Dollars & Cents

TAKE ME I’M

FREEIssue 07

October 2015Foresters Group &

Kyabra Community Association

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Planning ahead for ChristmasIt’s never too early to think about saving money for the festive season. If you want to get the right gifts for your loved ones, and not end up with a crippling credit card or payday debt by January, now is the time to start planning with Christmas only weeks away.

Here are some smart money tips for the silly season:

Budget and save – You may want to start a budget now so you can pay for the gifts up front as much as possible. For example if you set aside $100 a month for the next two and a half months, or $50 per fortnight until Christmas, that should get you close to $250 for gifts. If you don’t think you can set aside this much, see what you can set aside and adjust want you will buy. Start a Christmas box for your pre-purchased presents and savings.

Smart shopping – Make a list of who you need to buy for and decide how much you can afford to spend. Sometimes a really thoughtful or much needed gift is not the most expensive one. You may also want to hold off on any promises until you can see where your budget is at closer to Christmas. Alternatively, if there is definitely something you want to buy, it may be good to shop ahead now, especially if it is on special and make use of the lay-by system, so you don’t pay interest on it.

More cash – it may not be too late to pick up some extra shifts or small jobs before the festive season. Ask and you may be surprised. If you are on a benefit, hold off on getting a cash advance now so you can save it for Christmas time. You may also have things you no longer need and you can sell them at a flea market or online through eBay or Gumtree now so you can add this to your Christmas kitty.

Whatever you do, avoid using your credit card or use it as little as possible. Whatever you spend for this one day should make 2016 better not worse! Start the new year without the stress.

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Can’t afford insurance.…think again

Insurance4That is affordable and simple, single-item insurance for things that you have in your home such as your TV, fridge or mobile phone. You choose the items you want covered:

• Electronics e.g. TV, digital camera, mobile phone, tablet, notebook computer and more

• White Goods e.g. fridge, washing machine, microwave and more

• Medical Devices e.g. hearing aid, glasses • Other e.g. furniture and musical instruments

Your selected items can be repaired or replaced if they are lost or damaged by events such as theft, flood, fire, storm or cyclone. There is also the option to take out additional cover for portable items against theft anywhere in Australia.

Want to know how affordable this insurance is?Go to the insurance4that.com.au website, enter the items you want insured, and you will see what the premium would be. Add or delete items to see how the premium amount will change. Payments can be made either weekly, fortnightly, monthly or yearly – at no extra cost.

For more information about Insurance4That – come and visit us at Kyabra.

Quarterly rego payment option now available

Budgeting for car registration can put a lot of stress on most households. However, you now have the option to pay for your car registration in quarterly payments via direct debit. The new billing options allow car owners to pay their registration electronically in quarterly or half yearly instalments, reducing the pressure on household budgets.

Paying for your registration for the full year will still put you ahead, however the smaller payment option is great way to help you keep on top when the bill arrives.

In order to pay quarterly, you must enrol online at least a month before your next rego is due.

To enrol for direct debit visit qld.gov.au/transport and click on the ‘Registration’ option. Select to ‘renew registration by direct debit’ and follow the steps.

Once you have set up direct debit payment, the payment will come out of your nominated account or card automatically when the payment is due. Make sure there is enough money in your account before the payment date so you don’t get hit with any additional bank fees.

To find out when your registration is due visit services.transport.qld.gov.au.

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Saving for an emergencyIf something is going to go wrong, it will happen at the worst possible time and at a time when you don’t have any money to fix it. So why not prepare for this by saving for a small emergency fund. $500 may just be enough to get you out of trouble.

Here are some tips to get you saving for your own emergency fund:

• Set strict rules on when you can use the emergency fund. If you don’t set rules, it may be too tempting to use these funds for everyday expenses.

• Make it hard to get to. Put it into an account which does not have a ATM card. You may want to have it located with a different bank (make sure it is a concessional account with no fees or charges).

• If you put away $20 a fortnight into your Emergency Savings account, it will take one year to save $500. Put away $40, it will take only 6 months.

Here are some rules to help you manage your emergency saving fund:

• Only use 50% of your Emergency Savings and use normal expense account to pay the other 50%. This will mean you will have some Emergency Savings left if something else happens.

• Make a list of the things the Emergency Savings can be used for…and stick to it!

• If you are going to use a direct debit to pay into your Emergency Savings account, make sure you set it up on a day when there will be funds in your account eg the day after money is put into your account.

Do you have a great business idea? Maybe it is time to consider working for yourself and starting your own small business! Before taking the next step, it is best to be aware of what’s involved in running a business. Proper planning is key in turning your dream into reality. This means coming up with a business plan.

A business plan puts together your business goals, financial expectations, and any market information that will help you build a successful business. It is important to prepare a business plan when starting or growing your business and review it regularly to keep it up-to-date.

