A client once shared a poignant regret:
“When I was working and the kids were young, I saved too much. It restricted what we did when the family was together.”
This simple reflection struck a chord with me. It got me thinking about the delicate balance between saving for the future and living fully in the present. While we all know the importance of financial security, is it possible to save too much—at the expense of the moments that matter most?
Why Traditional Budgeting Fails We’ve all been told that the key to managing money is to create a budget and stick to it. Track every dollar, set spending limits, and make sure you don’t overspend in any category. It sounds good in theory! But let’s be real—most people fail at budgeting. Not because they don’t care about their money, but because strict budgeting is rigid, time-consuming, and difficult to maintain long-term. You might start strong, logging every coffee and grocery run, but life gets busy. Unexpected expenses pop up. One month, you go over in groceries but under in entertainment—does that mean you failed? For couples, it can create friction, with one person treating the budget as law and the other feeling like they’re constantly being policed. Traditional budgeting focuses too much on small expenses and not enough on the big financial moves that actually build wealth. That’s why I don’t believe in tracking every dollar. Instead, I use a big-picture approach that prioritises the financial decisions that truly matter—while allowing you to spend guilt-free on everything else. The “No-Budget” Approach: Focus on Big Wins Instead of micromanaging your spending, I focus on these three key areas: Home Loan Payoff – Instead of stretching out a 30-year mortgage, automate extra repayments to shave years off your loan. The interest savings alone can far outweigh small budgeting tweaks. Superannuation & Investments – Are you investing enough for retirement? Super is a great vehicle for tax benefits, but you should also consider investments outside super for financial freedom before retirement age. Emergency & Future Savings – Having accessible cash reserves means less reliance on credit cards and loans when unexpected costs arise. Once you’ve allocated funds to these priorities, the rest is yours to spend however you like—guilt-free. This removes the stress of tracking every little expense while ensuring that your financial future is still being taken care of. Why This Approach Works Better Less Stress, More Freedom – No more spreadsheets, logging expenses, or feeling guilty for small indulgences. If your financial priorities are funded first, there’s no need to sweat the small stuff. Automates Financial Success – Instead of relying on self-discipline, automate your mortgage overpayments, super contributions, and investments. When it’s set up to happen automatically, you don’t have to think about it. Focuses on What Actually Matters – Cutting back on small expenses won’t make you rich, but owning your home sooner, investing regularly, and securing your future will. Works for All Income Levels – Whether you earn $60K or $250K a year, prioritising big financial moves makes more impact than cutting out lattes. How to Implement This “No-Budget” Plan Identify Your Big Priorities – What financial goals will actually change your life? Think: paying off debt, funding retirement, or building investments. Crunch the Numbers – Work out how much extra you could allocate each month toward these goals. Even small adjustments (e.g., an extra $200 toward your mortgage) can make a big difference over time. Automate It – Set up automatic transfers to ensure your priorities happen first. This removes temptation and decision fatigue. Spend the Rest Freely – Once your major financial moves are covered, whatever’s left is yours to enjoy. No more tracking every coffee or meal out. Review Every 6-12 Months – Instead of daily or weekly budgeting, do a bigger-picture check-in a couple of times a year to adjust as needed. Final Thoughts: A Smarter Way to Manage Money Traditional budgeting tries to control every little expense, but it’s not sustainable for most people. The better approach? Focus on automating big financial wins first, then spend the rest without guilt. By prioritising home loan repayments, investing for the future, and having a financial safety net, you’re securing long-term wealth and financial freedom—without stressing over whether you spent too much on dinner last week. Forget budgeting. Focus on the big wins, automate your plan, and let your money work for you—without the hassle. The information provided in this article is general in nature only and does not constitute personal financial advice.
