Cash Management Blog

One of the biggest fears most of us have is losing our money. After working long and hard to earn it, that is only natural, but it is one thing that prevents some people from investing in the share market. Everyone who watches the news will see how the value of shares in even blue chip companies seems to rise and fall like the ocean tide recently. As soon as values fall, many shareholders start looking to sell their shares and get out before they lose any more.

Experts in stock broking tell us that we should do the opposite, making this fear our friend instead of the enemy. In other words, investors should look to increase their investment portfolio in times when the bottom seems to be falling out of the market. Buying real estate property when the value is low is what the experts do; they know that the market will gradually rise again and they’ll be able to sell for a better profit than if they bought when the price was high.

So buying shares when they are of low value makes sense. Traditionally, the share market has kept on rising, even though there are periods of lows, just like in the real estate cycle of boom, plateau and fall. A wise investor will jump in and buy up all those low value stocks and shares when everyone else is scrambling to get off what they perceive as a sinking ship. He will get them for a low price and then the value will start to rise again, making his investment worth far more than it would have been if he bought in times when the share market is booming.

Stock broking experts tell us the oldest rule for investing is to buy low and sell high. The easiest way to do this is to buy during a recession, when the prices are low. An investment portfolio set up during such a time is sure to be a profitable one because it has two sources of increase. As the recession loses its momentum and the economy picks up, the value of the stocks and shares will increase. And there will be the natural growth increase of the companies they invest in. So next time the share market news seems to be all doom and gloom, make fear your friend and buy a few of those low-priced shares to add to your investment portfolio.

Most of us dream of the day we retire - especially if that retirement also means we have a guaranteed income for life without working for it. To some this is an impossible dream, but it can happen if we take the proper steps beforehand. What do we have to do to make the dream a reality?

Investing in managed funds could be the answer. You don’t need a lot of money to invest in a managed fund. Some let you start with as little as $500, others prefer twice that amount. In today’s climate, nearly everyone can save that. Even those who have no job can find ways to save a little at a time until they have the necessary amount. So what if it takes a whole year - or even two?

With a managed fund, lots of investors pool their money and the fund manager invests it for them. This is the easiest and simplest way anyone can start to save for their future. The profits from the initial investment must be ploughed back into the fund of course, otherwise it will all be spent on present needs or wants. But after a lifetime of re-investing the profits there will be a significant amount to retire on. And those who are wise enough to see the benefits will continue to save for investment purposes so that the initial deposit will swell a great deal over time.

Self-managed superannuation is another option for making the dream come true. This option should not be taken up lightly as there is a lot of work involved with running a self-managed superannuation fund. You will have to be the trustee and you are directly accountable for everything that happens to the fund.

The responsibilities of a trustee are many. There are strict guidelines that you must comply with and failure will bring down the wrath of the tax office upon your head. You must lodge both an income tax return and a superannuation fund return on an annual basis. As well, there must be superannuation member contribution statements lodged every year. An approved auditor must be appointed to do an audit annually. And records must be kept for ten years. There are also restrictions on investments that must be complied with.

In fact, many people feel that the amount of work involved is not worth the benefit and so go with managed funds. Unless you have experience and plenty of time, this is a good decision.

Great investors surely have investing secrets that they use to build wealth, but they are open secrets. Anyone can find out what the greats do and copy them to have success in wealth creation. And many of the so-called secrets are simply common sense principles.

For instance, investing in a company with consistent earnings is the sensible thing to do and one that has helped Warren Buffet earn his millions. Taking care to invest in old and well-established companies is another. Many investors run into trouble by jumping on the bandwagon of some new company that sparkles for a while then quickly dies out leaving a pile of rubble rather than money.

Another common sense principle that is applied to both real estate and shares by the great investors is to never pay too much for an investment. Generally the more you pay, the less you get back as many real estate investors have found out to their cost. Warren Buffet also believes in concentration rather than diversification. When he buys a company he typically buys around 80%, and keeps it.

Another secret investment principle Buffet favours that has helped him with his wealth creation is to buy companies with experienced managers and keep them on to do what they do best - run the company. Buffet rarely interferes with the running of the companies he buys. He simply compliments the managers on the job they are doing. Buffet’s talent is to see where good investments are and buy them, not run the company.

Checking out the management philosophy of a successful business is another secret. Knowing that the manager cares more about the company than the price it brings has worked for Buffet. He studies the character of the company managers before making a decision to buy the company.

Finding a company whose manager is frugal and cares about costs is an important secret of great investors. They know that one way to build wealth is to spend less and managers who run a consistently tight ship are the successful ones.

While some investors feel that a younger manager will enhance a company’s ability to move with the times and make more money, Buffet prefers to retain the successful manager well past the legal retiring age. He considers that experience is the key word when it comes to managers. Setting high standards and keeping them may seem unnecessary to many, but it has seen many great investors build wealth where others fail. We would do well to take on board some of these secrets for ourselves.

This month will see my wife and I run and hopefully complete my 10th Marathon in 10 years when we line up with a few thousand more competitors at the start line of the Sydney Marathon.

Over the years our training for this gruelling 26 mile event has revolved around a training schedule of 50 miles per week – 2600 miles per year. Not earth shattering mileage for a seasoned runner but enough for us to stay fit and healthy and enough for us to complete our annual marathon without having to walk (too much).

