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Every Day Expenses: How Much Are You Really Spending?

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We’ve all been there – it’s the end of the month and you have close to nothing left in your spending account. You don’t live an extravagant lifestyle, neither do you make impulse purchases – yet somehow, you’re left with nothing at the end of every month. So, where exactly does all the money go? 

If this is a concept that seems all too familiar to you, you’ve come to the right place. Today, we look at 5 expert tips to help track your spending, in a bid to give you an accurate picture of exactly where your money is going. Keep on reading to find out more! 

  1. Start With Your Bank Statement 

As scary as this may seem (out of sight, out of mind, right?), the first place you need to take a trip to is your bank statement. Aside from having to come face to face with your dwindling funds, it is important that you take the time to pinpoint your money habits. Start off by taking inventory of all of your accounts, including your checking account and all credit cards you have. Analysing your accounts will help you identify where or what you’re spending on on a monthly basis. Once you have identified unnecessary expenses such as that expensive coffee you purchase every morning, you’ll be much better equipped to make smarter purchasing decisions that leave you in a better financial position at the end of every month. 

Expert tip: If you struggle with budgeting, we highly recommend creating a separate spending account. The main benefit of keeping the two accounts separate is to avoid the temptation of dipping into your savings for non-emergency items. Alternatively, you could consult with a financial advisor in Adelaide who will be able to create strategies for eliminating financial risk and building wealth over the long term.

  1. Review Your Spending

Now that you’ve performed an in-depth analysis of exactly where your money is going, it’s time to review your spending and make amendments where necessary. Here are some questions you need to be asking when reviewing your expenses:

  • What fixed expenses do I have?
  • What fixed expenses do I not use? (streaming services, monthly subscriptions etc) 
  • Are there any expenses I can do without?
  • What categories did I spend the most money on?
  • Am I spending more money than I bring in?

All of these questions are incredibly important when tracking your spending, but the last question is definitely the most important. Spending more money than you make is hole-digging habit that cannot be sustained for long. We encourage you to keep your spending within your monthly income so that you’re living within your means and not creating debt.

  1. Track As You Spend 

If you’re up for it, tracking as you spend can be an incredibly helpful tool when trying to figure out exactly where your hard earned money is going. You could go old school with a pen and notebook, or you could simply utilise the notes application in your phone. Logging your spending in the moment helps you be attentive to how often you spend, and may even encourage you to think carefully about each purchase that you make.

  1. Use An Expense Tracking App

Perhaps writing down each expense isn’t your cup of tea, and that is totally okay! Thanks to the power of technology, we now have a plethora of expense/budget tracking apps available at our disposal. Budgeting apps such as You Need a Budget and Mint are incredibly handy tools that are designed to assist you in allocating spendable income each month depending on what you’re taking in and paying out. Keeping track of your income and expenses can be complicated – this comes as no surprise. As such, a good budgeting app can help you spend and save both safely and wisely. 

  1. Keep Up To Date

Life is never stagnant, and your expenses in January may look completely different from your expenses in February. In order to really track exactly where your money is going, it is important to always keep up to date. Reviewing your spending and your budget periodically can help to reveal trends you may not otherwise notice. Of course, you’ll have one-time expenses in some months that won’t regularly reappear, such as emergency doctor’s bills or repairs. You can use savings to cover these unexpected expenses, or — better yet — set up a special category in your budget for them. At the end of every month, be sure to shift any leftover money to a savings account that offers the potential to earn interest. 

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At the end of the day, tracking your expenses isn’t about not spending any money; it’s about choosing how to spend based on what is most important to you. There really is no right or wrong way to track your spending, so be sure to try different methods until you find one that works best for you. 

What are some of your tried-and-tested ways of figuring out how much you are spending? Be sure to leave a comment and let us know. 

Can You Use A Credit Card To Send Money Overseas?

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What do you do when an emergency occurs that you have to attend to, and the payday hasn’t arrived? Now is the time to explore the options that allow you to send money online, especially those that accept funding from a credit card.

Using A Credit Card

A credit card is an excellent way to buy goods and pay for services when you have no money. Similarly, you can use your credit card to transfer funds to your friends, family, or businesses across the globe. However, it would help if you shop right for the service provider, so you don’t pay hefty charges.

Similarly, several money transfer services allow you to transfer funds across the globe, but not all accept credit card funding. That means you may need to find out which one will take your funding method. Some of the options you have include bank wire transfer, PayPal, Remitly, or Western Union.

Challenges of Using a Credit Card

Using a credit card may be too costly, depending on the service you’re using. Bank wire transfer, for example, often costs higher than the other methods. Even though most services may be fair, currency exchange may still be a stumbling block since the rates change almost daily. Similarly, some transfer services also charge a high interest rate from the day of transfer.

However, you may find a fairer choice by shopping for the right provider.

Things To Look Out For While Sending Money Internationally With A Credit Card

Using a credit card to fund international transfers is typically costly compared to debit cards or your bank balance. However, some situations necessitate the need to use a credit card for your transfer. If that’s the case, consider these factors to get fairer costs.