The question I’m often asked is whether it’s still possible to accumulate enough wealth for retirement without taking on debt. And the answer is simple: yes, it is. While leveraging debt can speed up wealth creation, it’s not the only path. In fact, avoiding debt is a strategy that’s worked for countless clients who have achieved financial independence through consistency, discipline, and time. The Role of Debt in Wealth Creation Debt, when used responsibly, can accelerate your financial goals. But here’s the reality: with debt comes risk. If investments don’t perform as expected, debt can amplify losses. That’s why it’s worth asking, “Can I build wealth without the stress and risk of debt?” The Path to Wealth Without Debt The answer lies in time, consistency, and compounding interest. When you start early and save regularly, your money grows—not just from the returns you earn but from the returns on those returns. This is the power of compounding. I’ve worked with clients who avoided debt entirely, choosing to focus on saving, investing, and living within their means. They’ve built substantial wealth without ever owing the bank a cent. The secret? What About Returns Without Leverage? While it’s true that debt can boost returns in the short term, high-quality investments can deliver excellent growth over time—without borrowing. How to Plan for a Debt-Free Retirement To make debt-free retirement a reality, you need a plan. Here’s how: Is It Really Boring? Or Is It Rewarding? Some people might call this approach boring. But personally, I don’t think it is. Following high-quality businesses, watching them grow, and seeing the compounding effect play out is far from dull. What’s even more exciting is reaching retirement with financial independence, knowing you avoided unnecessary risk. Final Thoughts Debt can be a useful tool, but it’s not the only path to retirement wealth. A debt-free journey takes time, discipline, and the right investments—but it’s absolutely achievable. If you’re not sure where to start, run the numbers or work with someone who can. Projections and a clear savings plan are vital to staying on track. Retirement isn’t about having the biggest portfolio; it’s about having the freedom to live on your terms—and you don’t need debt to make that happen. The information provided in this article is general in nature only and does not constitute personal financial advice.
Saving for a first home often requires a significant amount of discipline and sacrifice. The challenge of accumulating the necessary deposit can feel overwhelming, making it difficult to maintain motivation. Everyday distractions, such as weekend outings with friends or the latest gadgets, can easily derail savings efforts. A common issue is the perception that long-term savings goals are unattainable, which can lead to a lack of motivation to forego immediate pleasures. Traditional methods of managing finances may not always address this issue effectively. Enter loud budgeting—a strategy designed to tackle these challenges head-on. Loud budgeting is a goal-oriented approach that involves openly sharing savings goals with trusted friends and family, creating a system of accountability. The transparency of loud budgeting helps maintain focus and drive. Here’s how loud budgeting works: Incorporating loud budgeting into your routine can transform the savings process into a structured and motivating experience. Each progress update on the tracker brings a sense of accomplishment, and reaching milestones is celebrated with those who offer support. Consider a scenario where you aim to save $20,000 for a home deposit within 16 months. By adopting loud budgeting, you break down the goal into manageable monthly targets. For example, you set a target to save $1,250 each month. At the beginning of the process, you create a colourful chart and track your progress regularly. You use budgeting apps to monitor your savings and share updates with your support network. Every time you hit a monthly target, you celebrate with your family or friends, reinforcing your commitment. Over the course of these 16 months, this approach helps maintain your motivation despite encountering challenges such as missed trips or unexpected expenses. By consistently tracking your progress and celebrating milestones, you remain focused and driven. As each milestone is achieved, the sense of accomplishment grows, making the final goal of reaching the $20,000 deposit feel attainable. By the end of the 16 months, you successfully reach your target amount. The journey has been marked by steady progress, accountability, and shared celebrations, showing how loud budgeting can make saving for a home feel like a rewarding team effort. Loud budgeting might not be for everyone, but it’s a great way for many people to hit their financial goals. It can make saving for a home feel like less of a solo mission and more of a team effort that’s both rewarding and fun. The information provided in this article is general in nature only and does not constitute personal financial advice.