Around the time of our fist marathon we began to invest $100 per fortnight ($50 each) from our pay checks into a high interest saving account. Not earth shattering for a seasoned investor but enough for us to feed and clothe our 3 kids and keep our family car on the road so that we didn’t have to walk.

Interestingly, the 26 miles of the marathon is reflected in 26 fortnights per year. This makes the total investment per year $2600.00.

Over the years we have saved $26,000, but due to the power of compound interest this has grown to $38,938; $12,938 of that is ‘free’ money, in the form of interest.

This summer we will be looking to buy our first home, secure in the knowledge that we have a healthy deposit to match our healthy lifestyle.

Of course, you may not be able to run that far per week, but isn’t it good to know that you can still bank that amount of money into a high-yield savings account each fortnight? You could even call your new savings account “marathon” just to remind yourself that if you practice endurance in the form of saving each fortnight, you’ll end up with enough for a deposit on your own home too.

Michael Phelps is set to earns billions over the next few years after his unprecedented performance in the Beijing Olympic "Water Cube" pool where he won eight gold medals to surpass the tally of seven gold medals won by his compatriot Mark Spitz in swimming in 1972.

As the greatest ever Olympian what would you do with the money? I don’t think he would merely place the majority of his earnings into a term deposit account to save for an overseas holiday or a deposit for a new home, do you? He could potentially buy most small banks or small countries so I don’t think that forms part of his long term financial plan.

If you were Michael Phelps, how would you spend the cash?

Investing and saving money is rather like running a race. The two types of running races are basically, a sprint or a marathon. Training for each one is approached in a different way. The marathon runner needs to have endurance training and settle in for the long haul when he runs. The sprinter needs immediate speed and the power to sustain it for a shorter time. In either case the winner gets a gold medal.

When investing, we need to have a certain goal and that will determine whether we run a sprint or a marathon with our investing. The sprint means that you will get a fast return in a shorter time frame. The marathon goal means that you settle in for the long haul with your goals - returns - being several years or more down the track. The type of investment you choose must reflect your goal. And just as an athlete can choose whether he runs in a sprint or marathon, you too, can choose the type of investment you want; a quick return for a higher risk, or a slow return for a safer investment.

But you can get the best of both worlds if you choose a safe savings account with a high interest rate.
Unlike purchasing stocks or shares, there is very little risk with a savings account. The investor who wants a quick return will choose a product that gives him the highest interest rate. He will make sure that interest is credited monthly so that he can take advantage of compound interest - that is, after the first month he gets paid interest on his interest. Watching those finances creep - or rocket - ever closer to your goal is as exciting as watching the athletes run their races in the Olympics. In fact it is even more exciting because it affects you personally.

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Michael Phelps will be trying his hardest to win 8 Gold Medals and the onlookers will be cheering him on. Excitement reigns - but all must wait until another few days before we can see if he breaks the record held for so long by Mark Spitz. Luckily, with term deposits, you don’t have to wait for a particular start time before winning. The gains begin as soon as you choose the product that suits you best and invest your money in it.

However, just as the Games have a finishing point beyond which no more gold, silver or bronze may be won, so some term deposits have a cut-off point. Some investment products are only available until August25th, the last day of the Olympics. If the investor is not quick with his investment, then that offer of good interest will close and it will be too late to purchase that particular product.

And just as athletes must research to do their training in the most efficient way possible, so does the investor need to research his product to make sure that the investment will return exactly what he wants. Reading the fine print and making sure you understand it is just as necessary to the investor as proper training is to the athlete.

With good training and diligent practice, the athlete is quite likely to gain something at the end. Even if not a medal, then the honour of competing in the Olympic Games is something to be valued. In the same way, the investor does his research and places his money in a term deposit to gain something valuable. Not a medal, but a return on his investment. But - unlike the Olympic Games - the investor can see that return coming to him not just during ten special days, but all year.

Records are made to be broken and every time the Olympic Games are on, there seem to be more records made in running, swimming or jumping. Those athletes who manage to break records are the medal winners. Everyone these days likes to see fast results in whatever they do. We like to get to places faster, so we build faster cars and planes. We like to fit more into our days, so we live at a faster pace.

Better still, we like to see our savings grow faster. Traditionally, this has not been quite so easy. But these days, there are many products on the market and each time a new one is offered, it has to have some special appeal to make it more attractive. This may be in the form of lower fees, higher interest or more features. Depending on your needs, you may choose lower interest rates to get certain features that you need. In other cases, you may prefer to seek out the high interest rate that some savings accounts offer.

To grow your savings in record time, you need to find a high yield savings account that offers an excellent interest rate, but charges no fees. And even more important than the actual interest rate offered is when it is both calculated and accredited. With most savings accounts interest is calculated daily and credited monthly. This is excellent because you then are paid interest on your interest.

Many electronic accounts give competitive interest rates, but some have a catch. For instance, if you make any withdrawals, you get no interest at all for that month, or if you fail to deposit a certain amount during one month, then interest is also forfeited. However, it is possible to use your automatic deposit feature so that you don’t forget to make a deposit.

There’s no doubt about it, the athletes will be doing their best to run and swim faster, jump higher and generally be stronger than their competitors during these Olympic Games. And those who are faster, higher and stronger will take home gold, silver and bronze. Some will end up being much richer due to lucrative offers from sponsors. They have invested their whole lives for this moment of glory.

