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The Fierce Girl's Guide to Finance

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The lazy girl’s guide to making money

One of the burdens of modern life is choice.

Choosing how to spend your time (Facebook, or read a damn book?). How to spend your working years (I’ve spoken to three friends this week about their career dilemmas). How to spend your emotional energy (obsess over 3% body fat gain, or not?).

And nowhere is this more prevalent than deciding how to spend money. So many things seem pressing or important.

We buy stuff because we are used to the instant gratification of retail therapy.

The pressure to look hot, young, thin and hair-free  sees us scooting into salons to address our perceived shortcomings.

And the social groups we move in demand a certain level of spending, on everything from dinners out to expensive hen’s days.

No judgement about any of these things. We are all at the mercy of these forces. (God knows I think far too much about botox on a bad day.)

A very tempting – and understandable – response to this is to minimise the choices we make. In other words, choosing not to choose.

This is not an ideal plan. 

You know the 80/20 rule, right? AKA The Pareto Principle. It says you get 80% of your outcomes from 20% of your efforts. (Nice easy summary of it here). Like, 20% of your wardrobe gets worn 80% of the time; 20% of the people in your company do 80% of the work. And so on.

The same applies to your money. Not in an exact ‘whack out your calculator’ way, but in a general sense of doing a few things right can have an outsize impact.

So, here I offer unto you: the lazy girl’s guide to doing the right thing with your money.

Tip 1. Start retirement saving early – The magic of compound interest means the earlier you start, the greater the gains and the less the pain. I know, super is boring and you have to pay of home loans and HECS debts and stuff.

But here are some amazing numbers. Laura is 30 years old and already has $30K in super. She’s earning $75K annually, and putting the standard 9.5% of that into her super. If she works for 30 years, she will end up putting just $213K of her own money into that nest egg.

But she will end up with over $1.1 million!

That’s because most of the money comes from compound returns – the light pink bars in the graph below. This is a simplified version of retirement saving: in reality, her salary will go up and down, and her rate of return will too. But it gives you the picture.

Now, if Laura puts in just a little extra – say 12% of her salary – she will end up with $1,321,429 – an extra $212,000! That’s a lot you can spend on a round the world retirement trip, just by putting away a couple of hundred extra every month.

MoneySmart.gov.au Compound Interest Calculator

 

 

 

 

 

 

 

 

On the downside, if Laura takes four years off work to have some kidlets, then she only has 26 years to work that magical compound interest. So, her total nest egg goes down to $791,566. Yep, instead of $1.1 million.

Again, that’s simplified, because the amount would actually depend which years were taken off, and where in the savings cycle she was up to. But it illustrates the reason there is such a huge retirement savings gap between men and women (like, close to 50% I’m sad to say).

So, the action points here:

  • Add a little extra to your super as early as possible – ask your payroll peeps about salary sacrificing.
  • If you are off work or going part-time, your spouse/partner can make contributions into your super and may get some tax benefits too. (Nice summary here)
  • Another option, if you’re on a low or part-time income, is to make an after-tax contribution of up to $1,000 to super and the government will contribute 50% to match it – up to $500. More on that here.
  • For goodness’ sake, please roll all your super into one account! Paying multiple fees and insurance policies is like standing in the shower tearing up hundred dollar bills. Most funds do it all for you these days, so pick your fave fund and get in contact. The difference at retirement could be tens of thousands of dollars!

Tip 2. Pay down debt faster – This applies to all debts, from credit cards to car loans. But I want to talk about the biggest, hairiest debt: your mortgage.

A quick play on an Extra Repayment Calculator shows that on a $400,000 home loan, paying an additional $250 per month would mean:

  • You save almost $52,000
  • You pay off the loan 5 years and 7 months earlier[i]

 

Think you can’t afford that extra money? I challenge you to find it.

  • It’s  you and your partner not buying a coffee every day (yep, for realz – $8 x 30 days = $240).
  • It’s cutting your grocery bill by shopping in bulk or somewhere like Aldi (did you read this post?).
  • It’s getting your hair done differently so you go every three months instead of every six weeks (I did this and it changed my life).
  • It’s putting on your big girl pants and not buying shit you don’t need, three times out of four (the fourth time, well, hey, we are all human).

Whether it’s a hundred bucks or a thousand, looking for ways to chuck extra money into your mortgage puts you so far ahead. You can either get out of debt faster, or leverage the equity you build up to invest in another property.

Find a better deal – On the loan mentioned above, you’d save $33,683.69 over the life of the loan, by moving from an interest rate of 4.04% p.a. to a loan at 3.63% p.a. (yes, these loans exist).

Plus, you’d be paying almost $100 less as the minimum repayment each month. That’s money you could either have in your pocket, or ideally, pay off as an additional amount.

Yes, refinancing means a lot of paperwork, but get a good broker and they do the hard work for you. Whatever you do, don’t pay the ‘lazy tax’ by staying in an expensive home loan.

