[Image Credit: Max Pixel]

Are you a Barefoot fan too? I am and have been for many years now. Even before the release of Scott Pape’s latest hit book, I was fully behind his sensible principles and was a regular listener to his podcast (it doesn’t run anymore, but I wish it did!) So you’re probably quietly asking… if I was following Scott’s principles years ago, why did I (and fellow Income Organiser, Lina) become certified in Income Organising? The easy answer is that it didn’t matter how many budgets I set up for my household to get on top of everything, I could never make it work… … not by itself anyway. I joined the BFI forum and spoke to other members who had an array of different excel spreadsheets, or pages and pages of handwritten plans. I would start off well but it was so time consuming that I simply couldn’t keep on top of it long term. I also couldn’t work out how to plan for unexpected things. It was like the second I saved some money, it was gone. Getting ahead just wasn’t happening. Sound familiar? I know now that I wasn’t alone. That lots of people have had that experience. So what did I do? I combined a better way to budget with the BFI principles. I found a way the system can work out things like percentages for me. I didn’t want to have to do that each pay (especially time consuming for irregular incomes) and I wanted to know that I could plan for large expected expenses without having to always factor it in myself. Who wants to calculate $30.78 each fortnight for car registration? Plus all of the other long term portions, and monitor all of them manually?? Or even with a spreadsheet? Spreadsheets just tell you if something IS possible, but they don’t tell you what to do each and every pay day to get there. Plus when you break down an annual budget to each pay day, it usually finishes in $0 which is hugely depressing. And not even real life! Using the example above, instead of alloacting $30.78 each fortnight to car registration, I might skip a fortnight because it’s a big one, and instead allocate twice as much the following fortnight. Or vice versa. There are lots of calculations in there, and to be honest, I’ve never found the monotony of small increments fun. It’s boring and goes on forever. Urgh.My Income Organiser is easy, rolls itself over as time goes on and takes very little time and maintenance. Most importantly it handles the ups and downs, and adjusts itself without me physically doing it. Not only that, but you get a dedicated coach to keep you going if you hit a major obstacle, or just want to know that someone else is keeping an eye on you and cheering you on.

Speak soon, Erika Gilbert

My Income Organiser

When we talk about buying things that are truly valuable to us, this also means we don’t buy things that are a waste of our time and energy… and we really won’t miss if we don’t have them. One great way to do this is to remix your wardrobe. Now this is different for each person, so I’m going to start somewhere in the middle and work outwards. Do you have at least 30 pieces of clothing? (excluding inner and outer clothing – eg. socks and coats) This coming weekend, why not get out those 30 pieces of clothing and work out how you will mix and match them into 30 full outfits. This works for all ratios of clothing – if you have 15 pieces, then create 15 outfits; if you have 45 pieces, then create 45 outfits. If you have clothing that you can’t seem to match up with any of the others, this is a good opportunity to reassess whether you want to keep it, or if it’s better donated to someone that can wear it a lot more often. Same with clothing that has really had it’s day. If it’s so old and loved that you won’t wear it anymore, consider passing it to a friend or family member or tearing it up and using it for cleaning rags/DIY jobs around the house. What about a sentimental piece? I have one of these myself. It’s an army-green tailored jacket, waist-length with tassels on the shoulders and clips on it across the breast. Kind of like a frilly, girly, army jacket. It doesn’t fit me anymore but I still hold onto it. I was wearing that jacket when so many wonderful things in my life happened. In this case, I keep it in my wardrobe amongst all of my usual clothes. It’s not framed or tucked away off to the side. I’ve chosen to do that because I think if I’m going to tuck it away and not look at it, I shouldn’t keep it. Instead, every time I go rummaging through the wardrobe I pass it and it gives me a smile. If you also have a sentimental piece of clothing, find a way to make sure that piece adds a regular smile to your week. You might choose to have it framed (I have friends who do that), you might choose to move it to a more obvious area of your wardrobe, you might choose any number of things. What’s important, is that it is giving you a smile and isn’t stuffed away somewhere that you don’t think about it anymore. Go on, sometime over the next couple of weeks, set aside an hour or so and create your 30 outfits. That’s a whole month covered!

Have you ever said this to yourself "OK! I'm going to pay off my credit card! What is the best way to get started?"

If you ask Facebook, many people will suggest that you should look for a $0 balance transfer offer, transfer your balance to a new bank and then set about paying it off.

Now while lots of people have done this successfully, those results are not the norm.

Not even half of the people that transfer balances pay off their credit cards.

In fact the success rate for this method is around 14%, with around 60% of people failing so bad that they end up with this new credit card maxxed out, plus the old one maxxed out again (it can be really hard to say No to the previous bank's tempting offers to get you back).

You can also be stung up to 30% interest for not paying off the balance during the introductory period. Eek!

Another option people will throw around is to get a personal loan and work that off, or if you have several credit cards you might hear the suggestion for debt consolidation.

Now here is some good news - the success rate for these options is much much higher than the dismal 14% success rate of the balance transfer.

I believe the reason for this is that you are forced into a situation where you can't add a purchase "just this once" (statistically this spirals out of control to the tune of $1.5b profit (and that's only NAB).

They also have an added bonus....

They force you to face the reasons you're in debt in the first place.

This is a good time to note that all of these options will add notches to your credit rating. It's your personal choice whether this is something you're happy with or choose to avoid.

My personal favourite is phoning your existing credit card issuer and negotiating a better deal.

Depending on how big your chosen bank is, they often have a 'Retention Team' - these guys make the best deals.

I'm talking deals like reducing the interest rate by 50% for 6-12 months and refunding annual fees.

To do this, you need to mentally fight against the temptation that we mentioned earlier (remember the $1.5b profit? That doesn't happen by accident...) and if you can't do this, or you've tried and you're feeling like you're losing the willpower, definitely switch to something you feel will work for you.