The investor, on the other hand can start his run to riches at any time of life. He doesn’t have to be young, fit or strong to make a difference to his life financially by investing. And unlike an athlete, an investor can keep on investing and making money right into his old age. Of course the best time to start investing is when you are young, but that is not always possible. Not all young people have well-paid jobs - and they often have to pay off a car or home. But there is one big difference.

An athlete must invest his whole time and effort into training to have any chance of winning. An investor on the other hand, can make a smaller effort and still win. That is, the investor can save just dollars a week - or he may take a part-time job especially to invest that money. No one could hope to win a medal by training only on a Saturday. But an investor can work on a Saturday and invest that money in a high yield saving account or term deposit - and if he does that for long enough, he will end up with a sizeable investment at some stage in his life. So even if you are not faster or stronger than the athletes, you can be richer by some wise investing and just a little bit of hard work. It’s really worth it in the long run.

Many kids nowadays do not understand the value of earning and spending money. They were not taut that investing is necessary even if they are still at school. As parents, you play a crucial role in this area.

You should be able to teach your kids how to save. They should be able to understand the concept of money and investment as early as childhood. This will prepare them to learn money management, as they grow older and start to think about cars loans and mortgages.

Here are 5 essential tips that will teach your children how to save:

1. Your children should be educated of the meaning of money. Once your children have learned how to count, that is the perfect time for you teach them the real meaning of money. You should be consistent and explain to them in simple ways and do this frequently so that they may be able to remember what you taught them.

2. Always explain to them the value of saving money. Make them understand its importance and how it will impact their life. It is important that you entertain questions from them about money and you should be able to answer them right away.

3. When giving them their allowances. You need to give them their allowances in denominations. Then you can encourage them that they should keep a certain bill for the future. You can motivate them to do this by telling them that the money can be saved and they can buy new pair of shoes or the toys they want once they are able to save.

4. You can also teach them to work for money. You can start this at your own home. You can pay them fifty cents to one dollar every time they clean their rooms, do the dishes or feed their pets. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.

5. You can teach them to save money by giving them piggy banks where they can put coins and wait until they get full. You can also open bank accounts for them and let them deposit money from their allowance. You should always show them how much they have earned to keep them motivated.

The importance of money and saving is not something that is learned by children in one sitting. You should be patient in teaching them and relating the value of money in all of their activities. Children will learn this easily if you are patient and consistent in guiding them and encouraging them in this endeavor.

Everyone who trades on the stock market - and many who don’t - will be aware of the highs and lows experienced. When the price of shares is soaring everyone is happy, but when they start to tumble investors may start to get a little panicky and want to get out of that particular investment. Online investing is a bit like riding in the Tour de France - there are many ups and downs, but if you stick with it through the hard times, you’ll come out a winner in the end.

Even eventual winner Carlos Sastre knows that he will not win every stage of the Tour de France. He makes allowances for that and fixes his sight firmly on the end result. Sure, getting to wear that yellow jersey before crossing over the finish line might feel good. But it is not the most important part of the whole picture. Sastre trained hard and learned the correct strategies to come out winner in the long run. That’s what investors need to do when share trading.

Think of share trading as the course Carlos Sastre rides in the Tour de France. Some days there are steep mountains to ride up and other days the terrain flattens out to level - good, easy riding. So in share trading there will be the good times with shares soaring to new heights and hard times when things plunge steeply. Then there will be those times when trading levels out and there are no steep plunges. When Carlos gets to the top of his mountain, he expects the course to flatten out a bit before going down the other side. He doesn’t have a panic attack and stop riding when the going gets tough.

So with online trading there will ascents, levels and plunges over the course. If you have a financial goal, don’t start to panic when the plunge starts. Share trading will always have its ups and downs, but overall, the steady investor comes out on top.

Step 1 - Get a plan

Decide what you really want and focus on the most important goals – a car, holiday, retirement, or deposit for a home You might want the lot, but you've got to prioritise.

Estimate how much you can save by depositing funds at regular intervals, and how long it will take to get there. Establish a budget to make this happen and stick to it. The best time to start saving is now.

Step 2 - Minimise existing debt

Make regular payments off your cards or personal loans. Minimise your costs by taking a cut lunch to work – putting $5 aside daily can mean $1000 extra for Christmas.

Use layby during the year to shop at sales for Christmas presents rather than having a last minute spending blow out.
Cut bank fees by reducing the number of accounts you hold. Use cash instead of credit cards if you can’t pay off the monthly balance. Use a debit card if you find having a credit card increases your spending.

Step 3 - Maximise Your Savings

Even small things like putting your change into a savings jar at the end of each day can make a difference.

Put away a small amount each payday into your bank account and set up an automatic deduction so you don't have to think about it. Add any pay rises, bonuses, special payments or that tax refund.

Think ahead - is there a Christmas Club at work? If you put away $25 per week into such an account , it would mean $1300 in Christmas cash.

Savings are a security buffer to cope with unexpected expenses. As they build you will be able to think beyond day-to-day expenses and pay for larger things.

Step 4 - Set up separate savings accounts

Save for longer term goals such as a car, holiday or home deposit with special purpose savings accounts which are separate from your everyday transaction account. Special purpose savings accounts offer carrot and stick incentives (eg higher interest if regular deposits are made but penalties if money is withdrawn in a particular period).

