3 reasons you should run your family like a business
If a business owner said to you that they run their business without a budget, what would you think? You’d think they were incompetent. Or perhaps lazy? Or both?
But what do most families do?
When you think about it, a family is actually a mini business. There is income, there are expenses and there is, hopefully, something left over to invest and to enjoy.
So why don’t most families operate to a budget?
After all, a personal budget helps you to see your financial direction and helps you stay (or get back!) on track. It’s a great comfort.
One reason some people don’t put together a budget is a feeling of overwhelm, of being too busy, of feeling like life is too complex to keep track of all that.
Well the good news is we can handhold you through the process and make it easy for you.
But before we look at the ‘how‘ aspects, let’s consider 3 more reasons why a personal budget is such an important tool to help you achieve your financial goals and dreams.
1. Most of your money is already spoken for long before you get it
The money you earn has already been promised to keep the electricity on, make the loan repayments and pay for the insurance. Most of what many people think of as budgeting is really honouring the commitments you have already have.
Now since we are all honest people and plan to pay these bills, the first step is to track these bills and see what is left over for your day-to-day living.
2. Your day-to-day living money is spread all over the place...
Some of your day-to-day living money is in the bank. Some is in your purse or wallet. Some is with your partner or children if you have them.
You need a simple system
that allows you to track day-to-day expenses such as fuel for your car, shopping and your discretionary spending expenses.
We suggest you don’t attempt to keep track of every cent of your day-to-day living money. It’s not worth the effort for the benefit you’d get out of that level of detail.
Instead, you need to identify your main day-to-day expenses and make allowance for all other minor day-to-day expenses as a total expense.
Here’s a key:
You need a system that is so easy to use that you keep using it.
You can track these day-to-day expenses by entering them into a spreadsheet, or better yet, use a tool such as Pocketsmith or Pocketbook that can automatically pull in bank feeds to save you a lot of data entry.
3. The Number 1 reason people give up on their budgets is that they don’t have the right attitude
It's ALL in the attitude!
Have you ever attempted to budget and given up in frustration? What is the reason your budgeting attempt failed? What will make you stick to it?
Think about this…
One of the top reasons—if not the top reason—so many people give up at budgeting is attitude. If you think of it as a penny-pinching sacrifice instead of a means for achieving your financial goals and dreams, how long are you likely to stick with it?
It’s like the difference between going on a diet and eating healthily. One is negative and restrictive; the other is positive and allows you to indulge every now and then and yet still achieve your goals.
To increase your chances of success, work on your attitude first.
Many people refuse to budget because of budgeting’s negative connotation. If you’re one of them, try thinking of it as a ‘spending plan’ instead of a ‘budget’. Once you’ve attempted to budget and failed, the bad feelings associated with any type of failure can keep you from trying again. Don’t give up!
The cold hard reality
Let’s face it. Money is a tool that enables you to reach your goals in life. But the cold hard reality is that until you know where your money goes, you can’t make conscious decisions about how to use this tool effectively.
A budget (or spending plan!) shows you exactly where your money goes and provides a clear plan that lets you save for the things that are important to you: a new house, a new car, a comfortable retirement, a tertiary education, high quality health care, travel, or whatever your particular goals and dreams happen to be.
And that’s exciting.
Whatever YOU decide you want to save for and achieve, you can. With the right attitude, a focus and a (spending!) plan.
Avoid This Pitfall
There are several universal budgeting concepts that every successful budget will include, but one of the most important features of a successful budget is for it to be easy to use and suitable for your needs.
Don’t try to use a generic, complex, one-size-fits-all budget. A simpler approach makes it easier to stay committed. If you stick with a realistic, effective budget long enough, the rewards will keep you motivated. In the meantime, do whatever it takes to keep yourself going.
The 3 steps for effective personal budgeting (spending planning!) are:
- Build a Budget,
- Track Income and Spending, and
- Compare Budget to Actual.
Once you start budgeting with a positive attitude, you will see the difference a budget or spending plan can make in your life.
Your next step... Get in touch with us to make a time to meet. We’d love to discuss this with you and help you to get on track towards achieving your financial goals.