Bottom line, there is no point chasing lower fees and interest rates if you're just going to end up in the same (or worse!) pickle.

There is no one-size-fits all. Seek professional advice and choose what works for you. Don't be afraid to admit when something isn't working and look at your options.

Pre-Journal: I allowed myself 1 brewed coffee per day (instead of 2 or 3) and 1 Pho during the work lunch I am organising. That’s it. There is to be no other discretionary spending.

MONDAY - Day 1

Feeling good and motivated. I always feel like this when starting something new. I’m so excited to see just how much money I save when I don’t spend it on unnecessary things! I filled up my car with petrol yesterday and have a 3l bottle of milk in the fridge (thanks Costco). I have frozen meals in my freezer and a drawer of ready-to-drink protein tetra packs from previous health-kicks.

The day goes well. I tell some of my colleagues about it, really just because they will notice that I’m not having so many coffees. They’re so used to me buying coffees that often I will have a “just going for the walk” partner. Even though it’s only across the road so I’m gone for max 4min, they still come for the walk.

(I’ve just realised it’s kind of like a substitute for those that take smoke breaks throughout the day)

Lunch goes off without a hitch, I purchase my one coffee for the day. Score! My fav barista is on the tools today!

Time for home, and it’s done.

Dinner time, the hubby wants to order out because he’s not feeling well (he’s the main cook in the house). I reminded him about the spending freeze. We had chilli and wedges for dinner (both in our pantry/freezer already). Yum!

Still feeling positive!

[Image Credit: Max Pixel]

When the new year arrives, many of us are full of excitement for what the coming 12 months can bring. The change we can make, the fun we can have, finishing off our loooooong To Do List that we have gathered over the years.

Bring on the new year where everything will FINALLY happen!

Right....?

OK so with only 8% of New Years Resolutions being completed, there is one massive obstacle in the way.

Fading motivation.

Change is hard.

It takes effort, consciousness and often a bit more time than we are used to (pretty much because we’re masters of our usual behaviour so we can do it with our eyes closed).

Never fear, motivation is here!

Here are a few lines that describe exactly what financial stress feels like for these people. If you start to feel like your motivation is waning, have a read of these to help bring you back to WHY you’re going through this change.

… I promise, once you’re there for long enough, this will become second nature to you too!

“It really is exactly what it seems, working all day every day just to pay the bills, and barely manage to eat.” Sam

“Living pay cheque to pay cheque is “I can’t come out tonight, having dinner with my parents again;” because I don’t have any other option if I want to eat good once this week.” Jennifer

“Living pay cheque to pay cheque brings upon terrifying moments of “Oh sh*t, rent is due in two days.” Sara

“I remember that one month I actually didn’t have enough for rent and had to call my landlord hysterically crying, pleading my case on why I needed another week. Thankfully he was very understanding.” Franny

“When you’ve had a “instant meal” six out of seven nights this week you know you are living pay cheque to pay cheque.” Gab

“Not being able to afford to participate in group work functions, like holiday parties, secret Santa’s etc." Jackie

“The sad moment when you have to call your parents for help because you can’t afford petrol is the definition of pay cheque to pay cheque life.” Maura

“You’re living pay cheque to pay cheque when you are still answering work emails at 11pm but can’t afford a coffee the next morning. It is painful.” Nicole

“I lived pay cheque to pay cheque for a while after Uni. The lights and TV never went on in my apartment for a good year.” Mary

“One word to describe living pay cheque to pay cheque… #sad.” Amy

“Living pay cheque to pay cheque sucks but it is learning experience because eventually, you will realise there are better jobs out there that will pay better. Never settle.” Melissa

This ‘never settle’ philosophy goes for most everything you’re possibly settling with right now. The longer you settle, the more time is wasted in that rather than the stronger and relaxed one you could be living instead.

Have a wonderful week,

Erika Gilbert

My Income Organiser

[Image Credit: Max Pixel]

With Christmas behind us, you’re probably gearing up for New Years and maybe even considering writing some resolutions. Positive change is a good thing, regardless if you want to get on top of your finances, book your dream holiday, get back on track for retirement planning…. Unsurprisingly New Years Resolutions have a dismal success rate… around 8%. That doesn’t mean they’re pointless though. If done properly, you can be one of the 8% and soar!If you don’t already follow SMART guidelines when setting your goals, here is a really cool video. Steps to start in January (choose whichever points resonate with you):

Stick to your guns, RAIN, HAIL OR SHINE.

With so much help at hand, next year can be the year you forge ahead financially. We look forward to supporting you to make nextyear even better, no regrets. In 10 years’ time do you want to look back and see that you have achieved something really special? Don't look back on 10 years and think, "I wish I had ---" Take the opportunity now Here’s to a happy and prosperous New Year!

Erika Gilbert

My Income Organiser

[Image Credit: Max Pixel]

This year, the Australian Bureau of Statistics expects 62% of children will be gifted between $50-$200 each for Christmas. They expect a further 22% to be gifted more than $200! With Australia entering its 25th consecutive year of economic growth, and the average credit card debt ever increasing, it makes sense that gifts for loved ones are becoming more and more lavish. So, what do we do when children (ours or others' we care about) receive such gifts? Well, we have a couple of options...

We can join the excitement and talk about all the things we can buy on the shopping spree (they might never be able to afford <insert random item here> again!)We can put it in a savings account "for a rainy day"We can use it as an opportunity to teach them money principles (but how?)We can tell them nothing, and they will usually either follow their parents' or their friends' behaviours

Doing nothing and letting children spend their gift at will was definitely the most common approach I saw growing up. I remember friends taking hundreds of dollars (which was even more back then!) and blowing it all on arcade games and Go Karts. We felt like millionaires! We would spend an entire day there, playing against each other (multiple players... what luxury!) and game after game of Go Karts. We really did have a fantastic day, and by the end of it we thought it was money well spent... Why? Because we genuinely believed we would never again have the chance again. Seriously!