When these accounts grow to larger amounts, move into term deposits, where there is limited access - and less temptation to spend them, leaving the growing interest to compound.

Popular new online savings accounts (accessible through an ATM and piggy backing onto your transaction account) pay top interest rates and cuts bank fees, while giving instant access for an emergency,. However, the instant access means they are not for the weak willed.

Step 5 - Know your finances

Savings for retirement are best made through superannuation because of the tax concessions. Make extra superannuation contributions from your pre-tax salary ('salary sacrifice'). This will increase your retirement pension – and choices.

Traditionally, men were the big earners in society. They received the best education and so were able to grab the best jobs. Further down the track women have moved into managerial positions, but often not for the same remuneration that a man would have received. While this creates a wealth gap between the sexes, traditionalism is fast going out the door and women are now both getting good jobs and being paid what they are worth. In fact, statistics show that the wealth gap between the sexes is closing rapidly - at least in western countries.

At the moment, women tend to leave money on the table when it comes to wealth creation, due to the fact that they are not so well educated about investing. They live longer than men, but they are often not paid as much, so this increases the wealth gap between the sexes. Where women have taken the trouble and interest to educate themselves in the area of wealth management, they have done a better job of making money than many men. This is due to their more conservative nature. They’ve worked hard to get financial and they don’t want to lose it buying risky shares. They buy something safe and leave their money there.

Men, on the other hand, tend to be more daring with wealth creation. They are not so careful about researching the companies they invest with and they buy and sell quickly in an attempt to chase the big money. But they get their fingers burnt more often than they make a profit. According to statistics, the number of wealthy women in North America grew by 48%, while in the same time frame, wealthy men only increased by 36%.

Another point in women’s favour is simply their nature. In general, they are more patient than men. This is an advantage in wealth management, because investments take time to increase and it takes patience to sit on the sidelines and watch them grow. Those who are impatient want to see faster growth, so they tend to chase the hot tips of the day. But in many cases, the cost of frequent buying and selling outweighs any advantage.

Most women can manage their day-to-day finances very well. In fact, according to some experts, they are highly skilled at budgeting and finding ways to reduce spending. This is really important, since women traditionally don’t usually earn as much as men do. Where their skills don’t match up to those of the menfolk is in the areas of investment and retirement savings. Nor do they understand financial terminology as well as men. But they are eager to learn and should make every effort to do so if they are to take full control of their financial future.

Reports show that many women don’t feel that money is necessary to be happy in life. And while this sentiment is admirable, it is also likely to cause them to have less money than they need as they get older and cannot work. If women were to work on building up their confidence in investing, they would find that the stress and boredom of handling money in this way would be gone and they would soon be able to see all the benefits.

Women have gradually broken down many male dominated barriers in the past; now they need to hone their skills in the area of money management and investments. But first they must change their attitudes. Money is not the be-all and end-all of life, but we do need a certain amount of it. And it’s only wise to work towards protecting your future. Women live longer than men, so they cannot expect to have a man around into their old age to take care of finances for them.

Classifieds seem to have a great attraction for most people - even when they don’t actually want to buy anything. It’s all to do with wanting to know what the neighbours are up to. We just like to read them because we can see what’s happening in someone’s life. It might be that they are going to live overseas so have to sell all their stuff. Or if you see a whole lot of baby things for sale you can tell that their children have grown older. That’s why the smart person sells through classifieds and what better way to go online and do it?



Online classifieds are the ultimate selling tool, so whether you want to sell property, a car, other stuff or maybe you need a job, here are 101 ways to get what you want through online classifieds.

1. Take great photos of the outside. Make sure you washed all the mould off the wall first.

2. Take photos of the back and front yards - but be sure the dog hasn’t left a whoopsy in the middle.

3. Take photos of the entrance - without those old socks and thongs littering the front door mat.

4. In fact you should buy a new mat and a new pot plant to make the photo look fab.

5. Buy some shrubs that are in flower and plant them before taking photos of the yard.

6. Take a movie of the inside rooms - but only when they are clean and tidy. Junior’s dirty undies will do nothing to sell your house.

7. Take some of the small furniture out of the room before photographing it to make it look less crowded - hence bigger.
8. Wash down the walls and make sure all pictures are straight.

9. Describe the property in positive terms.

10. Be honest - but if there’s a brothel right next door, don’t mention that. You are selling your house not that one.

11. Mention something good that is close to your house, such as park, golf club or other amenities. Some people will overlook faults in the home to be close to other things they like.

12. Even if it’s not all that close to the golf course/beach/clubs/mall mention how far they are in terms of driving time. Only 5 mins to golf club sounds better than 10 ks.

13. Draw up a floor plan of your home, photograph it and upload it to the website.

14. If you have too many photographs, provide a link to your own website with more photographs and descriptions.

15. Give more than one way for prospective buyers to contact you. Phone, mobile phone, email address all ensure that the buyer will get in touch one way or the other.

16. Provide address and clear, correct details of how to get there. People might want to take a look at the outside before contacting you.

17. Draw a clear map of how to get there and upload to website. But make sure it is correct.

18. Mention any obvious landmarks in your directions.

19. Price the property a little above what you really want, then allow your buyer to beat you down. That way he will feel like he got a bargain.

