Financial anxiety is something that unfortunately most of us deal with. Research by the Center for Social Impact conducted for National Australia Bank found that two million Australians are experiencing severe or high financial stress, while a further 10 million are living with some level of financial worry.
So, if you feel alone in your financial anxieties, don’t! You definitely are not. Anxiety is unfortunately so extremely common in our society in all aspects of life, especially with our money.
Anxiety is a normal, physiological and emotional state that results when we behave apprehensively. While in itself anxiety isn’t harmful, the stress it creates can be.
Money and financial stress doesn’t HAVE to be an issue in your life. By implementing a few simple steps and thought processes financial anxiety can be a thing of the past!
As mentioned in previous blog posts, positive thinking is at the root of all success. Approaching your financial worries with a positive mind frame will only attract more positivity into your life. Of course this won’t magically make money appear in your account or pay your bills but it definitely will help you calm your fears which in turn can lead to solutions to your financial problems. If you’re finding it hard to focus on the good in your current financial situation brainstorm some positive changes or progress you’ve made financially over the past year. Highlight these and celebrate them!
Remember you can only control the controllable. Don’t put so much pressure on yourself to control everything and be on top of every single thing. There are things we can control and we can’t. For example, if you’re not in a job that allows you to save your desired amount right now, you can’t control that. Try looking for a job that does allow that and if you can’t find one right now, so be it. You may have things pop up that you need to pay for which get in the way but that’s just life. Try not to stress it because at the end of the day it’s out of your control.
Often when we get the most stressed and anxious about our finances it’s when our budget is out of whack. This can cause us to feel as if it’s spiralling out of control when it’s not in reality. A regular budget check up and revamp might just be in order!
Review your bills and expenses, reduce them, pay off and repeat!
Never be ashamed of your financial situation. No matter what it is. With shame brings anxiety. As mentioned above there’s only certain things we can control. You can control past financial mismanagement or incorrect budgeting but you can make a conscious effort to better your future financial actions!
Additionally, stop comparing! Your financial situation doesn’t have to be the same as your friends, sister, mother or co-worker. We’re all individual; we all have different needs and financial requirements, so there’s no point comparing yourself to another persons situation.
Having professional advice can help calm your nerves and anxieties and assist you in achieving your financial goals and desires. Whatever it is, these people have extensive knowledge and experience in things you may not.
Not only will talking to a professional help curb your financial anxieties by assisting you in planning etc, talking about your concerns is one of the best things you can do.
Finally, staying up at night or constantly biting your finger nails worrying about your financial situation won’t make it any better, in fact it will probably make it worse! You may have heard that 85% of what we worry about never happens, and it’s true! A lot of the financial worries we have never even come true! So take a deep breath. Take the appropriate actions of what we can control and put time and energy into those.
If you’re feeling stressed out about money, you’re not alone! The ABC published an article that goes into how many people are stressing about money and the damage it’s causing. Link below.
- The Wealth Genie
With the 2018 -19 Australian Government budget recently being released I thought it was only fitting to write a blog post around the topic budgeting! Low and middle-income earners have emerged as the biggest winners from this governments planned tax cuts, with a dual income family potentially saving $1,000 on their tax bill.
Now while this probably won’t make any crazy difference to your saving goals I have formulated five top tips that will help you stick to your budget!
Saying that you will stick to a budget and actually doing it are two completely different things. While it’s a lot easier said then done, sticking to a budget is an enormously rewarding and satisfying task to achieve.
No matter how big or small your financial dreams are a budget is a vital step in getting there.
Firstly, what is a budget? A budget is an estimation of revenue and expenses over a specified future period of time; it is compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organisation or just about anything else that makes and spends money.
Having a budget allows you to create a plan that reflects your goals, priorities and financial dreams.
When talking about budgeting most people think of completely cutting out the indulgences we love, like those morning coffees or massages, but in fact it’s the complete opposite. As long as you do budget for these little indulgences that we love, then go for gold! If you can comfortably budget them into your life then there’s no reason not to have them!