The new financial year provides an opportunity for a fresh start for your finances. Make this the financial year you get on top of yours… for good! We’ve broken it down into six bite-sized, manageable steps for you to tackle over six months, because real change takes time! The below is a suggested path to a New Financial You, however, you can choose your preferred order and pace. July: Goal Setting What is it that you want? I mean REALLY want? As with any goal, your financial goals should be SMART – Specific, Measurable, Achievable, Relevant, Timely. Whether you’re wanting to build an emergency fund, get out of debt, or save for a specific goal, write down your goals in detail and then revisit these regularly to remind yourself of what you’re working towards. August: Set your Budget A budget helps you see what’s coming in, what’s going out and most importantly how much you have to allocate towards your goals. There are plenty of free templates online so find one that works for you and add in your personal income and expenses. Tip – Go through your last three months’ bank statements to get details of your spending. September: Set up a Savings Plan You can do this by working out how much money you need for a particular savings goal and by when, then breaking it down into regular amounts to be set aside. Example – If you want to save $2,000 for Christmas by December 1st, you’ll need to set aside $154/week from September 1st. Tip – Automate savings by setting up a regular transfer. October: Super Check It’s time to health check your superannuation: Make sure your contact details are up to date to ensure you’re not missing out on important correspondence. Do you have a current beneficiary nomination in place? A valid beneficiary nomination will direct your super fund on how you would like your super benefits to be paid, if you were to pass away. How much is your super costing future you? There are a whole range of fees that might be funded from your super, including administration, investment, and adviser service fees, all of which will have an impact on your retirement savings. Do you know how you’re super is invested? Is it Conservative or Growth? How well has it performed over the long term? Some important things to consider when choosing an investment option include your life stage, investment horizon and comfort for risk. November: Insurance Review There are a range of insurances that offer financial security for you and your family, including: This month, get to know your current insurances and consider whether the types and amounts are suitable for your needs. December: Estate Planning Estate Planning involves documenting what you want to happen in the event you pass away or become incapacitated. It might include Wills, Powers of Attorney, Health Directives and Guardianship nominations. If you don’t have these in place already, it’s time to build out your Estate Plan. If you do, it’s time to dig these out for a review. Congratulations, you made it! If you’d like some extra support on your journey, reach out to your Financial Adviser today for help with achieving your financial goals! The information provided in this article is general in nature only and does not constitute personal financial advice.
Credit cards certainly make life easier – they are simple to use, accepted almost everywhere, and help you to buy what you want, when you want, particularly online. So much so that living close to the credit limit has become the norm for many people and spending can quickly get out of hand. To make sure your credit card works in your best interests, use these tips to stay on top of your debt. Routine is key We all know how easy it is to let things get away from us. Just like that power bill sitting at the bottom of the stack of mail on the bench or “accidentally” bingeing an entire Netflix season while the laundry piles up, we tend to postpone boring, albeit important, tasks. Create a routine, though, and you’ll complete these jobs simply out of habit. It can be as easy as setting a monthly reminder in your calendar to check that your credit card payments are up to date. Paying your credit card balance off in full each month, will help you avoid pesky interest fees. This handy tip will also help you avoid any late fees! Make use of technology If organisation skills are not your forte, why not take advantage of the many apps and services designed to help? ‘Mint’ is one of the many useful apps available that will organise your spending into categories, helping you ensure there is always cash to go towards your credit card repayments. Making use of automatic payments in your banking app can also be helpful. Payments will be made on time and best of all, once set up, you don’t have to lift a finger! Cash advances cost more When money is tight, people are forced to use their cards for cash advances (withdrawing cash) instead of just purchasing goods and services… and in doing so, are paying a high price for the privilege. Interest is charged immediately on a cash advance and at a higher rate than purchases. Even if you have an interest-free card, you will immediately start paying interest as soon as you withdraw cash using your card. If you must take cash off your card, repay it as quickly as possible. Emergency funds will save the day! You’ve probably heard about the importance of emergency funds, and with good reason! If we’ve learnt anything over the course of the COVID-19 pandemic it’s just how quickly things can change, particularly within our economy. So, whether it’s an increase in the cost of living or a rise in interest rates, it is vital to have a bit of spare cash handy. A good place to start is with an emergency fund calculator. It will consider your income, savings, and living expenses, and provide an estimate of how much spare cash you should be saving for a rainy day. Realistically, many of us couldn’t get by without our credit cards, but it is vital that we use them in a way that only provides a benefit to our lifestyle. The secret to credit card success — keep your spending responsible and pay the full balance off every month; otherwise, the only winners are the banks. The information provided in this article is general in nature only and does not constitute personal financial advice.