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It’s very common for retirement priorities to shift over time. But for some, the change arrives with a jolt. You may spend years—even decades—planning exactly what your post-work life will look like. While life can throw a curveball into your plans at any stage, the closer you get to retirement, the more unsettling the disruption can be. Whether it’s family breakdowns, the death of a loved one, an inheritance received, or unexpected expenses, you'll face a different personal and financial landscape. One that no longer matches the retirement you envisioned. Adjusting your working life. When a major life change hits, the most important rule is: don't rush anything. While you're reshaping your future and contemplating big moves, avoid making any rash decisions that are irreversible. The event may alter the required length of your working life or your willingness to continue working: Health issues could force you to retire earlier than planned A substantial inheritance might enable a more enjoyable, earlier exit from work. Conversely, a divorce late in life, particularly for someone with high spending habits, might necessitate staying chained to a desk longer. The separation may leave you with an unexpected mortgage or simply drain your finances through the legal process, creating difficulties. Make a basic plan. Take the time to sit down and rationally think through what your new retirement might involve. If retirement is still five to 10 years away, that's a good timeframe to start contemplating your next steps. The most critical step is to determine how much money you will need to spend. While most people worry about whether they "have enough money," the key question is almost always, "How much do I need to spend in retirement?". Consider this example: If you retire with $1 million and your annual spending requirement is $50,000, you're likely secure. However, if you have $1 million but need to spend $150,000 per year, you have a problem. You'll need to either dramatically increase your savings or significantly reduce your spending expectations. If you are struggling with these figures or want a professional opinion, see a financial adviser ( we can direct you to one ). Paying for a few hours of their time will help you consider things you hadn't thought about. A change of pace. Remember, retiring from your main career does not mean leaving the workforce for good. You have options: Moving part-time in your current job for a few years, using your extra days for hobbies. Taking on volunteer work. Leaving a stressful executive role for paid work you actually enjoy. Hopefully, your surprises on the path to retirement are positive ones. If they are not, don't panic. Stay calm and seek advice. We can help. Early advice and planning can make a real difference in managing your retirement well—understanding the tax implications is a huge part of that. Don’t wait — let us help you !
If you're living and working in Australia on a visa, you may be required to lodge a tax return with the Australian Taxation Office (ATO). Australia's tax system is complex—even more so if you're a visa holder. We specialise in helping visa holders understand and manage tax obligations with clarity, compliance, and confidence. With years of experience in this niche area, our dedicated team of tax professionals is here to make tax time stress-free. Do visa holders need to lodge a tax return? If you earn income in Australia, you're likely required to lodge a tax return. This applies even if you're on a temporary or bridging visa. Common visa types that often require a tax return include: Working Holiday Visa (subclass 417 or 462) Student Visa (subclass 500) Temporary Skill Shortage Visa (subclass 482) Graduate Visa (subclass 485) Partner Visa (subclass 820/801 or 309/100) If you earn more than the tax-free threshold (currently $18,200), you must lodge a return. Some visa holders, however, don’t qualify for this threshold—more on that below. Australian Tax Residency Test explained. When it comes to lodging your tax return, your tax residency status makes a huge difference. Even if you're on a temporary visa, you could still be a resident for tax purposes. This affects how much tax you pay, what deductions you're eligible for, and whether you can claim the tax-free threshold. 1. The Resides Test (Main Test) This is the primary test. You’re likely a resident if: You live in one place and have regular routines (like renting a place, going to work or uni) You’re part of the local community (bank account, phone, gym, etc.) You stay in Australia for a continuous period of 6 months or more You intend to stay long term—even if your visa is temporary 2. The Domicile Test You may be a resident if your domicile (legal home) is in Australia, unless you can prove your permanent place of abode is overseas. This usually applies to: Australian citizens or PRs working overseas temporarily People who still maintain strong ties to Australia Note: Most temporary visa holders don’t pass this test unless they’ve been in Australia long-term. 3. The 183-Day Test. If you’re physically in Australia for 183 days or more in a financial year (doesn’t need to be consecutive), you may be a resident—unless your usual place of abode is clearly overseas and you don’t intend to live here. You’re likely a resident if: You stay for 6 months or more You rent long-term accommodation You’re working or studying with the intention to remain for an extended time Common visa types & how tax applies. 