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Spotting unauthorised and mistaken transactions

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Spotting unauthorised and mistaken transactions
Spotting unauthorised and mistaken transactions

When checking through your transactions, you might come across a transaction that doesn’t look right. If this is the case, you should get into contact with your bank as soon as possible.

An unauthorised transaction: Money transferred from your account without your permission

A mistaken transaction: Paying the wrong person by using the wrong details

Here are the signs to look out for to identify unauthorised or mistaken transactions:

  • Persons or companies whose names you do not know
  • Cash withdrawal from a place you have never been
  • Transaction date you don’t recognise
  • Payment that has doubled up

But keep in mind:

  • Transactions can take days to show up – they are not always immediate
  • Name of a shop or restaurant might not match the bank statement (they may have a different trading name which you can verify online)

What you need to do before you buy an existing business

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What you need to do before you buy an existing business
What you need to do before you buy an existing business

Buying an existing business can be a great entryway into being a business owner – but it does come with challenges. Following these steps might make it easier for you to make sure that the business you buy is right for you.

  1. Understanding if you are ready for business: This doesn’t just involve the financial aspect of things, but also management more generally. Even though there are procedures in place, you still need to develop management skills to oversee those processes. You will need to be disciplined when it comes to day-to-day operations, especially at the start before you become more familiar with everything. Reflect on your current situation and ensure that you can handle the responsibilities that come with owning a business.
  2. Decide whether you want to buy an independently owned business or a franchise: You will be able to make a lot more decisions and changes if you buy an independent business – but you will also need to come up with a lot more ideas, and conduct marketing and safety strategies by yourself. Franchises on the other hand provide a lot of support when it comes to routine business processes, but there is a lot more rigidity when it comes to handling the business.
  3. Research the business: Look into all the costs involved in buying the business and potential ongoing expenses that you will incur. Make sure you get an insight into the business’ strengths and weaknesses and how it is likely to perform against competitors.
  4. Carry out due diligence: Examine a business in detail before you sign a legally binding document. This includes various financial aspects such as income statements, tax returns, etc. You should also review the legal aspect of the business such as intellectual property, registered patents, etc.
  5. Value the business: Calculate the net worth of your business by taking the assets and liabilities into consideration. Also calculate the value of the business based on future earnings – what you can gain from the business.

Advantages and disadvantages of home reversion

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Advantages and disadvantages of home reversion
Advantages and disadvantages of home reversion

Super (AU): Pros and cons of home reversion

Home reversion is when you sell a share of the future value of your home whilst still living there. You receive a lump-sum payment and continue to own the remaining share of your home equity.

Pros

  • You are able to continue living in your home after you sell the share
  • You can conduct renovations or maintenance that your home may need with the lump-sum payment you receive
  • You can use the lump sum for any urgent needs such as medical treatments
  • The lump-sum could help you secure accommodation till your home sells

Cons

  • You will own the lower share of the equity in your home
  • Transactions and costs can get complicated and it may be hard to navigate that
  • Your eligibility for Age Pension might also be influenced
  • Your ability to afford aged care could be affected
  • You might end up eating into money that you need for the future – such as for medicare
  • You might be locked into fewer options if your circumstances change
  • If you are the sole owner and someone else lives with you, they may no longer be able to live in the house if you move out or pass away

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