Having just attended my 20 year school reunion in Sydney (which was a wonderful trip down memory lane), it was good to hear that a few of us had the same philosophy. That is, in 100 years it won’t matter what car you drove, what house you lived in or the money you made. All that will matter is the legacy you leave behind through the lives you’ve touched. So this week’s tip is to look at the big picture. Chasing bigger things won’t necessarily lead to better lifestyle. Sometimes simplifying your life gives you more internal and external wealth, and more time than you might imagine.
Blog
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lesson 4
If you’d like to have a healthy relationship with your partner and your money, the first step is using the “C” word – communication! Money can be an emotional topic and often children believe money is a “very bad thing” because their parents fight over it. Please be conscious of the example you are giving. Generally couples fight over the lack of money as opposed to having too much. Having a lot of money can be a good thing in the right hands. And if you show love and affection, being grateful for what you do have as opposed to what you don’t, your children are likely to see that you can be wealthier on the inside and happier than someone who only has a fat bank account.
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Lesson 3
Having just babysat 4 nieces and nephews all weekend who are yet to learn the cost of living, I related money to fun with the eldest first (a 14 year old beautiful girl who of course feels she needs to spend $14 on hair straightener). We worked out this was 3.5 weeks of her pocket money (which shocked her) and ensured she didn’t waste the “beautifying product”.
Of course this can be used by any adult. Work out your hourly rate (after tax and Super / 401K contributions) and then compare your spending. For example, if you work 40 hrs per week for $400 clear into your account, then your rate is $10/hour. If you spend $30 you’ve just worked 3 hours for that purchase. -
Lesson 2
If you have others that delve into your wallet (ie you pull out money for children), work out the boundaries for your wallet and those others. For example, you may agree to pay for all school excursions while the child pays for any food bought that day. Of course they’d be able to take snacks from home if they chose. For younger children or partners who prefer visual aides [& let’s face it, men are more visual :-)], draw 2 circles. In one, place your name and place their name in the other. Then write down in each circle what each person is financially responsible for.
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Lesson 1
Welcome to a website designed to have you manage your money more effectively. Lesson 1 is look at your wallet. If you expect to have more money in it, what condition is it in? If it’s old & tattered then get a new one. Look after it, maintain it’s contents (ie no clutter) and keep a crisp note of the highest denomination you feel slightly uncomfortable with. That’s right – if having a $100 bill has you stressing too much then try a $50. Don’t spend it – just get used to having it there.
If you like this, let others know. There’ll be a new lesson each week. Don’t disobey Your Money Mistress. The consequences will be hazardous to your financial health!!