Inspiration

3 Shocking Superannuation Facts You Must Read Today

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As I was looking through the ABS releases on financial matters (doesn’t everyone spend their weekends like this?!?), I found a data cube on superannuation. After reviewing the information, I was horrified at the state of retirement savings in our country. The three main points are below:

  1. Percentage of Australians without superannuation

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A few glaringly obvious observations can be made:

  • Half of 15-24 year olds do not have superannuation. This is much more than I expected. Employers not having to pay superannuation for casuals earning less than $450 a month is a partial cause for this (at the time of writing the managers of the country (I cannot call them leaders) are considering phasing this out so that all earnings are subject to superannuation.

  • 15% of people aged 25-34 do not have a superannuation fund. This is much higher than I would have thought.

  • Nearly 60% of those over 65 do not have a superannuation fund. This is not surprising as superannuation did not exist for most if not all of their working lives.

  • More females don’t have superannuation funds. This however appears to be improving for the younger generations

2. Median Superannuation Balance of Australians

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A few more interesting observations:

  • Males have 50% more superannuation than females

  • When approaching retirement, the median superannuation balance is around $130,000

  • The median balance is around $45,000

3. Percentage of Australians With Multiple Superannuation Funds

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This third point is probably the most shocking:

  • Females are much better than males at having only one superannuation fund

  • Overall, 14% of Australians with superannuation funds have multiple funds. According to ABS, this equates to 2.65 million people. Of which 630,000 have three or more accounts

  • Let’s play this out: With a generous assumption that no-one has more than three super funds (incorrect, but will understate the figures), there are around 3.3 million excess superannuation funds. Assuming they are charged a minimum of around $100 a year, this is an extra $330 million dollars Australians are giving to superannuation funds / banks EVERY SINGLE YEAR! Which can be easily fixed by consolidating superannuation funds.

Tell me about your superannuation:

  1. Do you have more than one account?

  2. Are you happy with your balance?

  3. Do you have more or less than the median?

  4. Any thoughts on how the superannuation system can be improved (I have my own ideas here)

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Mawer Money is a Social Enterprise assisting the world with Financial Empowerment.

www.mawermoney.com

MUST READ FOR ALL BUSINESS OWNERS: Setting Business and Personal Financial Goals

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I speak to a wide range of business owners every day. I find that there is a very strong correlation between those who plan and set goals and those who are successful. Those who are successful have usually sat down, had a good think about their life and made a plan with the following:

  1. What do you want to do with your life (easier said than done - however this is just a plan - to steal a phrase from my friends in the startup community - there will be many 'pivots' along the way)
  2. From a financial perspective, quantify this into cash outflows at particular points of time (buy a house, buy an investment property, buy shares, school fees, deposit for children's house (thanks Malcolm Turnbull), go on holidays, retire and have a passive income stream, give money away to family / charity etc)
  3. Determine your current financial position (Assets, Liabilities and Net Worth)
  4. Determine your level of income and your level of base ongoing expenditure
  5. Put this into a financial model (if you regularly read my articles you knew it was going to come back to Excel!) to determine whether your current trajectory will lead you to live the life that you desire
  6. If it does, great - if you have excess funds than you can consider lower risk investments to decrease the variability of outcomes
  7. If it does not, review the plan to determine how to make the business perform better to allow you to lead you to live the life that you desire

Per the first point, this is not a set and forget process. This should be updated every 6 months and whenever a major life event occurs (marriage, divorce, birth, death etc).

This also breaks the large goals down into small ones (e.g. I plan to increase my offset balance by $20K this year) which are much more achievable, it allows you to recognise and celebrate success along the way, and doesn't make the large goal as daunting.

There are a large number of facets to this process, all of which you may not have the required skills to do on your own (taxation, long term strategic business planning, risk planning, legal matters, succession planning matters, investing etc). I think that every single business owner in Australia should have one of these plans. If you are a business owner and you do not have a plan like this, the below quote comes to mind:

"Failing to plan is planning to fail"

What are your thoughts? Are you a business owner? Do you have or desire a plan like this?

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Mawer Money is a Social Enterprise assisting the world with Financial Empowerment.

www.mawermoney.com

 

Curtin University Interview: Mawer money, fewer problems

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Great to be interviewed by Curtin University

Recent data from the the Australia Bureau of Statistics reveal the nation’s household to debt income ratio has hit nearly 200 percent, a level the UBS has called one of the “highest in the world”.

With the banking royal commission exposing gross misconduct by some of our biggest banks, many of us have been spurred into thinking how we can improve our financial autonomy. One answer could lie in learning ‘financial literacy’.

“Financial literacy is having a well-rounded understanding of all matters to do with personal finance and using this knowledge to make informed decisions,” says Greg Mawer, Curtin accounting and finance alumnus and Director of Mawer Consulting.

“It’s about taking small, consistent and planned actions to reach a desired outcome. It’s about having discipline to not spend the money that has been saved or invested. It’s about being patient and about not feeling the urge to keep up with the Joneses.”

Mawer admits it is increasingly challenging for people to resist comparing their lifestyle when we live in a culture that encourages competition and consumerism. To counter these beliefs, he started the blog Mawer Money in 2017 as a resource for people to learn how to better utilise their finances to enhance their wellbeing.