Prior to COVID, we were steadily moving towards a cashless world. Post 2020, even the most resilient of us has made the leap to tap-and-go payments sooner than we expected. From the morning coffee to filling up the petrol tank, we wave that plastic with little thought to the impact on our account balances. In fairness to us, many retailers are now adopting the ‘no-cash please’ trading regime, but we Australians have a reputation for embracing technology and touchless shopping is no exception. According to the Organisation for Economic Co-operation and Development (OECD), Australian household debt is currently sitting at around 210% of net disposable income. That places us fifth in the world, behind Denmark (257%), Norway (240%), Netherlands (236%) and Switzerland (223%). Compared with countries with spending habits similar to our own – the USA with (105%) and the UK (142%) – we’re quite high. If your debt level is pushing northwards of your preferred limit, here are a few ideas for getting, and staying, on track: – Pay your full card balance off every monthSure, it’s an oldie but a goodie. You know what you need to do; if your current balance is too high, pay more than the minimum amount. The first step in breaking the credit cycle is to get off it, which leads into our next point: – Create a realistic budgetThis will identify where your money is going and how much extra you can pay off your credit cards. The government’s Moneysmart website has a free budget planner to help you. Alternatively, chat with your financial planner and work with them to develop a payment strategy to get your debts under control, and stay that way. – Keep your tap-and-go receipts and reconcile them against your account each weekThis is one of the best ways to see exactly how much you’re shelling out, and on what. You’ll identify areas of unnecessary spending, and you’ll spot any errors or dodgy transactions. – Instead of a credit card for your touchless transactions, consider using a pre-paid cardAvailable from banks and other financial institutions – even Australia Post offers one – you load it with your own money and use it for in-person or online shopping. It’s just like a credit card but without the risk of getting into debt. – Consider your subscriptionsYou know, streaming services, magazines and memberships, etc. Many renew automatically and the first you’ll know about it is an unexpected – often expensive – transaction on your card. Do a stocktake to see what subscriptions you have and decide if you really need them. For those you no longer need, change your subscription settings so they don’t automatically renew. Don’t worry, they’ll alert you when the renewal is due in case you change your mind! We’re definitely living in an interesting time. Our lives have altered in ways we’d never have imagined and we Australians, in our typical way, are adapting to these ‘new-norms’. This is a good thing, just as long as we stay in control! The information provided in this article is general in nature only and does not constitute personal financial advice.
Climbing the career ladder, perhaps buying a home and starting a family – the 30s are an exciting stage of life. However, decisions made now can make a big difference to future financial wellbeing, and with so much going on it is understandable, even inevitable, that the best decisions won’t always be made. So what are the common financial mistakes that 30-somethings should be alert to? 1. Buying an expensive car New cars plummet in value when driven off the showroom floor, and the higher the price tag the greater the fall. Buy with borrowed money and you’re paying interest on an asset of diminishing value. Settling for what you need in a car, rather than what you want, can add hundreds of thousands of dollars to your future nest egg. 2. Living on plastic If you don’t pay off your credit card balance in full each month you’ll be paying a high rate of interest on the carryover balance. Over time, the growing interest bill makes it increasingly difficult to clear the debt. If not used carefully, buy-now-pay-later schemes can also become something of a debt trap. 3. Forgetting to save A rule of thumb is to save at least 10% of your income, but saving even a small amount is better than doing nothing. And in your 30s you have time on your side. For instance, when you turn 30 if you put away $200 per month at an interest rate of 5% per annum (after tax), by the time you’re in your 60’s the savings will grow to $166,452. If you wait until you’re 40 to start your savings plan you will accumulate just $82,207. 4. Getting caught up in investment fads Tulips, alpacas, ostriches, the tech boom, crypto-currencies. Investment fads have come and gone, making fortunes for a few, but big losses for many. It pays to heed tried and true rules such as only investing in things you really understand, and diversifying investments to reduce risk. 5. Not insuring your most important asset For most 30-somethings your biggest asset is the ability to earn an income. Most health-related absences from work are due to illness or non-work related injuries – things that are not covered by workers compensation. Income protection insurance can replace much of the income lost due to accident or illness. 6. Being too hard on yourself Let’s face it. We’re all human, and we all make mistakes. Unfortunately, if we beat ourselves up about a mistake we have made it may compound the problem. The sour taste of a bad investment, for example, might put us off making a good investment. That would be a pity because the 30s is a decade of huge potential. Good advice now can help you unlock that potential. To find out more, contact us today! This is general information only
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