Tips On Organising Your Finances

Tips On Organising Your Finances

Here are Barry's tips on getting your finances in order...

Interest rates are at a 50-year low, so I see many opportunities such as:

• Consider a rental property if you have your existing home loan under control
• Accelerate debt reduction by increasing loan repayments on non-tax deductible debts
• Consolidate higher interest loans such as credit cards to a lower interest rate such as a personal loan or home loan.
• Set a realistic savings goal such as salary sacrifice into super or save for a rainy day
• Low interest rates can hinder wealth creation. Consider investing in shares, with dividends presenting the opportunity to earn tax effective returns at higher than bank interest rates, with the prospect of capital gains to boot.

What is the most common problem that people come to you with and what do you say to them?

Falling behind in tax your affairs which hinders things like obtaining finance or applying for centrelink benefits. If you are off to the bank, particularly if you are self-employed, be organised and have your taxes and financials up to date, before you go. We can assist in areas such as tax preparation, interim financials and cash flow projections to ensure the best opportunity for getting finance. Remember if you fail to plan then you plan to fail.

What is all this hype about SMSF? What should be the motivating factor when looking into this? How do you assist here?

Self-managed Super is becoming very popular. People are becoming more investor savvy and seem to be better educated financially these days. While a major factor in choosing to use A Self Managed Super Fund is greater control of investments, also consider:

• An SMSF member becomes more engaged in their superannuation affairs by taking on the role of trustee;
• A greater choice of options is available for their investment flexibility than exists with an industry or retail superannuation fund;
• The use of intergenerational planning is available with the use of an SMSF; and
• While always keeping the sole purpose test in mind, opportunities exist for small business owners to structure their affairs more efficiently and provide a level of security.
• Buying property within a self managed super fund with borrowings allowed to complete the purchase. 

We take an education of client approach so that they are guided and advised every step of the way. Knowledge is power.

We are heading to Tax return time-what are your main tips here for everyone?

• Claim everything you are entitled to. Keep all receipts, diary records and work expenses.
• Replace work equipment, tools & computers prior to 30 June. If it needs replacing, why not do it before June 30 and claim it this year.
• Get organised and don’t forget the small stuff like donations and home office expenses.
• Seek professional advice. Tax can be confusing so speak to a tax specialist if you have any concerns with deductions or capital gains tax.
• Self-employed business owners should look at interim results prior to June 30. Additional super contributions or vehicle replacement are good options for minimising tax. Don’t leave it to the last minute.

This handy information has been provided to you by: 

Barry Hockey
M.Com, FIPA, JP

(02) 6651 9655  |     www.barryhockey.com.au
Suite 2/29 Orlando Street, Coffs Harbour NSW

This blog content may contain links to other websites. We are not responsible for the privacy practices or the content of those websites. The Privacy Policy of this website does not extend to those linked websites.  This content has been supplied to Your Commercial Specialist by a third party to assist the audience of this website.  Your Commercial Property Specialist take no responsibility for the accuracy of the information supplied by the third party and the audience should make their own enquiries on the information supplied and seek their own independent specialist advice regarding the content supplied. No financial benefit has exchanged for the use of or display of this information.