“I started Mawer Money as a social enterprise to help Australians with financial literacy and empowerment,” he says.

“On the hierarchy of needs, money needs to be spent on safety, food and shelter. After that, whatever provides you with a fulfilling life, allowing you to spend quality time with the people you love. Preventing lifestyle creep (where your expenses increase in line with your earnings) is important.”

Mawer has a rich employment history in accountancy and finance, and after working in senior accountant roles for companies such as BGC Contracting, he took the plunge and started his own consultancy firm, Mawer Consulting, in 2013.

Read the rest of the article here

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Mawer Money is a Social Enterprise assisting the world with Financial Empowerment.

www.mawermoney.com

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Five expert tips to make money-talk in your relationship more romantic

Great to be asked to provide expert commentary on money and relationships for mozo.com.au.

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Money and love might not go together quite like strawberries and chocolate or wine and cheese, but loved up couples can seriously benefit from tackling their financial demons before they head out for a romantic date this Valentine’s Day.

With that being said, approaching such a touchy subject can be a little awkward, so how do you successfully tackle such a sensitive and often (unnecessarily) stressful topic without offending your significant other?

To answer that question, Mozo reached out to a few financially-savvy experts who dug up some personal finance gold for couples addressing their money matters this Valentine’s Day.

Click here to read the full article.

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Mawer Money is a Social Enterprise assisting the world with Financial Empowerment.

www.mawermoney.com

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Interview by All About Balance

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Great to be interviewed by All About Balance. Any Australian who is promoting Financial Empowerment is ok in my books!

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Welcome to the Small Business Interview Series. Here we will showcase small businesses in Australia/New Zealand that offer products or services that may help our readers to achieve a better work, life and fun balance. Considering each of the 5 pillars; health, wealth, relationships, mental health, community & spirit as part of an overall strategy is super important when making life decisions. Therefore we will not focus on the ‘cheapest’ products or services on the market, but those which will add the most value and will help you stay focused on the bigger picture. We hope you find some awesome new products/services to consider helping you live a happier and more fulfilled life.

Today’s interview is with Greg Mawer. Greg runs his own small business, Mawer Consulting – an accounting, taxation and business consulting firm in Manning, WA that helps business owners achieve what they desire. He has also recently started a blog, Mawer Money which focusses on Financial Empowerment for Australians

Read more here

You’re welcome.

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Click here to sign up to our Newsletter to receive the latest in Financial Empowerment and Personal Finance.

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Mawer Money is a Social Enterprise assisting the world with Financial Empowerment.

www.mawermoney.com

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NYE Reflections: The best way to achieve your goals in money (or anything else)

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Happy New Year!  This time of year is perfect for reflection on the year that has passed and to make goals for the coming year.

When making financial goals (or any goals in fact), they need to be S.M.A.R.T:

Specific

Measurable

Attainable

Relevant

Timely

E.g.

Specific: A clear goal in mind

Measurable: If you cant measure it, you can't improve it. Whether it be in dollars, percentages, kilos, you must be able to measure it

Attainable: Not unrealistic (e.g. I want to be the world's richest person tomorrow)

Relevant: This one is pretty obvious, but is has to be relevant to what you desire to achieve

Timely: You have to put a time frame on the goal. When you intend to start and when you intend to reach your goal

One final tip: You should also write these goals down and tell others about your goals. This will help to hold yourself accountable and increase the likelihood of reaching your goals.

What are your SMART goals for the coming year? Feel free to let me know in the comments below

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Click here to sign up to our Newsletter to receive the latest in Financial Empowerment and Personal Finance.

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Mawer Money is a Social Enterprise assisting the world with Financial Empowerment.

www.mawermoney.com

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Inspiration Series: Grace Mugabe

In the inspiration series, I blog about people that inspire me to acheive more than I could ever imagine. These are people that I either know personally or admire from afar. You will realise that a number of these people are either direct or indirect competitors. These people have the same mindset as me that they want to help educate and it doesn't matter where the knowledge is learnt, as long as it is learnt somewhere.

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Introducing Grace Mugabe from Financially Empowered.

I have been inspiring young minds at Curtin University for 12.5 years (it is a long time now I think about it - about 38% of my life so far!). I met Grace around 12 months ago when she came onboard to teach in financial modelling. I invited Grace to my office to catch up for a coffee and a chat to see if she needed any help in her new role. We ended up chatting for a long time about our shared passion for financial literacy and financial empowerment. There are only a few people that I get to chat to about financial literacy and financial empowerment who are on the same page and Grace is one of them.

Grace has achieved so much in such a short space of time. Grace is a fellow of the Leadership WA Rising Leaders Program as well as the Hive Global Leaders Program held at Harvard in June 2017. In Sept 2017, Grace was named one of three finalists in the United Nations Association of Australia (WA) Excellence in Gender Equity Promotion Award. She is also the ambassador for Behind the Brands, a hub for female entrepreneurs in Western Australia.

Grace is an amazing and inspirational young woman and I am privileged to call her both a colleague and a friend.

You're welcome.

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Click here to sign up to our Newsletter to receive the latest in Financial Empowerment and Personal Finance.

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Mawer Money is a Social Enterprise assisting the world with Financial Empowerment.

www.mawermoney.com

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