Real Entrepreneur Mums RealMag Jan29 2018 | Page 15

4. Start an emergency fund Emergency funds are crucial for your business and your personal finances. For most businesses income isn’t a steady flow throughout the year, so an emergency fund ensures you can cover your ongoing expenses during slow periods. For your personal finances, emergency funds are there for any situation that requires an outlay of serious money e.g. your fridge blowing up or the hot water system dying. With an emergency fund, you don’t have to rely on credit to fund the replacement. It’s can be used if you or your partner are unable to earn an income due to sickness or injury and you are waiting for income protection insurance to start. How much you need varies, but as a rule of thumb look at having two months of expenses readily available. This is assuming you have income protection insurance in place with a 30-day waiting period. Note: Benefits are always paid in arrears, so you will need to cover 2 months’ worth of expenses before you receive your first payment. 5. Automate your bill payments This is such a great time saver! All utility companies, credit cards and banks enable you to set up automatic payments for your bills. As busy working mums this ensures you never miss a payment, eliminates unpaid payment fees and protects your credit score. 6. Review your interest rates It’s always a good idea to regularly review your interest rates so you know you are still getting a good deal. The mortgage you signed 5 years ago may be costing you thousands of dollars more in interest now. Better the money in your pocket, then the banks. If you have multiple debts i.e. personal loans and credit cards, you may consider consolidating your loans into one with a lower interest rate. If this isn’t an option for you, then focus on paying the debt with the highest interest rate first, before moving onto the next. The important thing here is: Think twice before getting into debt using credit cards and personal loans. If you don’t have the cash to buy it, do you really need it? 7. Stick to a budget Boring I know! But the most successful people I know stick to a budget. Accumulating wealth isn’t easy. It takes resolve to stop spending money for spending sake. When putting together your budget, align these to your personal goals. These could be saving a deposit for a house, going on an overseas holiday or private schooling for the kids. Once you align your spending to your goals you will be amazed how much easier it is to stop yourself from buying another pair of shoes you don’t need or reduce the number of take away coffees you buy. Work out a budget and stick to it. Remember to put money away for retirement and your emergency fund as well as your personal goals. 8. Choose an Awesome Financial Adviser Let’s face it, everyone can benefit from professional advice. We can’t be experts at everything - even though, as mum’s we often have to be! It makes good financial sense to have someone else look after it for you. When choosing an adviser it’s important you feel comfortable with them. Your relationship should be for the long- term. You should also check they are licenced by checking the financial advisers register. Ideally they will also be a member of a professional association which binds their members to a code of conduct e.g. the Association of Financial Advisers (AFA). Tammy Kershaw - Oxley Bridge Advice - [phone] [email protected] - www.oxleybridge.com.au oxleybridgegroup 15