As mentioned before formulating a budget plan is the easy part, not straying away from that plan is the hard part!
Here are five tips sticking to your budget tips that will help you stay right on track!
1. Write it down and keep track of your expenses
Writing down on a piece of paper, your smart phone or computer exactly what your budget is will set clear boundaries of how much you can spend. Simple!
Recording what exactly your spending your money on will help you identify the things you seem to be spending too much on, where your money is going and where it could be better spent. Keeping receipts, recording when you pay a bill or even taking photos of invoices are great ways to keep an eye on your expenses.
2. Be accountable
Having somebody in your life that can keep you accountable for your budget is a great way not to fall off track. Whether that’s a friend, a partner or even a parent, having someone to check in with each week to see how your budget and spending is going will not only motivate you but also keep you on the right track.
3. A spend less then nothing day
Sometimes we don’t realise just how easily a quick duck to the shops to grab something for dinner or buying lunch everyday can add up! Designating a “spend less then nothing day” means that you set aside day that you don’t spend anything, that is not completely necessary for your survival of course.
Be creative in the kitchen; use what you have left over. Have a coffee at home or ride your bike to work. These little changes can make a big impact overall to your spending!
4. Treat yourself
As mentioned before, budgeting doesn’t mean that you have to give up your morning coffee or massage. In fact, if we don’t do these little things to treat ourselves the likelihood of slipping off the bandwagon completely is so much higher.
Budget in something for yourself that you love and will make you feel good and recharged!
5. Be realistic
Making sure your budget is attainable and achievable is key! There’s no point budgeting so intensely that there’s no way you won’t fail. Don’t make yourself suffer or live uncomfortably just because you’re on a budget. This will end in failure… Sure, cut back or reduce reasonably but don’t take away everything, especially the things you love.
These are just five simple tips that can make budgeting more attainable and stress free! Remember, budgeting is a good thing! Don’t turn it into a horrible thing to do. Be realistic, treat yourself and enjoy the rewards that you will receive!
With social media being all the rage, constantly expanding and forever growing, it's interesting to question what impact the role of social media has on your business.
Now, I'm no social media expert by any means but with people making careers and earning their income these days purely by an online platform, surely there are some benefits in spending some time and energy and possibly even money into a social media platform/presence for your business.
I took it upon myself to dig a little deeper into this thought and the numbers spoke for themselves. Here are two that really stood out to me.
71% of consumers who have had a good social media service experience with a brand are likely to recommend it to others. (Source: Ambassador)
The claims are true. The statistics are real. We are in an online world where it is more important to represent your business and your brand on social media.
Having a social media presences is an expensive, fast and effective way to get your business out their to the world. Here are five undeniable benefits that the use of social media can bring to your business.
Firstly and most important increased business awareness/exposure! This is obviously a detrimental factor into any businesses success, the more exposure = the more customers/clients/buyers. Fact: 60% of Instagram users say they discover new products via that platform.
2. Personalise your brand/business
When your brand/business forms a social media presence it suddenly becomes way more then just a service or product. Social media allows people to feel a human connection between them and your brand. Connection is key! Through social media you can create your “look” through branding and come across the way you want to be seen.
3. Increase website traffic
Social media is a fantastic tool to use increase website traffic and create leads to your business. Social media posts and ads provide the perfect opportunity for this. Sharing QUALITY and valuable content to your customers on your social media is a great way to share, connect, get attention, increase visibility and grow!
Whether we like it or not, people are ALWAYS going to have an opinion (hopefully good not bad). And now day’s people tend to jump straight onto the Internet to showcase their complaints…whether your business is there to response or not. This is when social media becomes a blessing (and sometimes a curse). Being able to respond to complaints and highlight positive via social media can clean up a messy situation quickly! Somebody left you a review that wasn’t true? Confront the comment in a professional and respectful way. Vice versa, somebody left you words of praise? Thank them for their kindness!
