Author Archives: Henry Mabana

The holidays are fun and during this time, it’s easy to forget about your budget and splurge. Wondering how to stretch the budget further after you’ve had a holiday blowout?

The festivities can continue throughout the year with some careful planning. The more preparation you put in, the more you’ll be rewarded. Here are ways you can recover from overspending for the holidays.

Stop the guilt

Christmas came and went. You spent too much and you can’t go back. Stop feeling guilty!

Instead, channel your energy into writing down where you overspent. Take note of all the unaccounted costs and get it’s total — shipping fees, extended warranties, gift wrap, and checked baggage fees.

Learn from your budget mistakes. Set yourself a realistic goal of spending less next time.

‘No-spend’ month

Following the holiday season, it’s the perfect time to challenge yourself to a ‘no-spend’ month. Anything that isn’t necessities or bills (groceries or gas) gets put on the backburner until after the challenge.

It’s up to you how long the challenge goes. It’s recommended to be at least a month.

Holiday leftovers

Using what you have in your home can save you heaps. Start with holiday leftovers.

Check out online for recipe ideas on leftovers. It’ll be amazing what you can throw together without going to the supermarket.

Snowball effect

The snowball effect is a great approach for paying off multiple debts. It emphasises the power of motivation and gives off a sense of accomplishment after paying off a debt.

For example, choose one credit card to pay extra while paying the minimum balances on the others. You then move onto the next card once you pay off the first debt. Continue until they’re all fully paid off.

Note: Start with the card with the highest interest rate or the one with smallest debt balance.

Earn some extra income

You can become a virtual assistant, take online surveys that pay cash, or become an Uber driver in your spare time.

Set new financial goals

Write down whatever you want to accomplish financially after the holidays. It can be building an emergency fund or paying off your credit cards.

Seeing exactly what you want to achieve will help you make it a priority.

Where are you financially?

It’s important to look closely at your bank account to figure out where you are financially. Make sure you can at least pay your usual monthly bills, such as rent and utility.

If you can’t, you may need a loan to help you get back on track. With this approach, be sure to incorporate the repayments into a revised budget.

Emergency loans in Australia

Do you need a fast and small fund?

Cigno Loans can help with their emergency loans, as well as bad credit loans — if you have a less than stellar credit history.

Once your application is approved, cash is moved into your bank account with repayments easily arranged.

Apply now!

Some small changes in your habits can better help with your savings, budgeting practices, and reducing your bills. Follow these tips!

1. Clothes

• When buying clothes, check if you can wash them yourself to avoid dry cleaning services.
• Make sure the clothes you buy can be mixed and matched so you can have more options out of fewer items.
• Look for and take advantage of end-of-season clearances, bargains, and deals to pay less.

2. Food & groceries

• Cut back on how often you go out for dinner.
• Plan meals in advance.
• Make and take a shopping list with you and stick to it.
• Set a shopping budget and just bring the exact amount you need.
• Compare item prices.
• Grow your own food (veggies) at home.
• Before going to the supermarket, eat a snack. You tend to buy more food when you’re hungry.
• When things are cheaper, buy in bulk. You can cut up bulk meat into pieces then freeze them, so you can use it as you need it.
• Shop every fortnight to use up all the food in your pantry before buying again.
• Consider generic products over the brand names you want to buy.
• Always check the ‘best before’ dates on food so you don’t buy things near their expiry date.
• Check the shelves above and below for alternatives as supermarkets promote the items at eye-level.

3. Electricity, gas, & water

• When you’re not using them, turn off appliances.
• Take advantage and use natural light during daytime.
• Instead of turning on the heater or AC, dress for the temperature accordingly.
• Seal up any cracks or gaps around your doors, windows, ceilings, and floors.
• Hang your washing outside or use an indoor clothes rack instead of the dryer.
• Instead of an electric blanket, use a hot water bottle.
• When cooking, turn off the stove before the food is done to let the residual heat finish the job.
• Install a dual flush on your toilet and a water efficient showerhead.
• Take showers quickly.
• Turn off the tap when you brush your teeth.
• Fix plumbing leaks around the house.
• Reuse water for your garden.
• When you wash dishes or rinse fruits and vegetables, put a plug in the sink.
• Adjust the water level in your dishwasher or washing machine to match a partial load.
• Use cold water in washing your clothes.

