are finding it difficult to find entry level opportunities that will give them the experience they need for a better paying job down the line. This is leaving the country’s youth frustrated and scared.

Is This The Beginning of a Downward Spiral for All Australian Workers?
Some analysts worry that younger workers struggling to land permanent positions, is a dangerous sign that economists should take notice of. Historically, young job seekers are the first to feel the pain of economic woes. This fact, combined with the recent jumps in adult unemployment rates nationwide and economic problems being felt across Europe, could be a sign for concern say some. In early 2014, the Bureaus of Labour and Statistics reported higher unemployment rates nationwide, with its sharpest increase in years. Currently the national unemployment rate hovers just under 7% at 6.7% (and rising). This is an all time high for the last 12 years.

Considering the fact that young workers are usually hit first by a struggling economy, and nationwide unemployment rates are soaring; many analysts are predicting serious economic troubles for young workers in the months ahead. If you are currently having issues with employment, visit our unemployment section for additional information on financial assistance whilst unemployed as well as tips on how to better position yourself for finding employment.

Image by David Castillo Dominici

The post Australian Youth Fight for Jobs as Unemployment Rate Jumps appeared first on Personal Finance Australia.

Speak Directly to the Company about the Situation
Before you take any type of formal action, it is required that you first try to resolve the issue by contacting the company where the incident took place directly. You can either go to the business in person or over the phone. Explain the entire situation to the company, but try to be as concise and to-the-point as possible. In addition to explaining the problem, also let the company know what type of resolution you want. Nearly all disputes are handled at this lower level, since most companies try to work with their customers.

Contact the Company’s Main Office
If talking to the local representative for the company does not produce the results you were looking for, ask them directly for the contact information for the company’s main headquarters. You will want to contact the main headquarters as soon as possible and ask them what steps are involved in their complaint process. You should follow up any phone conversation with a letter or email that clearly outlines the problem.

In your letter, be sure to list all the facts and provide important details like the name of any employees you spoke to, any service dates you remember, and the location where the issue took place. If you have documentation that will back up your facts, be sure to include it with your letter or email. Do not forget to add your contact information in the letter or email and give the company several days to respond.

Utilise the External Dispute Resolution Scheme
If you do not hear back from the company within 90 days of sending your letter or email, or you do not get an appropriate resolution to your issue, you can now turn to the External Dispute Resolutions Scheme (EDR) for help. This provides unbiased and free services that work with both yourself and the company you are filing a complaint against to find a workable resolution that you both agree to. Below is a look at the top three EDR services in Australia.

Credit Ombudsman Services Limited. These services handle a wide array of financial issues, such as problems with credit unions, non-bank lenders, financial planners, building societies, credit representatives, and debt collectors. Whether you think you have been wrongly charged, not provided with promised services, or are being wrongfully harassed, you can bring your complaint to them. They can only handle claims that are $500,000 or under.

Financial Ombudsman Services. These services work with many different kinds of financial issues, including problems with banks and credit unions, insurance companies, financial planning, stockbrokerage, timeshare management, debt collectors, investment funding and more. It also only handles claims that are under $500,000.

Superannuation Compliant Tribunal. This service handles issues that involve retirement funding, and superannuation account. It can handle any issues of problems you are having with your super account or any faulty retirement planning and investment advice you received.

It is important that you understand that you must work through these steps in order, because the EDR services will not accept your compliant until you have tried to work it out directly with the company first. This is because they have limited resources and only enough time to intervene when the two parties cannot come to a compromise. However, if you are not getting the response from a financial service that you need, the complaint process can be very effective at helping you get the results you need.

Whilst going through this process you may also want to check to see if your credit has been impacted. Learn more about your credit here.

Image by foto76

The post Tips for Filing a Claim for Incorrect Financial Services appeared first on Personal Finance Australia.

What Is Financial Illiteracy?
The truth is that most people in Australia have a basic understanding of their finances and are quite able to take care of their day-to-day financial decision. Therefore, this does not make them financial illiterate. However, when it comes to saving for retirement, understanding their superannuation fund, and making sound investment decision, the line between financial literacy and illiteracy gets a little blurred. The problem is more that people do not have access to the right financial tools, rather than it is that they do not understand their finances.

