Understanding Superannuation: A Guide for Young Professionals

Navigating the world of Superannuation can be daunting, especially for young professionals at the start of their careers. Yet understanding this essential aspect of financial planning is crucial for securing your future. The below aims to help you understand superannuation, offering clear and practical insights to help the young professionals like yourself navigate the super landscape.

What is Superannuation?

Superannuation, or 'super,' is a long-term savings plan designed to help Australians save for retirement. By law, your employer must contribute a portion of your salary into a super fund. This money is invested on your behalf, with the goal of growing your retirement nest egg over time.

Why Superannuation Matters

Superannuation is more than just a retirement savings account. It offers significant tax benefits and represents one of the most effective ways to ensure financial security in your later years. For young professionals, starting early can mean the difference between a comfortable retirement and financial struggles. It's also important to consider the limitations of social security payments. According to the Australian Bureau of Statistics, social security payments account for at least 50% of income for more than half of households headed by someone 65 or older. Additionally, the Age Pension provided by the government is designed to supplement your income, not replace it entirely. This means that relying solely on social security payments may not be sufficient to maintain your standard of living in retirement. Hence, building a substantial superannuation balance is crucial.

The Basics of Employer Contributions

In Australia, the Superannuation Guarantee (SG) mandates that employers contribute 11.5% of an employee’s ordinary time earnings into a super fund. This rate is set to gradually increase to 12% by 2025. Understanding these contributions is essential for maximizing your superannuation benefits.

How Superannuation Works

When you start a new job, you’ll be asked to nominate a superannuation fund. Your employer will then set aside money to pay into your superannuation account and pay it by the quarterly due dates. This money is professionally invested into things like shares, property, government bonds, and cash deposits. Understanding where your money going is pivotal and we recommend that you nominate your selected fund based off of extensive research (or seek a professionals help). The super fund you choose can be the difference of tens/hundreds of thousands of dollars in retirement.

Types of Super Funds

There are several types of super funds to choose from, including retail funds, industry funds, wrap platforms, corporate funds, and self-managed super funds (SMSFs). Each type has its own advantages and disadvantages, so it’s important to choose one that aligns with your financial goals.

Investment Options

Most super funds offer a range of investment options, from conservative to high-risk. The choices you make can significantly impact your returns, so understanding your risk tolerance and investment strategy is crucial. You should seek out a professional financial adviser if you are unsure of your superannuation fund investment mix.

Fees and Charges

All super funds charge fees for managing your investments. These can include administration fees, investment fees, and advice fees. Being aware of these charges can help you compare funds and choose the one that offers the best value for your money.

Benefits of Starting Early

One of the biggest advantages of starting your superannuation contributions early is the power of compound interest. Over time, even small contributions can grow significantly thanks to the interest earned on both your original contributions and the interest itself. This compounding effect is particularly powerful in superannuation because contributions and earnings can grow tax-effectively within the fund over the long term.

Tax Benefits

Superannuation offers several tax advantages. Concessional contributions (those made from your pre-tax income) are taxed at a lower rate than your regular income, and the earnings on your investments within the fund are also taxed at a lower rate.

Choosing the Right Fund

When choosing a super fund, consider factors such as fees, performance, investment options, and insurance. It’s important to select a fund that aligns with your financial goals and provides the best value for your money.

Keeping Track of Your Super

Regularly check your super balance and ensure your employer is making the correct contributions. You can use tools like the Estimate my super tool on Moneysmart.gov.au to work out if you’re eligible for super guarantee contributions and if your employer is paying the correct amount.

In conclusion, understanding and managing your superannuation is a crucial step in securing your financial future. By starting early, making informed choices, and regularly reviewing your super, you can ensure that you’re on track for a comfortable retirement. Remember, a small investment in superannuation today can provide immense peace of mind and financial security for years to come.

If you do need any help with comparing superannuation funds, please do not hesitate to reach out by sending me a message via LinkedIn or any of our socials.

Until Next Time,

Take Back Control

How to Avoid Common Financial Pitfalls During Your 30s and 40s

Navigating your 30s and 40s can be a financial balancing act. These years often bring significant life changes such as buying your first home, marriage, starting a family, or advancing in your career. While these milestones are exciting, they can also lead to common financial pitfalls if not managed carefully. Here’s how you can avoid them and secure your financial future.

1. Manage Debt Wisely

Debt can be a double-edged sword. While it can help you achieve your goals, it can also become a burden if not managed properly. Focus on paying off high-interest debt first, such as credit card debt. Avoid taking on new debt unless it’s for a necessary investment, like buying a home or furthering your education. Create a budget that allows you to live within your means and allocate extra funds to debt repayment.

2. Build an Emergency Fund

Life is unpredictable, and having an emergency fund is crucial. Aim to save at least three to six months’ worth of living expenses. This fund can help you cover unexpected expenses, such as medical emergencies or sudden job loss, without derailing your financial plans. Start small if necessary, but make it a priority to build and maintain this safety net.

3. Invest in Insurance

Insurance is often overlooked but is essential for protecting your financial future. Ensure you have adequate life insurance, income protection, and health insurance3. These policies can provide financial support in case of illness, injury, or death, helping you and your family maintain stability during challenging times.

4. Plan for Major Life Changes

Major life changes, such as having children or buying a home, can have a significant impact on your finances. Plan ahead for these events by setting financial goals and creating a budget that accommodates them. Consider the long-term costs of raising children, including education and healthcare, and ensure you’re financially prepared for these expenses.

5. Prioritize Retirement Savings

One of the most common mistakes people make in their 30s and 40s is neglecting retirement savings. It’s easy to think you have plenty of time, but the truth is, retirement will be here before you know it. According to the Australian Bureau of Statistics, the average retirement age in Australia is 552. Start contributing to your superannuation early and consistently. Aim to maximize your employer’s superannuation contributions and consider making additional voluntary contributions.

6. Diversify Your Income Streams

Relying on a single source of income can be risky. Explore ways to diversify your income, such as investing in rental properties, starting a side business, or developing passive income streams. Diversification can provide a safety net and contribute to long-term financial security.

7. Seek Professional Advice

Navigating financial decisions can be complex, and seeking professional advice can be invaluable. A financial advisor can help you create a comprehensive financial plan, manage your investments, and provide guidance on major financial decisions. Regular check-ins with a financial advisor can keep you on track and help you avoid common pitfalls.

8. Avoid Lifestyle Inflation

As your income increases, it’s easy to fall into the trap of lifestyle inflation—spending more as you earn more. While it’s important to enjoy the fruits of your labor, it’s equally important to continue saving and investing. Set financial goals and stick to them, even as your income grows.

9. Stay Informed

Financial markets and regulations are constantly evolving. Stay informed about changes that could impact your finances, such as new tax laws or investment opportunities. Educate yourself on personal finance topics and seek out reliable sources of information, such as Moneysmart.gov.au.

10. Maintain Good Financial Habits

Developing and maintaining good financial habits is key to long-term financial success. This includes regular saving, investing wisely, and avoiding high-risk financial behaviour such as excessive gambling or speculative investments4. Good habits formed early can lead to significant financial stability later in life.

By being proactive and mindful of these common financial pitfalls, you can navigate your 30s and 40s with confidence and set yourself up for a secure financial future. Remember, small steps taken today can lead to big rewards tomorrow.

If you are needing help with any of the above, please reach out and I would love to see whether I can help with getting you on track or creating a financial roadmap for your future!

Until next time,

Take Back Control

Preparing for Parenthood: Financial Tips for Expecting Parents

Just recently, I became a father of a beautiful little girl and so far it has been one of the most exciting experiences I have ever had, but it also comes with significant financial responsibilities. As you prepare to welcome a new member to your family, it's crucial to get your finances in order. Here are some practical tips to help you navigate this new chapter with confidence.

1. Create a Budget

The first step is to create a comprehensive budget that accounts for all your current expenses and anticipates the additional costs of having a baby. I have found budgeting is essential to prepare for changes in your income and lifestyle. Consider costs like medical bills, baby gear, childcare, nurseries and potential loss of income if you or your partner take time off work.

Rough projections from our baby expenses for the first twelve months will come to just over $10,000, and that is going through the public system (opted not to go private). - See the very end for the average amount spent on newborns by a report from Westpac at the very end of this article.

2. Build an Emergency Fund

Life is full of surprises, and having an emergency fund can provide peace of mind. Aim to save at least three to six months' worth of living expenses. This fund can help cover unexpected medical expenses or other unforeseen costs. One of the best ways to start building the emergency fund is to set a goal, if you earn $7,000 per month, and living costs are $5,000 per month…

Maybe aim to save $1,000 per month in a separate account that is for emergencies only.

3. Review Your Health Insurance

Make sure your health insurance covers pregnancy, childbirth, and newborn care. If you're considering private health insurance, compare different policies to find one that offers the best coverage for your needs. Moneysmart.gov.au emphasizes the importance of understanding your health insurance options[1].

Please note, if you are going down the private route, it is roughly about $6,500 per annum for private health insurance and you need to hold the cover for 12 months before you or your partner gives birth to your beautiful child.

4. Plan for Maternity/Paternity Leave

Understand your entitlements for parental leave and how it will impact your income. Some employers offer paid leave, while others may not. Plan ahead to ensure you have enough savings to cover your expenses during this period. The key is to talk to work colleagues who have gone on maternity leave recently or you HR representative.

5. Start Saving for Education Early

Education costs can add up quickly, so it's never too early to start saving for your child's future. Consider setting up a dedicated education savings account or you could look into education bonds. The earlier you start, the more time your money has to grow.

We set up our education saver for our little girl about a few weeks after she was born, and we have invested those savings for the long term.

6. Update Your Will and Estate Plan

Having a will and estate plan in place is crucial to ensure your child's future is secure. This includes naming guardians for your child and outlining how your assets should be distributed. Creating a will is an essential step in protecting your family's future [1], and you should look to book in with an estate planning lawyer to do this properly. The postal Will from the post office won’t really cut it, I doubt you would want to use a Will document out of a cereal box to protect your assets and family (essentially what the postal Will’s are).

7. Consider Life, TPD, Income Protection and Trauma Insurance

Life insurance can provide financial security for your family in the event of your untimely passing, whilst total and permanent disability insurance can make sure your family is set up if you are unable to work due to disability. These insurances are essential for protecting your wealth and potential wealth as well. The younger you are, the more essential Life, TPD and income protection is.

8. Look for Childcare Options

Childcare can be one of the biggest expenses for new parents. Research different childcare options and compare costs to find the best fit for your budget. Most Childcare centres within the South-East of VIC are roughly $145 per day (without rebates). You can consider alternatives like family daycare, nanny services, or even sharing childcare with another family.

