Coffee Time Minutes 11th August 10


Welcome

Welcome to our new visitors.

Apologises

James Merrilees - Bfit Studio

Who we are?

Small and Home Business owners meeting to build relationships from other SBO’s.

What is CT?

Relatively casual meeting group, where you can network, talk about business ideas and strategies, and learn from one another.

Where?

Tuggerah’s Zenith Centre.

When?

At 10.30 am on the 2nd & 4th Wednesdays of the month. Arrival 10.25 am for 10.30 am start. (Runs for about 1 hour)

Update on our Raffle?

The raffle is going around. This will go together with today’s collection to the Iris Foundation. Total $380 for the year.

For August so far we have raised $21.00


Networking:
· Central Coast Women’s Lunch 12pm Mingara 19th August 2010
· $44 Non-Members
· $33 for Members
· B2B Networking night (Floraville)– 9th September
· 6pm for Networking
· Coffee Times: 8th & 22nd September




Education:

BEC courses evening courses - For more info contact the BEC on 4355 4885 or info@ccbec.org.au

Upcoming events in. July and August
· 25th August – Sales and Marketing - an overview
· 15th September – Research business opportunities – Getting into business
· 13th October – Decision for profit making.

Christmas Party:

We will be having our final get together on the 22nd December. We have booked into the Zenith for our Christmas party. Tickets are $39 (plus drinks – pay on the day). Numbers collected over next couple of months. And payment will be collected by 30th of November.

Wins:

Simon Calder
New contract starting in a month.

Scott Lyons
QLD Coal Mine marketing plan accepted
Arctic Stone Ice Cream launching in Cairns


Who are you & what do you do: 30 Sec story about you

Tarnia Gurney:
Gurney Financial Services www.gurneyfinancialservices.com.au
Planningwerx4U www.planningwerx4u.com.au

Selma Sancar
Voice Concepts
www.voiceconcepts.com.au

Moira Bayliss:
Herbalist
Moirabayliss@yahoo.com.au

Nicole Lothian
SOS Onsite Admin
www.sosonsiteadmin.com.au

Simon Calder
Celtic Management Solutions
simon@celticmanagement.net.au

Lyn Thompson
B2B - Marketing in Business Book & Networking
Buy Local – online connect
www.b2b.com.au

Blair-adele Speerin
Buy Local – online connect
www.b2b.com.au

Glen Zocher –Photographer
Industrie Images Commercial Photography
www.industrieimages.com.au

Scott Lyons
Sarley Group
www.sarley.com.au


Presentation

Tarnia Gurney – Gurney Financial Services

Getting your financial affairs in order.

Budgets

· In today's tough economic climate, it is more important than ever to budget and establish a savings plan. This is because budgeting is the best way for you to take control of your finances, save money and plan for the future.

· Some times it was easy to get away with a more casual approach to financial planning: you could be sure of earning enough to pay your bills, even if this meant looking for some extra overtime or taking a second job for a while. But those times are rare and wasted if you do not take advantage of them.

· A sound budget and a savings plan will help you achieve your immediate needs and long-term financial security. Few individuals or families know just how they spend their money.

· They know that at the end of their pay period - weekly, fortnightly or monthly - it is all gone. A budget will change this. It is the direct and sensible approach to personal money management.

· Basically, a budget is a financial plan that itemises an individual's or a family's spending and helps accomplish short-term and long-term goals.

· Its main purpose is not to get you out of trouble - although it will help. Better still, it will keep you out of trouble in the first place.

· In fact, a budget is really an essential part of everyday life. Without a budget it just is not possible to cope with those unexpected bills and to see at a glance, how you can most easily cut back you’re spending.

· The ultimate aim of budgeting is to ensure that you can:
o Adequately meet all your financial commitments and
o Have some money left over to save.

· Set a savings goal that is within your reach and will not put a strain on your budget. Even if you begin by saving only a small amount each pay period, this will add up over a year to a respectable amount.

