The poll, performed annually for Lifeline Australia by Newspoll and analysed by Orima Research, has found that 'work' is the number one stressor for Australians this year followed by 'finances' , 'thoughts about the future', 'health' and 'personal relationships'.

Other results from the poll show that in general, people are less stressed this year about their health and about the future. Also, women are more stressed than men, people who live in big cities are more stressed than people who live in the country, single people are generally more stressed, and the more people earn, the more stressed they get.

The stress around finances is concerning to me. , not surprising based on what has been happening with the world economy and all the news of doom and gloom but concerning for people on a path to financial freedom. The idea of being free around your money has two levels, the first is having enough to sustain lifestyle the second being in a position to feel at ease with money.

I had an idea while reading a book by Bill McKibben called Deep Economy which has some interesting ideas about the wealth of communities and creating a durable future. Some of the things we get stressed about I am sure are linked to pressures we feel from "keeping up with the Jones's" and trying to get better and nicer things.

In reflection on some of the stresses I have in life I was thinking that getting back to basics is a great way to take off some of the pressure and move towards a more healthy balance.

Bill writes a chapter about the year of eating locally. His experiment was to see if he could survive the winter months on the food that was produced in his local community to see what a true local economy would look and feel like.

This is a great concept in our world today where the convenience of food and transport means it is always summer somewhere and we can access different types of foods all year round. Some of his comments on our society running up to the realisation that more is not necessarily better and trying to think on a different scale has merit.

"Even today, in a world economy that shurns out jet airplanes and iPods and laser guidance systems for parting your car, a Harvard Business School professor recently reported that "fifty percent of the world's assets and consumer expenditure belong to the food system." Half of the jobs too. The "food system" has been made over in the name of efficiency and growth as much as any other: the average bite of food an American eats has traveled two thousand four hundred kilometers. It would be interesting to know what the same statistic is for the Australian food market. Research suggests that the food supply chain in Australia contributes 30% of our overall carbon emissions which could also be reduced through a local approach.

His outcome after doing the experiment was that in the absence of the industrial food system he wouldn't starve.

Most of our capital cities have a weekly or monthly farmers market, where local growers and producers are able to come to market and sell their produce. This is a great way to get access to fresh foods direct from the growers but also without all the markups from the major retailers.

As we review and reflect on some of the times we have experienced of late in our global economy we should be thinking about what can we be doing to support our local economies and save ourselves some money along the way.

This can also be a great way to connect with your community and take away some of the stresses we have day to day.

Some food for thought - pun intended.

What do you need?

Before examining the cost and benefit of insurance ownership, you need to first calculate how much cover you need based on the following:

• total debts including mortgages, personal loans and credit cards
• future family income needs so that your income could be replaced
• specific funds to provide for your children including education expenses
• funeral costs; and
• provision for specialised medical care and rehabilitation costs in the case of total disablement or critical illness.

What is available through my employer superannuation plan?

Once you have calculated how much cover you need, you should consider the value of the insurance benefits in your employer sponsored superannuation plan. Remember that you can have both your employer sponsored superannuation fund and personally arranged insurance plans in place as part of your back up plan.
You also need to check definitions of disability and other cover restrictions under employer sponsored superannuation insurance arrangements. They can often be more restrictive than personal insurance plans in terms of what's covered and the degree of disability required to make a successful claim.
Generally speaking, employer superannuation plans do not calculate insurance benefits based on an individual's needs but on a pre-set formula, such as a pre-set 'unit of cover' or 'multiple of salary'.
Furthermore, recent research by IFSA revealed that default levels of cover in superannuation funds for most people would not provide an adequate level of financial security, should the unexpected happen. Don't just be a statistic by checking out what you have in place and making sure it is adequate for your needs.

What if you are disabled, sick or injured?

You should check if you are covered for the diagnosis of traumatic events such as heart attack, stroke and cancer through your superannuation funds.
While the fund may offer cover for total and permanent disability, cover is unlikely to extend beyond this.
In relation to sickness and accident, while some employers offer 'group salary continuance schemes', they don't always offer insurance cover up to the generally accepted maximum of 75% of gross income or additional benefits to reimburse superannuation contributions.
The payment of salary continuance benefits can be limited through superannuation funds, which may leave you out of pocket if you are sick or injured for longer than that.
In reviewing the insurance available within your superannuation, you should also check on the conditions of release as these are often limited, meaning that any claim payments made could be held within the superannuation fund until you retire or that you need to meet a severe definition to access your superannuation cover.

What if you start a new job?

If you are about to leave your employer and you want to take out a personal policy, you should apply for it before you leave your current employer, in case you can't obtain personal cover. This gives you the fall back position of exercising a continuation option, within a certain period of time, from the superannuation fund you are leaving.

Handy hints

Everyone needs a back up plan, be it cash savings or access to additional funds in the event of an emergency.

Insurance provides the back up plan if you do not have the capital or asset backing in the event of the unexpected.

Review what you have in place including if you have a public sector defined benefit scheme.

If in doubt contact Money Mechanics to review your current arrangement to ensure you have the right back up and protection plan in place.

As with all investment propositions you need to do your numbers and consider the investment on commercial terms to ensure you make a non-emotional decision.

There have been a number of reports recently about the property markets bottoming. If you are a first home buyer or property investor you should look at the following when it comes to property as an investment asset.

What should you consider as a first home buyer?

