5 ways to cope with a Christmas financial hangover

Probus South Pacific January Newsletter

xmasmoney story Christmas is known to be a time of excess and come the new year, it’s not only our waistlines suffering the consequences. If you’ve found yourself guilty of financial overindulgence, here are some ways to help you save money.

1. Transform trash into treasure
The new year is a great time to declutter and why not make some extra pocket money while you’re at it?
“Declutter and sell unwanted items on Gumtree, Ebay or through a garage sale.” says Peter Horsfield, founder and senior advisor of SMART Advice. “It is a great way to make some cash and let go of what’s just taking space.”

2. Enjoy free events this summer
Living in Australia gives us the advantage of having our Christmas holidays over the summertime. Not only is the weather a major benefit but it means that free entertainment is plentiful.
For those who live in Melbourne, this time of year means you catch a spot of tennis on the lawns of the Rod Laver Arena with fellow Australian Open enthusiasts at no cost or for fellow Sydneysiders, catch all thefreebies on offer at the upcoming Chinese New Year Festival starting from February the 6th. Check your local council’s website to see what’s on, or alternatively, go for a walk and explore the wonders of your own city.

3. Enjoy low-cost everyday gourmet meals at home
Discover your inner-master chef and save some coin at the same time. An average night out consisting of food and drinks for two people can cost up to $100, according to Horsfield. Save that cash by staying in and experiment with new recipes and cuisines. You could also gather some friends and family and arrange a cooking style co-op where everyone takes turns to cook for each other.

Read the full article: http://probussouthpacific.org/c2f11aad/5_ways_to_cope_with_a_Christmas_financial_hangover

Christmas is known to be a time of excess and come the new year, it’s not only our waistlines suffering the consequences. If you’ve found yourself guilty of financial overindulgence, here are some ways to help you save money. - See more at: http://probussouthpacific.org/c2f11aad/5_ways_to_cope_with_a_Christmas_financial_hangover#sthash.zcs9er5t.dpuf
Christmas is known to be a time of excess and come the new year, it’s not only our waistlines suffering the consequences. If you’ve found yourself guilty of financial overindulgence, here are some ways to help you save money. - See more at: http://probussouthpacific.org/c2f11aad/5_ways_to_cope_with_a_Christmas_financial_hangover#sthash.zcs9er5t.dpuf


Golden rules of buying sight unseen

Your Investment Property 1st November 2015

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Buying sight unseen doesn’t automatically mean you’re going in blind, points out certified financial adviser Peter Horsfield, founder of SMART Advice in Sydney.

“Buying sight unseen doesn’t mean you are necessarily going to be unfamiliar with the suburb, community, council developments, building and strata inspections, holding costs and possible income and deduction calculations,” Horsfield says.

“If you know all the answers to the above and you have a price point to work within, with the power of the internet you can make an educated decision.”

For more read the full article: http://www.yourinvestmentpropertymag.com.au/buying-property/the-3-golden-rules-of-buying-sight-unseen-205568.aspx

How to pay your mortgage off at speed

SMH Money 1st October 2015

How to may your mortgage off faster Thinking creatively helped Peter Horsfield and wife Roz pay off the mortgage on their Sydney home in just seven years. The young couple was keen to get the mortgage monkey off their backs as soon as possible.

"Being under 30 and having a $600,000 mortgage and being newly married was a fairly freaky kind of experience," says Horsfield, a financial planner.

So after a year, they rented out their furnished three-bedroom apartment to executive clients for $1200 a week. Meanwhile they moved into a one-bedroom apartment in the same block, paying about $450 a week in rent.

They also set strict savings goals, invested in study to improve their salaries and ploughed any bonuses or extra money into the mortgage until it disappeared.

Horsfield said the strategy worked so well that they did it again with a second property.

"It's a wonderful feeling – it just opens the door to other opportunities," says Horsfield.

Read more: http://www.smh.com.au/money/borrowing/how-to-pay-your-mortgage-off-at-speed-20150929-gjxi2z.html#ixzz3nHUqSUyO

Moving out for the first time?

SMH Money 15th September 2015

Moving out for the first time? Here's how to budget

To avoid last-minute panics on rent day, or when bills arrive, get organised early.

Adding up all your likely expenses, including other costs such as car registration, then dividing them by 52, is one way to figure out how much you'll need to set aside each week.


Peter Horsfield recommends establishing an account with a buffer amount, then topping it up weekly, fortnightly or monthly from your salary.


"From this operating account establish a direct debit to pay your regular bills," he says.


"Doing this automation frees up your time, reduces your stress and can help you keep focused on other more important areas of your life."


Read more: http://www.smh.com.au/money/borrowing/moving-out-for-the-first-time-heres-how-to-budget-20150909-gjih0w.html#ixzz3llcduBPN 

Skipping Lattes Won't Make You Rich

Boomeringo 28th August 2015


Peter Horsfield - an experienced CFP from PeterHorsfield.com.au 

Know what is important to you. If you don't have a good enough reason, then when the going gets tough (as everyone who is successful will tell you) you chance of failure increase. Failure only happened when you decide to give up on your goal before reaching it.


Clearly identify your goals. This requires naming the goal, amount required (finish line), dates, and visualisation of how you will feel once you have achieved you goal. Goals need to be SMART (Specific, Measurable, Aspirational, Realistic & Time Bound).


Have a Game Plan. Know where you are and have a list of activities you need to do on a regular basis. Check in along the way (monthly/quarterly/semi annual and annual) to see your progress, or not and make appropriate changes. Regardless of doing something or nothing time will march on. 