· Everyone will have his or her own savings target. But, as a general rule, we suggest you aim to save 10 per cent of your gross annual income: five per cent for short-term aims and five per cent for longer-term intensions. While this may not be practicable now, it is worth aiming to reach this goal in the future - and sooner rather than later.

· People with young families should aim to build up an emergency fund equal to three months take-home pay in case of retrenchment or emergencies. Remember:

o Your savings will help you through those difficult times and emergencies;
o Savings will free you from day-to-day money worries;
o If you have money saved, you can use it in emergencies instead of credit cards (with their high interest charges);
o By saving, you will establish a financial track record, which will be important when you apply for a loan for a major purpose (house, land or car);
o Your longer-term savings will help you build up income-producing investments for a better, more secure lifestyle;
o By saving and investing responsibly, you will contribute towards Australia's future by helping to create a national savings pool to fund our development and reduce our dependence on foreign capital;
o A dollar saved is a dollar earned

· Deciding to budget does not mean that you have to cut out spending on discretionary items that are important to your lifestyle.

· But you should be realistic about them and become a disciplined shopper (as well as a disciplined budgeter). This will help make your money work better for you. Here are just a few ideas on this important topic:

o Consider buying lower priced "generics" or items of a similar nature to your regular purchases;
o Switch to less expensive versions of goods or services.
o Shop harder for the best possible deals on items you must have;
o Avoid buying items that are of limited value to you or your family;
o Become a comparison shopper: watch the advertisements and be aware that prices vary from day to day on a whole range of goods from furniture to food;
o Watch for genuine sales and specials;
o Deal with shops, which offer good service and will take goods back without argument if they are unsatisfactory.
o Shop for seasonal specials and stock your freezer. But buy in bulk only when you know you can use everything you intend to buy - otherwise you will have to throw a lot of it out. Waste is costly.
o Phase your purchasing of big items like furniture and major electrical goods over three to five years and buy only when you really need and can afford the items;
o Think about buying good second-hand items - check-out auctions and garage sales;
o If you are holding money in a special savings account, you can often use it to pay for an item - and get a discount for cash;
o Buy Australian-made goods in preference to imports - buying Australian helps save jobs and reduces the nation's overseas payments and debt problems.

· But you should be realistic about them and become a disciplined shopper (as well as a disciplined budgeter). This will help make your money work better for you. Here are just a few ideas on this important topic:

o Consider buying lower priced "generics" or items of a similar nature to your regular purchases;
o Switch to less expensive versions of goods or services.
o Shop harder for the best possible deals on items you must have;
o Avoid buying items that are of limited value to you or your family;
o Become a comparison shopper: watch the advertisements and be aware that prices vary
o from day to day on a whole range of goods from furniture to food;
o Watch for genuine sales and specials;
o Deal with shops, which offer good service and will take goods back without argument if they are unsatisfactory.
o Shop for seasonal specials and stock your freezer. But buy in bulk only when you know

· You can use everything you intend to buy - otherwise you will have to throw a lot of it out. Waste is costly.

o Phase your purchasing of big items like furniture and major electrical goods over three to five years and buy only when you really need and can afford the items;
o Think about buying good second-hand items - check-out auctions and garage sales;
o If you are holding money in a special savings account, you can often use it to pay for an item - and get a discount for cash;
o Buy Australian-made goods in preference to imports - buying Australian helps save jobs and reduces the nation's overseas payments and debt problems.

· Try to be as realistic as possible. Do not make the budget so tight and demanding that it will be impossible to achieve your goals. Do not make it too generous - or you will destroy your incentive to budget and save. Be flexible - but disciplined.

· Partners should budget together. But involve everyone in your household - tell them about your budget and savings goals and why it is so important to achieve them.

· Do not be discouraged if you cannot get your budget to work - try again. Once you have set up a workable budget, you will find that budgeting becomes a habit.

· Today is the best day to begin budgeting.

· There are two main items to consider: your INCOME and your EXPENDITURE.

In the section headed INCOME, list all your incoming money (after tax).