20. If the property has any good features - e.g. cathedral ceilings - be sure to mention them.

21. Don’t waste space with unnecessary wording such as “If you like it make a reasonable offer.” It’s obvious that’s what they will do anyway. You can use that sentence to tell them what else is good about your house.

22. Don’t repeat what you’ve written in other words. Make each sentence count. If you mention 3 bedrooms once, there is no need to do so again.

23. Make sure you photograph the home from the right angle. You don’t want to include a rickety shed or rusted tank in the photo - nor even a good tank. Show the home off to its best advantage and tell about the tank - it’s a good ‘green’ point.

24. Add a way in which the buyer can save money, such as ‘green’ light bulbs, insulation or even a sunny aspect that will save on heating.

25. Comment on the storage space. Everyone loves plenty of storage. If there isn’t much, point out corners or niches that would take a cupboard - or have it put in first.



26. When selling a vehicle then you should certainly take photos for the buyer to view. They should show the vehicle from front, back and sides.

27. Also photograph the interior.

28. Be sure to wash and polish the vehicle before the photo. You want it to look its best.

29. Clean and polish the interior too.

30. Polish the tyres with black polish to make the car look like new.

31. Make sure the tread is not worn out.

32. Park the vehicle against a contrasting background so it will show up better in the photo.

33. Make sure the dog, and that old bucket is out of the picture.

34. Likewise your washing should not be in the background.

35. Get creative and take the photo against a classy backdrop of forest, autumn leaves, rocks or similar. This is what they do for TV ads.

36. Add a sexy chick or guy to the photo. Or for a family car add something else appropriate.

37. Add props to the photo; a picnic basket for family - a surfboard for a single guy’s car.

38. If the vehicle is a caravan make sure the interior is clean and tidy, with nothing on either the sink or the mattresses, before photographing it.

39. If the vehicle needs minor repairs, have them done. It won’t cost you much and your reputation will stay intact ready for your next sale.

40. Mention whatever you have had done in the ad. as a good selling point.

41. Make sure you have a pink/green slip when necessary.

42. If possible sell with many months still on rego. Buyers really don’t want to have to register the vehicle just after they buy it.

43. If you are not selling the seat covers or other extras, then don’t photograph the vehicle with them still in place.

44. If the original seat covers look crappy, consider buying a pair of front seat covers and sell them with the vehicle. They need not be expensive ones.

45. Don’t waste your word limit by having the words ‘for sale’ or ‘I’m selling’ in the ad. It’s already in the for sale section isn’t it?

46. Give the model, age and mileage and make sure they are correct.

47. Use good grammar and correct spelling. People take you more seriously when you do.

48. Keep records of the car services and show them to buyers.

49. If the vehicle has been kept undercover, say so, especially if you live by the beach where rust could be a problem.

50. If it hasn’t been kept undercover, don’t mention that unless asked.

51. Always be honest when describing your vehicle. Age and condition will be obvious when it is inspected, anyway.



52. When advertising for a job, list all your skills honestly. If you want a specific job, then advertise in that section. If not, then advertise in a broader section.

53. Think of some things you can do that you may not consider skills. You may get on really well with senior citizens, dogs or children. These skills can get you odd jobs.

54. If you include a photo of yourself, dress appropriately. A bikini is not suitable for a nanny, but if advertising for a surf watch job it could be.

55. Create a professional resume - if you can’t do it, pay someone else to. It won’t be in the classified, but you’ll need one eventually.

56. If listing a position available, state the minimum qualifications, hours and pay clearly.

57. If advertising your delivery service, show a pic of your vehicle so prospective users can tell if it will be big enough.

58. When advertising for a position, state clearly what you will not do. E.g. some people expect the baby-sitter to clean out their oven, wash the day’s dishes and vacuum the house when the baby goes to sleep.

59. When advertising a service using the word ‘we’ instead of ‘me’, even if there is only one of you. It will make your ad seem more professional. It may also prevent any monkey business.

60. Avoid using terms of endearment such as luv or my dear, as these can create a wrong impression of what you are offering.

61. Don’t use past tense such as “I was looking for a …job.” It raises a question in the reader’s mind, Are you still looking for it?

62. Use present tense. “I am looking for a (type of) job. I have these skills.”

63. Include a call to action. Call me on (ph. number).

64. Sound positive and upbeat, but don’t use slang. It does not sound professional or serious.

65. When looking for work, be wary and don’t get ripped off.

66. When advertising your work for hire, be clear about what you will do. If gardening, you may not want to hand-dig an extensive garden bed from lawn. If you mow and edge, you may or may not want to weed the garden.

67. Don’t offer services unless you can do them properly. People these days expect professional work done in a professional manner - even mowing the lawn needs to be done properly if you want work.

68. When advertising a position vacant, be clear about the hours, pay and what you expect to get accomplished.

69. Offer fair pay for fair work. Some farming jobs demand 12 hours a day, 7 days a week and pay peanuts. Is this fair?

70. Don’t expect the impossible. No one person can be fantastic at several jobs when they are under 20 years of age.



71. When selling your household stuff, make sure it actually works before you advertise it.

72. If selling whitegoods, try and include the original instruction book with it. Add make and model number.

73. Describe the goods correctly. Don’t call drawers shelves.

74. Measure height, length and depth of furniture correctly.

75. When photographing furniture, move all your other stuff away from it. Showing sofa and coffee table in front of the TV unit you want to sell detracts from it and adds confusion as to what is actually being offered.