4. Getting fit

• Shop around for the best gym membership deal.
• Do some exercise by walking the dog around your local oval and using free apps.
• Group personal training, boot camps, or team sports can be cost effective.

5. Reduce bank fees

Look for financial institutions that offer basic bank accounts, with:

• no minimum deposit amounts
• no account keeping fees
• no overdrawn fees
• free monthly statements.

Emergency loans in Australia

Do you need a fast and small fund?

Cigno Loans can help with their emergency loans, as well as bad credit loans — if you have a less than stellar credit history.

Once your application is approved, cash is moved into your bank account with repayments easily arranged.

Apply online now!

More and more are leasing a car for business or personal purposes over the past years to afford a preferred car at a lower cost.

As opposed to purchasing a car outright or through a bank loan, you don’t need to put down a deposit when you lease. Thus, freeing up extra cash for other expenses.

Aside from access to a reliable car, leasing offers another huge advantage — a financially viable solution that suits your needs, minus the hassle of ownership — providing great benefits for both the employer and employee.

There’ll be an opportunity to make changes to the lease once it’s up — say, extending the term.

If you’re thinking of leasing a car, here are some factors to consider.

1. Keep a log book

For the first few months, keep a log book for the car in keeping track of personal usage. It’s to make sure the vehicle is being used predominantly for business purposes. There’s no need to keep a log book if personal use is incidental — given that the car is a tool of trade or work ute with a carrying capacity of over 1 tonne.

2. Assets and liability

The value of the asset and the liability for future lease repayments are raised to the balance sheet when leasing a car through the business.

This creates a secured liability on the balance sheet for the business — without an impact to the employee and is restricted to pure tool of trade vehicles.

Employers could use an operating lease to remove this from the balance sheet — which then becomes a rental over the term of the lease.

3. The car to choose

The car you choose under a business lease is essential — suitable for both your business and personal needs and as a reliable asset.

Ask your fleet manager to assist in the process. They can manage the vehicle’s specs and recommend makes and models that suit your needs and the environment. This will also ensure to meet engineering compliance.

4. Test drive the car

Look for the little details, like comfortable seating position and other things that might not seem right. drive the car like you would on a daily basis, and follow these other tips to get the most out of your test drive.

5. Mileage

Every business car lease has an annual miles limit that the user is allowed to travel and agreed upon — usually about 10,000 miles (16,000+ kilometres). Any excess mileage used is charged at a rate.

You can also pay extra for additional mileage if it couldn’t be helped. It’s better to average out to your selected miles per year to avoid any issues.

6. Asset maintenance

When it’s a desired make and model required for business, cars are expensive. Maintenance and service costs can quickly add up.

To reduce the costs of running the car and to extend its lifespan, utilise your fleet manager. He will schedule required servicing and maintenance and stay on top of everything.

Tracking the car also helps in maximising the usage and making the most of this capital asset. Now, this is an additional cost but will prove to be beneficial in the long run — ensuring the car is being used as intended.

7. Residual value vs. Resale value

Consider residual value of the car at the end of life and relates it to resale values. Match the resale value to any debt owing at the end of the lease term.

The residual value, a.k.a. the balloon payment, is the amount a business expects to sell an asset at the end of its useful life. The value outlines the function of the amount and rate of depreciation on the car and can be affected by monthly payments.

Usually, the higher the residual value, the more the car is worth.

Emergency loans in Australia

Do you need a fast and small fund?

Cigno Loans can help with their emergency loans, as well as bad credit loans — if you have a less than stellar credit history.

Once your application is approved, cash is moved into your bank account with repayments easily arranged.

Apply online now!