10 lame excuses for not saving money

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10 lame excuses for not saving money:

  1. I’m too busy to think about it
  2. I have nothing left to save
  3. I have too much debt to put money into savings
  4. I intend to live fast and die young
  5. I want to enjoy the here and now; I might not be here tomorrow
  6. I’d like to save money for a rainy day but it hasn’t rained in months
  7. I’m too young; I’ll do it later when I’m old
  8. I’m old now; it’s too late to make a difference
  9. I save thousands each year and the tax man takes it
  10. I don’t need to save because I’m planning on winning the lottery

For quality business coaching Brisbane call Gary on 0408 756 531

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7 surprises to bring a thriving business undone

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You wouldn’t be the first business owner to believe that running a business somehow negates your need for personal financial planning; and that the growing equity in your business equity is the only superannuation plan you need.

You think that because you own a business, your retirement is completely taken care of.  You assume that your business will provide everything.  There is nothing more for you to do!   On all counts, nothing could be further from the truth.

Running a business is no more than a choice you make in how you earn your income.  Some choose business income; some choose employer income.  Either way, those who take a deeper interest in planning their personal and family financial wellbeing will prosper in the long term.

Furthermore, as a business owner there is an extra layer of planning you should be thinking about.  That is, planning the future of your income-earning and capital-appreciating asset, and protecting the equity in business that you work so hard to build up.

There is no guarantee that your business equity will translate into the retirement lump sum you hope for.  There are just a few of the things that could go wrong and derail your dream:

  1. Adverse circumstances (e.g. litigation, legislative change, customer desertion, obsolescence) force you to sell at a bad time
  2. Your health fails you before you reach your ideal ‘sell out & retire’ scenario
  3. Your business partner dies prematurely and his / her spouse becomes your new unwelcome business partner
  4. You want your children to inherit your business but they are not interested
  5. You don’t structure your business correctly to take advantage of the small business rollover rules
  6. You don’t have a Will to control the bequeathing of  your personal assets or your business ownership and / or control
  7. You have no emergency fund and no liquidity available should something major go wrong

Personal planning and business planning aren’t just esoteric concepts.  They are processes that help you predict, protect, or take advantage of the expected and unexpected things that life throws up.

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How much email marketing is too much?

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This is something I wrestle with personally.  At the moment I am busy promoting my new online MyProsperityForum site.  My target market is risk insurance (i.e. life insurance & income protection) advisers, financial planners and home loan professionals.  I am also about to start a keyword and social media campaign to drive traffic directly to the site.

But back to the email issue!  I am emailing other financial professionals to let them know what a great resource this innovative forum is for them personally as well as the enormous benefits for their clients.

Whilst I don’t want to send emails too often, I do want them to know the benefits of using and referring their clients to the forum.  But how much is too much?

I am reasonably well known in the financial planning and business coaching Brisbane communities so I don’t want my emails relegated to the spam box.   That outcome will only serve to tarnish my good reputation.

But I do want to get my messages across.  For example:

  • Non-financial planning financial advisers are regularly asked questions outside their field of expertise.  MyProsperityForum is a perfect solution.
  • Some people, even clients of financial planners, are personal finance DIYs who are very interested in understanding the many tricky financial planning concepts as they apply to both individuals and business owners.  MyProsperityForum is the ideal solution and a service option not available or offered in the past
  • Many people can’t afford to or are reluctant to consult a financial planner.  Again, MyProsperityForum is a perfect solution
  • A lot of people simply want to ask questions of a knowledgeable professional without any obligation or product push.  There is also a lot of value at MyProsperityForum in seeing what other people ask.
  • People want difficult financial concepts (e.g. personal risk insurance, investment, superannuation, retirement, estate planning) explained in plain English.  MyProsperityForum already has such content uploaded in easy-to-read article form

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Traps in ignoring your own financial planning

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Financial planning is a poorly understood concept that for many people is complex, too expensive and overshadowed by adviser mistrust.  Many avoid financial advisers because they believe that they will be sold a commission based financial product that they don’t really want, without being any better off financially.

So many people turn to family and friends for advice.  Often, they rely on flawed advice, and adopt a simplistic and less-than-ideal approach to household money handling.   The real problem here is that most Australians live from week to week.  It feels ok when things are going well (i.e. “What’s all the fuss about – she’ll be right mate!”), but there are some inherent traps in this approach:

  1. Although there are several basic, universal principles of personal financial planning, everyone has different circumstances; different goals in life; and a different attitude to investment risk.  So what works for one may not be right for another at that time, or indeed ever.   To get your planning right, there’s an order of doing things and none of those things should keep you awake at night.
  2. For many, their potential wealth is being leaked to banks through credit cards.  Ease of access to credit has led to instant consumerism and a shift away from a savings discipline.  The majority of Australians waste the opportunity to grow their wealth by spending everything they earn or, in some cases, by spending more than they earn.
  3. Most people are not prepared for the things that can go wrong, such as retrenchment, accident, or sickness.  One or more of these is bound to happen over the course of an 80-year life.  Without income, most can’t last more than a month without racking up debt.
  4. A whopping 80% of Aussies don’t adequately provide for the future, including retirement.  A lot of financial problems arise with an unexpected death in the family.  For example, two thirds of Aussies don’t have a valid Will, which means an eventual wrestle with State government intestacy laws, which assign money and property according to an unfriendly fixed formula.

