How to Slow your Spending with Cash

Although you may have a budgeting plan to try to help you manage your personal finances, you may still be struggling to control your spending. One common reason why many people struggle to measure and control spending is that they buy everything on a debit or credit card. Why should this make any difference?

The Psychology of Spending

When you buy something using a debit or credit card, you aren’t actually parting with anything on a physical level, you simply hand your card over or even place it in the reader yourself and the money is transferred from your bank or added to your credit card balance. With credit cards in particular, spending can be fuelled if you find yourself on a “Buy Now, Pay in 18 Months” promotion and are only thinking about enjoying your purchases now and not necessarily about how you will repay at the end of the promotional period.
Numerous sources, including the highly respected Psychology Today website, have published studies that seem to confirm that we find it easier to spend when we’re using a card versus actually handing over cold, hard cash.
In general, the overview such studies provide is as follows:

• Cash is real, tangible, and something we identify as being valuable. We feel the emotion of spending when using cash.
• Debit cards are less real, in that we know when we hand over our card the money will leave our bank account, but it often isn’t something we’ll consider until we check our bank balance later.
• Credit cards are deemed the ‘least real’ means of spending, as it isn’t our money. Yes, our credit balance will increase, but it can often feel as if we’re not spending anything at all.

In summary, the further away we as consumers move from using ‘real’ money, the less mindful we’re likely to be of how much we’re actually spending.

How to Use This When Budget Planning

You plan a budget for yourself each month but still overspend because you only use your cards. Could the solution really be as simple as going to the bank each month and taking out the cash? The answer is that it might well be.
Consider adopting this plan and see how it helps you to slow your spending with cash:

1. Complete a monthly or longer-term budget as you usually would.
2. Confirm how much money you need to cover anything that must be paid directly from your bank account, such as direct debits and other regular payments. Include in your budget r essentials such as food.
3. Deduct this and any amount you want to save from your total monthly incomings.
4. The figure you are left with represents your total disposable income for the month.
5. Withdraw this sum from the bank and have the cash whenever you want to buy something.

Additionally, it might be worth asking for the money from the bank in higher denominations, as the psychological effect of ‘breaking’ a larger note may help to control your spending. Notice the difference of feeling between having a $100 bill in your pocket and five $20 bills instead.

Why Using Cash Can Help

By using cash for the month, you will quickly get used to the feeling of ‘when it’s gone, it’s gone,’ and find yourself being much more mindful with what you spend things on. How you deal with your saved money at the end of each month is then up to you. You may choose to deduct what you have left from the money you will withdraw next month, or to put it in a separate savings account.
Using cash can help you to slow your spending and make your budgeting much more successful.



What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

How to Unlock a Debt Free Future

Debt and credit is such an everyday element of modern life that it’s easy to feel like you couldn’t exist without it. However, millions of people live happy lives without holding any debt at all, or with their only debt being in the form of mortgage repayments.

Whether you’re currently in debt and looking to escape the debt cycle, or simply want to learn some tips to help you avoid major debts in the future, these principles will help you to live a debt free life.

Commit to Paying Your Debts Quicker

When it comes to unlocking a debt free future there are two steps to take. The first is to pay off your existing debts. The extent to which you need to do this will depend on the level and types of debt you currently hold.
Simply not accruing more debt alone won’t make much difference, as the interest will still be building up; you need the dual focus of stopping your spending while saving elsewhere in order to pay your debt down quicker and more effectively. Committing to this can be very powerful and make a big difference to your life.
Once you’ve started to deal with your debts it is time to change your mind-set so you’re trained to treat debt with disdain in future.

“Whatever triggers your spending, look to remove it from your life”

Avoid Temptation

Avoiding temptation is about more than simply telling yourself to say no, it’s about identifying the emotional side of your spending habits and finding the underlying cause of why you spend. Do you buy things you want rather than what you need to make yourself feel happy? Do you simply feel the need to spend when you have access to cash or credit?
Whatever triggers your spending, look to remove it from your life. You might do something simple like not buy anything you see until 24 hours later, having had the time to consider whether you need it, or alternatively you might go as far as to give a credit card to a friend or family member to avoid using it.

