Month: July 2025

Categories
Financial Freedom

The Business of Life Is the Accumulation of Memories

I’ve come to believe something that’s changed how I live: life isn’t really about money or things — it’s about memories. Once that clicks, you start seeing your spending differently. Not just in terms of what you can afford, but in terms of what kind of memories you want to create.

For me, it’s always been travel. In my late twenties, I took my dad on a father–daughter trip to Serbia, where he was born. I paid for first class. We stopped in Austria first, stayed in five-star hotels, and I got to see him in his own world — as a man, not just my dad. That time is etched in my heart. Priceless.

I did something similar for my mum. I took her on the Queen Mary 2 for her 70th birthday. Her mother — my nana — never had the means to travel but used to receive cruise brochures from her wealthy sister. Nana kept them like treasures, and when she passed, she left them to me with her elegant handwriting in the margins. Taking Mum on that cruise felt like honouring her and my grandmother at the same time. We laughed like friends. We lived in the moment. And those moments have stayed with me.

When I sold my company for a seven-figure sum, I splurged. I took the whole family to London, Ireland, and on a road trip around Scotland. We flew business class. I thought the good times would keep coming — so why not? Could I have used that money in a thousand different ways? Definitely. Do I regret it? Not for a second. We explored ancestral towns with my children’s father’s elderly aunt. We heard stories that brought generations to life. Watching my boys connect with their heritage — that’s a different kind of wealth.

But life isn’t a straight line. After COVID, everything changed. Like many business owners, I had to scale everything back. And I’ll be honest — I found it hard. I’d earned good money for many years. Losing that freedom put a lot of pressure on my relationship, and eventually, it ended in divorce.

That season forced me to reevaluate everything. No travel. No more splurges. Not even my beloved 150 bath bombs made the cut. But it also taught me something I didn’t fully understand before: you don’t need money to make memories. You just need to be present.

A shared laugh. A homemade meal. Watching Netflix together with microwave popcorn. Sunshine. A song that makes you dance in the kitchen. Noticing these little things — and really taking them in — is what makes everyday life beautiful again.

That shift changed me. I’m building something new now, from a different place. And I’m more certain than ever that the small moments are the big ones.

In my dad’s final weeks, he spent a lot of time resting in bed. One day, he looked over at a photo of me on the wall and said, “I think of us together a lot — all the wonderful times we had. And when I think of the best times, when we were happiest, it’s not the big things. It’s the little things we did.”

Maybe I knew it all along. But it took the highs and the lows to truly feel it in my bones.

That’s why I care so much about talking to people about life, money, and values. Because money isn’t just financial. It’s emotional. It’s how we create, remember, and connect. And in the end, those moments — big or small — are what we carry with us.

 

If the business of life is the accumulation of memories, what’s next on your list? Write down five moments you treasure — and five more you want to create. Put them on your wall. Let them remind you what you’re really working for.

Categories
Family Inheritance

Should You Help Your Kids Buy Property Now? What to Weigh Before Giving an Early Inheritance

It’s a question more parents are facing: should you help your adult children buy a property by giving them part of their inheritance early? With property prices continuing to climb and wages not keeping pace, many younger Australians are locked out of the housing market. Understandably, parents who have built up equity over time are looking for ways to help. But while the idea of offering financial support may come from a place of love, it’s a decision that comes with legal, financial, and emotional considerations. Here’s what to think through before handing over the money.

Understand Your Own Financial Position First

Before you commit to giving—or lending—a substantial sum, it’s essential to model your own financial needs over the next 20 to 30 years. Will you still have enough to fund the lifestyle you want in retirement? Have you factored in future healthcare costs, aged care, or the possibility of needing to downsize later on? Many people underestimate their longevity and the rising costs of living in retirement. You may be living another 30–40 years—don’t give away money you might need for your own security. Use your super fund’s calculator to forecast your retirement income or consult a financial adviser for a more personalised projection. And do more research yourself—ask ChatGPT or another AI tool to help you understand the kind of expenses you might face in retirement, how to calculate safe withdrawal rates, or what assumptions to consider for inflation. It’s a great first step in figuring out what you need before making big financial decisions.

Clarify the Nature of the Support: Gift or Loan?

This is one of the most important technical considerations. If you’re giving money to help your child with a deposit, you need to decide whether it’s a gift (with no expectation of repayment) or a loan. Be clear about whether it’s a gift or a loan—then document it properly. A gift is straightforward but may have unintended consequences, such as becoming part of a marital asset pool if your child separates. A loan, on the other hand, can be formalised with a loan agreement, specifying terms of repayment and interest (if any). For asset protection, some parents choose to secure the loan against the property with a caveat or second mortgage. This can become complex, so legal advice is critical. You can even start by asking ChatGPT: “What is the difference between gifting and loaning a deposit in Australia?” and then take that knowledge to a financial planner or lawyer to tailor a plan that suits your family.

 

Be Aware of Centrelink Rules Around Gifting

Be Aware of Centrelink Rules Around Gifting If you’re on the Age Pension or planning to apply in the future, Centrelink will assess any gifts you’ve made in the five years prior. You can only gift up to $10,000 per financial year, or $30,000 over five years, without it affecting your Age Pension entitlements. Anything above that is considered a ‘deprived asset’ and will be counted as if you still own it, potentially reducing your benefits. This is often overlooked and could have a lasting impact.

