Essential SSL Tanz Khan, Author at Concurrence Financial Planning

Posts by Tanz Khan

Tricks to change spending habits

How to change your spending habits?

Many complaints about breaking budget and extravagant spending habits before reaching the end of the month. Unfortunately a majority of them oblivious about what trigger the most this “no cash situation”.

Let’s say you have gone to a supermarket to buy only milk and bread. But somehow you ended up with shopping full of two or three bags. After reaching home, you have realised that you have bought items that are already in your kitchen pantry!

Yes, you have just wasted your money and the trigger is uncontrollable spending habits.

The question is how to overcome this spending habit?

Here we suggest some of the smart shopping tricks that will help to change spending habits and make a smooth month end:

Shop with a list:

We are sure the abundance of products or brands in shopping malls can make anyone crazy enough to spend more. Therefore to be in the control mode, make a list first. Write down the items that you really need and strictly stick to it.

Take only Cash:

Obviously making a list alone isn’t enough to control the over spending habit. The main key is money! Take only cash for shopping. Leave your credit or debit cards at home and carry only the amount of cash that you have budgeted for shopping. This will help you to save spending hell lot of money.

Leave and Come Back:

If you are looking for purchasing something (not included in your list), leave it for a while. Come back again maybe after a day or week. This interval will eliminate the sudden temptation and help you to identify the actual need of that purchase.

Know your weakness:

If jewellery or gadget is your weakness, just avoid those shops. If you are crazy about eating outside, eat something at home before you go for shopping. Find out what makes you weak or triggers you to buy extra and stay away from it to control spending.

Look for deals or bargains:

Besides these above tricks, you can reduce your spending drastically by avoiding fixed-priced items.  Best is to wait for sale or clearance or go into bargain shops. This can actually save up to 50% than branded fixed priced items.

We know that the pay-off from these tricks will be big for your wallet and for peace of mind.

But important is what do you want more – a bitter present struggling with spending craziness or a future with smooth finances?

If you still unsure about controlling costs and changing habits, talk to your financial planner or just drop us a line at and we are happy to help in maximising your financial and wealth goals.

Diversification – an approach to risk reduction

Diversification is the concept is widely understood with the famous proverb “Don’t put all your eggs into one basket“. That means if the basket falls you lose all of your eggs. The principle also applies in the world of finance where diversification implies invest in different asset classes to reduce the risk or volatility of single asset in the portfolio hence reduces the overall risk of the portfolio.

If you are holding a single asset class as a complete investment portfolio which is not a diversified approach and considered to be more risky attitude towards investing. For better understanding risk can further be divided into two categories, one is a “Specific or Unique risk” and the other categories as a “Market risk”.

Risk Reduction
From the diagram, the more assets you add into the investment portfolio higher the reduction in Specific or unique risk may potentially be reduced to zero if add certain number of assets or securities into the target investment portfolio leads to 100% diversification.

Research study finds fully diversified investment portfolio may contain minimum 30 assets or securities i.e. more stocks/ shares or asset class (To learn more about asset class, see Five Things To Know About Asset Allocation.) lead to reduction in substantial price volatility. Many financial experts are converged that most diversification can be achieved through buying the market portfolio i.e. replicating the strategy of underlying index funds.

However, Market or systematic risk persists in the same fashion and can’t be diversified further but may be managed through adopting different techniques or hedging strategies. The capital asset pricing model (CAPM) argues that investors should only be compensated for non-diversifiable or market risk.

The sensitivity of market or systematic risk can be measured by Beta “β” i.e. if an investor has the portfolio of property stocks of beta 3 against the market’s beta of sensitivity always 1, the portfolio is 3 times more sensitive towards market shocks for example having gold or precious metal in the investment portfolio may be a good hedged against inflation or currency wars.

Beta is an indicator of measuring effects on how investments can lose its potential value due to market shocks that may potentially increase the market risks like political, macro or micro-economic risks, or country risk variate due to global recession, etc.

Hence, the right type of diversification reduces real risk and makes sense for the investor. Nevertheless, it depends on investors’ investment goals and appetite for risk.

If you still unsure how to do quick health check of your investment portfolio then just drop us a line at and we are happy to help in maximising your financial and wealth goals.


Tips on Estate Planning


Do you know…

When people owned real or financial assets and die without a proper valid Will then what would be the consequences?

There are likelihoods of increasing risks that the estate may be eroded by claimants or creditors and the actual beneficiaries may suffer.

Here are some tips which can help to mitigate the above situation if proper Estate planning is done alongside with the help of qualified professional:

•Making a will

•Appoint an enduring Power of Attorney.

•Appoint of enduring guardian;

•Consider an appropriate trust structure; and

•Making a superannuation death binding nomination with a super trustee

The above information provided in is unless specifically stated otherwise, general in nature and is not to be relied upon as personal financial advice as it has not considered your circumstances, needs or objectives.

If you wish to require advice on the estate planning matters please contact your personal financial or legal adviser.

Tips on how to de-stressing a mortgage

Like most things in life, it’s really hard to make borrowing a stress-free exercise, but there are a few things you can do to reduce the angst.

1.Don’t borrow the maximum amount
Based on multiple factors, most of the financial institutions determine the maximum amount of loan they will approve. However, it is wise not to go for maximum amounts to avoid stretch.

2.Build up a buffer
Go for a cash reserve in a mortgage offset account as a buffer. This would be helpful to repay the loan if any contingency occurs.

3.Take advantage of mortgage protection insurance
For better protection and cover, think about mortgage protection insurances. Many lenders offer insurance when you take out a home loan that covers the mortgage if you die, become disabled or your employment ends involuntarily.

4.Fix the interest rate
A good way to tackle interest rate is to fix it. However, it may restrict on making additional payments into a fixed rate loan.
For many, a combination of fixed and variable rates loans work best, as the variable rate portion allows to additional repayments of the debt.

5.Don’t add fuel to the fire
Many people often use credit cards to meet mortgage repayments. However using debt to service debt is very likely to compound the problem.

Remember, above advices are of general in nature and have not been tailored to your personal circumstances.

For more customized advice, set up a “Free Initial Consultation” with our expert advisers.

Our advisers can help you in budgeting, projecting cash flows at the same time determining the level of loan suitable for you with advice on insurance cover.

Essential SSL