When you’re Debt Free, Save

Changing your spending habits and training yourself to avoid temptation isn’t something you should forget once you’re debt free. While it will undoubtedly feel great to have a certain amount of disposable income to hand each month, commit to saving as high a percentage of this as you can. People often take on debt for an emergency because they don’t have savings available, so ensuring you have some capital put away could help you avoid falling into debt once again in the future.

“Although the accounting definition of bad debt is monies that cannot be recovered, you can have your own personal definition.”

Treat All Debt as Bad Debt

Although the accounting definition of bad debt is monies that cannot be recovered, you can have your own personal definition.
If you’re taking on a debt that is going to cost you additional money on top of what you borrow in interest, then treat it as a bad debt as much as possible. You can also take it further and say credit cards are a bad debt, even if you intend to pay the full balance each month therefore avoiding any interest.
Debt free living is possible, you just need the positive mindset to help you to clear your debts and prevent yourself from needing to take on additional debts in the future.




What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

How to Save Money on Home Improvements

For most people, buying a home represents the biggest and most expensive thing they will ever purchase. As with any asset, when you make such a financial commitment to something, it makes sense to ensure it remains intact. When it comes to our homes that will usually mean ensuring we invest in home improvements from time to time. While we may invest in home improvements out of necessity, we may also do so because we want to increase the value of our home, perhaps with an eye on selling it later, or to enhance our lifestyles.

Home improvements can often prove costly. How can we save money on them?

Do What You Can Yourself

Many simple home improvement jobs, such as painting interior rooms, and even some bigger jobs such as refitting a bathroom or external maintenance, can be done by yourself. This means you will only pay for any materials you need, rather than for materials and the cost of paying someone to do the job. When safety issues may be involved, such as with electricals, you should always look to work with professionals, but think about the things that you can do yourself before calling in a contractor.
For some jobs, you may be able to start projects yourself and then only get a professional involved when the work becomes more difficult or beyond your own capabilities. However, ensure you pre-plan this and discuss with a contractor beforehand. Avoid only calling them up if you try to do something yourself and it all goes wrong.

Get Several Quotes

When you do decide you need a professional to do the job, be sure to get several quotes so you know you’re getting the best deal. It is also worth asking friends and family members for their own recommendations, so you know you are getting a trustworthy contractor coming to work in and on your home.

Buy Materials Yourself

Even if you find a recommended and trustworthy contractor, it may still be cheaper to buy the materials yourself, and you have the added bonus of having checked their quality so you’re happy with what is being used. Check with contractors before you hire them that they are happy for you to provide the materials yourself. Most will understand that you’re looking for the work to be as affordable as possible and not have a problem with this.
For an added benefit, if you’re planning a home improvement project far in advance, look to buy materials when trade stores have discounts or sales promotions taking place.

Hire Tools Rather Than Buying Them

If you are doing any work yourself, and only need certain tools to use once, perhaps even for only a couple of hours, it makes more sense to hire rather than to buy them. Workers who rent out tools will also be able to help you choose the one you need and give you safety tips and advice for efficient use, which you won’t always get from making a purchase, particularly if you don’t read the manual or speak to someone at the store you buy it from.
If you would like to buy something to possibly use again, then look at local sales and even online at sites like eBay to see where you can buy good as new tools at a reduced price. You will find many people who were once in your situation and are looking to sell having used their tools only once or twice, but happy to take whatever they can to sell them.

Keep and Store Old Materials

When you next repaint a room in your home, and have half a tin of paint left at the end, keep it. Whether you decide to paint another room the same colour, or simply have one eye on needing to refresh the room in a few years, being able to use the remainder of the paint will prove very useful and save you money.
Both small and large cuts of wood, particularly more expensive hardwoods, should be kept too, while it is always useful to have a box of screws, nails, and other small accessories that you may need to use at various times.

Buy Unclaimed Paint

Colloquially known as ‘oops’ paint, paint that has been mixed incorrectly, or that customers have ordered in a specific colour but never collected from the store, is often available at generous discounts. Another option is to find recycling outlets where people can take old or unused paint, and then find out whether they sell the paint or have passed it onto someone else to sell. Again, this will be available at a fraction of the store price, and maybe even free.

