Month: January 2021

Categories
Financial Freedom

How to Improve Your Finances by Thinking

When it comes to money, most of us would say we could use more.

Or at least, have enough to have real financial security, and never to worry about how the bills are getting paid. Of course what many people don’t realise, is that how you think about money is one of the biggest reasons there is a struggle to pay the bills.

I know this sounds very new age, but as someone who has spent over 25 years educating people around money and finance, I have found time and time again that limiting thoughts and beliefs have been a big reason for people not getting the financial outcomes they want and deserve.

Which is why I am now focusing on helping people develop their money mindset. And it helps greatly that COVID has bought sharply into focus the realities of mental health and the benefits of mindfulness and meditation. It is now scientifically proven that meditation and mindfulness can lower anxiety, create greater happiness and help people cope with a world that has changed forever. What I am asking people to do, is to include their financial health in this realm.

Worrying about money is a toxic exercise. It takes away your sleep, your joy, and your peace of mind. Instead of worrying about money, you should be focussing on taking control of it – and the first step toward doing that is believing that you can, and knowing that you deserve it.

Many of us have grown up with family and friends who have taught us deeply ingrained beliefs around money. That it is hard to get. That there is never enough. That it is always a struggle. Or, that people with money are greedy. All of these beliefs are played out in the way we deal with money.

And, when we are thinking in the negative about money, we are sure to attract…

Continue reading the article >

Vanessa Stoykov writes for Secrets of the Money Masters, a programme she founded, now owned by tech giant Iress for the education of financial advisers

Until next time,

Categories
Financial Freedom

Happiness is a Journey

I read a great quote the other day, from the actor Denzel Washington. He was talking about how so many people thought that when they got that job, had that car, lost that weight, or bought that house that then, they would be happy. He called it destination happiness, and he warned against it.

Why? Because it sets you up for a lifetime of feeling like you are never have enough, or are enough. There is a big difference between having goals (especially financial ones) and thinking that reaching those goals is finally going to make you happy. Because chances are it won’t. You are still the same person you were before, and acquiring one goal usually means you are going to find another, then chase that, expecting that to be the silver bullet that will make you happy.

While I am a huge advocate for financial goals, I also know that money, and the things it can buy, can bring you pleasure and comfort, but not lasting happiness. That is an inside job, and it comes from being happy with who you are.

I remember my father telling me the secret to life, on one of our many walks with our dog when I was in my 20s.

“Vanessa, remember this, the secret to life is being happy with who you are, and what you have, right now,” he said and it has always stuck with me. My father immigrated from Serbia post World War II. He came to Australia with the clothes on his back and worked migrant jobs that nobody else wanted to set himself up.

My Dad died three years ago, and he was and continues to be, one of the most positive influences in my life. He was always a happy man. He got great satisfaction from the little things. It made him good to be around, and he made me feel good about myself. He was never a wealthy man, but he was rich in what mattered. And that was because he knew happiness and money were not related. That happiness came from being satisfied with your life, and being hopeful for the future.

So, I encourage and applaud you having financial goals. They are essential. To get out of debt, to save for that home, or contribute to your retirement via super are all going to improve your quality of life. But I also urge you to think about where your happiness comes from. Are you waiting for that magical day when you reach your goals and it arrives? Or, are you happy now, without having reached your goal destination?

In watching Disney Pixar’s latest movie, Soul, I realised that this is a struggle so many people go through. In that movie a jazz musician dies before he gets to play his first big gig. Without spoiling the storyline, he ends up realising that his goal was preventing him for enjoying what he already had. The taste of pizza, the comfort of good friends, and the joy of being alive. It was a great message for Disney to be storytelling, so kids can start thinking about the concept from a young age.

After all, happiness is not the destination – it is the journey.

Until next time,

Categories
Kids & Money

Big W’s New Back to School Ambassador

BIG W unveils annual Back to School Report, revealing Aussie shopping behaviours and spending habits ahead of the return to class.