9. Take Advantage of Government Benefits

Check if you're eligible for any government benefits or financial assistance programs for new parents. These can help ease the financial burden and provide additional support during this time. Centrelink is a huge pain most of the time, however I found applying for the parenting pay quite seamless, just be wary if your situation is a little more complicated, as this is when Centrelink can be difficult to deal with.

10. Stay Informed and Seek Professional Advice

Financial planning can be overwhelming, especially when preparing for a new baby. Stay informed about the latest financial tips and seek advice from a financial planner if needed. Moneysmart.gov.au offers a wealth of resources and tools to help you manage your money effectively.

Cost of Raising a Baby in the First Year

According to a report by Westpac, the average cost of having a baby in the first year is around $7,9182. This includes expenses such as:

• Nappies: Approximately $606 per year [2] (We expected to spend roughly $2,000 on nappies - cost of living increases suck!!)

• Clothing: Around $649 per year [2] - (We actually have been given so much clothing, I suggest not buying any if you can help it - which is hard because all the little clothes are super cute!)

• Food/Nutrition: About $1,227 per year [2] (This is if you are exclusively breastfeeding… If you need to go the formula route, expect at least $35-50 per week and then add the $1,227 for the year)

These figures can vary depending on your location, lifestyle, and personal choices. It's important to plan ahead and budget accordingly to ensure you're financially prepared for the arrival of your little one.

By following these tips, you can ensure that you're financially prepared for the arrival of your little one. Parenthood is a beautiful journey, and with the right financial planning, you can enjoy it without unnecessary stress.

Until next time,

Take Back Control

______________________________________________

[1] - Having a baby - Moneysmart.gov.au

[2] - How much does it cost to have a baby? | Westpac - 2021 report

How Taking Back Control of Your Time Creates More Happiness Than Wealth or Career Ever Will

Many people believe that the key to happiness is having more money or a successful career. They work hard, chase promotions, and accumulate wealth, hoping that these will bring them satisfaction and joy. However, research shows that beyond a certain point, income and career achievements have little impact on happiness. In fact, pursuing these goals may come at the expense of something that matters much more for happiness: time.

Time is a precious and limited resource that we often take for granted. We spend it on things that we don’t enjoy, that don’t align with our values, or that don’t contribute to our well-being. We waste it on distractions, procrastination, or mindless activities. We trade it for money, status, or convenience, without considering the opportunity cost. We let others dictate how we use it, without asserting our own preferences and boundaries.

But time is also a powerful and flexible resource that we can use to enhance our happiness. We can use it on things that we love, that give us meaning, or that make us grow. We can use it to connect with ourselves, with others, or with nature. We can use it to pursue our passions, hobbies, or dreams. We can use it to express our creativity, generosity, or gratitude. We can use it to learn, explore, or discover.

The key to using time for happiness is to Take Back Control of it. Taking back control of your time means being intentional, mindful, and proactive about how you spend it. It means making choices that reflect your priorities, values, and goals. It means saying no to things that don’t matter, and yes to things that do. It means creating a balance between work and leisure, between routine and novelty, between obligation and freedom.

Taking Back Control of your time also means having some level of choice in how you use it. Choice is important for happiness, as it gives us a sense of autonomy, agency, and empowerment. It allows us to express our individuality, preferences, and personality. It enables us to shape our lives according to our own vision and purpose.

However, choice is not always easy or straightforward. Sometimes we face too many options, which can overwhelm us and make us indecisive. Sometimes we face too few options, which can limit us and make us dissatisfied. Sometimes we face trade-offs, which can challenge us and make us regretful. Sometimes we face constraints, which can frustrate us and make us resentful.

How can we make the best choices for our happiness? There is no simple or universal answer to this question, as different choices may suit different people, situations, and contexts. However, some general guidelines that can help us are:

• Be clear about what you want and why. Before making a choice, ask yourself what your desired outcome is, and what your underlying motivation is. This will help you identify your true needs, values, and goals, and avoid being influenced by external factors, such as social pressure, expectations, or norms.

• Be realistic about what you can and can’t control. Some aspects of your time are within your control, such as how you plan, schedule, and organize it. Some aspects are outside your control, such as unexpected events, emergencies, or interruptions. Focus on what you can control, and accept what you can’t. Don’t waste your time on things that are beyond your influence, and don’t blame yourself for things that are not your fault.

• Be selective about what you say yes and no to. You can’t do everything, and you don’t have to. Learn to prioritize, delegate, or decline tasks that are not important, urgent, or enjoyable. Learn to accept, embrace, or seek out tasks that are meaningful, rewarding, or fun. Remember that every time you say yes to something, you are saying no to something else, and vice versa.

• Be flexible and adaptable to changing circumstances. Your choices may not always work out as you expected, or they may become irrelevant or obsolete over time. Be willing to revise, modify, or abandon your choices if they no longer serve your happiness. Be open to new opportunities, challenges, or experiences that may arise along the way. Be ready to adjust, improvise, or experiment with your time as needed.

• Be mindful and present in the moment. Whatever choice you make, make sure you are fully engaged and immersed in it. Don’t let your mind wander to the past or the future, or to other alternatives or possibilities. Don’t let your attention be distracted by notifications, alerts, or messages. Don’t let your emotions be affected by comparisons, judgments, or evaluations. Enjoy the process, not just the outcome, of your choice.

Taking Back Control of your time is not a one-time event, but a continuous process. It requires awareness, intention, and action. It also requires courage, commitment, and perseverance. But the rewards are worth it. Taking back control of your time can create more happiness than wealth or career ever will.

This claim is not just a personal opinion, but a scientific fact. Empirical data from a study completed with more than 1000 people as subject matter supports this claim. The study, conducted by researchers from the University of Zurich and the University of Groningen, found that people who had more control over their time reported higher levels of life satisfaction, happiness, and positive affect, and lower levels of stress, negative affect, and emotional exhaustion1. The study also found that the positive effects of time control were mediated by the perceived fit between one’s time use and one’s values, goals, and preferences1. In other words, having control over your time makes you happier when you use it in ways that are consistent with who you are and what you want.

So, what are you waiting for? Take back control of your time today, and start living a happier life.

Until next time,

Take Back Control

How to Invest in an Overvalued Market

The stock market has been on a remarkable run since the pandemic-induced crash in March 2020. The S&P 500 index has more than doubled from its low point, reaching new record highs almost every week. Many investors are wondering if the market is overvalued, and if so, how to invest in such a scenario.

What Does It Mean to Be Overvalued?

A stock or a market is considered overvalued when its current price exceeds its intrinsic value, which is the present value of its future cash flows. There are various methods to estimate the intrinsic value, such as the discounted cash flow analysis, the price-to-earnings ratio, or the asset-based valuation. However, there is no definitive or objective way to measure the intrinsic value, as it depends on many assumptions and estimates.

One popular indicator of market valuation is the Shiller PE ratio, which compares the current price of the S&P 500 index to its average earnings over the past 10 years, adjusted for inflation. The higher the ratio, the more expensive the market is relative to its historical earnings. As of October 2023, the Shiller PE ratio was 38.6, which is well above its long-term average of 16.8 and its median of 15.81. This suggests that the market is overvalued by historical standards.

Why Is the Market Overvalued?

There are many possible reasons why the market is overvalued, such as:

• Interest rates: A lot of central banks have increased interest rates over the last two years to combat a higher amount of inflation. Generally, low interest rates make borrowing cheaper, stimulate economic activity, and boost corporate profits. They also make stocks more attractive relative to bonds and other fixed-income investments, as they lower the discount rate used to value future cash flows. However, the opposite is true for higher interest rates, which is why we have seen the market have a massive run on the back of predictions of rate cuts over the short-medium term.

• Fiscal stimulus: The U.S. government, and the majority of developed economies, has enacted several fiscal stimulus packages to support the gloably economy during the pandemic, accounting for trillions and trillions of dollars. These stimulus measures have increased consumer spending, business investment, and public infrastructure. They have also increased the money supply and the federal debt, which has lead to inflation and potentially higher taxes in the future, however the central banks seem to think they have done a good enough job currently to stem and even beat inflation.

• Earnings recovery: Despite the pandemic, many companies have managed to maintain or increase their earnings, especially in the technology, health care, and consumer sectors. These sectors have benefited from the shift to online services, e-commerce, and digital entertainment. The earnings recovery has boosted investor confidence and optimism about the future growth prospects of these companies.

• Emotional trading: Some investors may be driven by emotions, such as fear, greed, or FOMO (fear of missing out), rather than rational analysis. Emotional trading can lead to herd behavior, momentum, and bubbles, which can inflate the market price beyond its fundamental value. Some examples of emotional trading are the GameStop saga, the meme stock craze, and the cryptocurrency frenzy. And now potentially the AI driven bull market that we see before us.

So, How do we Invest in an Overvalued Market?

Investing in an overvalued market can be challenging, as it involves balancing the risk of a market correction or crash with the opportunity of further gains. Some possible strategies are:

• Diversify your portfolio: Diversification is a key principle of investing, as it reduces the exposure to any single asset, sector, or market. By diversifying your portfolio across different asset classes, such as stocks, bonds, commodities, real estate, and cash, you can reduce the overall volatility and risk of your portfolio. You can also diversify within each asset class, by investing in different sectors, regions, and styles, such as value, growth, or dividend stocks.

• Rebalance your portfolio: Rebalancing is the process of adjusting the weights of your portfolio to match your target asset allocation, which reflects your risk tolerance, time horizon, and goals. Rebalancing can help you maintain your desired level of risk and return, and avoid being overexposed to any asset, sector, or market. Rebalancing can also help you take advantage of market fluctuations, by selling high and buying low, and locking in your gains or losses.

• Set stop-loss orders: A stop-loss order is an instruction to sell a security when it reaches a certain price level, which is usually below the current market price. A stop-loss order can help you limit your losses and protect your profits, in case the market drops sharply. However, a stop-loss order can also backfire, if the market rebounds quickly after triggering the order, or if the order is executed at a lower price than the specified level, due to market volatility or liquidity issues.

• Consider shorting for experienced investors: Shorting is a strategy that involves selling a security that you do not own, with the expectation of buying it back later at a lower price, and profiting from the price difference. Shorting can be a way to profit from an overvalued market, as it bets on the market decline. However, shorting is also very risky, as it involves borrowing the security, paying interest and fees, and facing unlimited losses if the market rises instead of falls. Shorting is not recommended for novice or long-term investors, as it requires a high level of skill, knowledge, and discipline.

Timing the Market vs. Time in the Market

Some investors may be tempted to time the market, which is the act of moving money in or out of the market based on predictive methods, such as fundamental, technical, or economic analysis. The goal of timing the market is to buy low and sell high, and avoid the market downturns and capture the market upturns. However, timing the market is very difficult, if not impossible, to do consistently and accurately, as it requires predicting the future, which is uncertain and unpredictable.

