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Free trials & direct debits: how to avoid money traps

Everywhere you turn these days, you’re being asked to sign up for something. Whether it’s handing over your email address for an instore promotion or giving up your credit card details for a “free” trial, it’s easy to lose track of what you’ve actually signed up for.

Plenty of subscription services like Stan or Apple Music offer a ‘free trial’ to lure you into signing up, but if you have to enter your credit card information to receive the trial, be sure to read the fine print. Usually if you don’t opt-out when the trial period expires, you are automatically signed up to a paid plan, costing you money.

If you end up using the service, then obviously this won’t matter. But if you use it for a couple of days, and find it’s not for you, it’s easy to shrug it off because it was just a free trial.

Consider this – you sign up to Stan, Netflix and Foxtel Now all at once using their free trial options. After using all three for a couple of weeks, you decide Foxtel Now is right for you at $15* per month. However, your Stan and Netflix trials end, and you are automatically switched to their base plans at $10* each per month. You’re now paying $35* per month for 2 services you’re not using. Over a year, that’s $240* that could be put towards savings or super growth to help you down the line.

stan trial

It’s not just subscriptions that can haunt your finances. Direct debits are another way your bank balance can take a hit without you realising it. Direct debits can be great for Automatic top-ups for tolls or public transport, gym memberships and bill payments, but trying to end a direct debit can be a nightmare.

The good news is that banks are obliged to process cancellations themselves if you set up the direct debit with a BSB and account number. If they tell you they can’t, or to contact the retailer, the bank is in breach of the banking code.

bill shock

If the direct debit was set up via a credit card, be sure to send notice in writing (either by email or standard mail) and keep a copy for yourself, and give the merchant 30 days to action. If they don’t, speak with your bank or the Financial Services Ombudsman.

Top Tips:

• When signing up for a free trial, put a calendar reminder for 30 days later in your phone to remind you to cancel or pick a plan
• Check your bank statements or banking app regularly to ensure there are no unauthorised transactions happening
• When authorising a direct debit, use a dedicated card or account that you can control the spend on, and turn off should your debit/s continue after you have requested them to stop.

 

*Prices indicative only. The information contained in this article is general in nature and does not account for individual financial circumstances and outcomes.

The sensible and the unnecessary; Things to spend your money on…

Most people will agree when we say that saving money is hard. Managing your finances can be a struggle, but savings are important. Some people have a savings goal in mind, and others simply save money to be sensible.

Here at Infocus we often discuss how to better manage your finances with the help of one of our Financial Advisers. A lot of money advice is based around saving – but, for a change, we thought that you might benefit from some ideas on what to do with your money when you feel like spending a little. If you’d like some advice in this area, simply reach out.

We have put together a list of some products and experiences that you might want to consider when you feel like splurging…you can thank us later.

Self-Improvement

  • Buy a bicycle to ride to work instead of taking the car
  • Grab a fitbit to track your daily activity
  • Take Spanish lessons
  • Open an investment account and start saving
  • Hire a personal trainer to get fit
  • Buy some insurance and protect your income
  • Sponsor a child in need
  • Invest in a hybrid car and help to save the environment
  • Take up art lessons
  • Donate to a charity in need
  • Buy a new laptop
  • Make a voluntary payment to your super account


Treat Yourself!                       

  • Book a massage
  • Update your office wardrobe
  • Take a spontaneous trip somewhere
  • Buy a season pass for your local theatre
  • Invest in some 1000 thread count bed sheets
  • Surprise your partner with a gift
  • A good night’s sleep is invaluable, buy a new mattress
  • Let out your inner adrenaline junkie and get a jet ski
  • Take your partner out for a romantic dinner
  • Your favourite chocolate, because why not?
  • Save time and invest in a home cleaner
  • Buy an inflatable pool in time for summer
  • Indulge in a pair designer shoes
  • Celebrate something with a bottle of champagne
  • Give your home a boost with some new interior design
  • Find your inner Zen and buy a Bonsai Tree

30 best bucket list ideas for the adventurer within you

Are you an adrenaline junkie? Or maybe you’re just craving some excitement in your life? We understand that life can be a little mundane at times, but it doesn’t have to be! There is a wealth of opportunities out there; the world is your oyster as the saying goes.

But wait – we know what you’re thinking, bucket list ideas are expensive and you can’t afford to do them. Well, you’ve got this all wrong. Saving money and budgeting for only a short period of time could lead you to easily achieve at least one of the below list of activities. Remember, you have your whole life-time to complete them all. Pace yourself; earn, save and invest your money then enjoy spending it on any (or all) of the below.