How to Save Money on Home Improvements

Follow these tips when planning your future home improvement projects and you may find yourself able to save money.


What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

How to Pay off Credit Card Debt

A March 2015 report from Moneysmart estimated Australian credit card debt to stand at $33billion.
While the average debt in the same report was cited as being $3,300 per cardholder, there are sure to be many Australians whose credit card debt is way above the average, with others well below it, or even holding credit cards that they never use.

Defining Credit Card Debts

Defining your credit card debts is easy; simply take all of the debt you currently owe on credit cards and on store cards and add it up to discover your total credit card debt.
While this may give you a figure that leaves you taken aback, your balances are merely what you owe without considering interest.
It might be the case that your true level of credit card debt is far higher, and you may ultimately end up paying a lot more in repayments and interest, particularly if you’re not able to pay much more than the minimum every month.

Why Credit Card Debts Matter

Credit card debts are significant for a number of reasons. Firstly, they may have a personal impact on your life.
From a financial perspective, your credit card debts may also be a hugely influential factor on your credit report and for your credit score.
Not only can creditors see what types of credit you can currently access, they can also view your credit limit and repayment history. If your credit card debts are so high that you are struggling to meet your repayment obligations, or you have already missed some payments, this will be visible and will negatively affect your credit score.
While some people maintain a particular balance on credit cards and are able to keep up with repayments, for other people, credit card debts can become overbearing and start to affect their lives.
There are several options for people looking to pay off their credit card debts.

‘From a financial perspective, your credit card debts may also be a hugely influential factor on your credit report and for your credit score.”

First, Stop Spending!

It may sound an obvious piece of advice, but it is essential to stop spending on credit cards before you can even begin to deal with the debts you have on them.
If you feel that might be easier said than done, then you’re probably not alone.
When you don’t feel you have the discipline to stop spending while still having the credit cards in your pocket, what are the options available to you?

• Cut the card up so you cannot use it.
• Explain to a friend or family member what you’re planning, and ask them to keep hold of the card for you.
• Place the card in a bag or box filled with water, and then put it all in the freezer.

Granted, some of those might seem like extreme lengths to go to, yet they may be necessary if you’re serious about paying off your credit card debts.
Once you have stopped spending you can then start to explore the options for paying off your credit card debts.

Carry on What You’re Doing

If you have stopped spending on your credit cards, it means you’re no longer growing your balance. Depending on how much you owe, you might be able to bring your debts down quickly just by continuing to pay towards your balance each month.

Pay More

One of the big problems many face with their credit card debts is that they only pay the minimum payment each month. This in turn leads to interest continuing to build up and means that it will take far longer to repay the balance.
The Moneysmart article we referred to earlier cites the following example:

• On a credit card debt of $4,400, only making the minimum payments each month means it would take 31 years to repay the debt in full, and pay nearly $15,000 in interest alone.
• In contrast, by paying $216 a month the credit card debt would be cleared in two years.

Even if you can only commit an extra $50 – $100 a month to paying your credit card debts, this can make a big difference both to the time it will take to clear the balance as well as the interest you will pay.
By continuing to pay only the minimum payment, you are likely doing little more than servicing the interest, which is why clearing the balance will take so long.

Speak to Your Creditors

If you have already reached the point where you’ve missed payments or you are struggling to meet your obligations, then it might be time to speak to your creditors and come to a repayment arrangement.
It may be a good strategy to look at what you can afford to repay per month and then spread this across the various credit card debts you hold. You could look to commit the largest sum of money to the card with the highest balance or interest rate and look to pay this off first. When speaking to your creditors you may also be able to arrange a freeze on your interest so you do not incur any additional charges.

Consider a Debt Consolidation Loan

If you can feel your credit card debts creeping up on you, but you have so far managed to keep up with the repayments, it might be worth considering a debt consolidation loan.
It is advisable to look at this option at the earliest opportunity, as missing payments may damage your credit score and reduce the likelihood of you being successful when applying for a loan.
Someone with numerous credit card debts may be able to use a personal debt consolidation loan to reduce their repayments to one regular outgoing, and also relieve themselves of the stress of dealing with several creditors at a time.
If you take out a debt consolidation loan they can pay off your credit card debts right away, so you can focus on fixing your finances and paying your fixed repayment sum to us.

