Search

The Fierce Girl's Guide to Finance

Get your shit together with money

Category

Get a money mindset

Why investing is just like wearing false eyelashes: the pep talk you’ve been waiting for

A long time ago I bought a variety box from Sephora that came with a set of Huda Beauty false eyelashes.  I often looked wistfully at this wonderful creation.

If only I were that kind of woman. You know, the type who can skilfully apply false lashes and breeze out into the night.

Well dear reader, it turns out I am.

My friend Amara provided encouragement and coaching. I watched Huda herself apply them in an Instagram video. She made it look not that hard.

And so, with a wedding to attend, I figured it was now or never.

First attempt was clumsy. They seemed huge, I could feel them attached to my eyelids, and they obscured my vision slightly.

But by the end of the night, having consumed at least an entire bottle of champagne and taken about 347 selfies, I was telling anyone who’d listen that they had become part of me.

‘I’m actually a cyborg now: part human, part eyelash’. You’re dead right, I am an entertaining wedding guest.

Wedding Selfie no. 243

So anyway, I pulled them out again for Cup Day, because well, why not look good if work is paying for your lunch and booze?

Cup Day selfie no. 67 – please note my crown

This time it was much easier; they stayed in place easily and I quickly activated cyborg mode.

Then this week, I lashed up for a Fierce Girl photo shoot (more to come on this). By now, I managed to do it no-stress, first time and at 6am. Kim Kardashian, eat your heart out.

The reason I am telling you this otherwise tedious story, is that it proves a point about life, cosmetics and investing.

I had previously approached the issue with a lack of confidence. I was overawed. “I’m not the type of person who does that”, I told myself.

But I’ve almost mastered it now, thanks to gentle encouragement, online research and a first attempt that felt, frankly, clumsy and uncomfortable.

I also chose a quality, trusted brand. (Surprisingly, the $3 ones from Daiso are vastly inferior to the $40 ones from Sephora. Who knew?)

If you’ve thought about investing, but been overwhelmed by it, you should take heart from this story. And the next one.

I met a bloke at the ASX Investor Conference in Brisbane last week. I call him a ‘bloke’ because that’s what he is: a salt-of-the-earth fellow with a broad Queensland accent.

If this were a meme, the conversation would go:

Nobody:

Absolutely nobody:

Queensland bloke: You know what, I’ve made an average of 7% a year since 1999 by investing in shares.

Consider: if old mate had invested $10,000 back when Britney was singing Hit Me Baby One More Time, then added another $500 per month, he’d have made up to $285,000 by now. (That’s an estimate only and doesn’t allow for the sequencing of returns, but you get the picture).

If he does the same for the next 10 years, it could jump to over $600,000, thanks to the magic of compound interest. As the Backstreet Boys said in 1999, I Want it That Way.

 

Oh baby, baby, how was I s’posed to know that I should have been investing in 1999, instead of drinking cheap wine and flirting with boys?

Following this unsolicited disclosure, I asked my new friend some questions. He holds about 25 stocks at one time (pretty standard). He picks them based on broker reports, media articles and a good old dose of gut instinct. His best performing pick was Blackmores – bought in at $10 and it’s now over $200 per share. Part of his rationale? He saw the products in the pharmacy and knew the brand.

He also picked some dogs, like Slater & Gordon, where he threw good money after bad. (Nothing about investing in a law firm sounds attractive to me, but … each to their own.)

He lost a lot in the GFC, but hung in there and the portfolio recovered over time.

And that, my friends, is how you make money in equities.

I’m here to tell you, if old mate Queenslander who lived on a farm for twenty years can do it, you can too.

There are different ways to access listed investments. A fund manager can do it for you, you can buy a low-cost ETF, a roboadvice provider can hook you up, or you can just choose them yourself. I’ve written a whole post about it here.

The overarching message is this: anyone – including you – can build their wealth through listed investments. You need some baseline knowledge, a willingness to try and a good deal of patience.

You can always start small – exchange-traded products don’t have a minimum investment. (Well, technically buying one unit is the minimum).

Of course you need to be mindful of risk and time horizons. A rule of thumb is that shares suit investors who have at least a five-year time horizon. That allows the ups and downs to balance out over time.

And diversification is important. Old mate had actually lost money on the property he owned (it was in the country) so was happy he had his wealth spread across different asset classes.

Long story short, if I can nail false eyelashes, you can totally nail the stockmarket.

From Arts student to Finance nerd: if I can invest, then you can too

I’m the least likely finance blogger.

I dropped maths in Year 12. Messed up chemistry because ‘I didn’t know there’d be so much maths in it!’.

Picked a university course devoted to History, English, French and Latin. Because of course employers want to know if you can decline a Latin noun (I can, but it hurts my head these days).

The important point here is that contrary to popular belief, you don’t need to be good at maths to be good at money.

The maths can be handled by the calculator in your phone or the Excel on your computer. All those times spent crying over an inability to do long division? Wasted. (Serves me right for being such a geek.)

Having observed a bunch of people in the finance industry, and quite a few rich people, I can tell you there are qualities that make you good with money that have nothing to do with your grasp of trigonometry.

Let me share a few of these qualities.

Confidence.

This is the big one. In the finance industry, it often veers off into arrogance, and while that can make people insufferable in conversation, it does help them to take action. 