Use your offset or redraw – These work in slightly differently ways but have the same effect: they reduce the amount that your interest is being calculated on.

If you think about it, 4% of $100,000 is much less than 4% of $150,000. So, you want to be paying interest on a smaller principal amount.

Redraw – this lets you access any additional funds you’ve paid above the minimum repayment. Say you’ve paid an extra $5000, you can get it out in an emergency (a real one, or ‘I need a holiday before I kill someone’).

Offset – the balance “offsets” the interest charged on your mortgage.  Say you have $10,000 in an offset and $300,000 on your loan, you only pay interest on the equivalent of $290,000.

It’s similar to the redraw but a bit more dangerous because it’s easier to access. Often a redraw takes a day to process, whereas you can have an offset mixed up with all your normal bills and banking.

Even if you don’t have a mortgage, you can apply a lot of this thinking to your saving.

For instance, look for better deals on the interest you get paid – or even look at other types of investments depending on your timeframe and goal. (Check out this post for some tips).

Track your money and expenses so you can find extra savings. And always pay yourself first. Just like you pay your mortgage repayments before everything else, your savings should go into a different account before you even see it, hold it or think about spending it. Ideally in a different bank!

Start early. Pay off debt. Sounds simple huh? It is in theory, but can be hard in execution. If you’re not convinced you can do it, maybe part of the challenge is to tweak your attitude to money.

May I recommend one or two posts I’ve prepared earlier?

Mindful spending – what it is and why it matters:

https://fiercegirlfinance.com.au/2016/08/28/mindful-spending-what-it-is-and-why-it-matters/

What’s holding you back from being Fierce:

https://fiercegirlfinance.com.au/2017/05/01/whats-holding-you-back-from-being-fierce/

That’s it. Now go forth and be fierce.

4 tips to help avoid a spending blow-out

Do you ever feel like there’s an devil on your shoulder convincing you to spend money?

I’m not sure if it’s the same devil who says ‘yes, you need another shot at 1am’, or just a close relative of hers.

Either way, these evil little goblins like to ruin your bank account or your Sunday morning. But we don’t have to give in to them every time.

There are ways to tame the devil on your shoulder when it comes to spending.

1 – Remove temptation – There’s a difference between allocating extra funds to your mindful spending, and simply giving in to bad habits. (If you haven’t read this post, I recommend it).

Mindful spending is where you think about what’s important to you or brings you the greatest pleasure. For example, I spend an outsize amount on fitness because it makes me happy and is good for me. But I don’t buy designer clothes or eat at expensive restaurants. I give myself permission to spend on the priority.

This is not the same as the ‘treat yo’self’ mentality. Buying an expensive pair of shoes is only mindful if you’ve previously decided that it’s part of your Mindful Spending Manifesto. You’ve accepted that expensive shoes make a positive difference to your life, and you’ve cut back on something else to allow for it.

Something that seems to permeate our culture is a sense of helplessness in the face of spending. Yes, shops are good at marketing. Yes, we all have moments of weakness. But unless you have a legit mental addiction (in which case, you should be in treatment),  managing our spending should be something we work on with the same fervour as we work on our diets.

So, if you love expensive shoes, don’t go into that shop. If you overspend on boozy nights out, don’t take your card with you – make a cash budget and stick to it. If you can’t be trusted on the ASOS website, don’t click into their newsletter – which brings me to the next point…

2 – Reject reminders – I’ve heard two different people say recently that their worst habit is getting a newsletter from their favourite store, then splurging as a result. “It’s my weakness”.

Well this might sound obvious, but how about you unsubscribe? I’ll admit, these stores are clever. You can’t go to any e-commerce site these days without being offered ‘15% off for subscribing to our newsletter‘. What a bargain you say!

Sure, give them your email and get the coupon. But that’s it! No more. As soon as their welcome email hits your inbox, hit that ‘unsubscribe’ button faster than a Kylie Jenner lipstick sells out.

And if you’ve already got a bunch of these emails hitting you up, then spend 10 minutes – right now – getting them out of your life.

While you’re at it, you probably need to unfollow them on Instagram too. I know, I’m mean. But will your life really be worse because you haven’t been invited to ‘shop the new season look‘?

3 – Get off the spending merry-go-round – AKA: avoid recurring costs.

I love a Shellac manicure with all my heart. Those colours! That staying power! But I have no Shellac in my life anymore, because that shit is a revolving door of gel polish, UV light and acetone baths.

Even if you just want it for an event, you have to go back a few weeks later to get it taken off. And then while you’re there, you may as well get a new colour … and then boom! You’re back on the spending cycle. (And the impact of acetone baths on one’s health is also kinda questionable).

The same can be said for a lot of hair and beauty treatments, but also things like those ridiculous subscription boxes. Like, you really need a box of random beauty products every month? Puhlease. Tell those charlatans who’s in charge of your spending, thank you very much. (Hint: it’s you)

4 – Get smarter than the finance companies – One of the wonders of modern life is how it thinks up new ways to make you buy shit you don’t need. We’ve moved on from the old-skool credit card.