With the Christmas and New Year rush over, it’s straight into back to school planning for many Australian families. Big W commissioned research through YouGov to find out what Aussie families’ back to school shopping behaviours and spending habits look like. I was happy to be the money ambassador to help give parents helpful tips.

Many families, while feeling buoyant, are feeling pressure to manage their budgets. According to the report, 83% of Aussie parents find back to school shopping stressful, with the biggest contributors to their stress are:

Cost (51%)

Having to go to multiple shops (38%)

Shopping with their kids in tow (27%)

Whilst back to school costs are weighing on people’s minds, the research has revealed a 10% increase in projected back to school spending, compared to last year. Aussie parents are planning on spending an average of $592 on school supplies per child in 2021, which is an increase of $54. Expected costs for back to school items include:

School uniforms – $180

School shoes – $111

Stationery – $92

School bags – $58

Lunch boxes and water bottles – $43

All other items – $108

In addition, technology devices like laptops, headphones and tablets, have been a growing back to school expense for Australian families, particularly with parents and children having to adopt home learning during COVID-19.

Parents are now expected to spend an average of $284 on tech items per child, up 17% from last year and more than any other category. 

Due to the impacts of COVID-19, the 2020 school year was a year like no other. The Back to School research revealed that as restrictions have eased, parents and children are now looking to regain a sense of normality and positivity to kick off the new year. In fact, almost three quarters of Aussie parents (73%) have said they are very much looking forward to the 2021 school year, while seven in ten (69%) think their children are excited and eager to enjoy the year ahead with their friends.

It’s great to see so many of us are looking forward to the next school year – in fact I think we appreciate school more than ever due to lockdowns this year. While parents will spend more on school, here are my tips to help parents save: be organised and have a clear path, plan your costs now, as it puts less pressure on you financially, and take advantage of online shopping, it saves you time and lets you compare prices.”

 

Big W Ambassador & back to school in the news

Vanessa Stoykov is Big W’s new back to school ambassador. Find out how you can save this school year.
Learn more

Planning for your 2021

  • Many families will be starting the year off in an organized state, with more than half of Aussie parents (57%) planning for ‘back to school’ a month or more in advance. However, not all parents will be on the front foot with one in ten (10%) admitting to only starting their ‘back to school’ shopping in the week or last few days before school starts.
  • Similarly, to last year (2019 – 94%), the overwhelming majority (93%) of parents still believe there are benefits to getting your ‘back to school’ shopping done early.
  • Parents who begin their back to school shopping early gain peace of mind (59%) by having more time to shop around for the best prices and deals (49%).
  • Due to the financial pressures that came from 2020, value for money (70%), affordability (53%) and quality of products (53%) are the most important to parents when shopping for their children’s ‘back to school’ items.
  • For those money savvy parents with children aged 5-17, seven in ten (70%) say they budget for ‘back to school’ shopping expenses, however it’s mainly a general budget (49%) with only one in five (21%) saying that they have a very detailed budget in place.
  • Millennial (30%) and Gen X parents (27%) are more likely than Baby Boomers (15%) to start their ‘back to school’ shopping at least two months ahead of the new school year.

COVID-19 Money Facts

  • When learning from home began in 2020 due to COVID-19 lockdowns, four in ten (41%) parents of children aged 5-17 had to purchase additional items to accommodate these changes.
  • More technology was also purchased due to remote learning with one in three (30%) parents buying more technology products such as laptops, printers, screens and headphones, and almost one in five (18%) had to buy furniture such as desks and chairs.
  • Two thirds (65%) of these financially impacted Aussie parents still think that they will be able to afford all of the essential ‘back to school’ supplies for their children in 2021. With a further one in ten (14%) admitting that they will not be able to afford essential supplies, and one in five (21%) don’t know.
  • Aussie Dads are 46% more likely than mums (36%) to say they had to purchase additional items to accommodate their children learning from home due to COVID lockdowns in 2020.