76. Don’t waste your word count with a greeting. It may sound friendly, but it is unnecessary. You are selling, not making friends.

77. Add a free gift if bought before a certain date. E.g., add a free CD, to CD shelves.

78. Package small items together, rather than singly. E.g. a pack of two or four books.

79. Clothing can be sold as sets e.g. set of four t-shirts or set of t-shirt and jeans.

80. If selling in sets of pants and tops, make sure they are the same size.

81. Make sure clothing has no missing buttons or broken zips.

82. If you don’t want to add expensive freight to the cost, label the item as pick-up only. Buyers often prefer this option as it can save them money if they have their own pick-up vehicle.

83. If you are selling expensive stuff, be sure to have it insured for posting.

84. If the goods are damaged, say so and offer a lower price. People are still happy to get things like books with stained pages - as long as they know about it. Then they don’t feel ripped off.

85. When selling jewellery photograph it on a contrasting background. Black velvet is good. Avoid shiny cloth like satin.

86. Rings can be photographed on the finger so they show up better - but apply polish to the nails first.

87. Caps or hats can be photographed on a head, even one of those model dolls heads that kids love.

88. Include the actual length of necklaces, watches and bracelets. Some people have really thin or thick wrists.

89. Belts should be photographed on a model. You don’t have to include the rest of the body, though.

90. When advertising a garage sale, photograph at least some of the items. One photo is worth a thousand words.

91. Grouping items together for a photo is a good idea, then you can fit more in.

92. When photographing non-solid items like bicycles, have them against a solid background like a wall, rather than a garden. It sure helps with clarity.

93. State all sizes clearly and with clothing, add waist, chest and length measurements. This will give your buyer the assurance that the items really will fit.

94. For pants, state the inside and outside leg measurement plus the ankle width.

95. For coats measure across the back of the shoulder and from the base of the collar at the centre back down to the hemline.

96. Make sure all clothing is freshly washed and ironed before photographing it.

97. In some cases, the reasons for selling can be stated - e.g. moving or wrong size. This assures the buyer that there is nothing wrong with the item.

98. If the item is near new and in perfect condition, describe it as new without tags. New with tags for never worn clothing, and good condition are two other categories.

99. Some items can be listed in more than one category to attract a wider buying field. E.g. car accessories such as radio or speakers can also be listed in the ‘stuff’ category under audio.

100.Leave exclamation marks off your text. They are unprofessional and look ridiculous.

101. Don’t copy other ads. Make yours stand out with the use of creative and positive wording

Pros of Self-Managed Superannuation

While self-managed superannuation will not suit everyone, there are some people who will find it is just what he or she wants. These are people who have had some experience in buying shares, or at least know how it is done. One of the main advantages is that you can choose what shares to invest in. This may be very important to those who have strong beliefs about say, not gambling. If this were the case, then you would not want your money invested into something like casinos.

The manager of an SMSF will not be afraid of a whole bunch of figures staring at them from their computer screen, and keeping records of everything will not faze them in the slightest. In fact they will be able to keep the most intricate records without worrying. And they will be able to keep up with the regular reporting that is necessary.

Of course, all of the above will take a great deal of time, so the person who is suited to run an SMSF will have plenty of time up his or her sleeve. They will also be smart enough to avoid any shady schemes to access their money early, and they will understand that the Tax Office will be onto their case quick smart if any illegal scheming is suspected. While they may need more financial advice than they thought, they also will realise that any financial advisor needs to be licensed to give advice. Who would want to take advice from someone not qualified to give it?

The person who can successfully set up his or her own SMSF will have at least $200,000 to invest. They will be able to make sure that they don’t miss out on all those benefits available with a super fund that is managed by a third party such as life and other kinds of insurances. So if you think you have these skills and the time, then an SMSF may be just the thing for you.

Cons of Self-Managed Superannuation

Many people think that they will gain by switching to a self-managed superannuation fund (SMSF), but there are several disadvantages. One of these is the sheer time it takes to administer the trust in the way the law dictates it should be managed. There is a great deal more in running your own super fund than first meets the eye. Not only do you have to find good investments, but you must be sure that they are going to perform in a way that enhances your investment and meets your goals.

Finding investments may seem easy, but to make your investment as safe as possible, there needs to be diversity in the type on investment. Another disadvantage is that being a single investor, you don’t have the funds to purchase shares, benefits or insurance at a wholesale price like a managed fund has. And depending on your area of knowledge, your running costs will be more than with a managed fund, because you will have to hire both an auditor and a financial advisor. Experts suggest that an SMSF can cost up to $1700 per annum to run.

They also believe that a DIY investor needs at least $200,000 to make doing it himself worthwhile. And if fact, if the Australian tax office finds an SMSF of less than this, they will look into it very closely, as they have found that many such investments are simply schemes to get at those super funds before retirement - and that is illegal.

Finally, when you have an SMSF, the buck stops with you. That means if you lose money, there is no one to sue and no one to blame but yourself. And if you have done anything illegal - even inadvertently - then you must pay the penalty, which is likely to be a hefty fine, at the least. All this means that those people considering an SMSF should look at their options very closely before deciding to go ahead.




This post is intented for Australian Readers only.

