Recognising and dealing with financial stress.

At some point in your life, you may have experienced a certain level of financial stress.

This may have been due to one or a combination of issues, such as managing your debt obligations, running your household budget, and/or handling the financial considerations of a life event (e.g. marriage, birth of a child, job loss, a sickness or injury, divorce, or retirement etc.).

Recognising and dealing with financial stress is important. If left unchecked, it may lead to an overwhelming feeling or disengagement towards your personal finances, which in turn may affect your ability to focus and work towards achieving your financial goals and objectives.

 

Recognising financial stress
The first step towards dealing with financial stress is recognising that it’s present.

According to the most recent Australian Attitudes and Behaviour Tracker survey*, close to a third of Australians find dealing with money stressful and overwhelming. Furthermore, the Australian Bureau of Statistics^ proposes several potential indicators that a household may be experiencing financial stress. For example, to name a few:

  • You spend more money than you receive
  • You find it difficult paying your bills (e.g. utilities, insurance, registration etc.) on time
  • You cannot afford a night out once a fortnight
  • You are unable to raise $2,000 in a week for something important
  • You cannot afford a holiday for at least one week a year.

Depending on your personal circumstances, you may find that none of these indicators are relevant to you; however, despite this, you may still feel that financial stress is present in your life.

Although each person is different, perhaps one way to identify whether you are experiencing financial stress is to take a few minutes and think about how you currently feel towards each of the areas of your personal finances (e.g. cashflow, debt management, investments, superannuation, insurance planning, taxation and estate planning). For example, ask yourself, “Is there one particular area, or multiple areas, that I feel overwhelmed or disengaged with?” If the answer is yes, consider what the underlying issue or issues may be.

Pinpointing the source of your financial stress can help you to explore and apply appropriate strategies for dealing with it that are relevant to you.

 

Suggestions for dealing with financial stress
Whilst the appropriate strategy to deal with financial stress may depend on the underlying issue causing it in the first place as well as your own personal circumstances, we have provided you with a few suggestions, mostly centred on getting your personal finances in order, which you may find helpful:

1. Talk to your partner. This can help you to both be on the same page when it comes to assessing your existing financial situation, and working together towards achieving your financial goals and objectives moving forward. In addition, by having an open and honest conversation, this may also assist you with the implementation of some of the other suggestions listed below.

2. Seek help from your professional advice team. In our module, ‘Building Your Team’ and our recent video, ‘Teamwork, leverage and achieving a common goal’, we touch on the benefits of teamwork. This is especially important when you take the time to consider the different areas of personal finance, their interconnectedness and the diverse range of skillsets required to bring these all together to help you in a meaningful and comprehensive way. Furthermore, it’s important to remember that we can help you with many of the other suggestions listed below.

3. Get to know your Money Personality and increase your financial literacy by spending time on our quizzes, modules, and calculators (not to mention our articles, videos and life events!). This can enable you to better understand your natural personality preferences for dealing with money and improve your knowledge in the topics that relate to your personal finances.

4. Keep your finance-related paperwork in a filing system. This may include, superannuation and investment statements, estate planning documentation, general and personal insurance policies, product disclosure statements, debt documentation, bank statements, PAYG statements, and past tax returns (and receipts for future returns) just to name a few. This can assist you with the organisation of your personal finances and allow you to find and refer to things with greater ease.

5. Put in place a budget or revisit the one you already have. This can help you to gain a better understanding of your cash flow and an overall picture of your personal financial statement, as well as allow you to assess your household expenditure (and, subsequent surplus income potential). In doing this, you may find it easier to manage your money to meet future expenses, track and review your spending habits over time and devise plans to utilise surplus income for debt reduction, saving, and investing.

6. Establish an emergency buffer. Life can be full of unexpected events, but by pre-planning an emergency buffer, you can have funds available to cover unexpected events such as job loss, a medical emergency, home repairs and car repairs without the need to rely on other sources (e.g. credit cards and borrowing).

7. Get a handle on your debt repayments. In some respects, debt may be a necessity (i.e. home loan), whilst in other circumstances (e.g. credit cards) it may be used to spend more money than you receive. Either way, in the end, debt repayments restrict your cashflow and, if not carefully managed, can cost you money in interest that could have been better targeted towards something more beneficial to you. By repaying your debt obligations as soon as possible, you can free up cashflow to be used for other purposes such as saving and investing for the future.

8. Track down any lost superannuation and consider the consolidation of multiple superannuation accounts. As at 30 June 2016, there were 5.7 million lost and ATO-held superannuation accounts with a total value of roughly $14 billion. Furthermore, roughly 43% of people had more than one superannuation account*^. For further information on these two suggestions, please read our articles, “How to find lost super” and “Multiple super accounts and you”.