 Back to School Supply Costs 

  • The average cost of starting at a new school is on average $319 more expensive in terms of shopping for ‘back to school’ supplies, with parents of children that are starting at a new school in 2021 expected to spend an average of $1,164 per child on school supplies. Those whose children are attending the same school as last year, will spend $845 in comparison.
  • Parents who have a budget in place for back to school shopping (40%) are more likely to think they will spend more on supplies in 2021, compared to previous years, than those who do not (26%).
  • When preparing for back to school shopping, one in three (35%) parents of children aged 5-17 think they will spend more on back to school supplies for 2021. The most common reason for spending more was that the school or child’s needs / wants had increased (21%). Parents feel that as a child ages, either school requirements increase, or the child starts requesting a particular product or brand.
  • The main ways parents of children aged 5-17 will look to reduce back to school supply costs are buying supplies ahead of time when they are on special (44%), only buying the essentials (40%) and re-purposing supplies bought for 2020 that weren’t used because of COVID / online learning (37%).

 Spending on Back to School

  • Aussie parents are planning on spending an average of $592 on school supplies per child in 2021, an increase of $54, or 10%, on last year.
  • Unsurprisingly, school uniforms remain the item parents expect to spend most on, followed by all other items (not including shoes, stationary, school bags, lunch boxes and water bottles).
  • When preparing for back to school shopping, almost half (46%) of parents think they will spend about the same as previous years in 2021.
  • Although down from 46% in 2019, a third (36%) of parents think they will spend more than they have in previous years, while one in ten (13%), the equivalent of 521,000 parents, think they will spend a lot more.
  • To reduce back to school costs parents will be sourcing some items second hand (29%) and gifting school supplies part of their children’s Christmas presents (16%).
  • The financial pressures of the past year mean that almost nine in ten (88%) parents of children aged 5-17 will look to reduce the cost of back to school supplies for 2021.
  • When added to the other categories, tech devices and sporting gear brings the total expected average ‘back to school’ spend up to a staggering $970 per child for the 2021 school year, up 12% on 2019.

Research commissioned by Big w via Yougov for insights into back to school spending habits of Australians – This took place in December 2020 – January 2021; to provide parents with the facts and figures they need to begin 2021 off on the right foot.

Until next time,

Categories
Financial Freedom

Why I’m Not Making Resolutions for 2021

Well we made it. 2020 has drawn to a close and we have now moved into 2021 – a year, we all hope, of recovery. As I sit with my husband, talking about what our new year’s resolutions would be, I had a realisation.

 

Making resolutions for 2021 is pointless. Because, as 2020 taught us, anything can happen. So, I realise the best thing that I can do this New Year, is hone my positive intentions – both for my life and the lives of others.

I know I want to be fitter – but joining a gym and going down the same rabbit hole again as I move into my 48th year just doesn’t make sense. It is one of those ‘resolutions’ that end by February. So, I got up today, and I went for a walk. It was slow. There were many birds and trees that I stopped and looked at (one of the benefits of living in the Blue Mountains). And this was it. My positive intention for my fitness in action. Not a whole life change, but a small change in my day that gives me joy.

This year my life goal to help others harness the power of financial services will continue. I know more than ever in an uncertain world, having some certainty around money is going to give a lot of people peace of mind. I know first-hand the debilitating stress of money pressure. I have also made a lot of mistakes along the way, because I didn’t know what the right choices were to make.

Through the hard lessons of making these mistakes, and 27 years of access to some of the best financial minds around the globe, I have developed some key learnings that I will be sharing via easy-to-use online learning for the first time in 2021.

I will be working with the mainstream media again, commissioning research and creating education that is plain-speak, while harnessing the help of some of the most successful organisations in financial services. This will help start the change process for people who are worried about their money, no matter their income. It will deliver a better understanding on who to trust and where to go for help.

My other positive intention of course lies in being there for my family and friends. One of the benefits to come from this pandemic is the highlighting of how much our relationships matter – and how we all need connection to lead a happy life. Our three kids, and our family and friends continue to be the greatest gift in my life, and the one that gives the most fulfilment.

So, for 2021, I wish you a life where you are able to pursue all your positive intentions – and be flexible enough to go a different way if life requires. Most of all, make decisions that bring you joy. You deserve it.

Until next time,