Now, we have Afterpay and zipMoney. Sure you don’t pay interest (although there can be late fees). But it takes a purchase that’s otherwise unaffordable or ill-advised, and puts it within your reach.

It breaks down the mental barrier of ‘my cashflow can’t deal with this‘.

So my advice here is simple: don’t use them. Don’t sign up to them. Don’t create an account (or cancel the one you have).

At the very least, give yourself 24 hours to consider a purchase using it. You’ll be surprised how often you change your mind.

Another trap is the credit card balance transfer. ‘Move your debt to us‘, the banks say. ‘Pay no interest!‘, they say. And you think ‘right, this is the time when I stop adding to the balance and pay off all my debts’. 

If that actually happened, these things wouldn’t exist. It’s a trick. You sign up and spend more.

If you really are paying a lot of credit card debt off, and being slugged with interest, you get ONE GO of moving to a no-interest card. Then you ditch it. Freeze it, stash it with your parents, hide it somewhere. Whatever you do, don’t give yourself room to add to that card – all you’re allowed to do is pay it off.

And that, my friend, is how to slay the devil on your shoulder.

Photo credit: https://www.flickr.com/photos/devignelements/

You have 300 paydays left. Seriously. So, what’s your plan?

Last week, I ruined everyone’s Friday by dropping this truthbomb.

Seriously, if you’re in your 30s and plan to retire in your 60s, you don’t actually have many paydays left.

It’s easy to work out (if you get paid monthly). Pick your imagined retirement age, minus your age now, and multiply by 12. Because I have aggressive early retirement plans (and am kinda old), it’s an even lower number.

Yep, just over 200 times to wake up and feel rich for three days. 200 times to scour my payslip working out how much leave I have accrued. 200 times to go down Pitt St Mall feeling like a baller.

That’s not really many times at all, in the scheme of things.

And if you’re planning to take time off to raise kids, then you can minus out at least 6 of those paydays,  and maybe a lot more.

So, now that we have all had a moment to face reality, let’s talk about what we do with this information.

Running the numbers

Our time in paid employment is a gift. Not just to our smashed-avocado-loving selves of today, but also to our future, chilled-AF party selves. We are all Baddie Winkle, somewhere in the future, drinking with Miley Cyrus.

Instafamous nanna, Baddie Winkle

How do we do we achieve this? We take charge, that’s how. We do a mutha-effing BUDGET! Woot!

Ok I said that in an excited way because I know you’re about to hit snooze. But go with me here.

How to do a Budget that doesn’t hurt your head or induce anxiety

A budget is all about giving you data that makes you better at decision-making. And information is power! So, I recommend a combination of:

  1. MoneySmart’s great online budget planner (click here), which sets out all the costs you have right now. You can choose weekly, monthly or annual for each item, and it averages it all out for you.Then you can run it as a monthly, quarterly or annual budget. It even gives you a pie graph – awesome!
  2. MoneySmart’s TrackMySpend app (in the App store or Google Play) – record everything you spend, and I promise you shit gets real very quickly. You can just do it for a month if you like – but it gives you powerful data.

Once you have this data – a combination of ‘forecast’ and ‘actual’ numbers – you can make informed decisions. In particular:

  • What does it cost to be me?
    These are your fixed costs. A useful way to think about this is to have different versions – the ideal you, the average you and the bad you. Kinda like Kylie Minogue in the awesome video for Did it Again.

    My ideal budget is when I don’t buy three pairs of boots at the Wittner sale (they were super cheap) and don’t have Priceline accidents (when you go in for Panadol and come out with three new lipsticks). My average budget is when I actually do those things.

    And my bad budget is when I buy stuff I don’t need due to premenstrual angst or emotional turmoil. To be honest that version of me has been tamed  these days, so I usually fall into the first two. And my latest budget has Priceline accidents built into it.

  • What’s a reasonable savings goal? 
    There is no magic number for this. At least 10% is good, but if you have done your real budget (the average you) and there’s genuinely not enough left over, then do 5% or whatever. If you can do more, then happy days! The key is to do something.
    Also, it may not even be real savings at this point – it could be paying down bad debt like a credit card. Or, at the other end of the scale, it may be going straight into an investment like a managed fund or ETF (more on that here). In any case, it’s the money you allocate to being a responsible adult who does sensible things with your future self in mind.

And once you’ve answered these questions, you can feel more in control and less like ‘it’s all too hard’. Simples!

Bad at saving money? Here’s why – and what to do about it

I got asked today ‘how do you have the discipline to diet?’.

Since I was eating a Bounty at that moment, I’m not sure why. (To be fair, it was a piece of someone else’s Bounty, so there are obviously no calories.)

My response was that it’s easier if you have a reason. In my case, it’s so I can compete in powerlifting in a lower weight class.

It’s the same with money. Another friend asked me, ‘What if you just can’t save?’. To which I answered the same thing: you need a reason.

AKA: a goal.