For the full article go to https://www.boomeringo.com/blog

6 strategies to help pay for private school education

Canberra Times 6th July 2015

Education Leverage your mortgage

For home-owners, a standard savings plan is rarely the most tax-effective strategy, says certified financial adviser Peter Horsfield, founder of SMART Advice. Instead, leveraging your mortgage could be a much more profitable way to go. 

“When you park your savings in your mortgage offset account, you’re not going to get taxed on the interest,” Horsfield explains.

“Yes, the loan will eventually go back up when you draw those funds out to pay for education costs, but in the interim, less interest payments equals more money that you can use to reduce your overall debt.”

For instance, a $600,000 loan at 5 per cent would cost $30,000 annually in interest. With $100,000 in an offset account, you could save $5,000 in interest (untaxed profits), an amount that could be used to reduce your principal to $595,000.

“This is one of the most suitable strategies for parents, particularly now that deducting school fees is no longer a fringe benefit deductible employer expense,” Horsfield says. “It’s a simple way that people can accelerate their debt repayment, and know that they can access that money again for expenses such as private education.”

For more read the full article: http://www.canberratimes.com.au/brand-discover/scroll/goinvest/education/


How to overcome sharemarket trading anxiety

The Age: Money Section 2nd July 2015

How to overcome share market anxieties 

Certified financial planner Peter Horsfield says neuro-investing is an industry buzzword and that the practice has limits. "I think it is just one of the approaches that forms a total comprehensive approach helping clients achieve their goals. Ie. it's more a philosophy than a silver bullet solution," Horsfield, who is otherwise enthusiastic, says.

In his view, neuro-investing delivers a more effective and tailored outcome than just scanning analytical data: it teaches us to overcome our animal instincts – our herd mentality, deterring us from buying high and selling low.

To read the full article http://www.theage.com.au/money/investing/total-sense-how-to-overcome-sharemarket-trading-anxiety-20150702-ghaman?skin=dumb-phone 

Business Red Flags

Vet Practice Magazine 10th July 2015

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Businesses never go bad overnight—there are always warning signs. So, what to do if you are seeing red flags every way you turn?

Cash Flow

Less than three months of readily available cash?

“Maintaining a buffer of cash [emergency funds] is most important,” says Smart Advice financial planner Peter Horsfield. “If you are financially stressed, this will most likely affect how you react to others, your decision making process, personal health and your wellbeing. Knowing you have at least three months of cash reserves to cover your personal/business expenses allows you to ride out the ebb and flow of business seasons.”

Not paying yourself a salary

“If you’re not paying yourself a salary then you need to seriously ask yourself what immediate actions need to be initiated,” Horsfield suggests. “Managing income and expenses is the life blood of business. However, as the owner, you are taking on all the risk. It is essential you pay yourself first. If this means you have to relocate to a smaller and lower cost premises, this should be considered. Keeping your business expense and income ratios well balanced also adds to the resale value of your business.”

Read more at http://vetpracticemag.com.au/red-flags/


Are You Ready for Tax Time

NRMA Living Well: Independent Living. 11th May 2015

Living WellFor organised types who like to have their house in order well in advance, what are some of the financial things that might warrant attention before June 30 rolls around?

Super top-up

If you're over 50, still working and not salary sacrificing the maximum $35K per annum into your super fund then consider doing so, if funds permit, before the new financial year begins. Concessional super contributions are taxed at just 15 per cent, which means you'll pay less to the ATO while increasing the size of your nest egg, according to Sydney financial adviser Peter Horsfield.

Topping up can be especially effective when applied in conjunction with a 'transition to retirement' strategy.

For more read the full article at https://www.mynrma.com.au/living-well-navigator/independent-living/are-you-ready-for-tax-time.htm


3 Pills Every Business Leader Needs

SMH Small Bisiness Section 6th July 2015

PillsAccording to business coach and founder of SMARTadvice Peter Horsfield, there are three pills every long-haul leader should take:

1. The Chill Pill

If people are starting to stress you out, says Horsfield, don't let them ruffle your feathers. Stay focused on the task at hand and don't be put off by others' opinions.

2. The Just Do It Pill

While many people sit on the sidelines with a wealth of knowledge and opinions about what to do, the sign of a real leader is translating that into action, says Horsfield.

"It all comes down to action. If you don't put your rubber to the road every day and have a go, you're never going to make it," he says.

"It's just like an exercise regime – the hardest thing is putting on your runners and getting out the door. Once you've taken the first steps, you're away. You've just got to do it."



3. The Love Pill


Great businesses are not built alone – you have to love your team and their dreams too, says Horsfield.


"You have to help people achieve what's important to them. When they see you're supporting them, they will get on board with your vision too."


Read more: http://www.smh.com.au/small-business/managing/career-prescription-three-pills-every-business-leader-needs-20150705-ghp52g.html#ixzz3fd90xEze




Budgeting for big-ticket items

NRMA Living Well 22nd April 2015

Big Ticket

So what's the best strategy to ensure we're not caught short when these items need unexpected or urgent replacement?

Does it make sense to upgrade your wheels, white goods and home furnishings before you retire and are still earning in the hope of enjoying several trouble-free years with your new kit? Or does setting aside funds specifically for major purchases as they're needed make better sense financially?

The latter, says financial adviser and SMARTadvice founder Peter Horsfield.

He advocates having a healthy cash cushion on hand before downing tools. Think a minimum year's worth of living expenses in cash or easily accessible term deposits, plus an additional three months' of emergency funds.

Meanwhile, "don't trouble trouble until it troubles you," Horsfield counsels.

"Don't buy a whole lot of new stuff just before you retire - think more about the opportunity you have to de-clutter," he says.

For more read the full article: https://www.mynrma.com.au/living-well-navigator/independent-living/budgeting-for-big-ticket-items.htm

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