If you are a fresh starter, it is highly recommended that you seek help and advice from a mentor. A mentor is someone with extensive business experience and knowledge who can advise and guide you on a range of business matters. Mentoring can be delivered one-on-one or in a group environment. You may find a mentor if you are eligible to enter the NEIS program or by completing another small business training course.

Visit business.gov.au to access a range of helpful resources to get you started on your journey.

Join a micro business community like flyingsolo.com.au or smallbusinessadvice.org.au to access more helpful information.

Whatever your dreams are, make sure you create a sound business plan and get the right help and advice to turn your business goals into reality.

Starting a small business

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Getting on top of your Energy Bills Why is my electricity bill going up when my energy use is going down? It could be because you are being charged more for fixed charges. Electricity charges are revised on July 1 each year, and this year you’ll be paying $117 per quarter in fixed charges before any electricity is used. Many retailers entice customers with discounted plans, however the basic costs are set by the Queensland Competition Authority. If you’re thinking about changing energy retailers in order to get a better deal, check out www.energymadeeasy.gov.au or call 1300 585 165 for an independent comparison of contracts.

It is important to read each power bill, even if you are on a payment plan, to understand what you are paying for. Every bill is required to show your average daily usage and average cost per day, and compare these to last year’s usage, if you have been with the same retailer for over 12 months. From this information you can work out how much you need to pay each fortnight to keep on top of the bill.

If you hold a Pensioner Concession Card or Commonwealth Seniors Card you are eligible for a rebate on your electricity bill – just contact your retailer to have these details added to your account. If you or a member of your household has certain medical conditions that require additional electricity usage, you may be eligible for additional subsidies – contact Smart Service Queensland on 13 74 68 or visit www.qld.gov.au/concessions for further information.

If you are having trouble paying your electricity bill, contact your energy retailer as soon as possible to arrange an extension, set up a payment plan or apply for the Home Energy Emergency Assistance Scheme. All electricity retailers must have a hardship program – if you’re struggling, ask to speak to the ‘hardship team’ for someone who better understands your situation.

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Don’t fall into the payday lender trapBeing strapped for cash when unexpected expenses pop up can put you in a tough spot, but be wary of payday lenders who give out fast and easy cash. Small loan lenders should be licensed with ASIC or be a representative of someone who is licensed. You should always be cautious if a payday lender turns over money to you without asking you any questions or requesting any documentation. By law, they must not enter into a loan contract with you if you can’t repay without suffering hardship or one which does not meet your requirements or objectives. They should be making reasonable enquiries about your financial situation and take reasonable steps to verify them with documentation.

Other things to watch out for are the charges. A lender must provide a written contract setting out maximum you will pay for their services or a quote for providing credit assistance (unless this is provided free of charge).

The fees they may charge you are capped as follows:

• A one-off establishment fee (no more than 20% of the loan amount)

• A monthly account keeping fee (no more than 4% of the loan amount)

Some other allowable fees could include:

• A government fee or charge• Default fees or charges (the credit provider cannot

collect more than 200% of the amount loaned if you default - that is, fail to pay back the loan)

• Enforcement expenses (if you fail to pay back the loan, these are the costs incurred by the credit provider going to court to recover the money owed under your credit contract)

The best way to stay out of debt is to avoid getting a quick cash loan and looking into what other options are out there. You can try to get a Centrelink advance or ask friends or family for help. If you need a loan to purchase household goods, a “No Interest Loan Scheme” could be an option for you.

Contact Foresters on 07 3851 8080 today and one of our helpful staff can discuss what is the best option for you.

Community Microfinance Reaching more people by recycling money and providing access to safe, fair and affordable credit.

Foresters Loans Personal loan from $500 to $4,000 over 1 to 2 years for any worthwhile purpose. Call: 07 3851 8080 Email: individuals@foresters.org.au Website: www.foresters.org.au

NILS (No Interest Loan Scheme) Interest free loans up to $1,200 for new household assets (whitegoods and furniture), educational costs, medical expenses and basic household repairs. To locate your nearest NILS provider visit www.goodshepherdmicrofinance.org.au or:Call: 07 3851 8080 Email: individuals@foresters.org.au Website: www.foresters.org.au Call: 07 3373 9499 Email: communityfinance@kyabra.org Website: www.kyabra.org

Step Up Loans Low interest loan from $800 to $3,000 over 1 to 3 years for asset purchases such as whitegoods, cars, computers, medical expenses and house repairs. Where: Kyabra Community Association Call: 07 3373 9499 Email: communityfinance@kyabra.org Where: Logan East Community Centre Call: 07 3808 4529 Email: stepup@lecna.org.au

www.foresters.org.au P: 07 3851 8080

www.kyabra.org P: 07 3373 9499

Disclaimer: The information contained within this newsletter from all writers is provided for informational purposes only and is not intended to substitute obtaining professional financial advice.