We grew up knowing families always scraping by, who whenever they were able to get a couple of hundred together (usually some sort of windfall like winning a competition or payrise/redundancy), would go on spending sprees rather than re-connecting their electricity or telephone. It sounds strange, but it's what we saw. So what sorts of money habits do those childhood friends have now? It's a mixed bag. Some are repeating their parents, others have decided they're not going to be the same and have had to deliberately learn new routines (some are now my clients), usually not without some sort of financial pain first.

The 50-40-10 Rule

This is easily the best and most tested way to give children better money management foundations. Save 50%, spend 40% and donate 10% to your kid's favourite charity. This technique helps kids understand the difference between saving and spending. For younger children, use three jars so the money in each category is visible. It's helpful not only to see when you don't have any money left (ie. stop spending when it's gone) but also to have money in a jar that you don't touch. For older children, use bank accounts for some or all of the three categories. It's important to transition from seeing money in jars, to seeing money in a bank account because children need to recognise the numbers on the screen as actual money. It's not fake (and definitely not 'free') money. If you do this with children you care for this Christmas, I'd love to hear how it goes! Merry almost-Christmas,

Erika Gilbert

My Income Organiser

[Image Credit: Max Pixel]

Today we are talking about the taboo topic of .... Re-Gifting. I'll open by saying there is absolutely no right or wrong answer on Re-Gifting. So I'm going to give you my personal opinion based on years of experience with Re-Gifting, and how I do it right. Firstly, why? Re-Gifting is an easy solution to a common problem. The list we discussed last week where presents should be wanted, needed, experienced, worn or read.... not everyone follows this unfortunately. So we often end up with gifts that aren't quite right (I can't tell you how many candle holders I've received over the years). If your gift comes with a receipt, that's easy! Exchange your gift for the right size, right colour or something that you need.

Re-gifting is not an excuse to ignore the "wanted, needed, experienced, worn or read" check. Still do it to ensure the gift is right for the recipient.Re-gifting is not about being cheap and nasty. It's about realising this item isn't right for you, and matching it with someone that can truly appreciate it.MOST IMPORTANTLY .... never lie about re-gifting.

If you have re-gifted everything appropriate but you still have unwanted presents, list them for sale online (popular places are: Gumtree, eBay and Facebook Buy/Swap/Sell groups).

Have a wonderful week,

Erika Gilbert

My Income Organiser

[Image Credit: Max Pixel]

Over a year ago I lived from pay cheque to pay cheque with very little/if any savings. I tried multiple budgeting techniques from an excel planner, other budgeting programs and even MyBudget.

I felt a lack of control from balancing the incoming expenses and money to enjoying life. I felt budgeting was a chore and often ‘sucks the fun out of life’ as I won’t have any money left over to enjoy life.

Since joining My Income Organiser I feel I have the best of both worlds. I have access to a very effective system that can map out my next 12 months of expenditure. This has allowed me to effectively plan my expenses and plan larger non-urgent expenses (Such as a mini holiday) to periods where the funds are readily available. I have found I seem to always have access to money rather than having to wait to my next pay check. I have found Spending Planner is simple and effective to use compared to other budgeting systems and having my weekly check-in motivates me to stay on track and have been vital in altering my mindset to new budgeting habits. It is a fantastic feeling responding to my weekly check-ins with I’VE REACHED MY GOAL!

My Income Organiser has helped me become accountable for my own finances rather than just dealing with what arises or outsourcing it. I can happily say I have broken my pay cheque to pay cheque cycle. I have learnt a budget doesn’t control me rather than it works with me to achieve my goals whilst managing life’s expenses. I am now living comfortably while putting myself through university. In my time with Erika I have achieved numerous financial goals (such as paying off 2 credit cards and saving over $3000) and have been able to still maintain the life style I want and deserve.

Have a wonderful week,

Erika Gilbert

My Income Organiser

[Image Credit: Max Pixel]

When you’re making changes to the norm, sometimes people around you can be less-than-supportive. This doesn’t happen to everyone, but it happens more than we would like to admit, and is easily one of the biggest obstacles we deal with when we’re trying to better ourselves. Love them or hate them, we have family and friends that we care deeply about, and often they aren’t afraid to give their opinion.

One of the hardest ones to overcome is the “Warning”. It’s emotionally involving and comes across that completely sincere.

That's because it is.

Your family/friend truly believes they are giving you a valuable warning that you need to heed.

If you have a suspect at the moment and you haven't quite decided if they fit the bill, let's put it to a quick test. You're sitting down with them at a cafe. You start talking about your finances and they look you straight in the eyes and say <fill in the blank>. Is what they say a warning about your current path? That you need to either stop what you're doing, or try to tackle it a different way (because your current way is dangerous)?? Here are a few examples that might not seem so obvious at first:

"What difference will it really make in the long run?""Why suffer now? Just be normal and deal with it if it happens""Live a little!""You deserve the good things""Think of all the things you're missing out on"

If you've heard one or more of these from someone, I class them as a "nay-sayer". That isn't to say they don't care about you and what you're trying to achieve. In fact, usually they care very deeply. But they are not going to help you right now.

Today I'm going to remind you that you're definitely doing the right thing, and give you a few tricks of the trade to overcome the nay-sayers.