What Is Included in the New Strategy?
To combat this problem the ASIC has developed a strategy designed to put more valuable tool and financial resources in the hands of the consumer. The program starts by implementing more educational teaching in the secondary schools as a means of preparing the next generation for the numerous financial decisions they will have to make in their life.

The second part of the strategy is to make more free and unbiased financial resources available to the consumers. From online sites to free financial counselling, the main object is to education consumers to make their own sound decisions. These resources will teach consumers everything from how to make a budget to how to choose the right loan, and from tips for buying a house for help avoiding common financial pitfalls.

The goals it to provide consumers with the financial knowledge and skills they need to make the most of their money and avoid financial problems. The program is receiving great reviews from business owners, employers, bankers, insurance companies, and more, who are all working together to help educate the public.

How Will this Strategy Affect You?
The main benefit for you personally is that you will be able to find more online financial support, as well as, direct financial support right in your local area. Hopefully, the strategy will force industries to work together to make understand their services easier. For example, banks can establish tools and resources that will make it easier for you to select the right type of loan to fit your budget, or insurance companies and provide uniform resource to help you select the right type of insurance coverage to meet your need.

The need for free and independent financial services is also in demand and the availability of these services will hopefully increase as this strategy progresses. This will allow you to seek professional advice before making any major financial decision and can help you avoid a financial catastrophe in the future.

Certainly, the availability of more financial tools and resource cannot be a bad thing. The trick will be to ensure people know where to find these trusted resource and learn how to use them wisely. More information will come in the next few years as this program starts to come together. If they can get businesses, education institutions, banks, governmental agencies, non-profit organizations and the consumers to all work together to provide the resource consumers need, it may just be enough to solve the financial literacy problem in Australia.

Image by jscreationzs

The post Are You Financially Literate? appeared first on Personal Finance Australia.

Below is a list of the top ways that people tend to spend too much money.

Cut Flowers
The problem with cut flowers is that they only last for a few days. Your money would be better spending your money on potted flowers that could last all year long.

Greeting Cards
If you usually purchase a greeting card to go with your gift, you are wasting a lot of money every year. Instead write a nice handwritten note to include with your gift or purchase generic cards in bulk to use throughout the year.

Alcohol at the Bar
You will pay a lot more money when buying alcohol at the bar or a restaurant. Drinking at home with your friends will save you a lot of money and reduce the need to get home afterwards. However, eating out and being social is fun, take advantage of BYO establishments.

Bottled Water
Bottled water is a huge added expense for something you could get at home. If you are concerned about the quality of the water, purchase a home filtering system instead.

Replace Things that Are Not Broken
Everyone thinks they need the newest electronic out on the market, even if they already have one. For example, people tend to upgrade to a new mobile phone whenever the next model comes out, even when theirs is still working fine. This is just an extra expense you do not need to pay.

Specialty Coffee
Stopping at the coffee shop on the way to work every morning will add up over time. Instead, make you own coffee at home before you leave in the morning and take it with you, or wait until you get to work and drink the coffee there.

Eating While Drinking
Eating out while intoxicated is a great way to blow out your budget. People tend to snack and eat more when drinking. If you are planning on drinking be sure you eat well before you head out, so you will not be as hungry.

Taxi Fees
A taxi ride may be more convenient than public transportation, but it also costs a lot more too. You will save yourself some money if instead of calling for a cab, you just wait until the bus comes or share a cab with multiple people.

Magazines
How often do you really pick up that magazine and read it? Could you find the same information for free online?

Lotto Tickets
Australians spend millions of dollars each year on purchasing lotto tickets, but only a small handful ever win anything. While everyone dreams of winning a large sum of money, this money could really be better used somewhere else.

Online Games
Online games have become extremely popular, especially mobile games. It may not seem like much to spend a couple of dollars here and a dollar there, but this does add up over time. Stick to the numerous free games that are available online and play them instead.

Overdraft Fees and/or ATM Withdrawal Fees
Overdraft and ATM fees are extremely expensive and totally unnecessary. Keeping track of your bank accounts and your spending can avoid this problem. You should always keep a little extra in your account to cover any of unexpected costs. Plan ahead when it comes to ATM withdrawals or walk to your nearest branch, even if it’s a bit of inconvenience.