Many studies have shown that timing the market can be detrimental to long-term returns, as it can cause investors to miss the best days in the market, which often occur during or after the worst days. For example, according to a study by JP Morgan, a $10,000 investment in the S&P 500 between January 1, 2003 and December 30, 2022 would have grown to $64,844 if the investor stayed invested for all days. However, if the investor missed the 10 best days in the market, the investment would have shrunk to $29,7082.

Therefore, instead of timing the market, investors may be better off staying in the market for the long term, and taking advantage of the power of compounding, which is the process of earning returns on returns. By staying in the market, investors can benefit from the long-term upward trend of the market, and smooth out the short-term fluctuations and volatility.

Basically, the stock market may be overvalued by some measures, but that does not mean that it will crash anytime soon. The market can remain overvalued for a long time, or even become more overvalued, as there are many factors that can influence the market price, such as interest rates, fiscal stimulus, earnings recovery, and emotional trading. Investing in an overvalued market can be challenging, but not impossible, if investors follow some strategies, such as diversifying, rebalancing, setting stop-loss orders, and considering shorting for experienced investors. However, the best strategy may be to avoid timing the market, and focus on time in the market, as history has shown that staying invested for the long term can generate competitive returns, regardless of market valuation.

Before looking to jump into the market and begin investing, we would highly suggest to talk to a professional financial adviser or coach that can help you to make the right decision for you and your long term goals.

Until Next Time,

Take Back Control

How to Smash Your Life Goals by Getting Fit and Wealthy

Are you sick and tired of feeling unhappy with your life, and unable to change it? Do you want to smash your life goals and create an awesome future for yourself? If so, you are not the only one. Many people struggle with feeling stuck in the loop, in the rat race, in their personal and professional lives. But, you don’t have to settle for this as your reality. By getting fit and wealthy, you are doing the two main things that will create the discipline and respect needed to smash your life goals. Here are some simple steps you can take to start your journey:

• Set SMART goals for your fitness and wealth. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. SMART goals are clear, realistic, and trackable. They help you focus on what you want to achieve and how you will get there. For example, instead of saying “I want to get in shape”, you can say “I want to lose 10 kg in 6 months by eating clean and working out regularly”. Instead of saying “I want to make money”, you can say “I want to make $10,000 in a year by cutting crap expenses and increasing my income”. SMART goals give you direction, motivation, and accountability.

• Create a plan and a budget for your fitness and wealth. A plan and a budget are essential tools for achieving your goals. They help you organize your actions, resources, and time. They also help you monitor your progress and adjust your strategy if needed. For example, you can create a plan and a budget for your fitness by deciding what kind of diet and exercise you will follow, how much you will spend on food and fitness, and how often you will check your weight and fitness indicators. You can create a plan and a budget for your wealth by deciding how much you will save, invest, and spend, what kind of income sources and opportunities you will pursue, and how often you will review your financial statements and goals.

• Take action and stick to your plan and budget. The most important step is to take action and stick to your plan and budget. Without action, your goals will remain dreams. Without consistency, your results will be short-lived. You need to take action and stick to your plan and budget every day, every week, every month, and every year. You need to overcome procrastination, laziness, temptation, and distraction. You need to develop discipline, habits, and routines that support your fitness and wealth. You need to celebrate your achievements, learn from your mistakes, and keep improving.

• Seek support and guidance from others. You don’t have to do this alone. You can seek support and guidance from others who can help you achieve your fitness and wealth goals. You can find mentors, coaches, advisors, or experts who can teach you, inspire you, and hold you accountable. You can join communities, groups, or networks of like-minded people who can share their experiences, tips, and resources with you. You can also ask for help from your family, friends, or colleagues who can support you, encourage you, and cheer you on.

Smashing your life goals by getting fit and rich is not easy, but it is possible. By following these simple steps, you can start your journey and transform your life. Remember, you are the boss of your own life. You have the power to change your situation and create your own happiness.

Of course, all of the above is not easy, but if you make it simple and build on one habit, one action step at a time, you will get there faster than you think.

Until Next Time,

Take Back Control

How to Start a Hobby Business and Create a New Income!

Do you have a hobby that you are passionate about and want to turn into a source of income? Maybe you are good at knitting, baking, photography, or gardening. Maybe you have a unique skill or talent that you want to share with the world. Maybe you are looking for a way to make some extra money or escape the 9-to-5 grind.

Whatever your reason, starting a hobby business can be a rewarding and fulfilling experience. But it can also be challenging, risky, and complicated. How do you go from a hobbyist to a business owner? How do you balance your passion and your profit? How do you deal with the legal, financial, and marketing aspects of running a business?

Here are some steps that you should take before launching your hobby business:

1. Validate your idea

The first step is to validate your idea and see if there is a market for your product or service. You need to do some research and find out who your target customers are, what their needs and problems are, and how your hobby business can solve them. You also need to check out your competitors and see what they are offering and how you can differentiate yourself.

You can validate your idea by doing surveys, interviews, focus groups, or online tests with potential customers. You can also create a minimum viable product (MVP) or a prototype and get feedback from real users (best to start with friends and family). You should aim to get honest and constructive feedback that will help you improve your idea and validate your assumptions.

2. Plan your business

The next step is to plan your business and set your goals and strategies. You need to have a clear vision of what you want to achieve and how you will get there. You need to consider the following aspects of your business:

• Business model: How will you make money from your hobby business? Will you sell products or services, or both? Will you charge a fixed price or a subscription fee? Will you sell online or offline, or both?

• Finances: How much will it cost to start and run your hobby business? How much revenue do you expect to generate? How will you manage your cash flow and expenses? How will you track your income and taxes?

• Legal: What are the legal requirements and regulations that apply to your hobby business? Do you need to register your business name, get a license, or obtain insurance? Do you need to protect your intellectual property or comply with any industry standards?

  Within legal, it is best to check whether your hobby business also meets the definition, so that way you don’t need to pay tax. (Best to talk to an accountant about this before you decide whether it is a hobby you make money from, or an actual business)

• Marketing: How will you promote your hobby business and reach your target customers? What channels and tools will you use, such as social media, email, website, or blog? How will you communicate your value proposition and brand identity?

• Operations: How will you deliver your product or service to your customers? What equipment, materials, or software will you need? How will you manage your inventory, orders, and shipping? How will you handle customer service and feedback?

You should write down your business plan and review it regularly. You should also be flexible and willing to adapt your plan as you learn and grow. (Most people never do this step, but it will make your life much easier years down the track)

3. Launch your business

The final step is to launch your business and start selling your product or service. You should test your product or service with a small group of customers and get their feedback. You should also monitor your performance and measure your results. You should track your key metrics, such as sales, revenue, profit, customer satisfaction, and retention.

You should also seek opportunities to grow your business and reach more customers. You should network with other hobby business owners and potential partners. You should also leverage social media and online platforms to showcase your work and build your reputation. You should also collect testimonials and reviews from your customers and use them to attract more leads.

4. Lastly, Know the Exit Strategy!

You need to know whether you plan on making this a massive business, that doesn’t require you in the every day to day operations anymore. Or whether you are more than happy to make an extra one to two hundred dollars per week because you just love doing the service or creating the product…

Having an exit strategy is really important, especially when things get hard and you know what the end goal is. Talk this out with your partner, business partner or a business coach if you have one, it will set you up much farther down the line and save you a lot of emotional turmoil. (You may not have an exit strategy because you believe you will do it for the rest of your life, but generally this is not the case!)

Starting a hobby business can be a great way to pursue your passion and make money from it. But it also requires planning, preparation, and hard work. You should validate your idea, plan your business, and launch your business. You should also be ready to learn, improve, and grow along the way.

Until Next Time,

Take Back Control

When Should You Buy Your First Home?

Buying your first home is one of the most important and exciting decisions you will ever make. But it can also be daunting, stressful, and confusing. How do you know when is the right time to buy? How do you find the best deal? How do you avoid common pitfalls and mistakes?

There is no definitive answer to these questions, as everyone’s situation is different. However, there are some general factors that you should consider before taking the plunge into homeownership. Here are some of them (And read to the end to see how we made $165,000.00 off our first home):

Your Financial Situation

One of the first things you should look at is your financial situation. How much can you afford to spend on a home? How much do you have saved for a down payment and closing costs? How much debt do you have and how will it affect your mortgage eligibility and interest rate? How stable is your income and how likely is it to change in the future?

You should also think about your long-term financial goals and how buying a home fits into them. Do you plan to stay in the same area for a long time or do you want to move around? Do you want to invest in other assets or save for retirement? Do you have other major expenses coming up, such as education, travel, or family?

A good rule of thumb is to spend no more than 28-35% of your gross monthly income on housing costs, including mortgage, property taxes, insurance, and maintenance. You should also have an emergency fund of at least three to six months of living expenses, in case of unexpected events or emergencies.

The Housing Market

Another factor to consider is the housing market. How is the supply and demand of homes in your area? How are the prices and trends? How competitive is the market and how much room is there for negotiation?

You should do some research on the local market and compare different neighborhoods, types of homes, and features. You should also consult with a real estate agent who can help you find the best deals and guide you through the process.

Generally speaking, you want to buy when the market is favorable for buyers, meaning that there are more homes for sale than buyers, prices are low or stable, and interest rates are low. However, timing the market perfectly is impossible, and you should not base your decision solely on market conditions (My story below is a perfect case in point of this). Instead, you should focus on your personal needs and goals, and buy when you are ready and able.

Your Lifestyle and Preferences

Finally, you should think about your lifestyle and preferences. What kind of home do you want and need? How much space do you require? What amenities and features are important to you? What location and neighborhood do you prefer? How do you envision your future in your home?

You should make a list of your must-haves, nice-to-haves, and deal-breakers, and prioritize them according to your budget and availability. You should also be realistic and flexible, and be willing to compromise on some aspects if necessary. You should also visit as many homes as possible, and compare them objectively and subjectively.

Ultimately, you should buy a home that suits your lifestyle and preferences, and that makes you happy and comfortable. You should also buy a home that you can afford and maintain, and that has the potential to appreciate in value over time.

We Built Our First Home In 2018

We built our first home in 2018, at the height of the market in Melbourne. It was a three-bedroom home in a new development, in Koo Wee Rup. We paid $506,000 for it, with a 10% down payment and a 30-year fixed-rate mortgage at 4.6%.

At the time, I was working at the gym and partner, Liv had just finished studies and was looking to start her first role as an occupational therapist, earning $130,000.00 a year between us. We had no other debt, and we had saved $60,000 for the down payment and closing costs.