1. Consider Service Providers That Specifically Focus on International Transfers

Services that exclusively offer international transfers often provide better exchange rates and fairer transaction fees compared to banks.

Similarly, most of the transfer apps offer additional advantages, including the ability to track your transfer status. This service may be available whether you’re transacting to a bank account, mobile wallet, or cash pickup location.

Even so, remember that funding your transfer from your credit card account still comes at a fee from the card issuer.

2. Review The Fees and Exchange Rates

Some companies apply higher transaction fees and exchange rates on international transfers, regardless of whether you’re using a debit or credit card. Before you settle on the service provider, review charges from a few options, understand their fees and the fine print so you don’t fall prey to high costs.

When To Use A Credit Card on International Transfers

Funding your international money transfer using a credit card may not be the best option considering the high costs involved. However, it can be the right way to go through your transfers if:

• You have a financial emergency to attend to, but you have no other means of funding

• You earn royalties from reward programs such as frequent flyer miles or cash back.

A credit transfer may be convenient but is a bit costly. As a result, it’s best to treat it as the last resort if you don’t stand to gain any benefit from the transaction.

Manage Your Expectations – What to Look For in a Property Manager

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Being a property owner is an incredible feeling, and it comes with untold benefits. What you may overlook is how consuming it can be to manage your property while also living your life and looking out for that next investment opportunity. Fortunately, there is a solution that has helped millions of homeowners come out on top, and able to mitigate the direct property management and bypass all the drama that can come with the rental market. Hiring a property manager is a worthy investment, but they are not all made equal. If you’re on the hunt for a property manager that will simplify your life, here is what you need to look out for so that you secure a great manager.

Great communication

It’s that million dollar question that everyone answers differently – how much contact is optimal with your property managers in Melbourne? A manager worth their salt will work out quickly just how involved you want to be, and when information should be expedited to you directly or withheld due to insignificance. If you yourself are not sure what sort of communication regime you are looking for, feel it out and understand what their communication structure is with their other investment owners and what they feel is balanced for you.

Reliable and reactive

When residential or commercial tenants are not in your properties, it can be stressful. No matter how good your property manager is, this is simply going to be a fact of life. A good property manager, however, will mitigate that rental income shortfall and be reactive enough to lineup another candidate and get contracts signed swiftly.

None of this is to say that there isn’t a rigorous screening process, it simply means that they will have warm leads ready to go should a lease be broken. An even better property manager will have a sense of whether a tenant is getting itchy feet or looking around, and can work with you to put wheels in motion should that transpire.

Portfolio management

How many properties do you currently own, and more importantly, how many do you wish to own? The number of properties and the size of these developments will govern what sort of property management arrangement you should seek and whether that will need to change as your portfolio expands.

The quality of a property manager does not vary depending on the size and number of your properties, so do your research before you choose. If your portfolio is split over more than one state as an out of state investor, you will need to decide upon the location of where you wish your property manager to reside.

Market driven

The property market is about as agile as it comes, rising and falling all too frequently. While you may not have your finger on the pulse nine times out of ten, it is a reasonable expectation that your property manager does. Look for a company or individual that live and breathe the property market so that they can advise you of the climate as often as you need, and spot opportunities for your existing and future assets.

Like any profession, there are people that see their job as just that – a job. Find that X factor within your next property manager and you will both have a long and successful future together.

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You’ve worked hard to build your portfolio, and you want to see it managed and cared for with the same love and attention that you wish to deliver. By taking the time to find the right fit for you, you can set yourself up for an autopilot approach to your assets as you know they are in safe and more capable hands.

10 Expenses You Can Claim as a Uber Car Driver

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As a Uber driver, it’s the time of the year when taxes are in the forefront. As a rideshare driver, one is bracketed in the realm of an independent contractor, who is now responsible for their own taxes. You would receive the 1099 form from the contractors but filing taxes can be frustrating at times.

As a current Uber driver, there are a number of tax deductions that every Uber driver is qualified for. They can claim deductions based on business related expenses and use of mileage rates. One can use mileage deduction when doing taxes or even opt to itemize expenses including fuel, insurance, maintenance, and the like, but one cannot qualify for both.

One just has to worry about mileage accumulated when conducting business when opting for mileage deductions, which is 57.5 cents/mile for miles driven during business. If you opt for the latter approach, the following is list of expenses used for claiming tax deductions

List of Expenses for Claiming Tax Deductions

· Uber Fee

Uber fees are pretty much straightforward especially with respect to parking fees when on a business ride. One can also include garage fees and meter fees under this criteria.

· Uber Supply

You can deduct things you buy for the rideshare business even if they are not vehicle-related, but related to business purposes, including drinks/ snacks for “passengers”. Some other things that are “necessary and ordinary” can be counted under this header.

· Fuel expenses

You can deduct fuel expenses with the help of receipts, especially if one is audited by the IRS. You can use tax deduction on fuel costs as long as it is part of Uber business. All route expenses when meeting with potential Uber drivers for signing up can be deducted under fuel costs as well.

· Registration & Insurance

Keep the registration and insurance receipts along with bank records related to servicing, repairs, tires, and even maintenance costs. They can be claimed.

