54 episodes

After finding my way from being completely overwhelmed to pretty much on top of things, I've found that life has a lot more to offer than just busyness. I'm Rosie and you can join me on my quest to fill my life with great things. To me, life is made up of health, relationships, inputs, expression, work, surroundings, and finances. If I can say those things are great, I have a lot to be grateful for.

Full of Greats Rosie Odsey

    • Personal Journals

After finding my way from being completely overwhelmed to pretty much on top of things, I've found that life has a lot more to offer than just busyness. I'm Rosie and you can join me on my quest to fill my life with great things. To me, life is made up of health, relationships, inputs, expression, work, surroundings, and finances. If I can say those things are great, I have a lot to be grateful for.

    Getting my s**t together: my bookkeeping rituals

    Getting my s**t together: my bookkeeping rituals

    This is my journey to apply the book, Unf*ck your finances. The book is about personal finances but I’ve added actions specific to working for myself.

    If you want a bit more context, the prelude pieces are Hope can be scary, Why do we never talk about personal finance?, and Getting my s**t together: the plan for the next quarter.

    Three days ago was money day.

    I registered for GST, split my business and personal expenses, and defined my bookkeeping rituals (most people call these standard operating procedures).

    I’m not done but the skeleton is there. Let me tell you about my bookkeeping rituals.

    Some of these build on existing rituals and some are being built from the ground up. These will undoubtedly change but it’s a good starting point for the new financial year. Credit to Emily Volz for her financial foundation series, Mike Michalowicz for his Profit First concept, and many others whose frameworks I’ve frankensteined together that (hopefully) works for me.

    Feedback welcome!

    See all of the rituals here.

    • 7 min
    Getting my s**t together: separating business and personal finances

    Getting my s**t together: separating business and personal finances

    This is my journey to apply the book, Unf*ck your finances. The book is about personal finances but I’ve added actions specific to working for myself.

    If you want a bit more context, the prelude pieces are Hope can be scary, Why do we never talk about personal finance?, and Getting my s**t together: the plan for the next quarter.

    Two days ago was money day.

    I registered for GST, split my business and personal expenses, and defined my bookkeeping rituals (most people call these standard operating procedures).

    I’m not done but the skeleton is there. Let me tell you separating business and personal expenses.

    The accounts
    Here’s my set up:


    Business transaction account
    Business savings account
    Personal transaction account (IO)
    Personal transaction account (The Regulars)
    Personal transaction account (IRL spending)
    Personal savings account (Sacred)
    Personal savings account (Buffer and more-than-monthly expenses)

    The system
    I cover all business expenses and submit expense claims.

    Invoices will be paid into the business transaction account. When this happens:


    I transfer the GST to the business savings account
    I transfer 30% of the remainder to the business savings account — this is income tax and profit savings
    I transfer expense reimbursements to IO
    I transfer the remainder to IO as my pay

    When funds come into IO…


    I hold funds in the account to cover upcoming fixed business expenses
    I transfer funds to The Regulars to cover upcoming direct debits, known bills, and other scheduled payments
    I transfer funds for discretionary spending to IRL Spending

    All card payments and one-offs are put through IRL Spending which is then fed by the account it comes out of. Any business expenses are claimed and paid when the next invoice comes in.

    Why do I do it this way?

    It’s simpler to run the books with fewer transactions for reconciliation. Eg. 15 expenses show up as one expense reimbursement transaction on the bank reconciliation
    I can simply reconcile the IO debits to the list of fixed business expenses and immediately spot any discrepancies
    I can simply reconcile The Regulars debits to the list of fixed personal expenses and immediately spot any discrepancies
    I can assess my variable spending in isolation — without any data manipulation or adjustments — just by looking at the transaction history of IRL spending
    Because I have I can never spend more than I have available, because it wouldn’t be available to me

    What I actually had to do

    Open a new business transaction account
    Change around ~25 personal direct debits / scheduled transfers to The Regulars
    Separate my outgoings spreadsheet into two spreadsheets
    Update my runway calculator to reflect a business and personal runway

    This took a couple of hours. It feels good.