We did not regret my decision, even though the market cooled down shortly after we bought, the housing market actually corrected in 2019. We also made some improvements and upgrades, such as doing some concreting out the back and doing the front landscaping.

In 2021, we decided to sell our first home, as we wanted to move to a bigger place and a little closer to Liv’s family. We decided to buy land and build again, but that is a whole other story to talk to. We were pleasantly surprised to find out that our little home in Koo Wee Rup had appreciated by $180,000 in three years, thanks to the high demand and low supply of homes in Melbourne. I sold it for $685,000, and made a net profit of $165,000 after paying off the remaining mortgage balance and the selling costs.

Just going to show, that even if you think you are buying at the height of the market, it still paid to get into the market, although past performance, especially over COVID times, will probably be very different to what happens in the future.

Buying your first home is a big decision that requires careful planning and preparation. You should consider your financial situation, the housing market, and your lifestyle and preferences, and buy when you are ready and able. You should also seek professional advice and assistance, and do your homework before making an offer.

Buying your first home can also be a rewarding and fulfilling experience, as you can enjoy the benefits of homeownership, such as stability, security, freedom, and equity. You can also make a profit if you sell your home in the future, as long as you buy smart and maintain your home well.

Until Next Time,

Take Back Control

Why Being Hard on Yourself Can Sabotage Your New Years Resolution!

If you have ever tried to follow a nutrition plan or a workout plan, you know how challenging it can be to stick to it consistently. Sometimes, life gets in the way, and you may find yourself skipping a meal, indulging in a treat, or missing a workout. When that happens, how do you react? Do you shrug it off and get back on track, or do you beat yourself up and feel guilty, ashamed, or angry?

If you belong to the latter group, you are not alone. Many people tend to be hard on themselves when they deviate from their health goals, thinking that this will motivate them to do better next time. However, research shows that being hard on yourself can actually have the opposite effect, and cause more harm than good. Here are some of the negative consequences of being hard on yourself:

• It lowers your self-esteem and self-confidence.

  By telling yourself that you are not good enough, that you are a failure, or that you are unworthy, you can damage your self-image and make yourself doubt your abilities and potential. As a result, you may lose your motivation, enthusiasm, and drive to pursue your health goals, or any other goals for that matter.

• It increases your stress and anxiety levels.

  You create a lot of negative emotions, such as guilt, shame, anger, or frustration. These emotions can trigger your stress response, which can have harmful effects on your physical and mental health. For example, stress can impair your immune system, increase your blood pressure, disrupt your sleep, and affect your mood and cognition. Stress can also make you more likely to engage in unhealthy behaviors, such as overeating, smoking, or drinking, which can further compromise your health goals.

• It prevents you from learning and improving.

  By being hard on yourself, you are focusing on the past and what went wrong, rather than on the present and what you can do to improve. This can prevent you from learning from your mistakes, finding solutions, and making positive changes. Instead of being hard on yourself, you should be curious and compassionate, and ask yourself questions such as: What caused me to deviate from my plan? What can I learn from this experience? What can I do differently next time? How can I prevent this from happening again?

• It reduces your happiness and satisfaction.

  Being hard on yourself means you are setting yourself up for disappointment and frustration. You are constantly comparing yourself to unrealistic or idealized standards, and ignoring or dismissing your achievements and progress. This can make you feel unhappy and dissatisfied with yourself and your life, and rob you of the joy and pleasure that come from pursuing your health goals.

As you can see, being hard on yourself can sabotage your health goals and your well-being. So, what can you do instead? Here are some tips and strategies to help you be more kind and forgiving to yourself:

• Recognize and challenge your negative self-talk.

  When you catch yourself being hard on yourself, stop and examine your thoughts. Are they true, helpful, or constructive? If not, challenge them and replace them with more positive and realistic ones. For example, instead of saying “I’m such a loser, I can’t stick to anything”, say “I’m human, I make mistakes, but I can learn and improve”.

• Practice gratitude and appreciation.

  Instead of focusing on what you lack or what you did wrong, focus on what you have and what you did right. Express gratitude and appreciation for yourself and your efforts, and celebrate your achievements and progress, no matter how small or big. For example, instead of saying “I only lost 1 kilogram this month, that’s nothing”, say “I’m grateful that I lost 1 kilogram this month, that’s a step in the right direction”.

• Be compassionate and supportive.

  Treat yourself as you would treat a friend or a loved one who is struggling with their health goals. Be compassionate and supportive, and offer yourself kindness and encouragement. For example, instead of saying “You’re so weak, you can’t resist temptation”, say “You’re doing your best, you can overcome this challenge”.

• Seek help and guidance.

  If you are having trouble sticking to your health goals, don’t be afraid or ashamed to seek help and guidance from others. Reach out to your friends, family, or a professional, and ask for their support, advice, or feedback. They can help you stay accountable, motivated, and inspired, and provide you with valuable resources and tips.

Being hard on yourself can be tempting, but it is not helpful or healthy. Instead, be kind and forgiving to yourself, and you will see that your health goals will become easier and more enjoyable to achieve. Remember, you are not perfect, but you are worthy and capable of reaching your health goals and improving your well-being.

How Estate Planning Will Benefit You and Your Family: Why You Should Start Thinking About Your Death!

A will is a legal document that specifies how you want your assets and affairs to be handled after your death. It can also name guardians for your minor children, appoint executors to carry out your wishes, and provide instructions for your funeral and burial. A will is one of the most important documents you can have, as it gives you control over your legacy and protects your loved ones from unnecessary stress and conflict.

However, a will is not enough to ensure a smooth and efficient transfer of your estate. You also need to plan ahead for other aspects of your estate, such as taxes, debts, beneficiaries, trusts, and superannuation. This is where estate planning comes in. Estate planning is the process of creating a comprehensive and coherent plan for your estate that minimises costs, delays, and disputes, and maximizes the benefits for your heirs.

Estate planning can help you and your family in many ways, such as:

• Reducing or avoiding estate taxes and fees, which can eat up a significant portion of your estate and leave less for your beneficiaries.

• Providing for your spouse, children, grandchildren, and other dependents, ensuring that they receive adequate support and protection according to your wishes.

• Preserving your assets and preventing them from being wasted, mismanaged, or squandered by irresponsible or inexperienced heirs.

• Creating trusts for specific purposes, such as education, charity, or special needs, allowing you to direct how and when your assets are distributed and used.

• Planning for incapacity, which can happen at any time due to illness, injury, or old age. By appointing a power of attorney and an enduring guardian, you can authorize someone you trust to make decisions on your behalf regarding your finances, health, and personal care.

• Expressing your values and preferences, such as your religious beliefs, ethical principles, and charitable causes, and ensuring that they are respected and honored by your executors and beneficiaries.

Estate planning is not a one-time event, but an ongoing process that requires regular review and update. Your circumstances and goals may change over time, as well as the laws and regulations that affect your estate. Therefore, you should consult an estate planning lawyer and a financial planner to help you create and maintain a suitable and effective plan for your estate.

To illustrate the importance of having a will and an estate plan, let me share with you a tragic story that happened to a friend’s neighbour recently. His name was John (changed all names for privacy reasons), and he was a successful businessman who owned several properties and businesses. He had a wife, Mary, and two children, Tom and Lisa. John did not have a will or an estate plan, thinking that he was too young and healthy to worry about such things.

One day, John was driving to work when he was involved in a fatal car accident. He died instantly, leaving behind his grieving family and a complicated estate. Without a will, John’s estate had to go through probate, which took months and cost thousands of dollars in fees and taxes. Mary had to deal with the legal and financial hassles, as well as the emotional trauma of losing her husband.

To make matters worse, John’s estate was divided according to the intestacy laws, which did not reflect his wishes or his family’s needs. Mary received half of John’s estate, while Tom and Lisa received the other half. However, since Tom and Lisa were minors, their share was held in trust until they turned 18. Mary had no access or control over their share, and had to apply to the court for permission to use any of it for their education or living expenses.

Furthermore, John’s businesses and properties were left without proper management or succession planning, resulting in losses and disputes. Some of John’s business partners and creditors tried to claim a portion of his estate, while some of his relatives and friends contested his estate, arguing that they deserved a share. Mary had to fight off these challenges, which added more stress and costs to the already difficult situation.

John’s death and the aftermath could have been avoided or mitigated if he had a will and an estate plan. He could have ensured that his estate was distributed according to his wishes, that his family was well taken care of, and that his legacy was preserved and protected. He could have saved his family from a lot of pain and trouble, and given them peace of mind and security in their greatest time of need.

Don’t make the same mistake as John. Make a will and an estate plan today, and enjoy the benefits of knowing that you and your family are prepared for the future. Contact us today to find out how we can help you with your estate planning needs.

If you need further help with the starting process, contact your local estate lawyer and ask around for prices. Creating a will, will be very different based on your circumstances, hence having your financial adviser in your corner would be wise so to make sure you are reducing costs where possible.

Until Next Time,

Take Back Control

How To Get The Most Out Of your Nutrition - Understanding Macronutrients

Eating healthy foods is one of the best ways to improve your health and well-being. Healthy foods provide your body with the nutrients it needs to function properly, prevent diseases, and maintain a healthy weight.

But what are healthy foods, and how much of each macronutrient should you eat?

What are macronutrients?

Macronutrients are nutrients that your body needs in large amounts, namely carbohydrates, fats, and proteins. They provide energy and perform various roles in your body, such as building and repairing tissues, regulating hormones, and supporting your immune system.

Each macronutrient has a different amount of calories per gram:

• Carbohydrates: 4 calories per gram

• Fats: 9 calories per gram

• Proteins: 4 calories per gram

The amount of calories you need per day depends on your age, sex, activity level, and health goals. You can use online calculators or apps to estimate your daily calorie needs.

What are healthy foods?

Healthy foods are foods that are rich in nutrients, low in added sugars, salt, and unhealthy fats, and minimally processed. They include a variety of fruits, vegetables, whole grains, lean proteins, nuts, seeds, and healthy oils.

Some examples of healthy foods are:

• Fruits: apples, bananas, berries, oranges, grapes, etc.

• Vegetables: broccoli, spinach, carrots, tomatoes, kale, etc.

• Whole grains: oats, brown rice, quinoa, whole wheat bread, etc.

• Lean proteins: chicken, turkey, fish, eggs, tofu, etc.

• Nuts and seeds: almonds, walnuts, sunflower seeds, chia seeds, etc.

• Healthy oils: olive oil, canola oil, avocado oil, etc.

Healthy foods provide your body with vitamins, minerals, antioxidants, and fiber, which are essential for your health and can help prevent chronic diseases, such as diabetes, heart disease, and cancer.

What are the recommended macronutrient percentages?

