Author: Vanessa Stoykov

Something I have learned about money over 22 years of running a business, is that money usually delivers to the ‘set point” you ask it to.

What do I mean by that? Well, usually business owners have a number in their head that they need their business to deliver on to stay afloat – the ‘just enough’ number. And, time and again, that number is achieved. Nothing more, but not less.

It is as true in your personal life as it is in business. If you know how much you need to earn every week or every month to pay your bills, most of us can find it. And if we can’t, we use credit cards, or fall behind on bills, which creates a whole other set of problems to deal with in the future.

So I encourage you to start thinking – what is your set point? What is the number you have in your head that you know you cannot fall below?

Everybody is different. Some people may be happy to put bills on credit cards, but not to have a debt collector chasing. Others may have a set point that means every bill is paid on time, but there is nothing left for savings. Whatever it is that you are used to operating at, think about it, and then start to think about what would happen if you changed it.

When my business was very new, I knew I had to raise $12,000 a month to pay all my staff, my rent, and still earn enough to pay myself. That number was my focus and my obsession. Every decision I made was about chasing that $12,000 per month. Just when I was getting desperate that I wasn’t going to be able to achieve it, a big client who had been talking to me for many months decided to start their retainer service – and the number was, you guessed it, $12,000 per month.

That is just one of hundreds of examples I could share with you over the past 22 years in business around my set point, my focus on achieving it, and the exact amount of money coming that I needed. Enough, but never more than enough. It was only when I started focussing on…

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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,

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…

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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,

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,

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,