Month: October 2020

First of all, let me say the latest series we are launching, Secrets of the Money Masters, is perhaps my favourite. Why? Because the people in it are not celebrities. Rather they are everyday Australians, people just like you and I who just last year had one plan about life, and now since COVID-19, are having to entirely review their money plans, and their lives.

Nothing makes things more real than when something is happening to other people you can really relate to. It is like when somebody gets cancer that you know and love. It all of a sudden becomes personal.

And this is not different. The money stories in this show will be no doubt relatable to so many of us.  We are all living through this global pandemic after all.  And the people featured in this series are really tackling problems that many of us universally face – housing, retirement, paying for kids, and divorce.

It all feels tough and unknown at the moment, and I took comfort from the fact that there are many options on how to move forward, no matter what challenges you are facing. Sometimes it just means doing the work upfront about what you want, and how to reverse engineer your current money plan, into your new one, to get you where you want to go.

It’s why I have also changed my focus – by revising my theme to now be to reset your money, rather than unlearn your money. And I have also created a new journal that you can start to design your life around, which you can download for free, here.

So, enjoy this new series and meeting the people featuring in it who represent so many of us. We intend to continue following their stories and bringing you plenty of new ones.

Until next time,

If you were already worried about money before COVID-19, there is a big possibility that the pandemic has increased your uncertainty about your financial future. And if you have a family, your worry about taking care of them financially has no doubt sharply increased.

You are not alone and it is not fun. Almost a third of all Australians have been financially affected by COVID, and many more to come as we move into 2021.

But if there’s one thing I have learned, it’s that worry and anxiety are debilitating. They stop you thinking analytically, and cause you to make decisions out of fear, rather than long-term planning.

So here are three ways to banish anxiety from your money making decisions.

1. Kill your debt.
   Not necessarily your mortgage, which is building an asset (unless of course you are mortgaged too much, which is another anxiety-causing issue). All other debt has to go. Cars, credit cards, AfterPay and everything that is dragging you down. A fierce focus on eradicating debt from your life, even if it takes years, is a positive step to decreasing anxiety and feeling as if your head is above water.
2. Put more in your super – even if it is just a little.
   Statistics have shown that people who put just 5% more into their super a year feel more confident about their financial future. It is a positive step toward making sure “future you” is okay.
3. Learn to identify the triggers of your anxiety.
   When you think about money, what is your emotional reaction? Do you feel fear? Stress? Uncertainty? These are all unpleasant emotions, and lead us around an exhausting cycle of stress and emotional discomfort.
   I have found the art of ‘mindfulness’ around the emotions money creates for me can really help break the mental cycle of stress. To do this I use an app called “10 percent happier,” which is a meditation app that helps you train your brain and harness your emotions.
   It’s literally 10-12 minutes per day and easy to use. There are many other apps that also do the same thing. Your mind is your biggest detractor around being positive with money if you don’t understand what drives it to fear and stress. While it may sound very new-age, mindfulness is the new exercise, and is extremely valuable.

There is no changing the uncertain world we live in. The only thing we can change is ourselves and how we feel about it. You can reduce your anxiety around money by taking small steps in the right direction. A plan that takes time is better than no plan at all.

I’ve been working with the finance industry for over 25 years now. And all the things I have learned about money and people trying to improve their financial situation comes down to this one thing: vulnerability.

What do I mean by that? Well, in order to change, learn, grow and improve your financial life, you have to be vulnerable. You have to be honest about where you are with money right now. What you do know, and what you don’t. Admit what you don’t understand, and where you think you need help.

This sounds easy, but it is much harder than it looks. Our society has conditioned us to not talk about money (at least with honesty). We try and look our best to the outside world, and most of the time don’t show our soft underbelly. We don’t want other people knowing our business – and even in wealthy circles, it is considered vulgar to talk about money.

So how do we improve and learn from others? How do we ask for help in a world that has conditioned us to think we should know what we are doing? And how do we understand technical terms and jargon that the finance industry presents to us, that we don’t really understand and is, quite frankly, boring?

The key is to be vulnerable. And you can start small. Start by telling the truth to friends. Real friends, not the ones that delight in your bad news to make them feel good about themselves.

Because of what I do for a living, I have always had a very open dialogue with my close friends around money. They know when we are doing well, and when things are tough. And they tell me the same. It brings you closer, allows you to have more empathy and understand their state of mind.

Being vulnerable with friends about your money situation and fears is the first step in being able to improve your situation. Whether it is by seeking out a financial adviser or doing some online learning to hone up on money skills. By admitting the truth to yourself and others, you take the first step toward change.

This doesn’t happen quickly, and nothing worthwhile is easy. But the more you take ownership of your own money journey, and be honest with others that care about you, you can start to really move toward your goals. And you can celebrate when you reach them with people who care.

So take a good hard look at your money. It’s time to get real and get help. You can change things no matter what situation you are in. And being vulnerable enough to admit you need help and want to change is the beginning.

Until next time,