The federal Acceptable Macronutrient Distribution Range (AMDR) suggests the following percentages of macronutrients for good health and to provide essential nutrition1:

• 45–65% carbohydrates

• 20–35% fats

• 10–35% proteins

These ranges are based on the average needs of most healthy adults, but they may vary depending on your individual needs and preferences. For example, some people may benefit from a lower-carb or higher-protein diet for weight loss, blood sugar control, or muscle building.

To find the best macronutrient ratio for you, you may want to consult a registered dietitian, who can assess your health status, goals, and preferences, and design a personalized eating plan for you.

How to eat healthy foods and macronutrients?

To eat healthy foods and macronutrients, you can follow these simple tips:

• Eat a balanced diet that includes a variety of foods from all food groups.

• Choose whole foods over processed foods, and limit your intake of added sugars, salt, and unhealthy fats.

• Read nutrition labels and ingredient lists to make informed choices about the foods you buy and eat.

• Use online tools or apps to track your calorie and macronutrient intake, and adjust it as needed.

• Plan your meals and snacks ahead of time, and prepare them at home as much as possible.

• Enjoy your food and eat mindfully, paying attention to your hunger and fullness cues.

Eating healthy foods and macronutrients can help you improve your health and well-being, and support your body’s functions and needs. By following the guidelines and tips above, you can eat a nutritious and balanced diet that suits your lifestyle and goals.

Getting Your Super Sorted - The Most Important Financial Decision Apart From Buying a House!

Superannuation, or super, is a way of saving money for your retirement, what we call a vehicle to help you get closer towards your retirement goals. It is made up of contributions from your employer, money you put in yourself, and any investment returns. The more you save, the more money you will have for your retirement.

But how do you know if your super fund is performing well and charging reasonable fees? And how do you compare different super funds to find the best one for you?

Below, we will explain the basics of superannuation, the factors to consider when choosing a super fund, and the tools you can use to compare super funds.

What is superannuation?

Superannuation is a compulsory system in Australia that requires employers to pay a percentage of your salary into a super fund for you. This is called the super guarantee, and it is currently 11% of your ordinary time earnings. You can also make voluntary contributions to your super fund, either from your pre-tax or after-tax income.

Your super fund invests your money in various assets, such as shares, property, bonds, and cash. The aim is to grow your balance over time and provide you with income when you retire. You can generally access your super when you reach your preservation age, which is between 55 and 60 depending on when you were born, and meet a condition of release, such as retiring or turning 65.

What to look for in a super fund?

When you start a new job, your employer will give you a standard choice form that sets out your options for choosing a super fund. You can either go with your existing fund, your employer’s fund, or a different fund. You can also change your super fund at any time, but you may have to pay exit fees or lose insurance cover.

There are many factors to consider when choosing a super fund, such as:

• Performance: How well has the fund performed over the long term, after fees and taxes? You can compare the net returns of different funds over at least five years, and look for consistent results. Remember that past performance is not a reliable indicator of future performance, and that higher returns usually come with higher risks.

• Fees: How much does the fund charge for managing your money and providing services? Fees can have a big impact on your final balance, so look for a fund that charges low or reasonable fees. Fees can be either a dollar amount or a percentage, or both, and they are usually deducted monthly and also after an action such as switching investments.

• Insurance: What type of insurance cover does the fund offer, and how much does it cost? Most super funds provide life, total and permanent disability, and income protection insurance for their members. You can compare the premium rates, the amount of cover, and any exclusions or definitions that might affect you. You can also tailor your insurance to suit your needs, or opt out if you have enough cover elsewhere.

• Investment options: What range of investment options does the fund offer, and how do they suit your risk appetite and time horizon? Most super funds let you choose from a number of options, such as growth, balanced, conservative, cash, ethical, or MySuper. Some funds also let you choose the weighting of different asset types or direct investments. You can switch your investment option at any time, but you may have to pay fees or taxes.

• Services: What other services does the fund offer, and how do they benefit you? Some super funds offer financial advice, online tools, education, member discounts, or other features. You can compare the quality and cost of these services, and decide if they are worth paying for.

How to compare super funds?

There are several ways to compare super funds, such as:

• The ATO’s YourSuper comparison tool: This is an online tool that displays a table of MySuper products ranked by fees and net returns. MySuper products are simple and low-cost super funds that meet certain standards. You can select and compare up to four MySuper products at a time, and link to the fund’s website for more information. You can also access a personalised version of the tool through your myGov account, which shows your current super accounts alongside other MySuper products.

• The product disclosure statement (PDS): This is a document that provides detailed information about a super fund’s features, fees, risks, and benefits. You can obtain the PDS from the fund’s website or by contacting them directly. You can compare the PDS of different funds to understand their differences and similarities.

• Super comparison websites: These are websites offered by private companies that allow you to compare various aspects of super funds, such as performance, fees, insurance, investment options, and services. Some of these websites are free, while others charge a fee for more detailed information. Some examples of super comparison websites are Canstar, Chant West, Morningstar, RateCity, SelectingSuper, and SuperRatings. Note that these websites are businesses and may make money through promoted links. They may not cover all your options, and they may use different methods and criteria to rate and rank funds.

• Alternatively, if you have read the above, and have determined that it may be difficult to sift through all the different superannuation funds, conflicting information and you cannot find a fund that is a correct fit for your family and yourself… You should look at discussing your situation with a Financial Adviser, whom will objectively look at your goals and truly understand your situation, whilst offering a solution with your best interest at heart. (They legally need to look after your best interest’s to remain compliant.) You can look up your closest Financial Adviser and just give them a call for normally a free 15-30 minute consult to see whether you are the correct fit. Always look at talking to 2-3 different advisers before deciding who is the correct adviser to go with, as choosing an adviser is almost as important as choosing your superannuation fund.

Superannuation is an important part of your financial future, so it pays to choose a super fund that suits your needs and goals. By comparing different super funds based on their performance, fees, insurance, investment options, and services, you can find the best one for you. You can use various tools and sources of information to help you compare super funds, such as the ATO’s YourSuper comparison tool, the product disclosure statement, and super comparison websites. Remember to review your super fund regularly and make changes if necessary.

How to Achieve Your Goals in 2024: The Stepping Stone Approach

The new year is a great time to reflect on your past achievements and set new goals for the future. Whether you want to advance your career, improve your health, or pursue your passion, having a clear and realistic goal can help you stay motivated and focused. However, setting a goal is only the first step. You also need a plan and a strategy to achieve it. One of the most effective ways to do that is to use the stepping stone approach which I will explain further below. But first…

Imagine you are currently standing on the bank of a raging river, and your goal is on the other side of the river. However, the only way to get to the other side is a perilous journey, jumping from one stepping stone to the next. The stepping stones are too wide apart to jump two at a time, so you need to make sure that you are disciplined enough to jump one at a time. They are also slippery, wet with the furious current that is trying at each step to knock you off the stones and swallow you into the raging river. However, the hope of a better life, of achieving your goal, is stuck on the other side and you have the will-power to get there. All you need to do is take one stepping stone at a time, no matter how long the journey will be, no longer how long it takes you. And every now and again, you may slip off, you may get wet and end back up at the river bank where you started, drenched from head to toe. Each time you try again, you can only get further, as you get more familiar with the stepping stones and the raging river, forever trying to knock you off.

The above is how I imagine achieving a goal to be like, especially an audacious dream that is big and scary, that you have no idea whether you will be able to achieve or not. The river can be anything from family or friends who may offer you a drink when you are trying not to drink anything but water, it could be outside influences, or even internal. The stepping stones are the most important part, the only way to cross the river safely, you need them if you want to actually achieve something worthy of the risk and potential difficulty you will endure. Read on below as I explain the stepping approach further…

The stepping stone approach is a method of breaking down a big goal into smaller and more manageable steps, or stepping stones. Each stepping stone represents a specific action or milestone that brings you closer to your ultimate goal. By completing each stepping stone, you can track your progress, celebrate your wins, and overcome your challenges. The stepping stone approach can help you avoid feeling overwhelmed, discouraged, or stuck by your goal, and instead, help you enjoy the journey and the learning process.

To illustrate how the stepping stone approach works, let’s look at some potential examples of successful people who used this method to achieve their goals in 2024.

J K Rowling: Writing a Book

J K Rowling, the legendary author of the Harry Potter series, had a goal of writing a book in 2024. She wanted to share her story and his insights on creativity, innovation, and leadership with the world. She also wanted to leave a legacy and inspire the next generation of dreamers and doers. To achieve her goal, she used the stepping stone approach and created the following steps:

• Step 1: Outline her book idea and structure, and decide on the main theme and message she wanted to convey.

• Step 2: Write the first draft of his book, using her personal and professional experiences, anecdotes, and lessons as the main content.

• Step 3: Edit and revise her book, using feedback from her trusted friends, family, and colleagues, and improve her clarity, coherence, and style.

• Step 4: Publish her book, using a reputable and reliable publisher or a self-publishing platform, and market her book to her target audience and beyond.

• Step 5: Engage with her readers, using social media, interviews, and events, and respond to their questions, comments, and reviews.

By following these steps, J K Rowling was able to achieve her goal of writing a book in 2024. She also created a lasting impact and influence all across the world.

Bill Gates: Learning a New Language

Bill Gates, the co-founder of Microsoft and the Bill & Melinda Gates Foundation, had a goal of learning a new language in 2024. He chose to learn Spanish, as he wanted to communicate better with the people and communities he worked with in Latin America and Spain. He also wanted to challenge his brain and expand his cultural horizons. To achieve his goal, he used the stepping stone approach and created the following steps:

• Step 1: Enroll in an online Spanish course that suited his level and schedule, and commit to completing one lesson per week.

• Step 2: Practice his Spanish skills daily, using a language learning app, a podcast, or a video, and review his progress and feedback.

• Step 3: Find a language partner or a tutor online, and have regular conversations in Spanish, focusing on topics that interested him and his goals.

• Step 4: Read, watch, and listen to Spanish media, such as books, movies, shows, and music, and try to understand the main ideas and expressions.

• Step 5: Travel to a Spanish-speaking country or region, and immerse himself in the language and culture, and test his fluency and comprehension.

By following these steps, Bill was able to achieve his goal of learning a new language in 2024. He also gained a deeper appreciation and respect for the Spanish-speaking people and their history and traditions.

Arianna Huffington: Growing Her Savings

Arianna Huffington, the co-founder of the Huffington Post and Thrive Global, had a goal of growing her savings by 10% in 2024. She knew that saving money was important for her financial security and well-being, but she also faced some challenges, such as her busy lifestyle, her high expenses, and her tendency to splurge on things that made her happy. To achieve her goal, she used the stepping stone approach and created the following steps:

• Step 1: Review her current income and expenses, and identify areas where she could earn more or spend less.

• Step 2: Create a realistic budget and stick to it, using a budgeting app to track her spending and savings.