For the time being, I recommend either seeing them less or avoid the topic of money/finances altogether. When you have a tangible goal achieved, it's usually safe to tell them all about it them. PRO TIP: If you tell them you have achieved a goal (eg. a family holiday) and they follow up by saying you can "return to normal now" (meaning to join them in their disorganisation) then go back to avoiding the topic of finances. You don't need that. In 10 years time you want to look back and see that you have achieved something really special, right? Don't look back on 10 years and think, "I wish I hadn't listened to ---"

Have a lovely week,

Erika Gilbert

My Income Organiser

[Image Credit: Max Pixel]

Every year, experience gifts are some of the most popular presents because they won't hang around unused on a shelf, and you can give the gift-recipient something they'd likely never buy for themselves. Here are a few key things to help you match the right experience with the right person (and make sure you're not wasting your money):

Will they use it?

Say you have a friend that loves to travel and dine out, you might gift a night in a hotel or a romantic dinner out. Two things to make sure that's a good match for your gift-recipient:

A hotel might mean organising a babysitter and having a car or way to get to the destination. I might also mean taking time off work, which isn't always possible for everyone (especially for couples/families to arrange at the same time).Leaving home might mean spending more money on food and travel costs and unless the destination is a “wow!” for the gift-receiver, that money spent may feel like an obligation.

Are the choices interesting?

Before you give an experience gift, check out the options of where it can be redeemed. A night in a hotel might sound good, but what if the options only include locations that your gift-recipient doesn't want stay at? For example, you may love beaches, but do they share the same interest?

Is the experience something the recipient would actually do?

If your experience gift is a membership to a museum or zoo, really consider how likely that membership is going to be used. I love museums, but not so much that I would visit more than once or twice a year. On another note, the experience gift should be something that the recipient would actually follow through on.

Here are a few ideas, plus things to look out for:

An invitation to take someone out is a lovely experience gift if you have the ability to do so. I remember a friend that took two friends that helped him a lot one year out to a show and organised everything including driving them around for the evening.A massage or beauty salon visit is something that few people buy for themselves, but almost everyone loves. If the gift-recipient is really short on time, buy a treatment of a reasonable length (usually not over an hour, but it depends on the person).A dinner and a movie (plus an offer of babysitting if the gift-receiver has children).A ride like a hot air balloon trip is a great option (just make sure the recipient doesn't have a fear of heights).

The tricky part about experience gifts is that in order for them to be truly enjoyed, they require a bit of careful thought. Having said that, once you've decided on a great gift match for your recipient, you can usually purchase it online so there's no need to battle Christmas crowds and lack of parking. All the best, and wishing you and your family a wonderful Christmas!

Click Here To Book A FREE Strategy Session

Have a wonderful week, Erika Gilbert

My Income Organiser

[Image credit: Max Pixel]

We've got some really big news! We're changing... .... our name!

Over the next month you'll see "The Income Organisers" slowly replaced by "My Income Organiser". DON'T WORRY! We still share the same life-changing teaching tools that have helped thousands of Australians achieve their goals to live a better life.

About an hour ago I was chatting to someone about what we do at My Income Organiser, and I was asked “is that like MyBudget?”

The easiest answer to this is: No. Why? As opposed to MyBudget, we never take over your personal funds. We don't even access your bank accounts or shuffle your money around. We don't touch it. So how are our tools so amazingly successful? We consult and support you through taking control of your finances every step of the way. We talk through challenges, giving you the guidance you need to stay focused on your goals. Track your progress and learn the skills you need to easily keep your income organised for the rest of your life.

Have a wonderful week, Erika Gilbert

My Income Organiser

[Image Credit: Max Pixel]

Whenever I watch day-time television (nowhere near as often as I would like) and I see the ads for money and debt help, they always paint a dire picture. The one where you’re avoiding answering the phone in case it’s a debt collector, and you’re tossing unopened envelopes in order to avoid looking at what’s inside. Where you’re worried about every knock at the door in case it might be someone coming to repossess one of your beloved items…

While this is a very real situation for many Australians, it actually doesn’t represent the majority of us.

Truth be told, the majority of Australians pay their bills on time and keep their heads above water. They’re not defaulting on loans and not receiving overdue notices (unless they’ve missed it accidentally due to living a seriously busy life).

This chart explains it even better than I ever could:

That majority of Australians is where we step in. We help people shift from simply keeping their heads above water, to properly thriving!

From having to scrimp and save and keep ahead of school fees or mortgage payments, to having them covered months or years ahead. And that shift can be super-fast. Often times just months of working with us and you’re a good 10 years ahead on your mortgage.

These are the key steps we take when working together:

Free strategy session to compare where you are to where you want to bePut together a plan you love that visually shows you how we’re going to get there, and brainstorm techniques to overcome obstacles along the waySupport you through putting that plan into action

By the time we’re at step three, you’re enjoying getting further and further ahead of your finances and feeling that stress-free relief I mention so often. But words honestly don’t do it justice, only experiencing it first-hand will show how real it is and how good it feels.

To get started, simply call 1300 TIO 000 to make an appointment, or book online at a time that works for you:

www.incomeorganisers.com.au/book-online Have a wonderful week!

Erika Gilbert

The Income Organisers

[Image credit: Max Pixel]

Have you ever googled 'money saving techniques'? You'll get a variety of suggestions that mostly focus on small changes like cutting out coffee, going shopping with a shopping list and only buying when things are on sale. While these tips are widely used by many, unfortunately:

they rely on your willpower, which usually wanes after a while (things that require ongoing time and effort always do)the benefits can be quite small they require a large amount of effort (eg. having to monitor sales cycles can already be a chore for many)benefits are almost always short-term (ie. the minute you stop working at it, you immediately stop seeing the results)

1.2. Give yourself a challenge. Taking on a short-term challenge is a handy way to discover what you're capable of while gaining some financial benefits at thesame time. Popular challenges include:

the one where you only eat food already in your fridge/freezer/pantry for a week - no buying anything extrathe one where you only spend $21 per person for a period of 21 days, andthe one where you only fill your petrol on a particular day of the week (meaning you challenge yourself to find ways to preserve fuel)There are many many more!

3. 4.

