+34
You control your money, it doesn’t control you! And three important steps to get ahead.
There’s a certain tone, and maybe head tilt, friends give me when they want to talk about money. It’s usually accompanied by a: “Hey, Nicole”.
It often happens at trigger points in their lives – the points where most of us suddenly get serious, or at least curious, about savvy financial strategy. Graduating and starting work, getting married, definitely, having a baby, are some. Divorce, turning 50, the scary realisation you’re not far from drawing down your super and it’s looking sad, are others. No matter what the trigger, there’s a simple piece of advice I give first, before going into detail.
It’s this: You control your money, it doesn’t control you! A sense of empowerment versus impotence is vital, and that is especially so in a cost-of-living crisis where interest rates are going up and property prices falling. , although you have more influence over that than you may think. In fact, it’s possible you can make positive changes today.
Forget the Reserve Bank rates or shock taxes in the budget – the real financial obstacles to overcome may be inbuilt psychological saboteurs. Here , your childhood plays a big part. Think about your attitude to money. Is it an absorption or a reaction to your experiences and observations about money growing up: anxiety over bills, fights perhaps?
What about holidays or nice things? Maybe you had insufficient money to do fun stuff. Or our parents uttered possibly even more destructive words:“But we’ll do it anyway”. These formative experiences are subsumed into your own financial fabric, and you need to recognise that to overcome them.
Effective thinking for good wealth is the same as for good health. Start thinking of it like this and your finances may get more focused. You shouldn’t seek money for money’s sake, but for the options and opportunities it can bring you to create the life you want to lead. All of us need strong motivation to resist instant gratification – that’s a human condition.
The reality, though, is that some of us are better at a long-term focus than others. Successfully managing money is easier if you can project forward to the gain, not the pain.is the same as for good health. Start thinking of it like this and your finances may get more focused. Which brings me to the crux of the matter: How are you ever going toOnly the most disciplined person can stash cash purely for stashing’s sake.
The rest of us mere money mortals need a reason, and that reason needs to be so sweet you can almost taste it. That might be saving to take a year off to travel through Europe, buying a new car loan-free, or doing whatever floats your boat enough to mobilise and prioritise your money. Divide the cost by the number of pays in the interim period, to see if it’s feasible to hit your target date.
If your saving schedule isn’t feasible, you may have to delay a little. There may also be concurrent, competing goals requiring decisions about what to prioritise. And only at this point when chatting to friends about finances do I give specific money intel. Salary sacrifice into super.
Super’s tax treatment means more money goes in than you would receive in the hand. Start micro-investing outside of super. Fractional investment apps like Raiz and Sharesies let you regularly invest small amounts that you will barely miss. Left alone, returns quickly grow by harnessing the power of compounding.
And finally: automate your affluence. You can do this with all of the above points, by salary sacrificing to super through your employer or scheduling direct debits to micro-invest or pay down debt. Try to remove the possibility of life’s busyness getting in the way of your long-term goals. If you understand how to direct and determine your financial future, everything can be a bunch easier.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions. Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday.
Australia Latest News, Australia Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Why Australia's Dental Care Gap Costs Lives and MoneyA personal account of delaying wisdom tooth extraction due to cost highlights a broader national crisis where high out-of-pocket expenses force many Australians, particularly young adults and disadvantaged groups, to postpone essential dental treatment until conditions become severe and more expensive.
Read more »
For love, not money — Tasmania's elite eight ready to represent the mapHe's the 202-centimetre 17-year-old West Australian, who was the raging favourite to be taken at pick No.1 in next year's AFL draft.
Read more »
WTA Set to Achieve Prize Money Equality Across All 1000-Level Tournaments in 2027The Women's Tennis Association announced a landmark move to equalise prize money at every combined WTA 1000 event, starting in 2027, a step that will align the Italian Open and other major tournaments with men's payouts.
Read more »
Nicole Pedersen-McKinnon: You Control Your Money, It Does Not Control YouMoney columnist Nicole Pedersen-McKinnon shares the simple advice she gives friends at major life trigger points, covering financial psychology, goal setting, salary sacrifice, micro-investing and automation.
Read more »