IT’S NOT TOO LATE FOR YOU

In my job, I meet all kinds of people, with all sorts of money challenges. In fact, one of the main reasons I love the public speaking aspect of my work is so I can talk to people, who after hearing me speak feel free enough to be able to tell me their stories – and some of them make my heart ache. From divorce, to death and everything in between, the stories people tell me about their lives and their money situations always inspire me to keep getting the message out there –  it is never too late to change your financial situation and your life for the better.

You only have to read the news every day to see stories of people struggling with higher house prices, rental increases and the cost of living. Also the fear that rising interest rates will tip people into mortgage stress – I saw an alarming headline that said a one percent increase would put 150,000 households in Sydney alone in financial distress. It is a lot to deal with on top of COVID, and can make you paralysed with fear about what’s ahead.

“But this inertia will not help your situation. The only thing that will help is action.”

There are actions that anyone can take which can improve your situation, but doing it will not be easy, and there is not one size financial solution that fits all. But there are levers you can pull to change your situation over time. Here are my top three that may at first make you shake your head and say no way, but I encourage you to think about them over time, and really see if one of them is appropriate for you.

1. Lower your overheads. By this I mean, how can you reduce your cost of living each month? If you think there is absolutely no way you can do this, then perhaps it is time to step back and look at your whole life objectively. Is your mortgage huge? Maybe its time to sell the house, get some cashflow back and rent. You can invest what you have and take the pressure off paying every month for a loan that is only going up. I know this is not the popular decision, but your mental health is the most important thing to keep strong, and if this is a long term way to do that, then it is definitely worth considering. Is it school fees that are draining you financially? Can you make the decision to move to another school? Again, none of these are easy decisions, but to really change your life and your money stress you must be prepared to think of things that you may believe at present you cannot change. And to do it before things get worse.
2. Get more money coming in. Easier said than done? It is achievable, but again you must be prepared to do things that you have never done before. Can you sell your car and take public transport? Can you sell things around the house on Gumtree? Can you take on a side hustle, even one as small as babysitting or pet sitting? There are a number of ways you can bring more in – it may mean sacrificing time, or items you thought you could not live without. It is surprising once you do, you see it as not as hard as you expected.
3. Invest in yourself for the long term. If you aren’t happy in your job, don’t have a job or need to retrain, now is the time to start thinking about what could be different. Can you start training in another field? Study an online course? Get work experience somewhere that could help you land a better paying job? Putting yourself out there and studying are not an easy path, but this investment will pay off for you over the longer term. Because if you want things to change, you need to put one foot in front of the other and start the journey. It is not quick, certainly not easy, but it can make all the difference for living the life you want, even if it’s five years down the track. Because while making change is hard, sitting there and waiting for whatever is going to happen is much harder.

There is always a light at the end of the tunnel, even if it feels miles away. Don’t be afraid to start thinking about what you can change to make your life better in the long term. I know you can. You just have to start.

You got this.