Goals, I know! So lame and hard and too much like adulting.

I’m not a massive goal-setter myself, but I have forced myself to create some clarity about where I’m going. So then I know how to get there.

Just before you get bored and switch off, let me offer you a gift. We’ll come back to it shortly.

Click here to download your printable A4 worksheet

Why do you need a worksheet?

So we can put the ‘plan’ into financial planning.

I know, a lot of people don’t trust financial planners. There are good and bad ones, just like any other profession. We’ve all had a hairdresser who takes ‘just a trim‘ and turns it into ‘radical hair makeover so you look like a lesbian biker‘. (Don’t get me wrong, I love lesbian bikers – I just don’t necessarily want their haircuts).

However, I’ve been having a conversation with a mate who’s a financial planner, and he messes with my head because he’s all about ‘plans’.

I would ask him ‘should I buy a property to live in or invest in’ and he was all like ‘well, what’s your plan?’.

I don’t know! I’m in my late 30s, divorced, childless. So far, all the ‘plans’ I made 10 years ago haven’t really turned out.

But that doesn’t mean I can get away without one. Without some goals, I don’t know where to put my money or how much to save.

And if you don’t know the destination, how will you know the how to get there?

Sometimes, choosing the destination is the hard bit

People often ask me about what to with their money. I can’t  tell them specifically (partly because I’m not licensed so it’s illegal). But I do ask them ‘what’s the goal’?.

Is it  saving enough for a property? Is it having enough to travel? Maybe it’s just being a bad-arse with a backpack and a round-the-world ticket (oh hey Betsy, how’s Iceland?).

Tactics are useless without a strategy. And a strategy is nothing without a goal.

If you’re  like me though, you find big life planning stuff daunting at best, terrifying at worst. But don’t worry, Fierce Girls, I got ya.

I came up with questions to help you create some clarity. And then I made a fucking worksheet! I know, I am crafty AF.

Doing the worksheet

Now, you can do this and not necessarily come up with a special number. You know, a savings goal or something. That’s a topic for another day.

But you will think critically about the factors that shape your decisions. So the questions in the worksheet are (and you can totally pick the timeframe that applies to you):

  • Where do you want to be __ years from now?
  • What things do you want to experience?
  • How will you spend your time? Who with?
  • What will you own?
  • What is a must-do or must-have?
  • What can you give up or cut back?
  • What is the ‘why’?

When I did this exercise, I came up with a general plan that I don’t want to be a full-time, salaried employee much past my mid-fifties. I want to write books and hold workshops and coach people and be generally useful. I also want to travel as much as possible.

So that means I have about 15 years to build wealth, take holidays, smash a mortgage and sock away superannuation. Scary huh?

It also means I can give up expensive cars, too many clothes, and general unnecessary ‘stuff’. When I am considering a purchase, my decision tree is something like ‘Could I better spend this money on my trip next year?’ or ‘Wouldn’t I be better to chuck this into my mortgage?’.

Of course I won’t be perfect. But I have a plan and sense of direction. And then everything else is easier from there. Try it yourself!

Next week: The Track Your Spend challenge: finding where your money goes and working out how to save more of it. Yep. I’m gonna make another worksheet. It will be amazing.

 

The secret to guilt-free spending

Sounds too good to be true huh? Like the promise of diet cheesecake or hangover-free wine.

But I spent a whole day with a guy last week, who I can only call the Money Whisperer, and he explained how it was possible. Plus, he was so full of good sense that I had to share some highlights with you.

Steve Crawford, from Experience Wealth, has built a whole business wrangling the errant wallets of ladies like us (or me, at least). Gen X and Y, mainly professionals, often in media and finance. We all earn good money but somehow it slips through our fingers faster than we’d like.

So, he is a Money Coach. That’s actually a thing (that people pay for, not just me scolding you for free). I’ve told him he has to do an interview at some point, but in the meantime, let me paraphrase one of his concepts.

Banking – sooo boring. Or is it? 

I know, setting up bank accounts sounds so dull. But it’s all about earmarking money in a way that makes things more organised, and less tempting.

This is essentially how I do my banking, and while I am not perfect, it certainly keeps me in line. Steve has helpfully refined it and given it better names. I, however, made that fancy little graphic.

The Banking Buckets

These are the key elements:

Main account – your pay goes in here and pays all those annoying fixed costs, like rent and bills. You pay the Boring Bills straight out of here, with direct debits.

Storage – this is money you know you’ll need later, but not right now – in other words, short-term savings. This is the most ‘sensible’ account – the one that grown-ups have because they know car rego is due in January and they don’t want to put in on a credit card. I’d also argue this is the hardest one to nail – but still, we have to try!

Hot tip – have this one with a different bank, so you don’t see it and remember it every time you log on to internet banking.

Savings – This is the long-term stuff – the home deposit, the potential share portfolio, or the emergency fund (real emergencies like your car breaking down, not needing to buy new moisturiser so you can get the Clinique gift-with-purchase). This should be in a high-interest account with no card access – meaning you can’t get drunk and dip into it at 3am in the casino.

