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Changes to the Child Care Benefit and Child Care Rebate– how will they affect you?

In General Budgetingby Phil McGilvray1 Comment

If ridiculous house prices and huge mortgages weren’t enough child care costs have also sky rocketed in recent years. With many day care centres now charging upwards of $100/day it is no surprise that young parents get particularly twitchy when the government starts tinkering with the Child Care Subsidies. Over the past couple of weeks, I have had no fewer than a dozen discussions with coaching clients regarding what impact (if any) the proposed new Child Care Subsidies will have on their cash flow. With close to a million families receiving Child Care subsidies this is a big topic, so in this blog I thought I would provide an overview of the key components of the new subsidy system. But before we look at the new system let’s quickly review the Childcare subsidies that are currently in place – these will end as June 30, 2018. Current government childcare subsidies There are currently there are two Childcare Subsidies in place. 1. The Child Care Benefit (CCB) The Childcare Benefit is an income tested payment that can be made either as a lump sum to you or paid directly to your child care provider to offset the cost of child care. …

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So you want to save money and get out of debt, have you considered a budget coach?

In General Budgeting, Grandma's Jarsby Phil McGilvrayLeave a Comment

You want to save money, get rid of the credit card debt and hopefully one day buy a house but you have no idea how to make it happen. You have tried budgeting but weren’t sure you were doing it right and every time you felt like you were starting to save money some unexpected expense would blow your budget out of the water. Oh yeah and then there is the whole ‘will power’ and ‘discipline’ thing, you want to save money, you want to eliminate your debt but it is so hard to resist the temptation to spend. If this is you, then perhaps you should consider taking on a budget coach.   What’s the point in spending money on a budget coach, if I am trying to save money? Yes, I know it seems counter intuitive to spend money to save money but let’s be honest, how much money did you save last year? How much debt did you pay off last year……   Hmmm For most people the honest answer is a big fat zero and for others it’s “not as much as I should have”. So if this is you it’s time to invest in your future and get …

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How to Budget When You Are Broke

In Budgeting Tips, General Budgetingby Phil McGilvrayLeave a Comment

How to Budget When You Are Broke It is such a simple pleasure but every time I get the ice cream out of the freezer I am reminded of the period in our lives when money was so tight the ice cream rarely made it into our shopping trolley. There is nothing fun about being broke, constantly juggling the bills and expenses is a stressful way to live. It is made particularly hard by the guilt you experience when do spend on fun stuff because you know you can’t really afford it! What I want to share with you know is the simple 5 step process I personally use and have used with hundreds of clients to show them how to budget despite starting from a financial position best described as ‘Broke’.  

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Parents, Teaching Children about Money is your Responsibility

In General Budgetingby Phil McGilvrayLeave a Comment

The statistics are sad, scary and far too true. One-third of Gen Y have no savings and are struggling with debt. One in five could not find $500 in an emergency, and one in two young people experience financial stress on a weekly basis. It is little wonder that anxiety and depression have become so prevalent amongst our younger generations. This is why it’s so important for parents to under how to teach your children about money. As a budget coach, these statistics are absolutely heart-breaking because this isn’t how it should be. The core principles of wise money management aren’t difficult to understand or to apply but other than a lesson or two in Year 9 maths, no one is purposefully teaching children about money and money management. Parents, I am sorry – whether you like it or not, it is your responsibility to teach your children how to manage money.  It is your responsibility to teach them: how to budget how to save a percentage of every dollar they earn how to avoid lifestyle debt

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How Do I Get My Spouse or Partner On Board with the Household Budget?

In General Budgeting, Manage Moneyby Phil McGilvrayLeave a Comment

A couple of weeks ago, I was approached by a friend who wanted some advice on how he could get his wife interested – and more importantly involved – in the household budget. While they were doing okay financially, my friend knew they could be doing a whole lot better. Sure – they paid the bills on time and paid off their credit card every month, but despite a healthy income there was never a lot left over. With the prospect of starting a family on the horizon, my friend was keen to establish a budget and to start managing their money in a purposeful way. But to his great disappointment, his enthusiasm to establish a budget wasn’t exactly shared by his wife. As a budget coach this wasn’t a surprise to me; not because I know his wife, but because this is a very common issue! It is rare in a relationship that both partners share the same enthusiasm for budgeting. But that doesn’t mean you can make it work. So here are three strategies I recommend using to help get your spouse or partner on board with the household budget:

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Thanks to Debt, You Too can Experience the Lotto Syndrome

In Debt, General Budgetingby Phil McGilvrayLeave a Comment

Every week, millions of Australians head to their local newsagents to buy their lottery tickets and scratchies with the hope of that life-transforming moment when they win it big. But what few people realise is that winning the Lotto is not all that it’s cracked up to be. In fact, far from being the life-changing moment you may dream it to be. Winning the Lotto harms more lives than it improves. In addition, easy access to debt is giving us the same “syndrome-like” symptoms.

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My Personal Finances are a Mess. I Don’t Even Know Where to Start!

In General Budgeting, Grandma's Jarsby Phil McGilvrayLeave a Comment

Earlier this week I was meeting with one of my coaching clients.  She had done a brilliant job of getting her finances under control and was now wanting to refer a friend, but first wanted to warn me in advance: “She has a good job but her personal finances are a mess, she is living pay cheque to pay cheque, her credit card is maxed, she has student loans and outstanding bills and she just doesn’t know where to start!”

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Saving Money versus Paying Off Debt

In General Budgeting, Paying Off Debtby Phil McGilvrayLeave a Comment

I recently had the privilege to run a couple of webinars on ‘The Principles of Money Management’ for a group of young parents. At the end of each of these sessions, we had a wonderful period of question and answers that went for longer than the formal presentation itself did. There were a couple of recurring themes in the questions being asked so I thought it would be worthwhile sharing the answers I gave to these questions via a series of blog articles.