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The Fierce Girl's Guide to Finance

Get your shit together with money

Month

May 2019

What if you’re actually smarter with money than you think?

Do you ever read about finance and feel dumb?

Me too.

I know, I know. “If Chief Fierce Girl feels challenged by the murky world of money, what hope do I have?”. But stay with me.

It’s all about gatekeeping: if people make money sound complicated, then you will definitely need their expertise to help you, right? And pay for it, of course.

And look, investment can be complicated. I studied it, and it was haaaard. I might have cried a little while trying to calculate franking credits.

However, that’s the pointy end of finance. There’s also a soft, welcoming end that is actually not that complicated at all.

I summed it up when I introduced you to the Four Friends Who Will Make You Rich. (Read it here, it’s low-key one of my best).

And so it annoys me to see the tone of ‘talking down’ that seems to pervade the finance world.

It makes financial success seem harder than it is.

I came across this finance industry research recently, that claimed to be ‘alarmed’ by the poor financial literacy of Australians.

But when I read the questions it was based on, they were really tricky. They were phrased like those multiple choice questions in an exam where you question yourself,  freak out, and start worrying. Like maybe it’s A but what if it’s B and I don’t know if C sounds ok and maybe I’m just stupid and I should probably go home *. (*Actual internal monologue from my last finance exam).

Look, I agree we could do better on the financial literacy front. But it would also be good if the professionals would stop telling us how dumb we are.

What if they gave us a message of empowerment and encouragement?

What if they said ‘Focus on what you do know, boo, and go from there!’.

Well, they don’t have to, because I am telling you all of that. Don’t assume that you don’t have the smarts to nail your finances, because you totally do.  

In fact, here are some totally easy things you can do today (or tomorrow, if you’re tired. No pressure, take a nap if you like).

Save in your sleep. The easiest/only way to save properly is to do it before you get your sticky fingers on it. Set up an auto-transfer  into a savings account for the day you get paid.

Or see if your bank does round-ups, where it takes little amounts and stashes them away for you.

I know ING does, because those annoying Isla Fisher ads told me. I guess they work huh.

Invest while you spend. One step further to the round-ups mentioned above, apps like Raiz take little bits of your money and invest them for you.

I used to be in love with it, but it won’t sync to my Macquarie bank accounts so it’s kind of dead to me now. But if you want to dip your toe in the water of investing, check it out.

Some super funds do it now too, so check your fund’s website

Own your super savings.  Ok, it’s not a sexy topic, but a tiny bit of effort makes a big difference. With just one or two calls, you can cross that shit off your to-do list for years.

Step 1: roll your multiple accounts into one. If you’re paying multiple fees and insurance STOP THAT NOW. It’s literally throwing money away. And guess what, your primary fund will do the hard work for you. Call them up and ask! A friend of mine did it recently and was stoked with how easy it was.

How do you choose your primary fund? Fees and returns. But if you can’t be bothered reading a bunch of websites, the big industry funds like Australian Super, HESTA, REST, First State, Hostplus and CBUS are pretty competitive. You are possibly in one already from your days in retail or hospitality. Within those big players there isn’t a lot of difference, so don’t overthink if it means not making any decision.

When you speak to your chosen fund, you should also ask them about your investment option. If you don’t choose one proactively, you get shoved into the default.

Now I don’t know about you, but I am not a default kinda girl. I don’t want to be in the same option as 60 year old Susan.

Given my age (young and cool), I can tolerate more risk for the chance of more return. So I’m in the high-growth option. Your fund should be able to provide what’s called ‘simple advice’ to help you decide (for no cost).

I swear, just doing these things, and making sure they have your correct contact details), can make thousands of dollars difference to you when you retire. (I have a whole post about super if you’re really interested: click here).

So anyway, did you see what I did there – started off with a motivational post and snuck in a whole section on super!

I know, I’m tricksy. Sorry not sorry. But let me get back to the original point – making good choices with your money doesn’t need a degree. It is a series of small decisions, made over time. And every good one helps.

You got this, so go forth and be fierce!

Don’t get mad, get busy*

*Actually, get mad too. It’s fun.

Fierce Girls, I wrote a different post for you last week. But before I had time to post it, the election happened.

It didn’t go the way I’d hoped. I got together with a few friends to watch it unfold on ABC, and it was like the worst party ever. (Great food, wine and company notwithstanding).

But maybe you voted for the LNP Government, and hey that’s cool, because this is a democracy. It’s not a perfect system, but it’s far better than the alternatives.

In the same week though, Alabama passed some of the most punitive and backwards abortion laws in the world. If you’ve somehow missed it, this is some next-level Handmaid’s Tale shit.

Anyway, this is not an election analysis.

It’s about power.

Cynicism is our greatest enemy. And the antidote is activism.

I’m paraphrasing Billy Bragg, one of the greatest influences on my life.

I know you’re not ready to rise up in the streets and stuff, and I’m not saying you have to. Activism takes many forms.

So does power, and it’s not all in the corridors of Parliament House.

One way to wield power is through your wallet.

From nailing your bank account to reining in frivolous spending, money is one of the most effective ways to give the finger to the patriarchy.

Every dollar you earn and own is another way to increase your choices.

Every time you put money towards buying a home, investing for the future or creating a savings fund, you are putting more space between you and chaos.

Because if there’s one thing the powerful men of the world worked out a long time ago, it’s that money equals power.

That’s why I ask, nay implore you, to think about how you spend it.

I know this sounds like a feminist conspiracy theory, but anyway… The more we’re convinced to allocate our resources to beauty, fashion and anti-ageing, the more power we concede.

I’m not saying never have a facial. I’m not saying don’t buy a Fenty Beauty palette (because holy shit, it’s great).

I’m just saying that if you are spending hundreds of dollars on fillers and botox before you’ve set up an emergency fund, you are not stepping into your full power.

Or that if you have bought a new dress for every wedding you’ve attended, while your partner has rolled out his five-year-old suit again and again, you’re possibly not making the most of your money.

And if you would like to see Paris before you die, but you accidentally keep spending money on twenty-dollar cocktails and cabs home, it might be time to take a different approach.

A long time ago, my friend Gigi and I cooked up this great list of money-saving tips (which went low-key viral btw). Read it here.

And I want to give a shoutout to Gigi, because she is the Fierce Girl we all need.

Girlfriend packed herself up and moved to New York City eight years ago. She rents an adorable little apartment in the East Village with her cat Iris, living her best life as a single gal. Kind of like Sex and the City minus the designer clothes and poor choices in men.

And she has also been saving like a trooper, and is very close to buying her own apartment in Manhattan. #goalsAF

Gigi and I still have mad holidays together and go out drinking and make questionable decisions late at night. But we also respect the fact that we can’t have all the things, all the time. And so we make our own lunches, buy things on sale and catch public transport.

Anyway, this is a really long way of saying please take charge of your money. Do it for yourself and for the sisterhood. As Queen Bey says, “Best revenge is your paper”.

Perhaps make a Mindful Spending Manifesto and see if you can stick to it. That way you have more chance of reaching your short- and long-term life goals – regardless of whichever pale, stale and male PM is in power.

 

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