Spending – This is the guilt-free account. Sadly, you can only put money in there after filling up the other three. Sucks, I know. BUT – whatever is in there is totally guilt-free. Spend it on hookers and coke, if you feel so inclined. Jokes! We don’t need to pay for sex. Or coke, for that matter.

This account is like when your mum let you have ice-cream for dessert, but only after eating all your vegetables at dinner.

Once you’ve done the sensible things, then you do the fun things.

How much goes in each account?

That’s quite a detailed discussion for another time. But briefly:

  • make sure you work out the Boring Bills stuff properly – and don’t forget to shop around if they seem unpleasantly high
  • give yourself a decent Storage buffer, as that’s where the big costs often come from
  • be realistic with Savings – even just a little bit is far better than nothing at all
  • make Spending somewhere between what you’d really like to play with. and what you realistically can afford.

And if this all sounds like a great idea but you don’t where to start, you should give Steve a call. He will make rude jokes about Sydney people (he has a habit of saying #sosydney in conversation), but other than that, he’s the real deal.

photo credit: suzyhazelwood DSC01149-02 via photopin (license)

Don’t panic! Well, actually, panic a little.

I’ve been at the coalface recently.

Not literally digging up coal and stuff, but hearing the stories of everyday Australians and their money challenges. I now work for a large financial planning and mortgage business, so I see lots of different ways people are winning or losing the big Monopoly game of life.

So here are some things I really want to tell you.

We are entering uncharted territory, in terms of our economy and society.

We are going to have far more people, living far longer, with unprecedented levels of debt.

This sounds like a big, impersonal statement, but has a lot of implications for each of us as individuals.

For example, if you’re Gen Y or X, like me, your parents could well be retired for 30-40 years. They will likely spend their retirement savings on their holidays at first, then their general living expenses and then aged care (which is bloody expensive). We, their kids, will be lucky to get much of an inheritance.

Key takeout: We will have to look after ourselves one day.

We are buying homes later and paying more for them.

Australians are going to have mortgages for a long time, and many people will limp into retirement (or some form of it) with a debt.

This hit home to me when I was talking to the head of our financial planning business.

I’m trying to work out whether I buy a place to live in, and he’s asking me all these hard questions like ‘what do you want to do in 10 years’ (I don’t know, other than it probably involves Botox).

And then he said, well, what if you retire in your 50s? (Unlikely, I’ll concede, but my dad managed it at 53). Will you want to still have a mortgage? And then it dawned on me that if I get a 25-year mortgage I’ll have it in my 60s!  What the actual fuck.

Now of course I can get a small mortgage and pay it off sooner. But if I do the minimum, that means I’ll literally be in debt for decades.

The age people my age can access super is 67 (aka ‘preservation age’), so I couldn’t even tap into my super to pay off that debt until then. (Which is what people are doing more and more, then having not much super left to live on).

Key takeout: We should probably rethink our retirement age and smash our mortgages as fast as possible.

Maybe you can’t afford the home you want, right now. But you can probably afford a home you don’t like, in a few years.

I know, that’s confusing. Why would you buy a house you don’t like?

I have said before on this blog that buying property isn’t the ultimate be-all and end-all to life. Certainly that’s the case when we’re younger. But nobody really wants to be old and homeless.

There’s a growing group of under-40s who despair of ever getting into the market. But that’s because lots of us want to live in expensive places like Sydney.

One option is to buy an investment in a more affordable place – often regional cities – and sit on it for a long time. Most people who have ‘dream homes’ didn’t start with them. They upgrade over time.

The key is to do something, as soon as possible. What scares the hell out of me is the idea of not owning anything in old age.

I heard a customer story the other day about a couple, in their 60s, owing hundreds of thousands on a home loan. Their combined income was less than $75K per annum, both casual. They may never pay off their property. Or the husband might die and leave his wife on her own earning $19K a year. Yep, these are real people and I have no idea of their backstory. But I really don’t want any of my Fierce Girls to be in this position one day.

Which brings me to my final key takeout: Please start soon. Actually, start now.

Start what? Saving, being serious, investing, adulting, not wasting money on crap. The sooner you build a foundation of wealth, whether it’s a little share portfolio or a savings account or a cheap investment property, the sooner you are giving yourself a bedrock for the future.

And the power of compound interest means the sooner you start, the less painful it will be. Don’t put off the idea of wealth building, even if it  means starting small.

And if you’re not sure where to start, then have a look through the extensive Fierce Girl archives. Because the blog is about to celebrate its first birthday! Yay! So you have a year’s worth of fierce tips to work with. Enjoy! (Now that I’ve scared the shit out of you haha).

Photo credit: https://www.flickr.com/photos/cedwardbrice/ 

Top 3 tight-arse meals for the week before payday

As a tight-arse from way back, I hate spending money on work lunches.