Those people who have managed to acquire - or inherit - a large amount of wealth know that it needs to be looked after to avoid loss. There is nothing so easy as spending money if you have plenty, so the first thing you need to do is be sure that your wealth is actually increasing rather than decreasing. Unless certain procedures for wealth protection are followed you may wake up one fine morning to find creditors knocking on your door.

One way to ensure your millions actually increase rather than decrease is to take advantage of private retail banking. Private banking is when a bank creates products especially for the needs of the high net worth individual, rather than simply offering commercial products already available. Other services in private banking include special wealth management advice, as well as financial planning suited to the needs of the individual. This should not be confused with private banks that are not incorporated.

Special estate planning is also necessary to protect and maximise the goals of the owner. This will include making sure that your intended beneficiaries do actually get what you want them to get, with a minimum loss to taxes and other costs. It is especially necessary for minor children to be looked after correctly. And you need to have plans in place in case of incapacity in old age.

Legal resources and special taxation advice are necessary for those with millions; otherwise they could see the taxman scoot off with most of their money. Legal advice from those who are specially trained in advising high net worth individuals is necessary. An ordinary solicitor or accountant would not have the experience or training to do what is necessary. To sum up, wealth management includes using tailored banking services, special investment management, estate planning, taxation advice and special legal resources.

1. Place a Property for Sale sign in your front yard. Make it big enough so that people can read it as they drive past.

2. List your property with one or more real estate agents.

3. List your property for sale with an online real estate agent.

4. Advertise your property for sale through online classified websites such as Gumtree and Craigslist.

5. Get your own website or blog and advertise your property for sale on it, complete with digital photos. With a paid website will you be able to have ‘property for sale’ in the first part of the URL.

6. Word of mouth is another good way to advertise your property for sale. People love to gossip and once you tell all your friends, they will tell all their friends and so on.

7. Advertise in the classified ads section of your local or national newspaper. You can make this ad a small one, or spend the extra for a larger classified ad that will catch the eye.

8. Mention it on Facebook or create a YouTube video.

9. Classified ads in the Trading Post may also bring results.

10. You could auction your property to sell it. This will need to be done by your local real estate agent.

Unfortunately, cash crises happen more than they should; let's face it, once is too much. The best thing to do in a cash crisis is to act without delay. The very first thing you need to do is get down to business and draw up a credible plan of management. Don't wait until the creditors are pounding on your door. Schedule meetings with them before the money runs out completely. Then you can help them focus on what they will get, rather than what they will miss out on.

Get help from an accountant and draw up a plan to show your creditors what you are going to do about your cash crisis. While the assessment should be realistic, you don't want it to be so gloomy that investors and creditors panic and refuse to supply the goods you need.

At the same time, never promise something that you won't be able to deliver. If things are bad now, they are not likely to improve any time soon - at least not without hard work. But if you promise stuff that you can't and don't deliver on, then you will destroy that bit of hope and trust that is left. If you can still make a small payment on bills that you owe, it demonstrates good faith on your part and makes creditors feel you can be trusted.

Once you have the meetings set up, behave in an appropriate manner. If you go in biting your nails and looking harassed, it won't exactly inspire confidence. But if you tell them straight out what the problem is and then present a reasonable plan to fix it, then that will be more likely to inspire trust. While you do need to be honest, it's not necessary to reveal absolutely everything - especially if that would prevent your suppliers from dealing with you again. Balance is the key; the problems of the present must be balanced with the hope for the future. In this way you will be able to manage your cash crisis and hopefully, learn from it for the future.

A good financial plan is important, not only to help in the creation of wealth, but also to help people make the most of what they have. Many people don’t take much heed to the actual planning of their finances apart from paying the bills and saving or spending what is left over. Many people depend on credit cards for their financial needs and end up with a debt they cannot manage. Financial advice and planning can avoid this stress.

When you consult a financial advisor, you will gain valuable insight into ways and means to both save money and spend what you have wisely. A good financial plan will take into consideration your long and short-term goals and aid you in becoming financially independent by building wealth, while at the same time being able to enjoy your life.

A financial advisor will need to gather all your financial details and identify your goals - and if you don’t have any, he may be able to help you think this through. He will need to be told of any financial issues such as debts before he can properly advise you. Then he can draw up a financial plan that is suited to your particular circumstances. This is called a Statement of Advice (SOA) and can be implemented by your financial advisor.

But circumstances often change as life progresses, so another part of the financial advisor’s task is to review the SOA from time to time to make sure it is still the best financial plan for you. Having a sound financial plan in place will enable you to reach your goals and give you peace of mind that your future will not be one of miserable despair as you struggle to make ends meet. Even those who are just starting out with their first jobs should consider implementing some kind of financial plan.

Planning for your estate ahead of time will enable your wishes to be carried out in a manner that is timely, easy to do and reduces debt to your heirs. A good estate plan will see to it that probate is minimised or avoided and tax liabilities deferred. It will have plans in place to protect your assets and plan ahead for illness or incapacity. Guardians and personal fiduciary representatives will be considered or chosen.

Succession strategies will be put into place for family businesses with the formation of family limited partnerships looked at. You may need to use a trust to distribute your assets to any children who are still minors. Assets will include real estate, stocks and shares, life insurance, personal property that is valuable such as art collections or jewellery and other things such as cash.