Ride a hot air balloon

Do a skydive

Learn to Scuba Dive

Swim with dolphins

Swim with sea turtles

Learn to ski / snowboard

Ride on a yacht

Ride an elephant through the jungle

Ride a camel through the desert

Swim with sharks

Go parasailing

Learn how to waterski

Abseil down a waterfall

Climb a mountain

Visit all 7 continents

Catch a last minute flight to a random destination (we dare you)

Travel by helicopter

Travel by Sea- Plane

Camp on the beach

Run a marathon

Visit an active volcano

See the Northern Lights

Learn a new language

Start a business

Do volunteer work

Learn to play an instrument

Set a world record

Become a graduate

Visit a world-class restaurant

Pursue your passion in life

Need help financing these wonderful ideas? Check out our online Savings Planner, or get in touch with us directly…

5 things to consider when renting a property

Location location location…

It may seem obvious, but one of the most important decisions you have to make when renting a house is the area. If you’re a local, then you’ll know exactly which spots you’d rather be in over those you’d wish to avoid. If the property looks too good to be true, and is reasonably priced, then it may be in a less sought after neighbourhood. This isn’t necessarily a problem, just be sure to check that you’ll be living somewhere that’s convenient for you.

Some valuable questions to ask yourself are; how far away will you be from a supermarket? How about a train station or some form of public transport? Will a taxi home from a night out cost a fortune? Are you close to a petrol station? Think about where you spend most of your time, then see if the rental house location will fit your lifestyle comfortably.
 
Be clear on your finances

Clarity around your financial obligations is vital when entering into a tenancy agreement. Find out exactly how much rent you will be expected to pay, the frequency of this and the details of what expenses are included. For example, the property might be advertised as $500 per week, but does this include your water, your gas and your electricity – or no bills at all? How much bond is required, and where will this be stored? Check these details out.

If you’re viewing properties with your heart and not your head, it can be easy to rush into an agreement without fully considering your own budget. Although it may seem obvious, before you search for a rental property work out the maximum amount that you can comfortably afford to spend on rent and bills per month and keep this in mind when shopping around. Try not to view properties above your price point.

Read the fine print 

Another seemingly obvious point, but take the time to thoroughly educate yourself on your tenancy agreement. Every property and landlord is different, some lenient towards your suggestions and some very strict. Consider the length of your lease, and research the terms and conditions around breaking your lease early if your circumstances change. Is a guarantor required? Are there any terms that you don’t feel comfortable with? These questions are best asked before you sign on the dotted line…

Don’t assume 

You think your dog is cute, tidy and doesn’t make any noise – that doesn’t mean that your landlord accepts pets. You’d love to hang your new clock in the kitchen, but your landlord has forbidden you to drill holes in the wall. Of course your kitchen comes with the dishwasher… or does it?

Pets, home renovations and the inclusion of white goods are hot topics in the rental world. You’ll find that if you’re trying to rent a house and ‘accidentally forget’ to mention that you have a pet, the consequences can be severe. It’s always best to be upfront and honest with any questions you have about what you can and can’t do to the property.

Confirm everything 

From the moment that you enter into conversations about a rental property, to the day that you move out – keep every piece of communication between yourself and the real estate/ landlord on file. This may sound like a lot of effort to go to, but it’s as simple as saving an email or a few pieces of paper.

The most common complaint about rental properties is attempting to retrieve your bond back once you vacate. It’s the age old argument, the tenant insists they didn’t cause the damage whilst the landlord tries to deduct it from the bond. By making a detailed entry report, and taking photographs of just about every inch of the house before you move in, you’ll cover your own back 12 months down the track.

Know your rights 

Tenancy laws can vary from state to state, as does the authority you should turn to for help or to make a complaint. Here are the links you need for your state:

How to save money without sacrificing your social life

We hear you…a straight-laced budget and a thriving social life were never intended to be besties; they operate in different circles, claiming diverging interests and social speeds. One loves the thought of a long and lazy Netflix and chill, while the other hits a list of bars, clubs and dancefloors, sparing no expense. It’s an impossible relationship, right?

Like any new living arrangement, your budget and your social life just need time to get to know each other and shift their expectations – nothing ever stays the same. To speed along this period of adjustment, we’ve pooled our experiences and figured out how to save money without sacrificing your social life.