And as a weightlifter, meal prep and Tupperware containers are 80% of my life. So I can teach you a thing or two about high-protein, low-cost meals.

First of all, let me just recap the numbers on work lunches. Say you buy lunch twice a week and it costs you $12 each time. You work 48 weeks a year, so that’s $1152 a year on burritos and sushi. If you cut that down to once a week, not only does buying lunch become a fun treat, it will save you nearly SIX HUNDRED BUCKS! You could spend that on shoes or investments or savings – whatever.

But I know, you don’t have time to prep lunches because you have kids/drinking sessions/work events/Netflix commitments.

So here are my foolproof ways not to end up in the food court, being fleeced for a bento box … especially if you have too much month at the end of your money.

The Ultimate Pantry-Freezer Lunch: Tuna Special

I thought everyone knew about this, but apparently not. And not everyone knows about the special secret ingredient either. It’s pretty simple:

  • A tin of tuna (I use the 180g ones, because gainz)
  • Mixed frozen vegetables (Aldi – $1.79)
  • Rice (you can use the microwave packets but I think they are wasteful and exy, so I cook a couple of cups of brown, black and red rice on the weekend – lasts a week in the fridge)
  • Secret ingredients: sesame oil and soy sauce

You chuck a handful of the veg in a container (to defrost during the morning) then add your rice, a tiny splash of sesame oil (seriously, go easy on this stuff, it’s really strong – no more than 1/2 teaspoon), and a small slurp of soy sauce.

At lunch, heat in the microwave for a couple of minutes, add the tuna, heat another minute or so. This will cost you about $2 AND make you feel super healthy and virtuous!

Looks way special, huh?

The Ultimate Make-ahead Freezer Lunch: Mince & Veg Extravaganza

I eat this for breakfast every day, but some people think that’s weird. (Those people haven’t been doing squats before work, obvs.) But it’s a great lunchtime option especially if you want a hot meal. It’s based on:

  • Beef mince (I use 1kg but you could use 500g if you’re a pussy)
  • 1 Onion

Chop the onion and cook it on medium heat. Turn heat up to full and brown the mince. Now add a bunch of spices. I don’t measure anything, but if I did I guess I’d use about 1/2 teaspoon of each:

  • Ground cumin
  • Ground coriander
  • Sweet paprika
  • Smoked paprika

And whatever else I feel like. Cook them up with the mince for about 1 minute. Then throw in (for 1kg mince):

  • 1 tin whole tomatoes
  • 1 tin crushed/diced tomatoes
  • Quarter or half a jar of passata

Again, you can play with these quantities. Just depends on how thick or saucy you like it. You can also skip the passata and just add more tomatoes. It’s all very fluid.

Then you add in all the vegetables (especially old, dying ones) in your fridge.You can throw them in a food processor or chop them by hand. I like some combo of:

  • eggplant (diced)
  • carrots
  • zucchini
  • broccoli (srsly – just chop it into small pieces)
  • kale or spinach (I often use frozen portions – $1 a pack!)
  • brussel sprouts (sliced or pulsed in the food processor)
  • mushroom
  • capsicum
  • choko (if you have an aunty or nanna who grows it)

Throw in a good pinch of salt and pepper then simmer for at least half an hour – til everything is soft (the eggplant seems to take the longest). Cool it down a bit (don’t leave it out too long if you don’t like salmonella), put it in little containers and pop in the freezer.

I use the dedicated Tupperware freezer range, but the cheap stuff or even snap lock bags do the trick. Then when you tell yourself you have no food for lunch, grab these little lifesavers and let them defrost all morning. Simples!

Also good for late-night, I’ve-been-at-the-pub dinners.

The Ultimate Lazy Girl’s Low-Carb Frittata

I’m almost embarrassed to tell you about this one, it’s so easy and cheap. It’s our old friend the Frozen Mixed Vegetables and a packet of frozen spinach.

  • Defrost the veg (in the microwave if you have one, on the bench for an hour if you have allocated the microwave nook to protein powder, like me)
  • Whisk up some eggs. It depends how big your oven dish is. I have a loaf tin that takes 8 eggs to fill. Just play with what you have. If it’s not non-stick, try lining it with baking paper to avoid egg mess.
  • Now I add some egg whites from a carton. You buy them from the fridge at the supermarket but they are always in hard-to-find places, and I end up asking.
  • Add a sprinkle of chilli flakes if you like them, into the eggs.
  • Lay the veggies out nicely in the dish and pour over the eggs.
  • Baking time depends on how deep the dish is and how many eggs. My loaf tin takes an hour. A flan or pie dish would be about half that.

 

cheap meals Before…netflix … And after

 

This version gives me enough for a 4 days of eating. Just depends how hungry you are. Have a side salad with it and it feels more satisfying (I’m talking some baby spinach and cherry tomatoes – nothing fancy or hard).

And that’s it my friends! No more excuses for not taking your lunch to work. Also, you will be healthy and feel virtuous – and who can put a price on feeling smug?

photo credit: gborin Hang on little tomato via photopin (license)

We’re all going to die – so let’s just talk about it here, then move on

That’s quite the dramatic headline, I know. But unless you’re a vampire like R-Patts, it’s true.