The issue for most people is not that they don’t care.  It is that they don’t know.  People are simply unaware of what they don’t know and they don’t know who to trust to find out.  That is why it is essential to get information from someone trustworthy who does know.

Most financial planners out there are scrupulously honest and highly trustworthy.  I am one of them, and after almost 20 years in the industry, I have a large store of valuable knowledge, which I now share at low cost.

I have retired from public practice and started the innovative and unique MyProsperityForum.

It is a low cost way to access a highly knowledgeable financial planner and receive information, ideas, general strategies and guidance.  In the end, it is your choice whether you do it yourself or ask to be referred to an appropriate professional.  A critical element of the forum is that the general advice given is not tainted or biased by selling plans or financial products.  It is a safe place so give it a try.

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My top 10 tips for wealth building

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It makes no difference whether you are considering investing in the stock market or in building your own business.  The only difference here is that stocks and shares are considered to be ‘passive’ investments, while your own business is an ‘active’ investment.  In other words you are hands-on, elbows-deep every day.

  1. Invest in yourself, the best asset you have
  2. There’s no time better than now; it’s never too late to start
  3. Keep your plans simple formed around goals that motivate you
  4. Make a habit out of goal setting, budgeting, saving & investing (repeat)
  5. Adapt and diversify; earn big and live small
  6. In every case fully understand the risks you are taking
  7. Don’t allow opinion, fads or trends to derail you; stay true to your vision
  8. You can never go wrong with quality people, products & services
  9. Know your market; understand the rules; maximise your opportunities
  10. Protect both yourself and your growing wealth; one relies on the other

Future-proof your business

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Business coaching Brisbane

Future-proofing your business means adapting and changing so that your business will remain innovative and competitive.

There are many ways to achieve this.  Just a few suggestions are:

  • Embrace developing technology to enhance the customer experience
  • Make the most of the internet; it is still in its infancy
  • Personalise customer communications (e.g. personally blogging about your business)
  • Personalise the products you sell and / or the customer experience
  • Embrace the concept of business without boundaries
  • Instead of standing still, constantly re-invent your business model
  • As the owner, be very available

What’s happening in the forum?  Find out at MyProsperityForum

What’s happening in the forum?

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There’s plenty going on!

  • Kate got a good solution to her product pricing (am I actually making money?) problem
  • Narelle has started saving for a home deposit more because she has a simple budget tool to use
  • Audrey read one of the many insider articles, ‘How much life insurance is enough’ and realised that she was leaving her two kids unprotected
  • In the meet-up room, Narelle asked Kate to give her more information about her natural pain management products

Ask the most basic of business questions or financial planning questions and get a straight answer.  The best part is – it’s not about product, it is only about expert unbiased advice.

Join MyProsperityForum today and boost your money making skill

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Do you attend too many meetings?

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Business management tips Australia

In my view, there is an inverse relationship between number of meetings and increasing profit.  In other words, more meetings less profit!

A lot of time can be wasted each week with so-called business meetings.  I think meetings that don’t have a direct link to key financial objectives are useless.  They serve little purpose other than making participants feel busy and included.

It has been my observation that universities and public service organisations thrive on them.  Quite often an organisation’s entire decision making system can be based in a system of meetings.

Even though these organisations have to operate inside budgets and pay their way, no individual’s income is directly affected by the meeting outcome.  The only purpose seems to be one of accountability and equity.  That is, everyone knowing what’s happening; everyone having their say and keeping as many people as possible happy.

In the real world, a meeting where the underlying purpose is not somehow profit-driven is unproductive.  No innovative and profit-oriented business in the private sector can stand too many meetings.  In fact, most meetings tend to actively stifle innovation and therefore profit.  The larger the group, the less likely is change.  It called the comfort zone.  It is a worrying trend that this tends to happen when small organisations grow larger.

The only worthwhile business meeting is one where the income of one or both participants depends directly on the outcome.  Anything else is pure and unadulterated shooting the breeze and communication alternatives should be considered.

Dinosaur businesses face extinction

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Business planning and management Brisbane

Just as sudden impact and environmental changes killed off the dinosaurs of the past, the GFC has exposed fundamental flaws in outdated business models, and the dinosaur businesses of today continue to reach extinction.   Financial institutions, book stores, property companies, electrical and clothing retailers and department stores (to name a few) are all feeling the squeeze of rapidly changing environment because they are stuck in the past and cater to demands of a bygone era.   They violate one of the fundamental principles of business.

“If you can’t lead the market, at least meet it. If you don’t adapt, you’ll die!”

This is first principles stuff taught in 1st year university business courses.   It’s right up there with revenue being higher than expenses.  It is true that only a few people get to change the world but the rest of us should at least make an effort to keep up.