    • 7 min
    Getting my s**t together: registering for GST

    Getting my s**t together: registering for GST

    This is my journey to apply the book, Unf*ck your finances. The book is about personal finances but I’ve added actions specific to working for myself.

    If you want a bit more context, the prelude pieces are Hope can be scary, Why do we never talk about personal finance?, and Getting my s**t together: the plan for the next quarter.

    Yesterday was money day.

    I registered for GST, split my business and personal expenses, and defined my bookkeeping rituals (most people call these standard operating procedures).

    I’m not done but the skeleton is there. Let me tell you about GST.

    GST Registration
    There are 3 ways you can do this:


    Call the ATO
    Access the Business Portal
    Get a bookkeeper or accountant to do it for you

    When I called the ATO, I received a very kind but overly unhelpful automated message saying that they’re busy and they can’t take my call. In the week leading up to the end of financial year, I shouldn’t have been surprised. I called twice more, just in case there had been a mistake. There hadn’t been.

    I would have given up, except that I had promised myself (and stated publicly in a few places to keep me accountable) that I would register for GST by 1 July. I decided to try the Business Portal path.

    Accessing the Business Portal…isn’t straightforward. I’ve had an ABN for a few years but that’s not enough to get you onto the Business Portal. You need an AusKEY or MyGov and something called RAM (not the computer kind).

    I tried AusKEY first. It turns out that this is a Chrome or Firefox add-on that gives you a unique identifier to access your account. You can also run it off a USB stick. The USB option is probably more secure but I was more worried about getting it working.

    I had to verify my identity first. That was ok. I filled out the form. I had the ID I needed. I installed AusKEY. And…it didn’t work.

    I attempted to log into the Business Portal but AusKEY didn’t come up as an option. I tried in two browsers. I probably should have tried resetting the computer but I was on Focusmate and I didn’t want to kill the call when there was another option. I ignored the troubleshooting suggestions and decided to give the MyGov option a try.

    RAM stands for Relationship Access Manager. I just followed the pages that came up, downloaded an app, verified my identification again, and it worked.

    The Business Portal is not the prettiest or most user-friendly thing. There was an instructions page that saved me.

    And so I registered for GST.

    The whole process took me around 45 minutes.

    I’ll probably only ever do this once in my life. Thank goodness.

    Tomorrow I’ll tell you about how I split my business and personal expenses. The day after I’ll talk about how I defined my bookkeeping rituals (most people call these standard operating procedures).

    • 7 min
    Getting my s**t together: Where does it all go?

    Getting my s**t together: Where does it all go?

     This is my journey to apply the book, Unf*ck your finances. The book is about personal finances but I’ve added actions specific to working for myself.

    If you want a bit more context, the prelude pieces are Hope can be scary, Why do we never talk about personal finance?, and Getting my s**t together: the plan for the next quarter.

    The next thing I’m doing from the plan I made a few days ago is to understand where my money is spent.

    I want to start noticing where I’m spending my money
    The questions I want to ask are:


    Who do I spend with?
    Do I agree with their supply chains, their culture, the way they do things?

    I’ve just added these questions to my weekly reflection questions.

    Another part of this is making a habit of questioning my purchases.

    I’ve gone through my fixed expenditure in past posts but I haven’t talked about variable expenditure.

    I’ve used YNAB in the past but I’ve been manually keying and it was taking more time than it added value. I also refused to use adjustment transactions so I would go to extreme (and unnecessary) lengths to figure out discrepancies and get accounts to reconcile.

    To do this:

    1. I’m splitting my business and personal finances. This should have happened earlier.

    2. I’m splitting my personal fixed costs and my personal variable costs. I’m doing this by using separate accounts.

    What this means is that I can review one account to see my variable discretionary spending. More on this in future articles. For now…

    I want to set up a system to help me notice where I’m spending my money
    The other thing I’m doing is setting up Pocketbook. I’ll categorise the June expenses to date (and see how long it takes) and see what my backwards looking discretionary spending looks like.