· Repair & Maintenance

One can deduct some maintenance and repair costs as part of business matter but not entirely as it can be used for personal purposes too. You can deduct costs related to the tires, oil changes, replacement of brake pads, and anything related to car maintenance that is crucial for ride share business.

· Mobile & Internet Expenses

The cost of smartphones for Uber rides is tax deductible along with phone payments for the time one used it for business use. As rideshare drivers, smartphones are used for business purposes, and hence some cell phone bills can be claimed. You also need to attach expenses related to the internet charges since the route affirmation and ride costs are calculated automatically when connected to the web.

· Protective items

Any hi-visibility clothing or sunglasses that you wear during rides can be mentioned in protective safety gear for riders. Although you can only mention the percentage of use involved in these rides

· Car Depreciation

If you buy the car used for Uber, you can deduct the cost of your car over a 5-year period with the help of depreciation. The depreciation expenses can be spread throughout the 5-year period.

· Car Hire Fees

If you hire a car, you need to deduct the proportion of car lease payment especially when the car is being used for Uber

· Other relevant expenses

One can mention relevant expenses as required based on car maintenance that can be used as a tax deduction for car expenses.

Conclusion

As Uber driver, one can save money while filing tax returns by being alert about the payments and expenses throughout the year, and by keeping a systematic record of the same.

Disclaimer:

This Guest post is brought to you by Mike Watson. For more information on the Tax return and other financial services visit Universal Taxation Service.

Five Common Strategy Mistakes

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It’s easy to make mistakes in business. While big businesses may have the capital cushion to   absorb most errors, small businesses don’t, and a mistake can finish a business before it’s managed to get off the ground. While overlooking a couple of figures in the ledger may be expensive, a strategy mistake can be fatal. So here are five pitfalls to avoid when you’re developing your small business strategy.

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#1 – Marketing is NOT strategy

This is one of the biggest mistakes that new businessmen and women make. It may be intuitive to think of marketing as a big part of your strategy, but in fact it is merely a means to an end. A marketing-only strategy overlooks the fundamental points of a business strategy, such as projected growth, product development and other value-based considerations. Yes, marketing is crucial (after all, if people don’t know you’re there, they won’t buy your product!) but don’t let it become the all-consuming factor in your overall strategy. It’s a part, not the whole, so keep it in its place. This approach also prevents marketing expenses from escalating.

#2 – Size matters – be the biggest, be the best!

A common belief is that the bigger your company is, the more profitable it is. While there may be a small amount of truth behind that theory, it shouldn’t be the be-all and end-all of your business strategy. With greater growth comes greater expense, and just because a goal sounds good does not necessarily mean that it will be financially good for the company. A good fiscal balance is essential, so steady growth that’s sustainable and doesn’t put a strain on existing resources is more likely to succeed in the long term than rapid expansion and an attempt at market domination.

#3 – Growth is not a strategy

Following on from #2, let’s reiterate that growth in itself is not a ‘business strategy’ – it’s an aim or goal, yes, but not a strategy! The strategy part is how you achieve that growth, and again to ensure that it is sustainable. Don’t confuse strategy with actions. Strategy is your causation, and growth (if you do it right!) is your effect. The actions you take to achieve growth are part of your strategy.

#4 – Do ‘What you’re good at’ – your competitive advantage

It’s very easy to overestimate your business’s strengths and therefore skew your overall strategy because of the inclusion of incorrect or inaccurate data. Yes, you may be good at making product A, but if your customers want product B then making too much of product A is obviously the wrong strategy. Be realistic about your strengths and advantages, and remember that an advantage is often something more visceral, such as providing a better standard of customer care than your rivals. This gives you a competitive edge in that particular area of the strategy, but it also demonstrates that there may be other parts of the plan that need to be addressed for the overall strategy to work, such as making more of product B!

#5 – High growth markets are where the money is

High growth industries may look attractive on paper, but for small businesses it can be a case of reaching too high, too fast. Growth is also no guarantee that a business will be profitable, and may over-stretch a business’s resources and finances. It could also put your suppliers in control, rather than you. Nobody ever got wealthy chasing after a fast buck, and rapid growth is often followed by extremely rapid decline, especially if you can’t pay your suppliers and they end up cutting you off. Again, the key is sustainability, so ensure that your strategy revolves around the long-term, rather than short-term rapid gains.

Author Carlo Pandian is a management graduate and blogs about finance, small business and technology. He also writes tutorials on Intuit small business accounting software and loves sharing tips for entrepreneurs about how they can boost their businesses.

Visa launch “go biz”card for small business

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Visa is launching "Go Biz," a new campaign targeting small business owners.

If you are a one of the  growing network of small business owners , The visa Business card  is  committed to moving your businesses forward by setting and reaching our goals together.

GO BIZ Business card launch by Visa

Most Australian  business owners, you probably rely on cheques to pay for goods and services far more often than you use business credit or debit cards , VISA business cards  which jas just launched has produced a series of web Documentaries, featuring inspiring Australian entrepreneurs, to explain how a card can provide better cash flow management and more transparent ways to track spending.

Check out the video below for more information