A good estate plan takes into consideration the fair market value of assets and their growth or liquidity. With the correct estate plan in place, you can rest assured that all your assets will be disposed of in a manner of your own choosing. This will save your children the burden of making decisions that you may not have wanted, and will certainly save them squabbling amongst themselves.

Years ago the time-honoured way of investing was t o simply have a savings account in a bank. These days, if you want a retirement income you have to invest in a more aggressive manner. There are various asset classes that can be considered for this investment strategy. Fixed interest investments or securities can make some capital growth and profits when they are traded in the latter case.

Equities (shares) have the potential for good capital growth over a term of 3-6 years. Tax imputation is also available. That is, if the company has paid tax on their profit that is then paid to you as a dividend, you will be entitled to a tax credit.

Property investments can be real estate or listed property trusts (LPT). Real estate includes residential (houses) retail (e.g. shopping complexes, industrial (factories etc) and others. LPTs are bought sold and traded via the stock exchange.

Multi-sector funds are good because they allow you to invest across a wide sector of asset classes, including internationally. Each multi sector fund has a specific focus i.e. income or capital growth.

Managed funds are often preferred by the small investor as a way of investing without all the trouble of doing it. Numerous investors provide a pool of finance and a person hired for the job, or more often an investment company manages the investment. Many banks provide managed investments.

A structured investment is an investment product that is structured differently from any other type of investment. You would think from the name that it was a single, definite package of investment, but this is not so. Structured investment can be made up from any number of investment types. For instance it can be derived from a single security or a whole basket of them; it can include commodities, indices, options, foreign currencies or debt issuance. Some structured investments have a feature of principal guarantee if kept till it matures in however many years that takes. If this is the case, then the investment company simply buys a product that is sure to return the investor’s principal on maturity, then uses the rest of the money to purchase other assets.

If this seems a rather poor return, remember that you accept low returns for low risk and if your principal is guaranteed, then you must expect low returns. Structured products can be an alternative to other forms of investment and do actually utilize current market trends while minimising risk. Banks or their affiliates most often issue structured investment. They have a specific time frame for maturity and they contain two elements, viz, a derivative and a note. This means the investor gets paid interest at a set rate at certain times throughout the lifetime of the investment, and another payment at maturity.

Structured products are offered with the potential to give maximum returns, which is why investors are in many cases willing to accept the lower interest rates. The value of this trade-off is somewhat debatable; however, some companies have added more features to the original structured investment. This sweetens the pill a little more and interest is reviving. However, banks have also used these features to hide the amount of profit they are getting from investors - or if not hide, then to make it more difficult for the investor to find out. So what are the actual benefits to the investors? There is the protection of their principal, of course - that’s of major interest. Then there are those enhanced returns and reduced risks. Last but not least, there is tax-efficient access to an investment that is fully taxable.

Managed funds are when a lot of small investors pool their money and are then able to invest in a greater variety of investment options. Most of the hard work and decision-making is done by the manager/s of the fund - usually a board. Of course, they are trained in the art of investing, so you can be reasonably sure of making a decent profit. It is possible to start investing in a managed fund and access diversity with a smaller amount of money than would otherwise be the case. A managed fund investment causes less stress for those investors whose time and/or ability are limited. The fund manager does all the hard work and spends all the time needed to make sure the investment is successful.

No investment is 100% safe, but with a managed fund, wide diversification is possible due to the large amount of money involved. Good diversification mean less risk and better returns over-all. Managed funds in Australia consist of Australian and international equities, cash, fixed interest and property. Some managed funds focus on only one asset class - with wide diversity within that class - while others diversify more widely with investments throughout many or all the classes. These are called multi-sector or balanced funds.

When an investor puts his money into a managed fund, he is issued with units, all at a specific price. This price may increase or decrease, depending on what the share market in those sectors is doing and depending on what the value of the underlying investment is. The issue price of a unit is what it costs the investor to buy, while the value of the unit when you withdraw or sell assets is called the withdrawal price. The difference between the two prices is called the buy-sell spread. Of course, it costs money to both buy and sell units in a managed fund and the price must reflect this cost, or others in the fund would be disadvantaged. Typically, banks and other lending institutions offer managed funds.

Traditionally, banks offered very small rates of interest on their savings account, but of latter years they’ve been forced to become more competitive. This is due to the many alternatives that have sprung up with non-bank institutions and Internet only banks. Internet-only banks typically offer the highest interest rates and no fees - or very low fees. You do have to have another bank account to link to them, since there is no other way of accessing your money. There is no bank building to go to. All deposits and withdrawals are done over the Internet or by telephone. It takes about two days for the transfer, which is good for those who struggle with saving. It means there is that wait before they can access their money and thus they have time to think about spending it, instead of spending impulsively.

Traditional banks now also offer Internet-only savings accounts. They work the same way as above, but there are still the bricks and mortar banks from which you can access personal help or advice when needed. An electronic account in a traditional bank may not offer quite the same high interest rates as an Internet-only bank, but some people like the security that a real time bank can afford. Some electronic accounts offer even higher interest for those months when no transactions are made.

Cash management accounts usually offer better interest rates than a general savings account. They make it easy to access your money on a daily basis if this is what you need to do. Many have tiered interest rates - they give more interest for the larger balance, but really low interest for a low balance. Many other savings and transaction accounts also have a tiered interest rate structure. This is fine if you know your balance is going to be high most of the time.