Account Keeping Fees
Having multiple bank accounts and superannuation accounts will lead to extra account keeping fees. Be sure to keep your account consolidated to ensure you are not charged these extra types of fees.

Overnight Shipping
Overnight shipping typically costs significantly more money. Be patient and wait the few extra days and save yourself a lot of money through the course of the year.

Full-Rate Movie Tickets
You should never pay full price for tickets to the movie. Find a matinee that offers cheaper rates, or just wait to watch the movie until it comes out to rent.

Just image how much money you could save throughout the year by cutting out these added costs. The best way to know if you are spending too much money on the wrong things is to keep a journal or use a budgeting app that tracks everything you buy. Each week take a look at your list and see if you can find areas where you are spending too much and find ways to cut back. If the list is too extensive or affects your general routines, try just cutting back on a few of them, every little bit can help reduce costs.

What other common items do you splurge on and could easily cut back?

Image by Vichaya Kiatying-Angsulee

The post How Much Could You Save If You Didn’t Purchase… appeared first on Personal Finance Australia.

While this is great, there are still many common expenses that pop up that often catch people off guard, even those with excellent budgeting skills. Below is a list of some of the most common items that may pop up and cost you money.

Car Repairs
You may have planned of your car’s yearly costs and insurance fees, but what about those unexpected breakdowns. Unfortunately, there is no way to know when, or if, your car will breakdown, but you need to always be prepared just in case by adding a little extra to your budget.

Unexpected Gifts
Maybe you have already planned for Christmas and a handful of birthdays throughout the year, but what about that unexpected baby shower, or retirement party at the office. It is best to add a few extra dollars to your monthly budget, just in case.

Appliance Breakdown
Just like your car, your home appliances also can breakdown unexpectedly. The problem is that you need your refrigerator, stove, and washing machine to complete everyday tasks. Having money sets aside for this can avoid the need to go into debt by charging the cost of an appliance repair or replacement to your credit card.

Travel Expenses
Not planning to travel this year, but are you sure? You never know if you will have to head out of town on an emergency, or get invited to your cousin’s wedding in another state. This can add an extra burden to your budget, or worse prevent your from going at all.

Home Repairs
In addition, to your appliances, other repairs may be needed on your home, such as a furnace repair, window replacement, or clogged up sink. Any of these issues could be quite costly and may require you to have the money upfront.

Veterinarian Bills
If you own a pet, you are likely to at some point have some emergency veterinarian services you need. Putting more money aside for your pet expenses than just its annual check-up will ensure you have the money you need if your pet becomes ill or injured.

Entertainment Costs
Many people greatly underestimate how much they need to set aside for entertainment. They may think of things like going to the movies or out to eat once a month. However, you also need to think about those unexpected dinner parties, a night out with friends from work, your best friend’s engagement party, or any other special event you may need to attend throughout the year that will take money out of your entertainment fund.

Annual Membership Fees
Unfortunately, a lot of people also forget about those annual fees for memberships, subscriptions, or a safe deposit box at the bank. These fees may only be paid one time a year, but should be budgeted for a little bit each month.

Medical Expenses
Even if you are healthy and have not been sick for years, you still must always expect the unexpected. You must always be prepared for any additional medical treatments, prescriptions, and tests you may need to have completed during the year.

Guests to Your Home
What happens when that unexpected family member from out of town shows up at your door, planning to stay for a day or so. You can hardly say that you just do not have it in your budget for overnight guests. That means that you will be your responsibility to feed and entertain them. If you do not have special funds set aside for this, you may have some budget problems at the end of the month.

Adding these items to your monthly budget will ensure that you have the money you need, when you need it. Some of these expenses, such as car repairs, home repairs, and appliance breakdowns could be put together into an emergency fund to be used only if needed. The benefit of this would be that if you had no emergency this year, you could hold that money over into next year. It would also ensure that you always have the needed funds available.

What other items would you say could easily be added to this list?

Image by Stuart Miles

The post 10 Common Items Often Left Out of Budgets appeared first on Personal Finance Australia.