Have a wonderful week,

Erika Gilbert

The Income Organisers

[Image credit: Max Pixel]

Around three years ago I was speaking with a salesperson about having artificial lawn installed in my rear yard. The price caught me off guard at first and I remember saying offhand I needed to decide with the hubby if we wanted to spend that much. The salesperson quickly jumped in saying “It’s not an expense, it’s an investment”. Do you hear this bandied around as well?

“A car isn’t an expense, it’s an investment.”“Your schooling isn’t an expense, it’s an investment.”“A new lounge suite isn’t an expense, it’s an investment.”“Solar panels aren’t an expense, they’re an investment.”

I hear it time and time again. I’m sure I’m not the only one. According to Investopedia, an ‘investment’ is “the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment in a monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a higher price for a profit”. The next time you are considering buying something and you’re told it’s an investment, there is a really cool test you can use to help you decide. Ask yourself “will this item pay for itself in the future?” For me, I did go ahead with the artificial lawn for around $2,500 (two men for a whole day plus ground levellers, adhesives, sand… it was a much bigger job than I realised!) Now the salesperson told me it was an investment… right?

Was it? What do you think? Since installation, I have saved on garden maintenance for the rear yard. No mowing or weeding required. Great! That’s probably a saving of about $40pm. For the three years that’s $1440. … not an investment yet…The other way to get my money back is if I have added value to the house, and therefore will attract a higher sale price. Now I’m not in real estate (perhaps you are?) but I am not aware that people are willing to pay more for a property that has artificial lawn. I think the sale price would be the same either way. … not an investment … Overall, what do you think? Investment or expense? Here is another really common one: a new car. “It’s an investment in your future” I’ve been told, and about how cheap a new car’s maintenance is. But does it pass the Investment Test? Say you spend $50k on a new car. Your old car was costing you around $1,000 per year in maintenance and repairs. Given that you won’t get the sale price back when it’s second hand, the question is, how long do you have to wait to get your money back? In this case, it’s around 50 years. Will you actually keep that new car for 50 years to get your money back? Probably not. And by that time, I doubt you’re still saving the $1,000 per year on repair costs. Answer: it’s an expense. Is it the same for a car costing $20k? I’ll finish today by saying that just because something is an expense, it does not mean you should stay away. It’s your money, and you can spend it on what is important to you. The Investment Test helps make sure you are buying something for the right reasons, and not because a salesperson makes something look more attractive than it is. You need to buy it for you.

Have a wonderful week,

Erika Gilbert

The Income Organisers

[Image credit: Max Pixel]

Do you sometimes wonder where your time goes? Always run off your feet? If you’ve been in the workforce any time after 1960, it’s likely you’ve come across someone talking about using ‘the KISS Principle’. Technically it means: to Keep It Simple, Stupid (though many people drop off the "stupid" to be a little more PC).

Most of us know people that tend to go about things the long way. It could be a friend that spends a week waiting to phone at a convenient time, rather than send a quick text, or a friend that refuses to read the instructions because it "takes too long" but will instead spend several evenings trying to work out the new gadget themselves (... and may do the exact same thing with the next gadget purchase...). I did this myself some years ago (before I knew better!) I spent weeks reading about a hotel for an upcoming holiday, looking into every bad review on a range of websites and then, of course, looking into the reviewers themselves (in case they were serial grumps)... you get the picture. Well, the inevitable happened. By the time I was satisfied to book the hotel, it was full and I had to frantically book into a hotel I knew nothing about, was twice the price and further away from the beach.Disappointed is an understatement.

the life you gain from not focusing on them IS AMAZING!

Have a wonderful week,

Erika Gilbert

The Income Organisers

[Image credit: Max Pixel]

Last week Katie was kind enough to share her story with us – how she went from being the owner of a growing business, to bringing on a business partner who turned out to be quite abusive, back to regaining her independence by getting on top of her debts and savings again.

It’s such an inspirational story, thank you Katie! We can take away several important things from her story...1. Get on the same page

2. Your surroundings affect how you feel3. Things can look insurmountable, but that doesn't mean you should give up

Have a wonderful week,

Erika Gilbert

The Income Organisers

[Image credit: Max Pixel]

I've been working with Katie for a while now to help her regain control of her finances. She has an amazing story about how she went from perfectly independent, to finding herself in an abusive business relationship, through to building the strength to take back the reigns.

It’s so inspiring I asked if she would be happy for me to share it with you. This is what she wrote:

Rock bottom can mean a lot of things, and for me it meant more than one. Emotionally, I had become vulnerable and that made everything about the financial stress seem so much more suffocating. Through a lot of hard work and a constant effort towards trying to keep positive as often as possible, I was able to overcome. The situation I had found myself in had started years earlier, when I moved in with someone that I had considered a close friend. I was very positive at first, but as things started to progress, it became clear that I was the only one that was going to put forth any effort. As a freelancer with a roommate that I had brought into the same business, that meant that while I had once thought I was achieving more income and less work, the reality of the situation was that I had to take on twice as much work in order to make enough money. One person was working and two people were spending, which quickly led to debt. It did not help that I am a nice person, and I would still lend or give small amounts of money to one of our neighbours. He was on Centrelink, so he had a fixed income, and he suffered from hallucinations due to paranoid schizophrenia. Having said that, he was diligent with his medication so I honestly believed it wouldn’t affect me. At first, we would pay our bills a few days late. Not a big deal, I thought. Then chores weren't getting done though, so the house became messier and messier. The only way to change that was to take time away from work to clean things up, and then paying our bills a few days late turned into a few weeks; then a few months. Before I knew it, we were facing letters from our internet, power, and landlord saying that we were at risk of losing their services.