· Expenditure:

o When you begin compiling your expenditure, it will be helpful if you have by you all the receipts from last year's bills that you can find.

o If you do not have these, keep a detailed list of your spending over the next few months. If you see some items that you can cut back on, note them for future attention.

o If you look after your possessions, they will last longer. Money spent on maintenance to extend life of a costly item can be money saved.

o Learn to be a good supermarket shopper. Make up a shopping list - and stick to it. Avoid impulse buying. Once in a while it is OK to buy something you do not really need. But if you let impulse shopping get out of hand it will overload your trolley and destroy your budget.

o When you have completed your Budget, add up all your income and expenditure and subtract the expenditure total from the income total. What is left over is your spare money for the year.

o As this is a yearly figure, you will need to divide this by 52 to bring it down to a weekly figure, by 26 to make it fortnightly or by 12 to make it monthly. This money is yours to spend or to save; we suggest you save it each pay period.

· You may find that you have a shortfall - in fact that you are spending more than you earn.

· If this is the case, you will need to go back and reassess your expenditure or, look for ways to increase your income. You may have made a mistake with your calculations. Or you may need to cut down on some area of your spending: entertainment, gifts, clothing, and luxury items.

· It is better for you (or your family) to make these decisions, rather than have them taken out of your hands.

· This will enable you to see at a glance the payouts you will have to make each month to the nearest dollar. This means you can calculate the minimum amount you need to have available to meet your bills.

· Some months you will be more heavily committed to repayments than in other times of the year. Be sure you are adequately covered so you will not be short of money.


Debt Management

To take control of your debt, the first thing you should do is a budget. This will allow you to see exactly how much you are earning and spending. It will also show where you are overspending and possibly where this expenditure can be reduced.

If the burden of debt is starting to take control of you, for some people to consolidate all of these debts into the one loan would be the best solution. Consolidation allows you to lower your overall interest rate and more easily manage your debt.

Loan consolidation will save you interest where your new repayment and loan term are at least equal to your total current loan repayments and loan terms. Otherwise, you could be converting your short-term debts into longer-term debt and be paying more interest in the long run.

One option is to use the equity in your residential premises. If you have owned your home over the last few years, with the fuelling property prices you are likely to have the capital to cover your existing mortgage, as well as other loans and credit cards. You would need to refinance your home loan which usually offers more competitive interest rates than Credit Cards and Personal Loans.

By paying less interest, more of your repayment can be used to reduce the debt. This assumes that you maintain the same overall repayments.

You should ensure that your existing home loan offers the features and flexibility to repay sooner rather than later.

To ensure you take control of your debts:

Review all your debts regularly;
Close credit card and store accounts and have the discipline not to obtain more. Don't buy on credit; you are only using money you don't have.
Credit cards can work well and to your advantage, as long as you use them correctly. Only use the interest free period.
If you find yourself on the credit card round-a-bout, (that is every time you pay some money off you credit card you go out and put more on it), you have to STOP. You are spending more than you're earning.
If you do retain a credit card then ask the institution to reduce the limit to the minimum needed - this should be what you can comfortably repay each month.
Every time your statement arrives pay twice the required amount. Realise that you can do without it. If you don't stop using credit you will ALWAYS be in debt.
Resolve to spend money where it makes sense and cut back where it doesn't, paying particular attention to cash and expenditures. Your cheque book and credit card statements reveal big-ticket items, so that monitoring daily spending for a while may show where your money is slipping away in ways that don't give much satisfaction.
Most importantly a disciplined approach is needed to ensure debts are not increased to fund unnecessary purchases - a good rule of thumb is that your liabilities should not exceed your assets - if they do - it probably means you have borrowed for the wrong reasons.
Remember IT IS NEVER TOO LATE to take back control.
Review your spending patterns and curb these to fit within your budget!


The advice contained herein does not take into account any persons particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a Financial Product persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information provided. Persons doing so, do so at their own risk. Before acquiring a financial product a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.





NEXT MEETING: 25th August 2010 at 10:30am

PRESENTING: Business Development