And if I said ‘hey girls, come over here and chat about life insurance for a moment’, you’d be about as excited as I was to watch three types of football this weekend (thanks to my brother). But unlike football, I can’t even tempt you with muscular men in very tight shorts.

So I promise to make this short and simple. (If you want a long read on this exciting topic, here’s one I prepared earlier). We’ll have a quick chat and then you can get back to worrying about Prince Harry’s mental health.

Imagine if you couldn’t work anymore. For a few months, for a year or two, or even forever. How the hell would you pay the bills? Your partner would? Ok, sure. What if he left though? What if he died? I know, I am a bundle of fun today.

Seriously though, if you got sick, or were injured in a car accident, do you think you future financial needs would be covered by social security? Maybe, but let me just say the disability support pension is about $400 a week. WTF? I legit pay more in rent than that. I would be in minus figures before I even had a crack at feeding or clothing myself.

So that’s why God (well, actually insurance companies) invented Salary Protection insurance (aka income protection). It pays you 75% of your current salary if you can’t work because of illness or injury. For example, I know a lovely lady who was diagnosed with breast cancer at age 30 and couldn’t work for six months. She didn’t have that insurance so had to rely on her family for support.

What if you’re in a car accident and end up in hospital and rehab for months on end? You may get some sort of compensation (or not) but that often doesn’t get paid till months or even years down the track. Good salary protection will kick in after a month off work and help to pay your ongoing living costs. Some policies cover you for up to two years; others until you’re 65. Obvs the latter one costs more, but could be worth it. (It’s what I have).

A good friend of Salary Protection is Trauma cover. This is a lump sum that you can get paid if you have some sort of accident or serious illness.  Think about how effing expensive it is to get even a bit sick these days – things like cancer or heart surgery are far more exy. Medicare and private health won’t cover all the costs of specialists, scans and tests. The bills don’t stop coming even if you’re off work. And perhaps you want to fly in family to be by your side.

Trauma protection gives you a pot of money to cover all the costs you face in a crisis, and gives you one less thing to worry about at an otherwise crazy stressful time. 

Total & Permanent Disability – This is one of the policies that often comes with your super fund – not for free, but the premiums come straight out of your savings, so you don’t really notice it. It’s a lump sum you can get if you really can’t work anymore. It’s not always easy to claim (given that it has to be TOTAL and PERMANENT) and can take a while to process even if you do, so trauma and salary protection can be useful to have alongside it.

Life insurance – this is really DEATH insurance but it’s not polite to talk about death, so it gets a turned into a lovely euphemism. Obviously it’s a payout to your partner/kids/family if you die. Also available in your super fund, but chances are you don’t know how much you’re covered for or how much it costs. Defo worth looking into and checking that.

Most people underestimate how much they need, because they don’t realise how many years it has to last for and how expensive life is. Even if you’re not the breadwinner, would your partner be able to pay for childcare while they work full-time? There are plenty of things like this to consider.

How to take action

At the very least, look at your last super statement and see what cover you have. Can’t find it? Jump online or call your fund – they can tell you. Think about whether you’d have enough to pay off your debts, and leave the people you love with enough to make them comfortable.

Ideally, you would talk to a financial adviser or insurance broker. (Click here for more about finding an adviser). They not only help you work out what you need, but they do all the shitty dealings with the insurance company – now, and in the event of a claim. It may not even cost you much, because they may be paid by the insurance companies. (Depends on who you deal with and how their business is set up).

But seriously, you are gonna die. And if you do get sick or hurt, the last thing you want to deal with – on top of that – is being broke. You insure your car, your home – maybe even your pets – so please, please insure yourself and your income.

 

Is doing nothing worse than doing the wrong thing with money?

Sorry to my email subscribers – this link got broken. Here it is again. I am not really that profesh after all.  

I want to confess something. I’m probably wrong.

Some view I hold, some article of faith, some strongly held opinion. It’s completely wrong.

Because you know what? We’re all wrong, some of the time. I was wrong about Trump being unelectable (me, and a bazillion other political junkies).

I was wrong about Beyonce being the only viable winner of Album of the Year at the Grammy’s. (Adele. Huh. Who knew).

And I have been wrong about the romantic suitability of more men than I care to remember (although some of them are burnt into my heart: from Doug the 15-year-old drop-out to Mr Darcy, the 40-something divorcé).

Nobody has all the answers – regardless of how much conviction they show when giving you those answers. (In fact, the more conviction the higher the chance they’re wrong).

This is really important to know when it comes to money, for two reasons:

1. You should run all advice through your own bullshit filter (mine included)

2. You don’t want to let fear stop you from acting

Let’s look at the first one. As a woman, you’re going to come across a bunch of people offering free advice about money. Your folks want you to buy property. Some bloke at work wants to mansplain why you should invest in shares. Some blogger wants to tell you to stop getting eyelash extensions  (oh, that’s me).

