How Much Do You Charge? “Meet Simon”

The first question from any of our client enquiries is “how much do you charge?”  Not… is the service right for me?  Can these guys really help?  What do you do?  Are they good at what they do?  It is always a financial question.

Meet “Simon.”   Simon is a client of Adelaide Budgeting.  Our fee to “Simon” was $995.00 including GST.  Our service has completely changed his and his families’ lives forever; so much so, he has become an amazing advocate for our business, our service and what we do.

In Simons own words – “I still remember my first call to you guys.  Felt really embarrassed, ashamed & like we had lost control… which we had!  You made me feel positive about how you can help right away & we have never looked back… regardless of the budget limitations I was very critical & unbelieving of.  I am now really happy and realise that I have never been so wrong in the past!  YOU TWO ARE A PAIR OF DIAMONDS!” 

People often ask us… who is Simon?  What is he like?  And most importantly… what did you do to have such a massive positive effect on him and his family?  We explain “Simon’s” client profile below:

Simon is a FIFO worker with wife and a few children.  In our obligation-free and fee-free initial appointment we discussed needs and wants for Simon and his family.

Core Objectives:

  • Wants to retire from FIFO life by the time he is 50 (currently aged early 40’s).
  • Wants to have enough money when not working to afford breakfast out with family.
  • Wants to have enough money when not working to afford Saturday night pizza on the couch with family.
  • Wants to manage their own investment properties as they were not happy with the way their properties were currently being managed and felt they were throwing away money as the value vs payment wasn’t justifiable.
  • Wants to go on more family holidays.
  • Wants to put away money for their kids education.
  • Wants consistent money each week.

What We found:

  • Entire household cashflow was in the red $35,000 per year just short of $3000 per month!
  • Significant overspending for wants over needs – “emotional spending.”
  • Needed “Future Planning” in place to understand goals and objectives for the years to come.
  • Investment properties were underperforming (wrong area, wrong property manager, wrong tax position, zero capital growth etc).
  • Properties were costing a significant amount of money and stress for upkeep with zero return.
  • “Negative Gearing” meant that properties were costing money (tax deductions were nowhere near as effective as they could or should have been).
  • No clear plans or goals were currently set in place.
  • Client was paid monthly and monthly pay varied.

How We Helped:

  • We identified that we needed 6 months to get the train back on its track and headed in the right direction (Simon thought we were joking!).
  • We encouraged our client to restructure bank accounts and to setup an expenses account which we recommended Simon to speak with a broker (which we referred to them) so they could set up the expenses account as an “offset” against their mortgage. This account would cover Annual, Quarterly and Monthly expenses including direct debits and to make the transfer in line with the budgeted allocated amount on our plan.
  • Per point above – we introduced Simon to a Mortgage Broker in our network who was amazing at restructuring everything for him.
  • We also referred Simon to Steve and Jackie Bayly who are the owners of Bayly Invest. They helped Simon understand Capital Growth, Negative Gearing, Tax Deductions and how to make property work for you – NOT – against you.
  • Steve and Jackie in the point above referred a new property manager to Simon.
  • We encouraged our client to open a savings account (online e-saver not linked to cards with zero fees) and deposit regularly to the amount allocated on our plan (any overtime to also be paid into this account).
  • We encouraged our client as husband and wife to have a chat about needs vs wants in their own time (during our program) for their household cashflow and discover where they could make compromise for future spending. And then…
  • We created a “spending plan” for what could be spent on a monthly basis, making sure all bills are paid on-time without going into budget deficit.
  • As pay varied month to month we worked on “absolute minimum” on the monthly basis. Anything extra earned goes straight into the savings account.

The Result?

  • Entire Financial Loan structure has changed thanks to our Mortgage Broker.
  • FIFO life can end in 3.3 years when Simons own home will be paid off in full! Simon now has a future plan and goal in place knowing he won’t be doing the hard slog of FIFO when he is in his 50’s unless he wants to.  He may not have to!  (the important thing to note here is that he now has a CHOICE in the matter rather than just having to do it!)
  • Knowledge of investment property has grown and he has since purchased another investment property!
  • The new investment property will provide a tax return in the next financial year of approximately $10,000 meaning Simon can add this straight to his savings; either offset, or pay down another loan.
  • Money available for family holidays!
  • Sunday Morning breakfasts out at the local café are now “the norm” and all budgeted for!
  • Underperforming investment properties are now being managed by an amazing property manager and the stress around these properties are now gone!
  • Any underperforming investment property may be up for sale soon if it cannot be improved. This will allow for future purchases of better performing property. A total mindset change not thought of in the past & a continuous improvement process.
  • Simon met with the broker we recommended and restructured all of their loans including properties.
  • Life for Simon and his family has vastly improved and everyone is happier!

Simon met with us in September 2018, it is now March 2019 – 6 MONTHS!  Our service fee was $995.00, and as Simon is a property investor our fee is potentially tax deductible meaning he could get a full refund from our service at tax time!  This would mean our service was free!

Q: What is it really costing you by not seeing us?

A: F**KING SH*T LOADS! (in “Simons” words)

At Adelaide Budgeting we are a small and passionate team dedicated to making budgeting simple, easy and fun.  We pride ourselves on the ability to remove anxiety and create empowerment around budgeting for each and every single one of our clients.

Book your complimentary appointment with us today!

For more information or to arrange an appointment please contact us:

Andrew and Alyssa Mates on 0420 846 454

or via email at:

“An effective budget is knowing which numbers belong where; and what the values of these numbers are to make the magic in your life happen…”

ABOUT THE AUTHOR

ANDREW MATES is the director, money coach and operator of Adelaide Budgeting and has always had a keen interest in numbers and the philosophy of succeeding financially in a world full of consumerism.  Andrew is a valued member of the team and is passionate about education and empowerment around finance and providing people with the confidence to successfully manage their own finances.  Equipped with a Diploma in Finance and Mortgage Broking (but not a broker), Andrew and his team can work with you to create a budget plan and savings strategy that is second to none which will see you kicking goals and doing the things you want to do but never thought you could!

In between helping clients and working on strategies, Andrew also enjoys walking on the beach, playing with Lilly his Labrador and road trips with his wife Alyssa.