“If you can feel your credit card debts creeping up on you, but you have so far managed to keep up with the repayments, it might be worth considering a debt consolidation loan.”

Paying Off Your Credit Card Debts

You have several options available when it comes to paying off your credit card debts, but the first step should always be to stop spending on your credit cards and to take a different outlook to personal financial responsibility.
Once you are able to do this you will have a much clearer picture of the best option you have for paying off these debts.



What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

Financial Tips for Starting a Family

Starting a family is an exciting time in anyone’s life. As exciting as it may be, raising a family is also expensive, with a 2014 study from the University of Canberra  and AMP stating the cost of raising two children is $812,000 over 18 years for a middle-income family.

Whether an impending new arrival was planned or not, having a financial plan and framework in place is going to be essential. Following these financial tips will help you to to live the life you want while providing for your child now and in later life, while also encouraging you to continue to save for yourself.

Start Saving Early

Whether you save money for your children in your own savings account, wait until your first child is born before opening a savings account in their name, or open an account for them to be held in trust, it is never too early to start saving for your child’s future.
While we all have hopes, aspirations, and plans for our children, it is impossible to know what will happen when they are 18 years old, what they will be interested in, and how they are going to approach life. If you have savings it will allow a degree of flexibility when your children reach adulthood, whether they are preparing to head off to University, are planning to travel and see some of the world, or are looking to move out and start a new job.

Involve Friends and Family in Everything

Close friends and family members will naturally want to be involved with your children. If they offer financial support, you could share the details of the savings account you have set up for your children so friends and family can make payments directly into it. This also means that on special occasions they can pay money straight into the child’s savings account too.
As well as offering direct financial support, family and friends will also offer to buy various products for your child. Use the money this saves you wisely, either to help you pay bills or to save for the future, either for yourself or for your children.

Don’t Be Afraid of Hand Me Downs

Car seats, strollers, and cot beds are all the type of thing you will want to buy brand new for your child. Other things, such as toys and clothes, might only be suitable for your child for a very short time as they grow quickly and their interests change.
It can be frustrating for parents spending money repeatedly on these two things in particular, so look to save money by taking advantage of any offers of hand me downs from those close to you. You might also want to consider shopping for baby clothes on websites like eBay, or finding out if there is a local ‘swap meet’ where you can exchange the things you no longer need for something more useful.
This can save you a small fortune, particularly in the early years of a child’s life.

Consider Your Budget and Lifestyle Changes

Depending on your income and personal circumstances, you may need to make some changes to your budget to cater for having children. Having children means you generally have less disposable income, but even then you may have opportunities to save You should also think about the essential spending you are going to incur when having children, so you can consider this a fixed and regular cost within your personal budget plan.
Don’t assume that certain aspects of your spending will be able to carry on as previously. If you do, you may suddenly find yourself unable to pay bills and other essentials.

Look After Yourself

As well as providing for your children, it is important to have things in place so you can look after yourself, but also provide a safety net for your children for the future.
Some things you can consider are:

• If you are not a homeowner, continue saving towards a deposit for a house. Owning your own home not only provides you with an asset but is also something you can pass onto your children when they are older or when you die.
• Remember to continue your own retirement planning. Having children makes it easy to put planning your own financial future on the backburner, but you should continue to think about planning for your future after retirement

When it comes to your own retirement planning, if you start doing this later in your children’s life you may find you need to save more leaving less available for your children later in life..

Financial Tips for Starting a Family

Considering these financial tips could help you maintain your lifestyle while providing for your children. Plan everything carefully so you can focus on raising your family and not your finances when you need to.


What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

How to break your debt cycle

One of the worst things about being trapped in a debt cycle is you might not even realise you’re stuck there. Credit cards and other personal financial products are such a part of modern life that buying on a credit card, paying the balance when you receive your salary, and repeat seems normal to millions of people.

Realising that this debt cycle is a dangerous thing is hugely empowering, and can give you the inspiration to do something about it.

Here are some steps you can take to help you break yours.