• Step 3: Automate her savings by setting up a direct deposit to her savings account every month, and increase the amount by 1% every quarter.

• Step 4: Invest her savings in a diversified portfolio that matched her risk tolerance and return expectations, and monitor her performance regularly.

• Step 5: Reward herself for reaching her savings milestones, such as 5%, 7.5%, and 10%, by treating herself to something meaningful and affordable, such as a massage, a book, or a donation to a cause she cared about.

By following these steps, Arianna was able to achieve her goal of growing her savings by 10% in 2024. She also learned valuable skills and habits that improved her financial literacy and confidence.

These are just some creative examples of how the stepping stone approach can help you achieve your goals in 2024. You can use this method for any goal you have, big or small, personal or professional, short-term or long-term. The key is to break down your goal into manageable and measurable steps, and follow them with dedication and enthusiasm. Remember, every step you take is a step closer to your dream.

Until next time,

Take Back Control

The One Thing You Need to Know for Weight Gain or Loss

One of the most fundamental concepts in nutrition and weight management is the energy balance equation. This equation states that the change in body weight is equal to the difference between the energy intake (calories consumed) and the energy expenditure (calories burned). In other words, if you eat more calories than you burn, you will gain weight. If you eat fewer calories than you burn, you will lose weight. And if you eat the same amount of calories as you burn, you will maintain your weight.

This sounds simple enough, but how does it work in practice? And how can we use this information to achieve our weight loss or weight gain goals? Let’s take a closer look at the effects of caloric deficit and surplus on our body composition and health.

Caloric Deficit

A caloric deficit is when you consume less calories than you need to maintain your current weight. This creates a negative energy balance, which forces your body to use its stored energy sources, such as fat, muscle, and glycogen, to make up for the energy shortfall. Over time, this leads to a reduction in body weight and body fat percentage.

However, not all weight loss is equal. The amount and rate of weight loss depend on several factors, such as the size of the caloric deficit, the duration of the caloric deficit, the macronutrient composition of the diet, the physical activity level, and the individual characteristics of the person. For example, a larger and longer caloric deficit may result in faster and greater weight loss, but it may also increase the risk of losing muscle mass, slowing down the metabolism, and causing hormonal and psychological disturbances. A higher protein intake, on the other hand, may help preserve muscle mass, increase satiety, and boost thermogenesis, which can enhance the quality and efficiency of weight loss.

Therefore, to optimize weight loss, it is recommended to create a moderate and sustainable caloric deficit of around 300-500 calories per day, which can lead to an average weight loss of about 0.5 kg (1 lb) per week, depending on the person genetic make-up and body composition. It is also advised to consume a balanced and nutritious diet that provides adequate protein, fiber, vitamins, minerals, and essential fatty acids, and to engage in regular physical activity, especially resistance training, to maintain muscle mass and metabolic health.

Caloric Surplus

A caloric surplus is when you consume more calories than you need to maintain your current weight. This creates a positive energy balance, which allows your body to store the excess energy as fat, muscle, and glycogen. Over time, this leads to an increase in body weight and body fat percentage.

However, not all weight gain is equal. The amount and rate of weight gain depend on several factors, such as the size of the caloric surplus, the duration of the caloric surplus, the macronutrient composition of the diet, the physical activity level, and the individual characteristics of the person. For example, a larger and longer caloric surplus may result in faster and greater weight gain, but it may also increase the risk of gaining fat mass, impairing insulin sensitivity, and causing cardiovascular and metabolic problems. A higher protein intake, on the other hand, may help increase muscle mass, reduce fat mass, and improve body composition, which can enhance the quality and efficiency of weight gain.

Therefore, to optimize weight gain, it is recommended to create a moderate and gradual caloric surplus of around 300 to 500 calories per day, which can lead to an average weight gain of about 0.25 to 0.5 kg (0.5 to 1 lb) per week. It is also advised to consume a balanced and nutritious diet that provides adequate protein, fiber, vitamins, minerals, and essential fatty acids, and to engage in regular physical activity, especially resistance training, to stimulate muscle growth and strength.

Caloric deficit and surplus are the main drivers of weight loss and weight gain, respectively. However, the effects of these dietary strategies are not only determined by the quantity of calories, but also by the quality of calories, the type and intensity of physical activity, and the individual characteristics of the person. By understanding these factors, and by applying the appropriate guidelines and recommendations, we can use caloric deficit and surplus to achieve our weight loss or weight gain goals in a healthy and effective way.

Until next time,

Take Back Control

Understand Your Money Story To Get Ahead For 2024

Money is an essential part of our lives, but how we think and behave about money is not something we are born with. It is something we learn and develop over time, influenced by various factors, such as our family, culture, education, and experience. In fact, research suggests that many of our money habits and identity are formed by the age of seven. This means that our childhood plays a crucial role in shaping our financial future.

How exactly do we create our money habits and identity in our younger years? And what can we do to foster positive and healthy money attitudes and skills in ourselves and our children? Here are some insights from psychology and behavioral economics that can help us understand and improve our relationship with money.

The Role of Parents and Caregivers

One of the most important sources of our money habits and identity is our parents and caregivers. They are the ones who introduce us to the concept and value of money, and model how to earn, spend, save, and share it. They also teach us the difference between needs and wants, and how to make trade-offs and choices. Whether they do it intentionally or unintentionally, their words and actions have a lasting impact on our money beliefs and behaviors.

For example, if our parents and caregivers are frugal and careful with money, we may learn to be cautious and conservative with our own finances. If they are generous and charitable with money, we may learn to be altruistic and compassionate with our resources. If they are impulsive and reckless with money, we may learn to be irresponsible and wasteful with our spending. If they are anxious and secretive about money, we may learn to be fearful and avoidant of financial matters.

Therefore, it is important for parents and caregivers to be mindful and intentional about how they talk and act about money with their children. They should provide consistent and positive messages and examples that can help their children develop a healthy and balanced money mindset and skillset. They should also encourage their children to ask questions, express their opinions, and participate in financial decisions, as appropriate for their age and development.

The Role of Education and Experience

Another important source of our money habits and identity is our education and experience. They are the ones who expose us to the knowledge and practice of money management, and challenge us to apply and improve our financial literacy and capability. They also provide us with feedback and consequences that can help us learn from our mistakes and successes.

For example, if we receive formal or informal education on money matters, such as through a classroom curriculum or a mentorship program, we may gain a better understanding of the basic concepts and principles of finance, such as budgeting, saving, investing, and borrowing. If we have practical experience with money, such as through a part-time job, an allowance, or a savings account, we may develop a sense of responsibility and confidence with our own finances. If we face financial challenges or opportunities, such as through a financial crisis, a windfall, or a goal, we may discover our strengths and weaknesses, and adapt our strategies and behaviors accordingly.

Therefore, it is important for educators and mentors to provide relevant and engaging opportunities and resources that can help us and our children enhance our financial knowledge and skills. They should also provide constructive and supportive feedback and guidance that can help us and our children overcome our financial challenges and achieve our financial goals.

Understanding our money habits and identity are not fixed or predetermined, but rather dynamic and evolving is truly important to becoming aware of your own money story. They are influenced by various factors, especially our parents and caregivers, and our education and experience, in our younger years. By being aware of these factors, and by taking proactive and positive steps to improve them, we can create and foster healthy and beneficial money habits and identity in ourselves and our children. By doing so, we can improve our financial well-being and happiness.

Until Next Time,

Take Back Control

How to Buy Your First Home: A Guide to Navigating Broker Jargon

Buying your first home is an exciting and rewarding milestone, but it can also be daunting and overwhelming. There are many factors to consider, such as finding the right property, saving for a deposit, applying for a home loan, and navigating the legal and administrative processes.

One of the most challenging aspects of buying your first home is understanding the mortgage jargon. There are many terms and acronyms that you may encounter, and they can be confusing and intimidating. To help you get started, here are some of the most common and important mortgage terms that you should know, and what they mean for you.

Mortgage

A mortgage is a type of loan that you use to buy a property. The property acts as security or collateral for the loan, meaning that the lender has the right to take possession of the property if you fail to repay the loan. A mortgage typically has a term of 25 to 30 years, and you make regular repayments of principal (the amount you borrowed) and interest (the cost of borrowing) until you pay off the loan.

Interest Rate v.s the Cash Rate

The interest rate of your loan is not going to be the same as the cash rate, which is due to the cash rate being the interest rate set on banks that take loans from other banks for daily liquidity (so they can honour the amount of cash needed on a daily basis for payments). Without going into the mechanics of banking, all you need to know is, that the cash rate is interest paid by the bank on overnight loans from other banks, and the interest rate on your loan is therefore affected due to the banks adjusting their loan rates. The reason for this is so the banks still make a profit off the loan they gave you towards buying your first home, as they have shareholders and employees to keep happy.

Fixed Rate v.s Variable Rate

Your mortgage broker will ask you whether you would like to fix your interest rate or leave it as variable. The difference between the two is a fixed rate would keep your interest rate the same for the length of time you wish to fix it for, whereas variable is constantly changing with the cash rate. As an example, a lot of people fixed their home loans at record lows for 2 or 3 years at 2 to 2.25% during the pandemic years when the cash rate (see above) was held at record lows. Whereas, for those that left their loan at variable, would have seen their interest rate increase with every cash rate rise administered by the Reserve Bank of Australia. You should talk to your broker to see whether a fixed or variable rate loan will work best for your circumstances.

Deposit or Equity

The deposit you have built up by saving cash is the amount you will pay down on your first home. When buying your first home, this would generally also equal the equity you hold in your home. Your initial deposit is really important in your borrowing capacity, as it shows banks/lenders that you are able to save and have financial stability to afford your first home. However, it is also really important as if you have a 20% deposit or higher on your home (Eg; $500,000 home, $100,000 deposit = 20% deposit), you will not need to pay Loan Mortgage Insurance (See below). The longer you own your home, the more principle (see below) you will pay off the loan, which will increase your equity in the home as well.

Principle and Interest

You will generally find that your first home is a principle and interest loan, which means you are partially paying off the loan each fortnight or month. The principle will pay down the loan, whereas the interest paid is the amount paid based on your interest rate and that is calculated daily. For example, your loan repayment might be $2,000 per month, and the principle that goes towards paying down the loan is $800 and you pay interest of $1,200. If your mortgage was $200,000, your first payment with $800 principle would bring down your loan to $199,200. The interest would therefore be calculated on the remaining amount of the loan, being $199,200.

LVR

LVR stands for loan-to-value ratio, and it is the percentage of the property’s value that you borrow. For example, if you buy a property worth $500,000 and borrow $400,000, your LVR is 80%. The LVR is an important indicator of your borrowing capacity and risk level. Generally, the lower your LVR, the better, as it means you have more equity (the difference between the property’s value and the loan amount) and less debt. Most lenders require you to have an LVR of 80% or less, or else you may have to pay LMI.