Some of it will sound legit. Some of it will make perfect sense. And some of it won’t sit well with you at all.

One of the best ways to increase the sensitivity of your BS filter is to find your own information. Read widely and get a feel for different viewpoints. And then …

Pay attention to the numbers

I work with a wide range of fund managers and they all have a different approach. Every time I sit down with them I totally believe that they have found the holy grail of investment theory. Most of them are indeed pretty good, but it’s their numbers that tell the real story. And those numbers show that some are definitely better than others.

Key take-out? Numbers don’t lie – always look at performance figures. And not just the last year, but the last three and five years – and longer if possible.

Someone can tell you that buying an apartment off the plan and renting it out is THE best way to make a solid investment. But it’s pretty easy to test that theory. Take the purchase price, and divide it by the rent it brings in. This is the rental yield, and it tells you a lot about the return on investment.

An apartment that costs $800K and is rented out at $500 per week, gives a gross yield of 3.25% (before costs such as maintenance and strata). Yield also doesn’t take into the cost of interest on the loan, so it’s a pretty blunt instrument to work out our return on investment.

The great unknown is how much capital growth it will get – i.e. how much the value will go up. Same deal with shares – you can broadly predict the yield on those (as dividends tend to be similar every year), but less so what the share price will do.

So like every decision in life, you have some things you know and some things you just hope for the best on. Everything we do is a calculated risk.

I bought a pair of navy suede ankle boots this week, and there is a risk that I might not get as much wear as I hope out of them. But I took a risk, because they are really cute and they were on sale and I have wanted blue boots for months.

(Side note, I broke my own promise not to go to Wittner. I have a problem).

Key take-out: you can and should run the numbers on an investment, but you also have to accept there is no perfect answer and no guaranteed outcome. You need to identify and manage the risk, through things such as diversification or building in a buffer. (Read this piece about risk if you are interested).

And this brings me to another point. When you are trying to run all these numbers, you may want some help. So, should you use a financial planner?

Probably. Like colouring your hair or getting a spray tan, you can do an ok job yourself, but you will probably get a better result with a professional.

It’s the same reason I pay a stupid amount of money to a powerlifting coach. Sure I could read a book on training, but that book isn’t going to stand in front of me and shout ‘knees out, chest up!’ when my form goes to shit.

So yeah, do the basics on your own. Learn some stuff, read a book or two, get your budget and savings sorted. But if you want to move up from messing around in the weights room to actually building some serious muscle, you need a coach. In this case, a money coach.

How do you find one? Well, asking other people is a good start. But if you don’t have any recommendations to go on, take a look at the FPA website.

But let me explain the industry a bit, so you know what to look out for.

Most planners will be attached to a bank, a big financial institution or something called a ‘Dealer Group’. It’s a complicated thing where they need to be part of an organisation that holds a license. The Licensee takes all the heat of the admin and compliance (there is a shit-ton of it in this industry). The people who work under this license are called Authorised Representatives.

So the person you deal with has some sort of network behind them, whether it’s a bank or a dealer group, and that institution may or may not want to sell you some of their products. What products? Managed funds, margin loans, life insurance, mortgages. Financial products.

Now, these may be right for you. Or there could be something better out there. If you get your make-up done at the Mac counter, they’re hardly going to point you over to the Estee Lauder counter are they? Well, actually there was this one time when the Estee Lauder girl at Nordstrom recommended the Smashbox mascara she was wearing (and it was awesome). So it’s all about finding someone with your best interests at heart, and won’t just push their products on you.

Luckily, there is a law that says they have to do this – i.e. act in the client’s best interests. So regardless of whether they have their own products, an adviser will generally recommend things from an Approved Product List – a list that their Dealer Group has checked out and made sure they are legit. It’s like going to Mecca Cosmetica or Sephora, where they just give you the best of the best regardless of brand.

Key take-out: Make sure you ask lots of questions about why they are recommending one product over another. Think about how long you spend choosing a foundation – and then maybe double it.

The important thing is that you do something. Don’t fall into the trap of thinking it’s all too hard, there’s too much to know, so you’d better not do anything. That’s how you miss out on building wealth, and instead just let your life run ahead of you and your goals.

So if you are a bit scared about getting started on the finance thing, here are some tips:

  1. Do some basic research. Google is your friend. Read Warren Buffet – he makes a lot of sense and is also one of the richest guys in the world.
  2. Speak to a few grown-up people you trust (and who have money) and get their input
  3. Ask around and find a professional you like and trust. You generally get a first session free, so if you don’t click, don’t go ahead. It’s like Tinder, but less awks.
  4. Use the process to think about your goals, priorities and plans. Then map your finances against these.
  5. Ask questions,  don’t be afraid to be annoying and demanding. If you can’t understand it or it doesn’t feel right, don’t do it.

And of course, you can always cruise around the Fierce Girl blog and enjoy its truth-bombs.

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