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The Fierce Girl's Guide to Finance

Get your shit together with money

Month

September 2019

It’s Fierce Girl Finance’s birthday and I have some treasure to share

OMG you guys, can you believe I’ve been working on this thing for four years now?

On one hand that makes me feel like a loser, because I’m still not a household name.

Then on the other hand I remember how I took an awesome job, but had to pay the price of becoming anonymous on this site. It’s made it super hard to build a profile. Being, like, invisible and all.

Anyway, things are changing on that front – more to come in the next month or two. In the meantime I stumbled across this amazing video that started it all!

Big props to Mindy Gold who was my co-founder, before she up and moved to live the London dream.

Initially, Fierce Girl Finance was conceived as a video series. But then a) my co-host buggered off to ol’ Blighty and b) I remembered I am actually a writer.

Next year there will be more video content though, because really, not everyone wants an essay on asset allocation.

If you are still reading, I just wanted to share a few lessons I’ve learned in the past four years.

  1. Women want a positive space to talk about money. We want it to be friendly and and relatable. We don’t want to be lectured to or scolded for ‘wasting’ money. We want an empowering or inspiring conversation. (Hopefully that’s what y’all came here for!)
  2. There are many elements to ‘money’. It’s not just about investing knowledge, or getting your mindset right, or being a tight-arse, or taking positive action – it’s all of those things. That’s why I’ve built the content around these pillars. In the next website iteration it will be easier to find stuff this way.
  3. Success flows where attention goes. The Belinda you see in the video here is barely keeping it together. She was recently separated but still paying half a mortgage on a house she didn’t live in (plus inner-city rent). She had a long and grinding divorce fight ahead. She was going to lose a huge chunk of super in that process. But today’s Belinda has practiced a lot of what she preaches. She has no debt outside of a mortgage, she has savings that allow her to make some hard but exciting career choices. And she is much better friends with money now than she was then. The key has just been focus, focus, focus. That, and finally doing her tax returns.

So, as you can tell from all my lame cryptic comments, there are some changes afoot here at Fierce Girl HQ (like, my apartment, not an actual office).

I’m super pumped for it and can’t wait to share it. In the meantime, please wish the blog Happy Birthday, and enjoy the Bindi and Mindy show.

The ultimate ‘get started’ guide to investing (and stuff)

So, you’ve made the decision.  It’s time to put on your serious-lady-suit (Romy and Michelle style) and get busy with money.

Whether daunting, exciting – or both – you need to start somewhere.

And that’s where it can come undone. What do I choose? How do I choose? What should I ask?

All very good questions. I can’t promise I will answer all of them, but let me give you some starting points on your journey.

I want to invest in ETFs

Exchange-traded funds are a popular, low-cost way to invest in a range of asset classes, from shares to bonds. I’ve written more about them here.

If you’ve done your research and want to get started, first thing you need is a broker. As the ‘exchange-traded’ name suggests, ETFs trade on the Australian Securities Exchange. While the days of guys shouting at guys on chalkboards are over, brokers still need to do the trade for you. There are lots of well-known online ones like CommSec, but the nerds in the forums I hang out in reckon Selfwealth is the cheapest.

Speaking of brokers – a great opportunity to appreciate Leo in Wolf of Wall St

If you don’t want to go down that road, you can consider an app like Raiz or a Roboadviser (see below), and they do that part for you.

In terms of choosing which ETFs, you really need to spend some time with your friend Google.

I want to invest in a Managed Fund

Rather than buying or selling units on the ASX, like with an ETF, you apply for units in a managed fund, directly to the company. There is usually a form to fill in (online or paper), you give them money and they give you units in the fund.

There is also an ASX service called mFund, which allows you to bypass the old form-filling grind. It does require a broker or financial adviser though – so if you have neither of those, probably not worth the effort.

In terms of how to choose a managed fund, it’s kind of like saying ‘how do you choose a dress?’. Do your research, have a clear idea of what you want, keep a keen eye on prices (fees), and get recommendations from friends. There is a handy tool on the mFund site to get you started.

Pretty sure Gaga did some solid research on this dress.

I want to get Financial Advice

First up, be clear on what you want and how much you want to spend. (This post may help).

Money Coaching – this is the mani-pedi of the advice world. It helps you with goal-setting, budgeting, cashflow, saving, and everyday money goals. It’s more like a life coach, in that it’s not regulated by ASIC and they can’t legally tell you what to do with your savings – they mainly help you accumulate the money. Sometimes they have affiliated services to take you to the next stage.

I see a lot of people who think they want financial advice, but really want money coaching. It’s way cheaper because there isn’t a bunch of expensive compliance sitting behind it.

People like Vivian Goh are leading the charge in this area.