This, of course, was when my roommate finally decided to leave. In any other situation, that would have felt like a gift from heaven. You’d think it would have been obvious that my life was infinitely better… but all of that debt was staring me in the face and now I knew without a doubt that I would be the only one working to pay it all off. Deadlines were looming which made it even more stressful. There were only two options. I could lay down and give up and allow my debt to swallow me whole, putting me on the streets with my cat and dog or I could dust myself off and make things better. Nobody else was going to help me as much as I could help myself. The first thing I tried to do was jump into work. Perfect solution, right? But I found that my mind was clogged from all of the stress I had endured. I applied for a few writing jobs and then got to work on the house. It was hard, but I tackled different parts of the mess my old roommate had left behind and piece by piece, things started looking better. For days, I alternated between cleaning and applying for new work, and unexpectedly I realised that the cleaner the house was around me, the more it felt like my home. The more the living space around me felt like it was mine, the easier it was to work. My priorities became clearer. I realised that my focus needed to be on building a "financial home" and then a new life. It was hard at first, because I didn't have anyone to help me, but with Erika I've managed to find my way out of debt and now have some huge savings behind me!

Isn't Katie amazingly inspiring? Next week we'll be discussing some takeaways from her story (and I want to thank you again, Katie, for letting me share your story with everyone). Have a wonderful week,

Erika Gilbert

The Income Organisers

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Did you know a staggering 70% of Lotto winners go bankrupt? It's true! Usually it happens within 5 years regardless of whether they've won hundreds of thousands of dollars or millions of dollars. Bankruptcy will face 70% of them. There are many people debating why. Some say Lotto winners are taken advantage of by people who fleece them of everything. Some say it's due to financial illiteracy. While it's true that some winners develop serious gambling/shopping habits it's hard not to feel like it's a bit extreme that they don't even have enough left over to keep the lights on. Personally, I think it comes down to the definition of 'wealth'. Here is mine:

"Wealth isn't defined by numbers. Wealth is defined by purpose."

Simply aiming to earn more and more won't help you to achieve true wealth.Only by knowing where you're headed will you know when you've achieved it.

Have a wonderful week,

Erika Gilbert

The Income Organisers

1. Location Independence: we can help you no matter where you are in Australia

2. Actual Independence: no more wondering 'how other people do it'

I’m not sure that anyone out there actually supports people to build their own plan for the future with the long-term views that we do. That's a long-term plan for the future... not the past! No humble brag about it - straight up bragging here. We bypass 98% of the rubbish out there that you “could” be doing in favour of the small handful of tasks that will produce the greatest results for you and your family.

3. Complete and Long-term: No crossed fingers

5. It’s Erika & Lina!

I mean hellooo. We’re clearly the most excited and most goal-focused people you'll come across in this arena. And in all honesty, we just care a lot about our clients. It’s such a gift to be able to help people like this. If you’re looking for more - more fulfillment, control, freedom, etc in your life... I want you to book a call with us and see about jumping in and getting going. Every single client we've helped couldn’t imagine their lives had they stayed wishing they knew how to do it differently...They’d have seriously missed out. I’m emailing you now because there’s a good chance you’re missing out - and I don’t want that to happen. The longer you wait, the more money could be 'leaking' somewhere rather than spending it in a way that helps you get to where you want to be.

Have a wonderful week,

Erika Gilbert

The Income Oraganisers

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I can't remember where I first heard this, but once I did, I committed it to memory. It helps me stop procrastinating or settling with something that's not going to get me where I want to go.

"Don’t spend all your time climbing up a ladder only to realise the ladder is resting against the wrong wall."

Does that line strike you too? We can spend hours, months, years, all working towards something. A promotion at work, a weight loss plan, a bigger house... I know the feeling. I've tried many, many different endeavours in the past, most significantly working towards a promotion that was the biggest let down. I'm not sure why I chose it to be honest. I think I just thought it was the logical next step in my career. What's the next step from 2IC, it's obviously OIC! I spent years working on it, building up my skills both internally and externally. When I finally reached my goal, it was nothing flash. It was ok, but definitely not worth years of effort. In hindsight, I really wish I had stopped for a second and considered... am I climbing up a ladder that leans against a mediocre wall? Why not aim higher?

These days, I only aim for things that are amazing. Everything else is a waste of good effort!

Are you climbing a ladder that's up against the wrong wall?

Have a lovely week,

Erika Gilbert

The Income Organisers

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WHYFIRST UPSECONDTHIRD

Have a wonderful week,

Erika Gilbert

The Income Organisers

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Over the last two weeks have we have been focusing on Emergencies. We have Plugged the Leak in Your Emergency Fund and Set Defined Boundaries.

This week we are going to add a final cherry on the top for Emergency Success!!

I'd just started working with a client a few months ago, who I will call “Jen”. Jen phoned me from a self-serve checkout where her card had declined and was understandably distressed. “Erika, I don’t know what happened! I should have thousands in there, but my card says Insufficient Funds. I can’t believe I have spent my entire Emergency Fund!!” Now Jen was only in the first couple of stages working with me, so she hadn’t set up ….her BOUNDARIES. Boundaries are super-important. They're what prevents you from spending money you need for other things, such as emergencies. The easiest way to implement boundaries is to open up a new bank account (or more) and don't touch that money for any reason other than its purpose. When you open up the new bank account (some banks allow you to do this online yourself) make sure there is no card attached to it. If you need to spend from it (eg. blocked plumbing) you need to consciously transfer it over to use it. That way you don't lose track, and you don't create an emergency!

Have a wonderful week,

Erika Gilbert

The Income Organisers

P.S. If your bank charges you account fees for each of your accounts, you have the right to shop around and find a bank (or credit union) that doesn't.

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It's a certainty.

Today we're moving onto Setting Boundaries

Husband got a gum infection, emergency surgery: $2600 (some bills still arriving)Annual car registration (forgotten in amongst more important things like new baby): $800-ishAmazing bargain on a cot at Baby Bunting: $1200Oven repair $330Pumpkin Patch closing so bought up big to save on buying gifts later: $700there were a few others as well...