Again, you can use tools like ChatGPT to ask, “How does gifting money to my kids affect my Age Pension?” and review Centrelink’s guidelines here: https://www.servicesaustralia.gov.au/gifting

Discuss It Openly With All Family Members

Gifting or lending money to one child may create tension with others—especially if the arrangement is kept private. If you have multiple children, be transparent about your intentions. Some families choose to update their will or estate plan to equalise contributions over time. For example, if one child receives a $100,000 loan now, their share of the estate is adjusted to reflect that. Family generosity without transparency can turn into conflict—talk now, plan properly, and avoid regrets later. Make sure your decisions are clearly communicated and, ideally, documented in your estate plan. Involving an estate planner can help manage the fairness and avoid potential family conflict later. You can explore how unequal gifts or loans are handled in estate planning—just ask: “How do I adjust my will to reflect early inheritance given to one child?” and you’ll get useful direction to take to your estate lawyer.

Consider the Risk of Relationship Breakdown

If your child is in a relationship and receives a substantial gift from you, that money (and the resulting property) may be considered joint property in a separation, depending on how the asset is structured. If you’re concerned about this, a Binding Financial Agreement (commonly known as a prenup or cohabitation agreement) might be something to discuss with your child and their partner—ideally with the support of a lawyer. Again, awkward, but it could protect the intent of your generosity. If you want to understand the basics first, ask: “Can a property deposit from parents be protected in case of divorce in Australia?” and go from there.

 

Tax Isn’t a Major Factor—But It’s Still Worth Understanding

There is no formal ‘gift tax’ in Australia, and you don’t pay tax on cash gifts. However, there can be tax implications if you give an asset like shares or investment property, as capital gains tax (CGT) may apply at the time of transfer. In the case of giving cash for a deposit, there is no CGT. Still, it’s worth talking to an accountant, especially if you’re also considering family trusts or other structures. A helpful prompt to explore online might be: “Do I need to pay tax if I give my child money to buy a house?”

Don’t Act Under Pressure

Just because your children ask for help—or seem to need it—doesn’t mean you have to say yes. Many people feel guilted into saying yes quickly, without thinking through the consequences. Helping is not just about giving money. You might offer to be a guarantor, assist with budgeting, or help them access professional financial advice. You also need to consider what expectations this sets—will they come back for more? Is this help part of a broader financial strategy, or just a quick fix?

Start With a Plan and the Right Resources

If you’re at the beginning of this journey and want to better understand the long-term impacts of giving an early inheritance, I’ve developed a free resource to help you think it through. It’s a conversation starter for your family, and a way to get clarity before making big financial moves. You can download it here: https://vanessastoykov.com.au/resources

 

Helping your children into the property market can be a beautiful thing—but only when it’s done with clear boundaries, legal protections, and full visibility of the implications. Don’t be afraid to say “not now” or “let’s talk more.” A rushed decision today can become a lasting regret.

Good luck!

Categories
Manage Finances

Latest Research Unpacks Why We Spend Future Money to Cope Now

Every year around tax time, millions of Australians start dreaming about how they’ll spend money that technically isn’t theirs yet. New research from ING shows it’s happening again — with the average Aussie expecting a $1,177 refund but already spending $1,529 in their heads.

For Millennials and Gen Z, this habit runs deep — 60% and 50% admit they’ve spent or plan to spend their refund before it even lands. It’s easy to judge that as reckless. But the truth is, the habit behind it — spending money before you have it — is really about coping with uncertainty.

 

For many, especially Gen Z and younger Millennials, it’s not just a splurge — it’s survival. The refund might be covering rent, overdue bills or groceries that regular pay just doesn’t stretch to anymore. For others, it’s the small comfort of a night out or a new phone to feel something good when so much feels out of control.

I get it. I do it too. The point isn’t to feel guilty — it’s to get real about the trade-offs.

 

That refund — is it the quick hit of fun today, or a chance to breathe easier next month when the power bill lands? Is it another thing to pay off later on credit, or could it be the buffer that keeps you out of debt altogether?

 

When the world feels shaky, the one thing you can control is your next move. You get to choose if a small bit of relief today is worth the cost tomorrow. Sometimes it is — sometimes it isn’t. But owning that decision is where your money story shifts.

 

So maybe this tax time is the moment for a bigger conversation — with yourself, your partner or your family. What do you really need this money to do for you? Where can you trade a small indulgence now for bigger peace of mind later?

You can’t control the tax office — but you can control what happens when that refund lands. Spend it mindlessly, or spend it with purpose. The choice is yours.

 

A note about the research: This research was commissioned by ING and conducted online by YouGov. You can read more on the ING newsroom: https://newsroom.ing.com.au/millions-of-aussies-have-already-spent-1-8-billion-in-tax-refunds-they-dont-yet-have/

 

We’re having these financial wellbeing conversations every day — in workplaces and with member organisations across Australia. If you’d like to bring these conversations to your people, visit my contact page https://vanessastoykov.com.au/connect/ and reach out — I’d love to help.