The most iconic manicure of them all

Robo Advice – Let’s call this the fractional laser treatment of advice: yay technology!  These services use powerful algorithms to give you an investment plan. You tell them your goals, and the friendly robot builds a portfolio to achieve them. Stockspot and Six Park are two of the bigger players in Australia – they have lots of helpful articles on their websites, with more information.

Comprehensive Financial Advice – This is the full day spa treatment of advice with a price to match. It looks at your whole financial picture: goals, retirement planning, risk tolerance, tax issues etc. But it takes a lot of time and compliance on the adviser’s side, so you’re looking at upfront fees or $3000-4000 or more, with the option of ongoing service (and fees).

How to find an adviser? Check out this post. 

I want to sort out my super 

Sorry but this is the only pun that makes super interesting

So, you want to merge multiple accounts, check your insurance, review your investment options or generally find out WTF is going on with your retirement savings (yeah girl!).

Call your main super fund. If you want to roll multiple accounts into one, the fund will do the heavy lifting for you. If it’s other questions, they are generally pretty helpful and can often provide ‘limited advice’ at no cost.

Don’t know which one you should pick? The big-name industry funds are pretty solid, but you can also check out this website for more information.

Fear, failure, shame: are there red flags in your relationship with money?

Money is never just money.

Money is feelings.

Money is fear or worry or failure or shame. It’s hope or excitement or success or freedom.

It’s a currency that we use to communicate things.

How much you spend on a gift reflects how much you love someone.

How much you spend on a wedding reflects your standing in the world.

How much you spend on a car reflects how successful you think you are.

It shouldn’t, but it can.

Money is never just money.

It’s wrapped up with how you feel about yourself and your worth and your future and your past.

I wonder if that’s why women have a complex relationship with it. We are often in our feelings.

It’s why opening our banking app is rarely a neutral experience. It’s not like checking the bus timetable. We open that app and we feel things.

We hope there’s enough money in there. Or we feel happy there’s more than expected. Or we feel satisfied with our savings. Or we feel disappointed with our spending habits. Or we feel ashamed that we aren’t where we think we should be.

How did you feel last time you thought about money?

Was it this morning, when your inbox had a bunch of emails about the new season collections from a bunch of stores? Did you feel desire? FOMO? Annoyance?

Was it last night, when you had to pay some bills for super boring stuff? Did you feel annoyed about the pain of adulting?

Was it yesterday, when your kid’s school told you about the next thing you have to pay for (excursions, costumes, sports, devices)? Did you feel exhausted?

I think it’s useful for all of us to identify and unpack some of the emotions behind our finances. My hunch is that many of them are negative. And is there any better way to turn your emotions around than to feel them, speak about them, hold them up to the light?

How about I tell you some of my feelings, and you can think about yours. 

If I had to pick two words that I associate with money it would be: fear and safety.

The fear is about not having enough to do the things I want, to live the way I want. I don’t really know where it comes from. Maybe my family. My dad was a successful lawyer with a tendency towards impostor syndrome. He was always looking at the downside and planning for it. (What if he lost his job etc.)

Maybe I picked up some of this; maybe I was just born with it. Either way, I’m scared of not having money, but on the other side of fear is safety, and that’s what I aim for.

I would much prefer to have money in the bank and a good income, so I can plan against the slings and arrows of outrageous fortune. My ex used to accuse me of being obsessed with insurance; I’d argue there are worse thing to be obsessed with. But he’s not wrong.

I’m not saying this is the only feeling I have about money, but it’s kind of the bedrock to everything else. I prefer not to buy expensive things for the sake of it, because that money could be better used to shore up my safety barrier. It also means I experience guilt when I do spend, because I feel like I’m chipping away at that barrier.  Guilt is a default setting with me though, so it’s not that big of a deal, and I do still spend money on shit (hello new Mecca palette!).

Overall, this emotional relationship to money has worked well for me. I was able to leave a marriage and land on my feet, financially, because of the decisions I’d made. I have a manageable mortgage and an old car, because I have distaste for debt. It means I can take some career and income risks at this stage, because I’m not a slave to a giant black hole of home loan and car debt.

Sit down and check in

I encourage you to think about how you feel towards money. I see a lot of people, especially women, feel shame about it.

They’re ashamed because they don’t feel in control, think they spend too much, or don’t know enough about it. They think it’s somehow their fault – when in fact society has done literally everything possible to make them feel like this – from not socialising us to discuss money, through to telling us we are ugly and fat if we don’t buy products to fix ourselves.

So please, sit down in a quiet moment and list your emotions about money.

See if you can unpack them a little. Do they stand up to scrutiny? Are they serving you well? Or are they holding you back?

The good thing about feelings is we aren’t just stuck with them. We can always change them, with some work. Time to have a long chat with money … and show it who’s boss.

 

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