LMI

LMI stands for lenders mortgage insurance, and it is a type of insurance that protects the lender in case you default on your loan. LMI is usually required if your LVR is higher than 80%, as it means you have a higher risk of not being able to repay the loan. LMI is a one-off fee that you pay at the start of the loan, and it can vary depending on your LVR, loan amount, and lender. LMI does not protect you as the borrower, and it does not cover the full amount of the loan. You are still responsible for repaying the loan and any shortfall if the property is sold for less than the loan balance.

Offset account

An offset account is a type of transaction account that is linked to your mortgage. The balance in your offset account reduces the amount of interest you pay on your loan. For example, if you have a loan balance of $400,000 and an offset account balance of $50,000, you only pay interest on $350,000 of the loan balance. An offset account can help you save money on interest and pay off your loan faster. It also gives you easy access to your money, as you can withdraw and deposit funds anytime. Generally there is an annual fee for an offset account.

Redraw facility

A redraw facility is a feature that allows you to access any extra repayments that you have made on your loan. For example, if your minimum monthly repayment is $2,000 and you pay $2,500, you have an extra $500 that you can redraw later. A redraw facility can give you flexibility and peace of mind, as you can make extra repayments to reduce your interest and loan term, and still have access to your money if you need it. However, some lenders may charge fees or have limits on how much and how often you can redraw.

Conveyancer

A legal professional who offers expert advice when it comes to property transactions. Conveyancers can help you when you're buying a property, selling a property, transferring property or subdividing property. You will need a trusted conveyancer when buying your first home to complete the transaction and legal requirements.

Stamp Duty

The dreaded stamp duty is a land tax for when land passes from one person/organisation to the next and is generally waived for first home buyers that are buying a house that is fairly new or building a house under the value of $750,000.

You should discuss whether you will need to pay stamp duty or not with your broker.

Grants and Schemes

The government has a plethora of schemes and grants that are there to help first home owners get into their first home. From first home super saver scheme to the first home owner grant, there are multiple ways the government are trying to help you to get into your first home. You should be talking to your mortgage broker or financial planner/professional on ways to help save your deposit faster to help you get into your first home sooner.

Buying your first home is a big decision and a long-term commitment, but it can also be a rewarding and fulfilling experience. To make the process easier and smoother, it is important to understand the mortgage jargon and how it affects you. By knowing what terms like mortgage, LVR, LMI, offset account, and redraw facility mean, you can compare different home loan options and find the best one for your needs and goals. You can also use online tools and calculators to help you estimate your borrowing power, repayments, and savings. And of course, you can always seek professional advice from a mortgage broker who can guide you through the whole process and find the best deal for you.

Until Next Time,

Take Back Control

How to Choose the Right Financial Professional for Your Needs in 2024

If you need help with managing your money, investing your savings, planning your retirement, or dealing with your taxes, you may want to seek the advice of a financial professional in 2024. Dealing with money and finances is a stressful chore and most people don’t like to deal with it, however it is necessary to make sure that you are getting ahead in life to start thinking about your finances and getting the best leg up on life. Hence, delegating the task to a professional for a fee is sometimes the best decision you could make, if you don’t have hours upon hours to do the research yourself or time to build up years of knowledge. Finding a professional will be the best decision you have ever made, but who should you see, and what can they do for you?

There are many types of financial professionals, and they have different qualifications, services, and fees. Some of them may have similar or overlapping titles, such as financial planner and financial adviser, which can be confusing and misleading. To help you understand the differences and similarities between them, and to help you choose the right one for your needs, here is a brief overview of some of the most common financial professionals, and when you should see each one.

Financial Planner vs Financial Adviser

These terms are often used interchangeably, but they are not exactly the same. In general, a financial planner is a type of financial adviser or advisor who specializes in creating a comprehensive and long-term plan for your financial goals, such as saving for retirement, buying a home, or funding your children’s education. A financial adviser is a broader term that refers to anyone who provides financial advice or with less scope and focuses on one or two specific areas, which may include investment management, insurance, estate planning, or tax planning. A financial adviser may or may not be a financial planner, depending on their qualifications, services, and scope of practice.

To find a qualified and trustworthy financial planner or adviser you should look for the following credentials and characteristics:

• They have a valid Australian Financial Services Licence (AFSL) or are authorised by an AFSL holder to provide financial services to the public3.

• They have relevant education, training, and experience in the financial field, and hold professional designations or memberships, such as Certified Financial Planner (CFP), Certified Investment Management Analyst (CIMA), Chartered Financial Analyst (CFA), or Chartered Financial Consultant (ChFC).

• They have a clear and transparent fee structure, and disclose how they are paid, whether by commission, percentage, flat fee, or hourly rate4.

• They have no conflicts of interest or affiliations with financial institutions or product providers that may influence their advice or recommendations4.

• They have a good reputation and track record, and provide references or testimonials from previous or current clients.

• They have a fiduciary duty to act in your best interests, and follow a code of ethics and professional standards.

You should see a financial planner or adviser if you need help with:

• Setting and achieving your financial goals

• Creating and implementing a financial plan

• Managing your investments and portfolio

• Choosing and reviewing your insurance policies

• Planning your retirement and superannuation

• Planning your estate and succession

• Minimising your tax liabilities

Mortgage Broker

A mortgage broker is a financial professional who helps you find and apply for a home loan. A mortgage broker acts as an intermediary between you and the lenders, and compares and negotiates the best loan terms and rates for you. A mortgage broker can also help you with the paperwork and documentation, and guide you through the loan process.

To find a qualified and trustworthy mortgage broker, you should look for the following credentials and characteristics:

• They have a valid Australian Credit Licence (ACL) or are authorised by an ACL holder to provide credit services to the public.

• They have relevant education, training, and experience in the mortgage industry, and hold professional designations or memberships, such as Certificate IV in Finance and Mortgage Broking, Diploma of Finance and Mortgage Broking Management, or membership of the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA).

• They have access to a wide range of lenders and loan products, and can offer you unbiased and independent advice and recommendations.

• They have a clear and transparent fee structure, and disclose how they are paid, whether by commission from the lender, fee from you, or both.

• They have no conflicts of interest or affiliations with lenders or product providers that may influence their advice or recommendations.

• They have a good reputation and track record, and provide references or testimonials from previous or current clients.

• They have a fiduciary duty to act in your best interests, and follow a code of ethics and professional standards.

You should see a mortgage broker if you need help with:

• Finding and applying for a home loan

• Comparing and negotiating loan terms and rates

• Refinancing or switching your existing loan

• Consolidating your debts

• Accessing your home equity

Stock Broker

A stock broker is a financial professional who helps you buy and sell shares and other securities on the stock market. A stock broker acts as an agent or a dealer between you and the market, and executes your orders and transactions. A stock broker can also provide you with research, analysis, and advice on the securities and the market.

To find a qualified and trustworthy stock broker, you should look for the following credentials and characteristics:

• They have a valid Australian Financial Services Licence (AFSL) or are authorised by an AFSL holder to provide financial services to the public3.

• They have relevant education, training, and experience in the stock market, and hold professional designations or memberships, such as Chartered Market Technician (CMT), Certified Financial Technician (CFTe), or membership of the Stockbrokers and Financial Advisers Association (SAFAA) or the Australian Securities and Investments Commission (ASIC) .

• They have access to a wide range of securities and markets, and can offer you diversified and tailored solutions.

• They have a clear and transparent fee structure, and disclose how they are paid, whether by commission, percentage, flat fee, or hourly rate.

• They have no conflicts of interest or affiliations with securities issuers or market makers that may influence their advice or recommendations.

• They have a good reputation and track record, and provide references or testimonials from previous or current clients.

• They have a fiduciary duty to act in your best interests, and follow a code of ethics and professional standards.

You should see a stock broker if you need help with:

• Buying and selling shares and other securities

• Building and managing your portfolio

• Researching and analysing the securities and the market

• Developing and implementing a trading strategy

• Minimising your trading costs and risks

Accountant

An accountant is a financial professional who helps you with your accounting, bookkeeping, and taxation needs. An accountant can help you record, report, and analyse your financial transactions and statements, and prepare and lodge your tax returns and other statutory obligations. An accountant can also provide you with advice and guidance on your financial planning, budgeting, and cash flow.

To find a qualified and trustworthy accountant, you should look for the following credentials and characteristics:

• They have a valid Tax Agent Licence or are authorised by a Tax Agent Licence holder to provide tax services to the public.

• They have relevant education, training, and experience in accounting and taxation, and hold professional designations or memberships, such as Certified Practising Accountant (CPA), Chartered Accountant (CA), or membership of the Institute of Public Accountants (IPA) or the Tax Practitioners Board (TPB) .

• They have access to a wide range of accounting and taxation software and tools, and can offer you efficient and accurate solutions.

• They have a clear and transparent fee structure, and disclose how they are paid, whether by commission, percentage, flat fee, or hourly rate.

• They have no conflicts of interest or affiliations with financial institutions or product providers that may influence their advice or recommendations.

• They have a good reputation and track record, and provide references or testimonials from previous or current clients.

• They have a fiduciary duty to act in your best interests, and follow a code of ethics and professional standards.

You should see an accountant if you need help with:

• Recording and reporting your financial transactions and statements

• Preparing and lodging your tax returns and other statutory obligations

• Claiming your tax deductions and credits

• Planning and managing your tax liabilities and obligations

• Optimising your financial planning, budgeting, and cash flow alongside a Financial Planner.

Choosing the right financial professional for your needs can be a challenging and confusing task, but it can also be a rewarding and beneficial one. By understanding the differences and similarities between various financial professionals, such as financial planner, financial adviser, mortgage broker, stock broker, and accountant, and by looking for the relevant credentials and characteristics, you can find the best one for your needs and goals. You can also use online tools and directories to help you search and compare different financial professionals. And of course, you can always seek a second opinion or a referral from a trusted source, such as a friend, family member, or colleague.

Until next time,

Take Back Control

How to Keep Healthy Over the Festive Season

We Over-indulge every year from Christmas to New years…

The festive season is a time of joy and celebration, but also a time of temptation and indulgence. It can be hard to resist the abundance of delicious food and drink that surrounds us, especially when we are in a festive mood and socialising with friends and family. However, over-indulging in food and drink can have negative consequences for our health, such as weight gain, digestive problems, dehydration, and hangovers. How can we enjoy the festive season without over-indulging in food and drink? Here are some tips and strategies, backed by evidence from scientific research, that can help us moderate our consumption and maintain our health.