9. Make sure you have a suitable Plan B in place. Appropriate types and levels of general insurance (e.g. motor vehicle, private health or home and contents) and personal insurance (e.g. life, total and permanent disability, income protection and trauma) are a safety net that can provide you with peace of mind financially when an unexpected event occurs.

10. Consider selling household possessions that have been collecting dust. This extra cash may provide you with breathing space to meet upcoming expenses, establish an emergency buffer or top-up your existing savings. In addition, by updating your contents insurance to reflect this reduction, you may see a lowering of your relevant insurance premium.

11. Be proactive in planning for retirement. Understandably, it can be hard to engage with the topic of retirement, especially if it’s far off in the distance and you have competing priorities right now; however, by starting sooner rather than later, you can benefit from the power of compounding and give yourself flexibility if things change along the way. For further information, please read our articles, “Future self-continuity: Preparing for the future” and “Running the retirement race”.

12. Make sure your estate planning affairs are in order. By completing or reviewing your will and the nominated beneficiaries to your superannuation, you can make sure that your wishes are carried out in the event of your passing. Furthermore, this suggestion also extends to making sure you have procedures in place regarding the management of your affairs whilst you are still alive (e.g. powers of attorney and guardianship).

13. Take care of your physical and mental health. For example, eating a balanced diet, engaging in adequate exercise, allowing yourself time to rest, and acknowledging your achievements to date, may help you to reduce your overall stress levels. Furthermore, depending on your personal circumstances, this may also have positive outcomes when it comes to an insurer’s reassessment of health-related exclusions or loadings on your existing personal insurances.

Financial stress can arise at any point in your life. The cause and the subsequent level of financial stress that develops can vary. It’s important to recognise and deal with financial stress when it does present itself. Although the above suggestions are not a comprehensive list, you may find that getting your personal finances in order can help with alleviating the underlying cause of your financial stress.

As always, if you feel that you do need help in a specific or variety of areas related to your personal finances then please contact us.

Financial Knowledge Centre; (Article source here)

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House hunters turn to Brisbane.

House hunters are steering away from Sydney and Melbourne and turning their attention to Brisbane, according to property data group CoreLogic.

Investors are being turned off by affordability constraints in Sydney and Melbourne, and the sentiment that both markets are currently at their peak, CoreLogic head of research Tim Lawless says.

More investors and prospective buyers are now looking at Brisbane, as recent migration growth and improving job prospects make it more attractive, he said.

Queensland’s unemployment rate has tumbled in recent months, falling from 6.5 per cent in June to an 18 month low of 5.7 per cent in August, according to the latest data from the Australian Bureau of Statistics.

“I think one of the missing pieces of the Brisbane puzzle up to date has been the fact that there hasn’t been much jobs growth,” Mr. Lawless said.

“This is one of the reasons why we haven’t seen Brisbane values growing to the same extent as Sydney and Melbourne, despite affordability and the decent rate of population growth.

“It hasn’t been a very strong economy but that seems to be changing now.”

In the past 12 months, Brisbane’s home prices have jumped 2.9 per cent. That compares to a 10.5 per cent increase in Sydney and a 12.1 per cent rise in Melbourne.

But Mr. Lawless said an oversupply of apartments could have investors treading cautiously.

In September, the Reserve Bank of Australia said Brisbane was still at risk of a potential for an oversupply of apartments which would drag property prices lower.

RBA assistant governor Luci Ellis then said second-hand apartments will likely fall in price as tenants move into newly built homes because they are nicer and rent is still low.

Mr. Lawless said, while Brisbane is at a higher risk than Sydney and Melbourne because of a substantial uplift in existing unit stock, the threat is starting to subside.

“Brisbane has already moved through the peak of the construction pipeline – back in December last year – so it is already starting to come down a little bit,” he said.

Recent data from CoreLogic shows investors are also looking outside of the major capitals to regional areas where growth rates have been remarkably strong, particularly in areas adjacent to the Sydney metro area.

NSW’s Newcastle and Lake Macquarie were the strongest regional performers with home prices up 15.3 per cent over the past 12 months, according to CoreLogic.

In Victoria, the strongest regional market was Geelong and in Queensland, the Sunshine coast was the most popular.

Mr. Lawless said more and more people are using their equity in their property to buy lifestyle properties such as holiday homes or future retirement premises.

“The metro areas and the major capitals have just become too expensive,” he said.

Simone Ziaziaris (Australian Associated Press); (Article source here)

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How much are aussies losing in loose change?

Australians are losing about $466 million a year in loose change which they consider inconvenient and too bulky to carry around, a survey has found.

The ING study found millennials were the worst culprits, with almost half of people aged 18-34 losing up to $10 a month in loose change.

ING’s Tim Newman says most people don’t think twice about throwing away coins.