Unfortunately every time she would add money into the Emergency Fund, an emergency crops up and it's gone again. Totally deflating!Emergency funds are IMPOSSIBLE!

Is it already covered elsewhere in my Plan?Does this support the entire purpose of having an emergency fund? (Eg. does it bring you peace of mind)

If this comes up for you, and you make the right decision, I'd love to hear all about it! Send a quick reply to this email address so we can celebrate together!

Have a wonderful week,

Erika Gilbert

The Income Organisers

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When I speak to people and ask about what types of things cause them stress, one of the common responses is “dealing with emergencies”. Emergencies can be seriously stressful. Not only is the situation a complete spanner in the works, but the problem needs to be solved straight away, and can often be expensive.

While the definition of an emergency differs depending on who you speak to, there are a few common things that impact all of us.Is this you…?You’ve started looking into ways to manage your money, watched Youtube vids, read some published articles, maybe downloaded an app or two… and they all say you need to have an Emergency Fund.

If you’re anything like me (and I think I’m pretty normal) no sooner had I set up an emergency account, an emergency would crop up and it would be gone! And I’m not saying I really felt like going out to the movies that night, I’m talking about emergencies that I had to deal with immediately – like when a car recently merged into the side of me without looking properly.

If I wanted to get the car fixed straight away, I had to pay my excess upon lodging the claim and await a refund from the insurer.

How unfair!

If I still lived the same way I had before discovering Income Organising, then I probably couldn't have even lodged the claim in the first place.

Do you have a leak in your emergency account? Every time you put money in, it drips straight back out?

Let's get onto plugging that hole!

How many of these emergencies can be predicted?

For example, a fridge lasts around 9-12 years. How old is yours? If it’s 5 years old, then you have 6 years to plan for the expense of it dying one day. If it’s 11 years old, you have 12 months to prepare. If you wait until your fridge is 15 years old and it dies… was this an unexpected emergency? Here are a few common items to get your started:

YOUR ACTIVITY FOR THIS COMING WEEKEND

Next we'll move onto the second step... writing yourself a firm definition of 'Emergency' that you can (and will!) stick to.

Have a wonderful week,

Erika Gilbert

The Income Organisers

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When I first asked Susan (not her real name) if she would be happy to share her amazing story with my readers, she honestly didn't think she and her husband had done anything worth sharing. As she got writing, she realised the mountain they had climbed together. I am truly pleased to share Susan's story with you...

Growing up I didn’t have good roles models when it came to money. My mum lived on credit cards and my dad rarely held down a job. So when I became an adult, I did what everyone seemed to do. I got a credit card, then another, then another. I could keep up with the minimum payments so I thought I was doing fine.

My husband’s parents were better roles models, but not great. By the time our second child was on the way we had a manageable size of debt. We wanted to get a bigger home and found a beautiful property we could build on. It was gorgeous, and in truth, we thought we could afford it.

Just before moving in I was in a car accident. Not realising how long it would take me to heal, we signed on the dotted line. I wasn’t able to go back to work and remained under the care of a neurologist for four long years.

Fortunately, my husband had a good job, so he kept us afloat with things like the mortgage and car payments, but during that time, we started accruing more debt to pay for everyday things like clothing and food. There was always the hope that I could go back to work soon, but it just didn’t happen. During that time we also had our third child.

Our debt continued to grow and when it seemed almost paralyzing, my husband lost his job. It was like the entire world had caved in on us. Although he got another job right away, it paid just over one-third of what he had been making. The amount of stress that came with the job loss and already being in debt weighed us down physically, mentally, and emotionally.

First, we did the only thing we could think of and sold everything we could. I lost my beautiful jewellery, including my engagement ring, my husband sold all his computer gear, and we had garage sales for the little stuff.

The hardest part was selling our beautiful house and renting the cheapest place we could find instead.

Last year I managed to return to work part-time, and that’s when we found Erika and The Income Organisers. We were able to do so much more than I thought was possible.

We honestly believed we were spending and saving as wisely as we could, but still found every month or so something would crop up that caused us to stress out and argue with each other again. With Erika we were able to see exactly which areas we wanted to loosen up on, and which areas we could tighten a bit more. It was liberating! The first surprise was how much we spent at the supermarket. We set ourselves a max-spend which has allowed us to have a monthly date night. This helped repair some of the damage our arguing had been doing. The next surprise was that we could actually plan ahead for things like winter utility bills. Before The Income Organisers we honestly thought that there was simply no way to plan ahead, that's it's too complicated to do. It only took us three months to see significant changes and begin to feel the weight of hitting rock-bottom disappear. Although it had been difficult and scary at times, my husband and I are a team dedicated to keeping our financial lives on track and learning from our mistakes. We now have emergency funds and don’t use credit cards. We spend money where it's important to us instead of solving this week's problem, something we should have been doing all along.

Have a wonderful week,

Erika Gilbert

The Income Organisers

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It’s human nature to learn from those around us, especially our parents.

According to the PISA assessment, “[Australian] students from low socioeconomic backgrounds had an average financial literacy score of 107, below those from high socioeconomic backgrounds.”. This, despite all public schools having the same set curriculum.

Regardless of your socio-economic background, remember that your example, the parents', is the most powerful influence on their adult lives. The school system can do their job at supporting financial literacy skills, however this will be forgotten in the face of parents that live in financial chaos.

If you are still living in financial stress, here are three steps you can do right now to get started on the right track with your children:

1. When they receive cash as gifts, give them advice on how to handle it

Ms Scully, the mother to a teenager said that despite her daughter receiving money from gifts and earnings, “she still wants mummy and daddy to pay for everything ... but she wanted an iPhone, she wants to go on a holiday to central Australia and we've said, we're not paying for it.”