    90 minutes later

    I did not expect that to take 90 minutes.

    I went through 30 days of expenses, creating custom categories as I went.

    I made a bonus discovery: I accidentally doubled up on a payment and I’m $800 richer than I thought I was. YAY!

     

    If 30 days of categorisation takes 90 minutes, I would hope that I can keep a weekly run through at around 10 minutes.

    I’ll let you know when it happens on Monday.

    A reflection on historical data
    I’ve had a flick through the last 30 days.

    Without historical trends to look at (I cannot express how tempting it is to go back and categorise a few more months), the biggest question I have for myself is:

    Is it in line with where I want to go to be spending $500 (AUD) on eating out in one month?

    • 5 min
    Getting my s**t together: Where is my money invested?

    Getting my s**t together: Where is my money invested?

    This  is my journey to apply the book, Unf*ck your finances. The book is  about personal finances but I’ve added actions specific to working for  myself.

    If you want a bit more context, the prelude pieces are Hope can be scary, Why do we never talk about personal finance?, and Getting my s**t together: the plan for the next quarter.

    The next thing I’m doing from the plan I made a few days ago is to understand where my money is invested.

    Despite  having debt and being bad with money, I’ve been saved by the country I  live in. Here in Australia, employers are required to contribute to your  retirement savings. If your salary is $100,000 pre-tax, they will put  $9,500 into your superannuation account. Because I’ve been working since  I was 15, I have a good amount in retirement savings. I lost some to  not caring but it’s now all in one place.

    Side  note: If you’re Australian and you haven’t consolidated your  superannuation, please take the time to do it. You could be costing your  future self tens of thousands of dollars. 

    100% is in the High Growth investment option (note: different funds have different names for their options)

    The major holdings (as at 31 May 2019) of this fund include BHP, Woodside Petroleum, Rio Tinto, Oil Search, and Santos.

    There is another investment option: Sustainable High Growth

    The investment strategy of this option is: “To invest in a diversified portfolio of Australian and international shares selected on the basis of sustainable investment criteria (and the application of some negative screens), together with Australian Listed Property.”

    Their screening criteria is here.

    There are other ethical funds in Australia (this article is older so the rates may note be up to date) but I’m not willing to do a massive research project at this stage.

    I’ve just rolled my entire balance and any future payments from High Growth to Sustainable High Growth.

    One  day, I may also do a research project to find the right fund and  investment option to suit my combination of ethical preference and  required rate of return…one day.

    • 9 min
    Getting my s**t together: Tackling my biggest non-essential fixed spending category

    Getting my s**t together: Tackling my biggest non-essential fixed spending category

     This is my journey to apply the book, Unf*ck your finances. The book is about personal finances but I’ve added actions specific to working for myself.

    If you want a bit more context, the prelude pieces are Hope can be scary, Why do we never talk about personal finance?, and Getting my s**t together: the plan for the next quarter.

    The first thing I’m doing from the plan I made a few days ago is to understand how I’m spending. I started by listing all of my fixed costs and interrogating them one-by-one.

    Up until this point, I’ve been able to reduce my monthly costs by $372.64 (AUD)

    In doing this exercise, I’ve discovered a problem category: personal and professional development.

    Today I’ve taken the time to delve deeper into everything in this category. This category totals around $420 (AUD) per month. That’s one high ticket course or a new macbook in seven months. That’s half my rent.

    But it’s also more than that. When I participate in a community or program, I’m paying with my time and attention as well. I have to be comfortable with the opportunity cost.

    Questions I’ve asked myself include:


    What do I (want to) get out of this community / program?
    How much time am I willing to put into it? / How much time is it currently taking up?
    Is this what I need right now?
    Am I giving the other small group members the attention and thoughtfulness they deserve?
    If I weren’t in it already, would I pay to join?
    Do I still want to be part of it?

    • 8 min

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