Your home is not generally considered an investment asset as you do not normally make an income return from it. However your home can be a good long term savings plan and can provide a good tax benefit based on the capital gains tax laws.

With your home you do not have to pay capital gains tax on the sale which provides a good outcome down the track if you have made some good capital gains overtime and are looking to relocate or downsize.

Location, Location, Location - if I can say this in as non emotive a way as possible it is important to do your research and ensure that you understand the property market you are getting into.

You also need to check how much deposit you will need o purchase into the property

What should you consider before buying an investment property?

Know what the property is worth and how much you will be able to rent it for.

Be confident that you can afford the repayments for the investment property if the property is not tenanted for a long period of time.

Don't necessarily go for the cheapest or most expensive dwelling; consider your Return on Investment (ROI). This can be calculated by taking your cost, both set up and regular and then working out the income return and finding out how much you need your property to grow by to provide you with a return.

Look for an area that is close to amenities (for example shopping centres, universities, schools, libraries, close to transport).

Consider a dwelling that offers flexibility (for example, are there two bathrooms for a two bedroom place or are there enough car spaces if the home is not close to transport).

Look at the development planned for the area that you are purchasing in (a suburb zoned for further development can provide future benefits such as the prospect of developing amenities. In the same respect, check that planned future development won't hinder your ability to rent your property).

Do your research to find out if the property is structurally sound (although there will always be costs in owning an investment property avoid a property that will need maintenance on a regular basis).

Find a good property manager: if you don't have time to do it yourself a good property manager will take away the stress of managing your own rental property.

My Advice

You have a choice to do it yourself or to have someone manage the process for you. Depending on the market and strategy you are considering you need to do your numbers.

If you are borrowing money to complete the transaction you should shop around for the best rate and make sure you understand your break-even point. This number for any leveraging strategy will provide you with a growth return that your investment will need to achieve for you to start making money.

Once you know this you can look and research the areas and find an area which has opportunity for growth.

As with all strategies, particularly one which may have a large outlay, do your research and understand the product you are getting into.

Shop around for the best interest rate and loan offering.

Finally remain commercial in your approach, even if it has the nicest kitchen and fixtures, just because you like it doesn't mean your tenants will. Try to keep your emotions in check and once you have made the decision stay the course of your strategy.

Remember that a property investment like other products needs to fit in with your long term plans, so if you are looking at this option call Money Mechanics so we can help you with the numbers.

There is evidence the global financial system is stabalising.

We have seen slowing in the deterioration of the domestic economic outlook, particularly signs of bottoming in the residential construction market.

The market rose 11.5% for the quarter, breaking a run of six straight quarterly declines. It was still down 20.3% for the year ending 30 June.

Commodity prices continued to recover. A small number of mid sized resource companies saw gains well in excess of 25% during the quarter.

The bank sector lagged early in the quarter, due to a difficult profit reporting period and more capital raisings.

Equity issuance continued to be a feature of the market. ANZ, Asciano, Rio Tinto, Bluescope, Onesteel and Macquarie Group all came to the market for significant and dilutive share issues.

There was a slight increase in corporate activity with Kirin of Japan bidding for Lion Nathan. CSR also announced plans to de-merge its sugar business after more than forty years of buying assets in other industries.

The RBA lowered its cash rate target with a 25 basis point cut to 3.0% in April.

The economy has stabilised although leading indicators in employment, investment and lending still show signs of further challenges ahead.

The Australia has the advantage of being able to trade its some of its way out of the crisis and the central bank still has more fire power

The corporate result season gets underway later this month and will highlight the toughness of the current operating conditions.

The profit outlook for most companies is modest with Financial Year 2011 shaping up to a strong year of profit growth

Fixed Interest Markets

Improvement in global outlook as signs of economic stability emerged.

Markets moved from extrapolating bad news into perpetuity (another 'depression' scenario) to pricing in a slow recovery.

Sharp improvement in liquidity conditions which is signaling investor confidence in coming back to the banking system.

We have also seen sharp rises in bond yields as markets moved to price in the cash rate moving back to 'neutral' settings and focus turned on the volume of bond on issue to come in order to fund government deficits.

Global Outlook

The global setting is going to remain highly volatile for the short term future so any investment here need to be made with consideration of this.

Indiscriminate sell-off will continue, no differentiation for quality investments as the global economy continues to return to more balanced position.

Excellent opportunities for new investment will be present at the stock specific level with this in mind a company investment approach over a market investment approach will add value to portfolio positions.

If you have not reviewed your asset allocation or product strategy recently contact Money Mechanics for a review of your position.

Managing on a Low Income
Wednesday 23rd September at REID CIT Campus
Cost $25
Struggling to make ends meet? Sometimes it can be hard to imagine getting ahead, let alone really getting there. Living on a low income can take a lot of energy and require a lot of skill balancing your budget from day to day. Our habits and attitudes have a lot to do with how we relate to our money and making ends meet. You may or may not already have good money management strategies in place. This course is one of the first simple steps to making the most of your money, from getting a greater grasp on your day to day budget and debt strategies, to your longer term superannuation strategies.

Superannuation Demystified
Wednesday 12th August at REID CIT Campus
Cost $50
This evening will cover the taxation strategy of superannuation including the taxation on contributions while in the scheme, and on the way out of the scheme. Technical strategies such as advantages and disadvantages of salary sacrifice to superannutaion and defined benefit superannuation schemes in the context of your financial life and estate plans will be covered.