Understand how it happens

There are numerous ways you can fall into the debt cycle, but at its most basic point it usually starts with spending beyond your means, and often buying things you want rather than you need, and using credit to do this. You then see your access to credit as an extension of your lifestyle, but as your debt grows and you’re paying more to clear a credit card in full or part each month, credit can quickly start to seem essential for your day-to-day existence.

Commit Yourself

Breaking the debt cycle is tough, especially if you’re familiar with the feeling of relying on credit for essentials such as food or for paying bills. Committing yourself to achieving this is the first and often the most important step.
Once you’ve committed, it is time to start taking positive action.

“Even the most committed person can struggle to break the debt cycle, and still having the problematic credit card in your pocket all the time isn’t exactly going to help”

Cutting down Spending

As the debt cycle is reliant on you continuing to add more debt on a regular basis, the biggest difference you can make is to cut right down on what you spend. If you want to cut to the heart of the cycle immediately, look to stop spending on anything but essentials.
You might think that’s a big ask at first, but start writing down everything you spend your money on and you’ll fast realise there are plenty of ways you can save.

Utilise Friends or Family Members

Even the most committed person can struggle to break the debt cycle, and still having the problematic credit card in your pocket all the time isn’t exactly going to help. Remove the temptation by giving your credit card to a friend or family member. If you’re accessing credit through online lenders then look to change your password to something you won’t remember, or even close your account completely if you don’t have any outstanding borrowings.

Use Your Savings to Pay the Debt Quicker

Controlling or stopping your spending is a big step, and you can break and escape the debt cycle even quicker by starting to use the savings you’ll now make to pay towards your debt. You’ll also save yourself money by reducing the interest you’ll pay on any outstanding balance.
As you reduce your debt, you will find that maintaining your current spending levels is easy, which should prove a valuable incentive against you falling back into the debt cycle. Once you’ve broken it and you’re out, stay out, and don’t repeat the habits that took you into it in the first place.



What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

At Constancy Wealth Management we are always looking for new innovative ways to do things. Challenge what you already know and think outside the box as do many of our clients. I would like to share with you some very creative ways to get extra money you can use to pay off debt or avoid debt completely.

Start Mystery Shopping

Although mystery shopping won’t generate thousands of dollars of income for you, it’s something you can get paid for while doing the things you normally would, and is a fun way to generate a small additional income. The great thing about mystery shopping is that anyone can do it; you’re usually just judging a location based on the quality of the service and won’t need in depth knowledge of the catering or retail industries to be accepted for jobs.

Have a Clear Out

Now, going through the attic, cellar, and that rarely opened cupboard and just throwing things away won’t bring you any money, but selling the things you have in there could make you enough to make a sizeable dent in your debt. Sometimes, you might even find a hidden treasure or something of significant value that you’d forgot you even owned.
You can sell your old unwanted items on eBay, or if you prefer the personal approach and want to have even more fun, then simply have a garage and yard sale.
If you have plenty of other possessions around the house that you know in your heart you don’t really need, and that you wouldn’t miss if they were gone, then consider adding those in, too.

“Make your property work even harder for you by renting out your space in other ways”

Make Your Home a Superstar

Is your home sizeable, and does it have some notable or unique characteristics? If so, you might be able to rent out your home for filming! Many homeowners are looking to jump on this trend given the sums of money that can be earned, but only the very best properties are likely to receive an offer to rent the space.
While the most likely scenario is that your home will earn you relatively modest sums of money through ‘starring’ in a scene or two, there’s always the chance that a massive production could be coming to town and want your home to be the centrepiece.

Other Options for Renting Out Your Space

Make your property work even harder for you by renting out your space in other ways.
Renting out a spare room might be the idea that first jumps to mind, but if you don’t want a lodger you could alternatively consider renting it out as an office. You could allow your garden to be hired for children’s parties, or even rent out your drive as a parking space. The latter idea is brilliant if there are lots of commuters driving into a busy location near you or if you live near a stadium or arena that hosts highly attended events on a regular basis.
Paying off your debts is serious business, but it doesn’t have to be dull. Get creative with generating your additional income and have some fun while doing it!










What you need to know





Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.






This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information