Think of this stage as your child having their L-plates on. This is learning the theory before they age into their P-plates and are in control of the entire vehicle.

A great method is to divide it into thirds:

a) Save for a rainy day;

b) Save for something specific;

c) Spend freely

2. Encourage your child to earn money

Starting as early as possible, teach your child that earning money is possible.

I’ve seen many teenagers/young adults being part of a growing group of people living at home with their parents until their 30s, mostly unemployed. You’ve probably seen this as well.

Often it’s a confidence issue – that earning money is something one needs a degree for, or something other people are good at but they themselves can’t do it (or won’t do it, because that job is beneath them). This blog isn’t a parenting piece, there are many gurus out there, instead this tip is here because if you can work out the best way to encourage your child to earn money, they will be strides ahead for the rest of their lives!

3. Use an “hours worked” formula

This really helps cement the worth of money for children. Money isn’t just whether or not something is a good deal, it’s also how much work was involved in getting it.

For example, when I was a child, I thought that getting a $200 pair of jeans for $50 was an amazing bargain! I’d just saved $150 …. right?

In reality, I’ve spent $50 on a pair of jeans.Now if we compare this to the wage I was earning at Hungry Jack’s at the time of around $8ph, we can see that I needed to work 6.25hrs in order to pay for those jeans (ignoring tax and other deductions).

Using a formula like this helps give a real-world perspective to money. It also helps children learn to prioritise. If they’re going to be working that 6.25hrs anyway, they might choose to spend those earnings on something more worthy. Most importantly, relax! There is no need to stress over money when there are experts like The Income Organisers here to help you take back control.

Have a wonderful week,

Erika Gilbert

The Income Organisers

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It’s Friday and your colleagues are discussing the weekend. As everyone lists engagements you realise you have nothing on. Oh no! Then you remember you’re picking up breakfast. Make it breakfast with a friend. Wait - turn it into a whole day catch-up! Sigh... much better... One might think that busy people are just living life to the fullest, but it really depends on what their schedules are filled with. Could we be busy with plans for plans' sake? To figure it out, you might want to assess how happy your plans make you. Deakin University Emeritus Professor Robert Cummins produced the ‘What Makes Us Happy’ report which states happiness comes from the balance of the golden triangle. How's YOUR golden triangle?

Relationships

Sense of Purpose

Ask yourself: 'Why' do you want these things? Write down EVERYTHING that comes to mind. 'Why' do you want these things? Write down EVERYTHING that comes to mind. 'Why' do you want these things? Write down EVERYTHING that comes to mind. If you're being honest, then by the 6th or 7th time you do this, you will have some really specific, true and constructive reasons for what you TRULY want. Not the surface answer, the true purpose. We get super-specific with this at The Income Organisers. Knowing where you're going is the only way to plan how to get there.

Financial Control

Have a wonderful week,

Erika Gilbert

The Income Organisers

[Image credit: Max Pixel]

Do you sometimes receive gift vouchers, but they expire before you use them? Do you think it would be better if businesses extended their expiry periods? You're not alone. A study by the University of Cincinnati estimates that the total value of money lost on unused gift vouchers is close to US$2 billion. Due to this, some consumer groups have called for a change to the law requiring retailers to further extend the expiration dates in an effort to give people more time to redeem them. Sounds good, right? It's win-win. Your loved one's gift is enjoyed rather than wasted and the business gets to share their services/products with you. Surely if we were given a lot more time to use our gift vouchers, we would use them all... The University conducted a fascinating experiment to test this seemingly obvious fact - how does an expiration date affect our consumer behaviour? Study participants were given gift vouchers for a coffee and cake at a local high-end cafe that were exactly the same monetarily, the only difference was the expiration date. One group received a voucher valid for 2 months and the other group received a voucher valid for only 3 weeks.When they were given their gift vouchers, participants were asked how they felt about the expiration date and whether or not they believed they would redeem it before it expired. Those with a 2-month gift voucher reported much more positive feelings than the 3-week gift voucher holders. Clearly, people appear to like the greater flexibility that the longer expiration date offers. Interestingly, close to 70% of those with a 2-month expiration said they would definitely use it compared to roughly 50% with the 3-week expiration. The results were actually very surprising.Even though participants with the 2-month gift vouchers had such positive feelings about the gift, even though so many reported they would definitely redeem the voucher before its expiration, even though the voucher was for something enjoyable and fun, the results were in! Five times as many participants with the 3-week gift vouchers redeemed their vouchers before expiration compared to the 2-month gift voucher holders! But why? And why would the participants' predictions of their own behaviour be so wrong? The University attributed the results of the study principally to procrastination.

Those that did not redeem their voucher by the expiration date were most likely to agree with statement such as:

I got too busy or ran out of timeI kept thinking that I would do it a bit later

As opposed to:

I forgotI don't like sweetsIt seemed like too much effort

Typically procrastination is associated with tasks that people find boring or otherwise not enjoyable, but it turns out that often times we are just as likely to put off until tomorrow activities that we actually find fun. People seem to believe that their current busy-ness is only temporary, and once they get over this hump then they will be able to catch up on all the fun stuff they have been putting off. Unfortunately what invariably happens is once they've finished that task, another fills its place and they (we!) will be just as busy in the future. What should we do about it? Even if you have time before a looming deadline, get onto it now. If it's a boring essay that's not due for 3 months, do it now. If it's quality time with the family that you can do later, do it now. Those study participants had 2-months and they didn't rush either.... the vouchers ended up going unused. Again. Instead of adding everything to Tomorrow's To Do List, add it to today's. One of my favourite sayings is: "Why put off until tomorrow, what you can do today?"

Have a wonderful week,

Erika Gilbert

The Income Organisers