Social ads are booming! They’re an inexpensive way to promote your business/content. You can target specific audiences and end up saving a lot of money!
For some of us that grew up in a world without social media it may be tough to get your head around (but there's people out there now that do it as jobs and can help you with that). Unfortunately if social media isn't your thing, it might have to be….
For your business to succeed it is no longer a question of if you should jump on the social media bandwagon, but a need to, if you ever want your business to reach its full potential.
Again, I’m no social media expert. Everything above is just what I’ve gathered from watching the industry, having people work within social media around me, and personal research I’ve conducted on my own.
The true impact that social media can have on your business can only truly be understood when you start applying the methods.
So if your business isn’t currently social media active then it might be time to hop to!
Here are so more useful links that dive deeper into the benefits of social media on your business!
Knowing how much your business is REALLY worth presents unlimited benefits to both you and your buyer. If you are preparing to transition ownership of your business or just beginning to consider your options for stepping away from the business, it is important to be prepared and have accurate expectations about the sale price.
There are a range of factors that have an impact on the price or value of your business and listed below are some of generally the most important:
1) Type Of Business – different types of businesses (e.g. manufacturing, service companies, distributors) are hard to compare and can often generate a very different sale price. However, generally if your business has a proprietary product, special expertise, defined contracts or provides any value-addition for clients you will see higher sale prices than those business who do not.
2) Revenue Size – This one is a bit obvious! The higher the revenue the higher the selling price can be! The two go hand in hand. Recurring revenue is great. The more returning contracts or customers you have each year indicates how “safe” and “reliable” your business is, therefore adding to your businesses value.
3) Customer Base – Usually, the wider and more loyal the customer base, the higher the selling price
4) Marketing Position – A company that occupies the uppermost position in the market, or has a unique niche will sell for a premium over other companies.
5) Industry Outlook – If the outlook for the industry is positive and growth is predicted, the sale price will rise. The stage of the industry life cycle is also important. If it is experiencing a period of consolidation and larger companies are acquiring smaller ones, the price for the smaller ones will rise.
6) Depth of management and sales teams – Generally, if the business owner bears all managerial responsibility, the selling price will decrease.
7) Company History – The business’s track record is important in the sale. If you can demonstrate a history of consistent growth and profit, buyers will be willing to pay more. This also works in terms of the story of the company. A solid company history increases its tangible value.
These points listed above are all general factors that impact business value BUT there is more then meets the surface when it comes to valuing a business.
Below are three extra extremely useful points to take into consideration when selling/valuing your business!
1)Intellectual property – this can be anything from recipes to trade secrets and trademarks. These are the things the set your business apart from the rest, that give your business VALUE. This “IP” could also exists in how you run your business from your customer base or contact network
2)Business potential – Business potential is a huge game changer when it comes to business value. Perhaps you haven’t had the time, energy or motivation to achieve the maximum success of your business but the potential is there! This needs to be highlighted! The benefits of buying a pre-existing business in comparison to starting from scratch are huge and your buyers need to know that!
3)Happy customers – If you have an already developed business, it’s reputation and customers satisfaction is vital in it’s success and therefore value. Happy and satisfied customers impact your business more then anything else because they are your business! Put yourself in your customer’s shoes when running a business, solve issues quickly, chase good reviews and listen to the feedback!
To summarize, there are a several factors that will affect the value of your business and some of the most important ones aren’t seen on surface level! The best thing you can do is be prepared and do all you can do before you do place your business on the market, to obtain the best possible outcome for all your hard work.
Remember that when it comes to valuing or selling your business!
If you are considering selling your business, or just want to consider your options we can advise you about the process, discuss alternatives and assist with the sale of your business
Michele Purvis is an advisor with over 30 years experience working in the accounting and financial services industry helping clients to define and create their wealth.