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How I got myself out of $187,000 worth of debt

<p>Anyone who’s been in debt would agree that it’s, to say the least, a stressful experience. At times, it can feel as though the weight of the world is bearing down on your shoulders, and nothing you can do will make a difference to your situation.</p> <p>But that doesn’t mean you should throw in the towel. Sometimes the solution can be as simple as looking at the problem from a different perspective.</p> <p>That’s the theory of Simone Milasas, author of the new book Getting Out of Debt Joyfully. And if anyone would know it’s her – at one point she was $187,000 in debt.</p> <p>Milasas says, “You might expect me to say that it felt wonderful to be free of debt, but that wasn’t so for me. I felt strange not having debt. I was more comfortable being in debt than out of it.</p> <p>“My point of view is no one needs to have a money problem. No matter your situation, you can change it.”</p> <p>So how did she manage it? Well without giving too much away, Milasas attributes her success to following a few differing rules and thinking outside of the box.</p> <p><strong>1. Ask questions when a solution isn’t working</strong> – Instead of waiting for a problem to slowly correct itself over time, Milasas believes you should examine it with a fine-tooth comb. She says, “When a great idea doesn’t deliver results it can be hard to digest the rebound results. Ask yourself, what can I do to make this work differently?”</p> <p><strong>2. Be willing to depart from a linear pattern</strong> – With problems like debt issues it can be tempting to follow a defined structure, but Milasas believes this can be limiting. She says, “Structure and an ABCD approach can hinder your possibilities and opportunities to create more. There is a plethora of possibilities around us if you are willing to receive them.”</p> <p><strong>3. Don’t wait for a solution, create a solution</strong> – When you’ve got a problem it’s not going to solve itself. Milasas says you need to get onto the front foot, “Don’t sit around and wait for somebody to hand you the answer to your problem. Be open to receive other's contributions, but willing to make the change for yourself first.”</p> <p>In the end of the day, Milasas believes it all comes down to commitment.</p> <p>She says, “When people aren’t 100 per cent committed to their life or business, of course everything is not going to turn out like they plan. If you are only 20 per cent committed to a project, a relationship or a business, that gives you 80 per cent to justify why it’s not going to work out even before you’ve failed.”</p> <p>Have you ever been in money trouble? How did you get out of it?</p> <p><em>For more information visit <a href="http://www.gettingoutofdebtjoyfully.com/" target="_blank"><strong><span style="text-decoration: underline;">Getting Out of Debt Joyfully</span></strong></a>.</em></p>

Money & Banking

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How to stop a break-up from sending you bankrupt

<p>Last year there were almost 50,000 divorces granted in Australia, sadly making it one of the most common issues Australian families must deal with.</p> <p>Often, when people think of divorce, they empathise with the emotional impact this has on an individual. However, what is often forgotten about is the major financial implication it has on both parties, especially if there are assets such as investment properties involved.</p> <p>And a separation doesn’t need to be between a husband and wife for it to wreak havoc on finances. In Australia, if a couple have been living together for more than two years, they are considered ‘de facto’ and their assets are treated the same as married couples if they break up.</p> <p>Zaki Ameer, Real Estate Expert and Founder of <span style="text-decoration: underline;"><strong><a href="http://www.ddpproperty.com.au/">Dream Design Property</a> </strong></span>(DDP) says, “Unfortunately most people don’t understand the seriousness of relationships when it comes to assets. Loosing significant amounts of money doesn’t only happen during divorces, it can happen to any couples who have been living together. For example, if a relationship goes sour between two people who have been renting together for more than two years, both individuals are entitled to receive a percentage of their ex’s assets, whether they were purchased before or during their relationship.”</p> <p>To avoid a breakup leading to bankruptcy, Zaki shares his expert advice on how to protect assets before a separation occurs:</p> <ul> <li><strong>Know where you stand.</strong> People are often still confused about the difference between a de facto relationship and a marriage when it comes to dividing investments. It’s actually very simple, if a couple is considered de facto, their financial matters are determined in the same way as married couples. Aside from living together for two years or more, a partnership is also classified as de facto if there is a child from the relationship, or if they have registered it under a prescribed law of a State or Territory. So if a person separates while in a de facto relationship, from a legal and assets perspective, they should be prepared to be treated as if they were married.</li> </ul> <ul> <li><strong>Don’t make it personal.</strong> From the start of any relationship it’s important to discuss assets and money, whilst keeping emotions at bay. Being open and honest about finances from the get-go means awkward conversations can be avoided down the track, and both individuals are aware of each other’s investments.</li> </ul> <ul> <li><strong>Be a pessimist.</strong> It’s impossible to predict the future of a relationship, so it’s crucial that a plan be put in place in the unfortunate case of a break up occurring. It may not sound like the most romantic option, but having a written contract that details who owns what assets going into the relationship, before being classed as ‘de facto’, is essential to ensure neither party loses out financially.</li> </ul> <p>Also, size really doesn’t matter. Whether it’s one property, or dozens, any assets that are in play going into a serious relationship should be included in the written contract.</p> <p>If a written contract wasn’t in place before a break up occurs, and a separation occurs, Zaki emphasises the importance of:</p> <ul> <li><strong>Be wary on social media.</strong> When investment pieces are involved in a separation it’s particularly important to be civil. Often during the settlement period one party decides to push for a higher percentage of assets after they’ve heard that their ex-partner is with someone else, or happier than they are.  So, to avoid this from happening it’s a good idea to be conscious of what you’re posting during this time, or even suspend your accounts.</li> </ul> <ul> <li><strong>Don’t rush.</strong> Breaking up with a partner is an emotional time, and most people want the process over as quickly as possible. However, from an investment and financial perspective, it is important to wait to speak to the experts. Taking time to meet with law and finance professionals before signing over any assets or money ensures everything is above board, and that each person is getting what they’re truly entitled to.</li> </ul> <ul> <li><strong>Differentiate emotions from economics.</strong> It’s natural for parties to become bitter during breakups. However, when it comes to splitting assets it’s to the financial advantage of both individuals to keep things as amicable as possible. If a settlement can’t be reached between two people, the case is then taken to court which not only leads to expensive legal fees, but is also risky as it eliminates any control over the outcome. During the settlement stage, put sanity above savings. To avoid going to court, and extending the process, sacrifices will need to be made by both parties.</li> </ul> <ul> <li><strong>Don’t be naïve.</strong> Many people assume that simply because a person is the monetary breadwinner they are entitled to a higher percentage or all of the assets in question. However, this isn’t the case. In fact, ‘non-financial’ contributions – such as cooking, cleaning, or driving their partner around – is also considered ‘support’ that allows that person to apply for a portion of the asset.</li> </ul> <p>Zaki adds, “No one ever goes into a relationship expecting that it will turn sour. However, being prepared from a financial perspective ensures that if a separation does happen, the monetary side is black-and-white, and the individual can focus on just dealing with the breakup itself.” </p>

Relationships