BLOG – Are we scared of money? (1 minute read).

Last week ABC News reported that 35% of Australians find managing their money stressful and overwhelming. 

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I agree. It is overwhelming. There are Apps, Books, Experts, Talks, Seminars, Blogs, Podcasts, Experts, Coaches, programs, events, courses, mentors and even Budgeting Butlers – they’re the people who manage your money for you!

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Research indicates that negative financial experiences seen and heard when we’re children shape our attitude towards money as adults. “The child may not remember but the memory does”. 

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In a recent workshop I asked women to share their thoughts about money. “Fear, Shame, Envy, Stress, Hopeless, Uncertain” were common answers. “It’s hard to know what to do first” the women said. I agree. 

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In 2014 I just – JUST – did what felt right for me. In Underspent Step 2 “I made a budget and sorted out my banking”. I kept it simple. I just:

  • Set up 11 bank accounts – replicating the jam jar or envelope system in the digital world.
  • Set up a monthly budget. So I knew how much money to put into each account (jam jar or envelope) 
  • Stopped using debit and credit cards. I locked away my credit card! 

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I wish we’d been taught how to set up the “envelope system” at school. I’m lucky I learnt it from my Mum, Dad and Gran. I wish “money” had been a compulsory subject at my school. Do you agree?

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Next steps – “March through your Mortgage” is this months Underspent challenge. Do you have a compelling reason or a burning desire to be mortgage-free? If so, could you, or will you, set up a Jam Jar or Envelope to save money to pay off your mortgage faster/sooner?

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Thanks for reading 

Until next week…