Be Honest

Honesty is not overrated. Instead of dodging RSVPs, taking leave of your social networks and inventing new hobbies to get you out of saying no (at least directly) to everything, let your friends know what’s going on. You don’t need to take them through the finer points of your savings plan or describe your goals at length, but letting them in on the overall end game might help in managing their expectations. They may even have their own goals in the works – help each other to achieve your individual aspirations and have a party at the end to celebrate.

Become a Groupie, Scoopie or Socialite

Don’t worry, we’re not communicating in hipster code. Groupon, Scoopon and Living Social sites are incredibly useful and dedicated to discounts – food, fitness, tickets, theme parks and everything in-between. All you need to do is sign-up, comb through the offers and find something to suit your mood this weekend – easy, low cost and fun.

Be Our Guest…

Instead of catching a flick and grabbing a bite with a group of your closest friends, jump on the marathon bandwagon. Pick a TV show and gather around to eat, gossip and drink, it costs the price of a few bottles of wine and BYO food and snacks. If you’re after something a bit more civilised, host a weekly ‘pot luck’ night and have everyone bring a dish – it’s the perfect opportunity to test out a recipe or two you’ve always wanted to make or try.

Sharing is Caring

Do you want a new movie to watch or a good book to read, but you don’t have the budget? Create a social swap event on Facebook and invite your friends over to trade their favourites – you may be introduced to flicks you would normally pass over or stories you couldn’t imagine buying for yourself, expanding your pop cultural and literary horizons…sounds like a good deal to us.

Buy it Slowly

It’s time to bring lay-bys back. We know most people just put their pleasure shops on credit (or Afterpay) these days, but you should break those bad habits before they take hold. You’re not like everybody else. You have a budget – a goal. So there’s nothing wrong with waiting for something you really want and paying it off incrementally, according to what you can afford. You’ll appreciate it more when pick-up day arrives. You can have nice things on a budget – it just takes longer to get them.

The information contained in this article is general in nature and does not account for individual financial circumstances and outcomes.

Easy explanation: Why start investing?

Investing has traditionally been the realm of the secure and the experienced, an ongoing strategy match between strangers, professionals and the market, adjusting here and tweaking there, until a shares portfolio either booms or stagnates. And then it starts all over again. On the other side of town, property investment has become a molten topic across the board, transforming investment into something everybody does, whether they’re into supervising their numbers or not. But you’re not sure if the world of investing is for you – you don’t know much about it, what you have heard is a bit dubious and well, you have so many other things to worry about.

It doesn’t feel accessible. We get it, so we’re here to explain why investing can be a large, cost-effective part of your overall personal financial plan.

So why start investing? 

You Can Afford It

No really, you can. Contrary to popular belief, allocating $100, $50 or even $25 dollars a week into an investment plan will give you the kick-start you need to develop a healthy portfolio – say you invest $100 a month in shares at an average return rate of 8% annually… by your 45th birthday, you could be sitting on a sweet $104,241! That’s only $25 a week!

Shares aren’t for you? Keen on making a break into the property market? Great! Don’t forget you’re not buying a house or apartment for yourself – it doesn’t need to fit your needs. While a 4 bedroom family home in a great suburb is out of your reach (for now), that 1 bedroom or studio piece in the outer suburbs is definitely within reach with the right savings plan.

Long Term Vision

Investment – any investment – isn’t intended as a get-rich-now scheme. It’s not a band-aid to fix failing finances in the moment. Look at it as a complement to your superannuation. You’ve grown accustomed to a certain way of life, perhaps you want to ensure your retirement or later career maintain the quality you know you deserve. Perhaps you’d like to plan for ten years (at least) down the road when kids are a thing and financial responsibilities are more pressing… investment can help you meet those long term goals and touchpoints in ways that term deposits and savings accounts cannot.

Make the World Your Oyster

If you’re going to invest, it stands to reason you’ll learn a lot over time…and you know what they say, knowledge is power. There’s a whole different world beyond those numbers and columns, and it is definitely a world you want at your fingertips – if you’re determined, you’ll not only have a nice fat purse at various stages in your investment journey, but you’ll understand a whole new dimension of wider society and how to make it work for you. It’s the kind of insight they can’t teach you at school, limit to finance classes during University and rather you not know out in the world. Make it yours and watch your investments grow.

Still unsure? Infocus is always here for questions, advice and insight. Don’t hold back in letting us know how we can help you make investing part of your life!

The information contained in this article is general in nature and does not account for individual financial circumstances and outcomes.

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