Eat Mindfully

One of the keys to avoiding over-indulgence is to eat mindfully. Eating mindfully means paying attention to what, how, when, and why we eat, and being aware of our hunger and fullness cues. Eating mindfully can help us enjoy our food more, eat less, and feel more satisfied. Research has shown that eating mindfully can reduce binge eating, emotional eating, and food cravings, and improve weight management and metabolic health.

To eat mindfully, we can:

• Eat before we go to a party. That way we won’t be super hungry and we’ll be less likely to over-indulge. Only eat when we’re hungry or at a designated meal. Mindless eating just because food is there means we’ll easily consume too many calories in a day.

• Choose quality over quantity. Instead of filling our plates with everything we see, we can select a few items that we really want to try, and savor them slowly and deliberately. We can also opt for healthier options, such as fruits, vegetables, lean proteins, and whole grains, and limit our intake of high-fat, high-sugar, and high-salt foods.

• Pause and check in with ourselves. We can take a break between bites and ask ourselves if we are still hungry or full. We can also use the hunger scale, which ranges from 1 (starving) to 10 (stuffed), to rate our hunger and fullness levels. Ideally, we should start eating when we are at a 3 or 4, and stop eating when we are at a 7 or 8.

Drink Moderately

Another key to avoiding over-indulgence is to drink moderately. Drinking moderately means limiting our alcohol intake and staying hydrated. Drinking moderately can help us avoid dehydration, hangovers, and alcohol-related health problems, such as liver damage, high blood pressure, and increased risk of cancer.

To drink moderately, we can:

• Follow the recommended guidelines. According to the National Health and Medical Research Council (NHMRC), to reduce the risk of harm from alcohol-related disease or injury, healthy adults should drink no more than 10 standard drinks per week and no more than 4 standard drinks on any one day. A standard drink is equivalent to 10 grams of pure alcohol, which is about 100 ml of wine, 285 ml of regular beer, or 30 ml of spirits.

• Break up the booze. We can reduce the amount we drink by having a glass of water between each alcoholic drink and opting for lower-sugar mixers such as soda water or mineral water. We can also skip other energy-dense drinks like soft drinks and fruit juice and opt for a sparkling water with fresh lemon or lime instead.

• Drink for the right reasons. We can avoid drinking alcohol to cope with stress, boredom, or negative emotions, as this can lead to excessive and unhealthy drinking patterns. Instead, we can drink alcohol for enjoyment and socialization, and find other ways to deal with our feelings, such as talking to someone, exercising, or meditating.

Make Christmas day the only day you over-indulge if you need to!

Having one day throughout the week between Christmas and new years the day you let loose a little bit will help with feeling like you are missing out and you will remind you of why we don’t over-indulge. We need that little reminder as to why we don’t over-indulge all of the time, a reminder of the bloating, gassy, potentially meat-sweats, hangover and lethargy that come with over-eating and drinking.

Simply the body saying we may have over-done it and forcing you to stop and rest, as you need to digest the food and drink that you have just consumed. By having one day where you let loose, you can then feel content, helping you need to make sure that the rest of the week is therefore “back to routine,” where you eat and drink mindfully. Of course, this contradicts the not “over-indulging” part, but sometimes we are not able to stop ourselves and resort back to our base needs and habits, we are only human after all. By making a decision that Christmas day will be the only day you indulge a little bit more, you are setting yourself up to succeed throughout the rest of the week.

The festive season is a wonderful time to celebrate and indulge, but it doesn’t have to come at the expense of our health. By eating mindfully and drinking moderately, we can enjoy the festive season without over-indulging in food and drink all week. We can also remember that the festive season is not only about food and drink, but also about spending quality time with our loved ones, expressing gratitude, and spreading joy. By focusing on these aspects, we can have a happy and healthy festive season.

Until next time,

Take Back Control

How to Sleep Better for the Everyday Working Class Person!

Sleep is one of the most important factors for your health and well-being. It affects your mood, energy, memory, immunity, and more. However, many people struggle to get enough quality sleep every night. In this blog, I will share some of the proven ways on how to sleep better at night.

Sleep is the great equaliser in life, we all need it and we all roughly need the same amount of quality sleep every night according to most sleep studies to remain at optimal health and peak performance. Based on many research papers and my own experience, you should be aiming for 7-9 hours of sleep per night for optimal performance at work, to feel less drained and so you have even got some reserves left in the tank after a hard days work for playing with the kids and cooking dinner.

Our fast-paced lives sometimes gets in the way of sleep though, so I have brought together a few ways that can help you get to sleep faster and for a longer period below…

How to sleep better at night?

If you want to enjoy the benefits of sleep, you need to make sure you get enough quality sleep every night. Here are some tips to help you sleep better:

• Stick to a sleep schedule. Try to go to bed and wake up at the same time every day, even on weekends. This will help you establish a regular sleep-wake cycle and make it easier to fall asleep and stay asleep. It is recommended setting aside no more than nine hours for sleep, and no less than seven. If you are unable to get to sleep within 20 minutes leaving your bedroom to work on breathing patterns would help considerably. A simply breathing pattern to follow would 5 second deep breath, two second pause, three second release repeated 10-30 times.

• Pay attention to what you eat and drink. Avoid eating large or heavy meals, caffeine, nicotine, and alcohol close to bedtime. These can interfere with your digestion, sleep quality, and sleep duration. There are multiple studies that advises drinking enough water during the day, but not too much before bed, to avoid waking up to use the bathroom.

• Create a restful environment. Make sure your bedroom is cool, dark, and quiet. You can use curtains, blinds, earplugs, fans, or other devices to block out any noise or light that might disturb your sleep. Avoiding prolonged use of electronic devices with a screen, such as laptops, smartphones, and e-books, before bed, as they can emit blue light that can suppress your melatonin production and keep you awake. A quick fix on this if you can’t put that screen away is changing your screen to emitting a warm yellow light, which all smart phones have this application built in to their system. You can change this in your settings.

• Limit daytime naps. While short naps can be beneficial for some people, long or late naps can disrupt your sleep cycle and make it harder to fall asleep at night. You should limit naps to no more than one hour and avoiding napping after 3 p.m. However, if you work nights, you might need to nap late in the day before work to make up for your sleep debt.

• Include physical activity in your daily routine. Regular exercise can improve your physical and mental health and promote better sleep. However, avoid exercising too close to bedtime, as this can stimulate your body and make it harder to relax. It would become good practise to exercise at least three hours before bed or choosing low-impact activities, such as yoga or stretching, in the evening.

• Manage worries. Try to resolve your worries or concerns before bedtime. You can write down what’s on your mind and set it aside for tomorrow. You can also practice stress management techniques, such as meditation, breathing exercises, or positive affirmations, to calm your mind and body. If you still struggle with sleeping for extended periods, contacting your health care provider is also important, especially if you have chronic or severe sleep problems.

Sleep is essential for your health and well-being. By following these tips, you can improve your sleep quality and duration and enjoy the benefits of sleep.

And Until Next Time,

Take Back Control

Risk versus Reward: How to Balance Your Portfolio for Long-Term Success

Investing is all about the future, but having a solid understanding of the history of markets can provide clarity and confidence when dealing with uncertainty. One of the most important concepts in investing is the relationship between risk and reward, which measures how much return you can expect for taking on a certain level of risk.

In general, the higher the risk, the higher the potential reward, but also the higher the chance of losing money. Conversely, the lower the risk, the lower the potential reward, but also the lower the chance of losing money. However, risk and reward are not always proportional, and different asset classes can have different risk-reward profiles over time.

Historical Returns by Asset Class

One way to compare the risk and reward of different asset classes is to look at their historical returns over a long period of time. For example, the following table shows the annualized returns and standard deviations of several asset classes from 1985 to 2019. You can check out the Vanguard Asset Class tool to check out data from 1970 through to 2022 here.

Historical Returns by Asset Class - 35 years (1985-2019)

Data for the graph above on 34 years of returns and volatility for each asset class.

As you can see, stocks have historically delivered the highest returns, but also the highest volatility, among the asset classes. Bonds have offered lower returns, but also lower volatility, than stocks. Cash has provided the lowest returns, but also the lowest volatility, among the asset classes. Gold has been a volatile asset class, with returns that have varied significantly over time. REITs have been a relatively high-returning and high-volatility asset class, reflecting the cyclical nature of the real estate market.

However, these historical averages do not tell the whole story. The returns and risks of each asset class can vary significantly from year to year, depending on the economic and market conditions.

There is no clear pattern or ranking of the asset classes over time. Some years, stocks outperform bonds, cash, gold, and REITs, while other years, the opposite is true. Some years, emerging markets lead the pack, while other years, they lag behind. Some years, gold shines as a safe haven, while other years, it loses its lustre. Some years, REITs boom as property prices soar, while other years, they bust as property prices collapse.

How to Manage Risk and Reward in Your Portfolio

So, how can you use this information to balance your portfolio for long-term success? Here are some tips and strategies to consider:

• Know your risk tolerance and return objectives over a time horizon. Before you invest, you should have a clear idea of how much risk you are willing and able to take, and how much return you need or want to achieve your financial goals based on a time period. Your risk tolerance and return objectives may depend on factors such as your age, income, expenses, savings, time horizon, and personality. You should also review your risk tolerance and return objectives periodically, as they may change over time.

• Diversify across asset classes, sectors, geographies, and styles. One of the most effective ways to reduce your portfolio risk and increase your portfolio reward is to diversify your investments across different asset classes, sectors, geographies, and styles. By doing so, you can reduce the impact of any single asset class, sector, geography, or style on your portfolio performance, and benefit from the different sources of return that each one offers. For example, you can invest in a mix of stocks, bonds, cash, gold, and REITs, as well as in different industries, countries, and market segments, such as value, growth, and quality.

• Adopt a long-term perspective and a disciplined approach. Investing is a marathon, not a sprint. You should focus on the long-term performance of your portfolio, rather than the short-term fluctuations of the market. You should also follow a disciplined approach to investing, such as using a buy-and-hold strategy, a dollar-cost averaging strategy, or a rebalancing strategy, to avoid emotional or impulsive decisions that may hurt your portfolio performance. By doing so, you can take advantage of the power of compounding, which can significantly enhance your portfolio returns over time.

• Seek professional advice. Investing can be complex and challenging, especially in uncertain and volatile times. You may benefit from seeking professional advice from a qualified financial planner, who can help you design and implement a portfolio that suits your risk tolerance and return objectives, as well as provide ongoing guidance and support.

In summary, risk and reward are two sides of the same coin in investing. You cannot have one without the other. However, you can manage your risk and reward by understanding the historical performance of different asset classes, diversifying your portfolio, adopting a long-term perspective and a disciplined approach, and seeking professional advice. By doing so, you can balance your portfolio for long-term success.