1. Student Visa (Subclass 500) Likely considered a tax resident if you stay over 6 months Can claim the tax-free threshold ($18,200) Can deduct eligible expenses (like textbooks, computers for study if working in a related field) 2. Working Holiday Visa (Subclass 417 or 462) Taxed at a flat rate of 15% on income up to $45,000 Must lodge a return if you earn any income Generally, not eligible for the tax-free threshold Superannuation can be claimed back when leaving Australia (through DASP) 3. Temporary Skill Shortage (TSS) Visa (Subclass 482) Often considered a tax resident, especially if you're working full time and have relocated Must lodge a return and may be eligible for tax offsets Can claim work-related deductions and rental expenses (if conditions apply) 4. Partner Visa (Subclass 820/801 or 309/100) Usually treated as a resident for tax purposes Same obligations and entitlements as an Australian citizen Tax returns may support future PR or citizenship applications Key differences for visa holders. 1. Tax Residency Status Your tax residency is not the same as your immigration residency. You could be a temporary visa holder and still be considered an Australian resident for tax purposes. If you're a resident for tax purposes, you may be eligible for the tax-free threshold and lower tax rates. If you're a non-resident, you’ll pay tax on every dollar earned (no tax-free threshold) and possibly at higher rates. Factors like how long you’ve been in Australia, your living arrangements, and whether you plan to stay long-term affect your tax residency status. The ATO provides a residency test to help determine your status. 2. Working Holiday Makers If you hold a working holiday visa, you're taxed at a special flat rate (15% on income up to $45,000 as of 2024-25), regardless of your residency status. You're still required to lodge a return if you’ve worked. 3. Access to Tax Offsets and Benefits Only Australian tax residents can access certain tax offsets, such as the low-income tax offset. You may also qualify for superannuation contributions, but you'll need to apply for a Departing Australia Superannuation Payment (DASP) when leaving the country permanently. What are the common mistakes to avoid? We see four common mistakes: Assuming you don’t need to lodge because you're a student or on a short-term visa Not declaring all income (including freelance or cash jobs) Using the wrong tax residency status Forgetting to lodge a return when leaving Australia Let us take care of your tax return. Whether you're a student, skilled worker, working holiday maker, or about to leave Australia permanently, getting your tax return right is crucial. This is a niche area Ascent Accountants specialises in. We understand the unique situations that come with different visas—and we make sure you claim every dollar you’re entitled to. Contact us today to get started.
Bringing clarity to concealed sales prices. Scrolling through property listings and seeing phrases like 'offers from', 'expressions of interest', 'all offers considered', or simply 'contact agent' instead of a clear price can be frustrating for buyers. This lack of transparency makes it difficult to figure out what a seller is truly expecting for a property. In fact, the frustration at properties advertised with no price at all is consistent feedback clients give to agents. Buyers often report frustration after calling agents and not being given any guidelines on where the property sits on a price scale. The absence of price information can impact user engagement, with industry feedback suggesting it can significantly influence how users interact with property websites. Clear, visible pricing may enhance user trust and interest. Strategic steps for buyers. How to overcome the problem when agents don't give a price guide. Navigating a property purchase without a price guide is challenging, but buyers can take strategic steps to reduce uncertainty and strengthen their buying position. Research comparable sales: Understanding market trends and researching comparable sales in the area is crucial for setting realistic expectations. While median values are widely referenced, they don't always accurately reflect individual property values, so look at recent sales of similar properties for a clearer picture. Know your financials: Have a clear understanding of your risk profile and financial position. Know your borrowing capacity and secure a loan pre-approval. This streamlines the buying process and makes your offer more appealing to sellers in a competitive market. Use online tools: Experimenting with the minimum-to-maximum price range feature online can assist in providing a general price range. The limitations of desktop valuations. While desktop valuations can be handy, be careful not to overstate their accuracy due to certain variables. Desktop valuations are just averages based on an area's lot size, house size, nearby sales, number of bedrooms, and bathrooms. They may not accurately account for homes that are unique, have views, or don't fit the suburb's prescribed pattern. Furthermore, distinct features are ignored. A significant difference between properties may be that one has been totally upgraded and renovated, with sellers spending hundreds of thousands, versus a property in original condition. This difference is often not taken into account by automated valuations. We’re here to help. Buying a home is a financial and an emotional decision. If you’re buying, do your homework on comparable sales and understand the tax implications with Ascent Accountants . You can also consult with Ascent Property Co. and be matched with a home that suits your needs.
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