More than a quarter of people said they ‘hate carrying coins’ and the three biggest reasons were because they ‘couldn’t use five cents’, it was ‘inconvenient’, and it ‘bulks up their wallet’, the study found.

Despite this, almost half of people said they felt happy when they found money.

“It’s ironic that many people will actually throw away their spare change, however, get satisfaction out of finding money,” Mr Newman said.


WHO THROWS AWAY $10 IN COINS A MONTH?

  • * 40 per cent of people aged 18-34
  • * 36 per cent of people aged 35-49
  • * 19 per cent of people aged 50-64
  • * 15 per cent of people aged 64 and over


WHICH STATES DO THEY COME FROM?

  • * 32 per cent in WA and Victoria
  • * 30 per cent in NSW
  • * 25 per cent in Queensland and SA


HOW MUCH DOES IT COST US?

  • * $466 million a year in lost change across Australia
  • * $38.85 million a month all up
  • * An average of $2.10 per person a month


WHY DO AUSTRALIANS THROW AWAY LOOSE CHANGE?

  • * 40 per cent of people say they can’t use five cent pieces
  • * 29 per cent say it is inconvenient to keep change
  • * 27 per cent say it bulks up their wallet

 

WHAT CAN YOU DO IF YOU HAVE LOOSE CHANGE

  • Go to the nearest bank and put it in a coin counter. Get the receipt, take it to the teller and pick up your money or put it in your bank account.
  • Use these loose change for parking meters or at your local launderette.
  • Save it up for when you really need it in the future.

 

 

David Sigston (Australian Associated Press);(Article source here)

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Injured at Work? Steps to Follow to Ensure You’re Covered.

In Australia, nearly 43 out of every 1000 workers suffer a work-related injury or illness each year. Work-related injuries are responsible for lost productivity and lost wages, putting a huge damper on the economy. This makes injuries at work, not just a personal hardship, but a national issue.

If you are injured at work, you may be entitled to benefits under Australia’s WorkCover programme. While it is important to check the details of your state’s programme, the general rules and steps to ensure coverage is similar. All employers must have a worker’s compensation policy in place to help employees who are injured on the job take off the necessary time to heal and recover. Find out the proper steps to make sure that you receive your entitled benefits.

What Injuries Are Included?

In general, if you are hurt while you are working for your employer and need medical care so that you are fit to continue working, then you may be able to get help through WorkCover. The following work-related injuries are usually covered:

  • Industrial deafness
  • A moderate to major cut
  • Fracture or bone injury
  • Injury while travelling to or from work
  • Injury while on a work recess
  • Psychological disorders as a result of being overworked or stressed at work

If you already have a pre-existing medical condition, such as heart disease, depression, or another chronic illness, you may also be entitled to benefits if your illness is aggravated due to work.

Step One – Take Care of Your Health

The first step that you should follow is to get the treatment that you need. When faced with a a serious injury or life-threatening situation at work, call 000 for emergency services. It is also important to notify your employer immediately. Your employer can help evaluate your situation and contact appropriate emergency assistance, if you haven’t done so already.

You will need to see a doctor in order to receive worker’s compensation. This is a way of verifying the situation and validating the cost of your care and recovery time to the insurance company. Make sure you keep all documentation of your visit, and let your doctor know that you will be filing for a work-related injury.

Step Two – Paperwork

Your employer will likely need to report the incident to your state’s Health and Workplace Safety agency. In some states, such as Victoria, you have to notify your employer in writing within 30 days of the incident in order to be eligible. If you can’t write a report yourself, someone can write it on your behalf.

Should you lodge a claim? WorkCover exists to help cover the costs of lost wages and treatment for a work-related injury or illness. If you lost work because of your injury or if you had to pay for treatment, then you can lodge a claim with the WorkCover programme through your state.

As long as you have already taken the appropriate steps: notifying your employer, getting necessary care, and keeping all receipts and any other forms of documentation, this should be a straightforward process.

Step Three – Rehabilitation

Once your claim is lodged, your state will let you know what benefits you are eligible for as soon as possible. Make sure you take care of all your paperwork right away, as it will take time for your claim to be processed. Waiting longer than 30 days may make you ineligible.

Now, it’s time to heal and recover – and to inform your state’s WorkCover program when you expect to return to work. Depending on your situation, you may need to take part in rehabilitation to help you return to work; this is also included in WorkCover. Rehabilitation can include ongoing medical treatments after you have returned to work, as well as performing alternative duties until you have fully recovered.

If you are injured, the best thing you can do is seek treatment and take care of your claim as quickly as possible. Coordinate with your employer, your doctor, and your state’s programme. Then, take care of yourself so you can restore your quality of life and get back to work.

Learn about Total Permanent Disability Insurance and how it can ensure your life goes on after sudden drastic changes.

 

(Feedsy Exclusive); (Article source here)

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