Let me be clear, I’m not talking about being reckless. What I’m advocating is a willingness to educate yourself, do your research, form a view and then take action.

As long as you’re following the basic principles of investment, taking action is generally better than doing nothing at all. (Basic principles like don’t put all your eggs in one basket, don’t chase ‘get rich quick’ schemes, don’t borrow more than you can afford).

You can always start small until you build your comfort factor. Basically, if you can operate with even half the confidence of a mediocre white man, you’ll be fine.

Curiosity.

There is no one, single way to get ahead with investment. Some people swear by property , others love a managed equities fund and some think ETFs are the way to go.

Personally, I think a bit of everything is good – it’s pretty much how I think about dating: spread the risk and reward, and avoid catching feelings for anyone in particular.

But the key is to do your homework. Read about the things you might invest in; hear from different commentators and sources; pick up magazines or newspapers that cover new topics. Always keep learning.

One of the world’s best investors, Warren Buffett, spends five to six hours per day reading five newspapers and 500 pages of corporate reports.

I mean, if I were that rich, I’d probably allocate at least half of that time to watching Rupaul’s Drag Race and drinking martinis* … but you do you, Warren B.

Clarity.

It’s hard to get excited about anything if you aren’t clear on the ‘why’. Too many of us just stumble around with our money, hoping for the best. Will we have enough stashed away for Christmas, next year’s holiday, or some far-off but vague retirement? Fingers crossed!

Ladies, I want you to be crystal-fucking-clear on what you’re trying to achieve. If you’re saving for a specific thing, write it down, give it a timeline, give it a spreadsheet.

If you’re investing for the future, get down and dirty with what that future entails. Is it a lifestyle? A destination? A few years out of full-time work to raise kids?

Whatever it is, the more you can picture it and feel it, the more motivated you’ll be to work towards it.

Right now, I’m in a period of transition, and my old goals are giving way to new ones. (Hot tip: you can always change your mind about your goals). So now, I’m focused on a short-to-medium term lifestyle goals.

When I was in Year 12, my bestie and I would keep ourselves sane during the HSC by picturing the cute outfits we’d be wearing clubbing (picture Sporty Spice circa 1996).

Right now, I’m getting pumped about the ability to wear jeans, feminist-slogan t-shirts and a pair of Air Max 90s from my (possibly-excessive) collection. The more I can push those smart, corporate Review dresses to the back of the wardrobe, the better.

Sure, wearing trainers isn’t everyone’s jam.

But that’s the fun of it right? We all have different goals and dreams and views on footwear. But having clarity about your own goals is one of the best damn motivators around.

And guess what, I even made you a worksheet to help you work out some goals. You’re welcome!

So there you have it Fierce Girls. The Three C’s of Getting Rich.

That’s totally just something I made up then by the way. But it sounds convincing and who doesn’t love a listicle, huh?

Long story short, you can get on top of all these investing stuff, with a bit of time, attention and a touch of fake-it-til-you-make-it attitude.

*Probably have already overallocated my time to these pursuits, to be honest. 

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.

 

Ever feel like finance isn’t your thing? It’s not you, it’s them

Sometimes I just can’t keep my mouth shut.

Working in finance, I’m constantly surrounded by a majority of men. It’s not my ideal but it’s a fact of life.

But last week I couldn’t hold myself back. I opened a financial advice industry magazine and was confronted by what I can only describe as a sausage-fest.

It’s an ‘industry roundtable’ organised by a major life insurance company. Don’t be fooled by the two women in the photo; only one was actually allowed to be part of the roundtable. I assume the other was rounded up to give some gender balance to the pic. FFS.

So I got fired up and emailed the editor to complain about this. Something of a risky move, given I have to pitch stories to him occasionally. But hey, when the feminist fire is burning within you…

He was actually great and accepted that it’s not a good look, and as I suspected, it was the paying client who made the call. He said they normally have a minimum 30% females at their events. I’ll take him at his word.

Anyway, it got me thinking about my Fierce Girls. No wonder so many of us feel like finance isn’t our thing. No wonder we don’t feel inspired to work with investment professionals, when they are largely white guys in suits.

In case you (or the men’s rights activists, who take a strange interest in this blog) think I exaggerate, check this out.

I went to two of the ‘go-to’ finance industry sites to get a feel for the visuals. Here’s a panel of ‘investment experts’.

Oh hey there white guys in suits. But wait, maybe I’m just picking one example. Here’s another.

I mean, sure there are more white guys in suits, but maybe I am just being selective. Here’s one more.

Don’t be fooled by the glasses or the bald heads; these are all different people. The only diversity is the depth of their tan and the choice of whether to wear a tie.

I’m not blaming the publication completely for this. These are the spokespeople that the investment managers put forward.

Anyway, just to round out the example and test my hypothesis a little more, I jumped onto another industry website. Here’s a list of the ‘industry expert’ articles.

You guessed, more white guys! Surprising, I know.

But I’m not just here to throw shade at the ingrained gender imbalance of the finance sector. Although that is fun.

And I have nothing against white guys in suits personally. (Let’s be honest, they form a significant part of my dating portfolio).

What I want to say is this.

If you feel excluded from the financial world, IT’S ABSOLUTELY NOT YOUR FAULT.

If you feel like money, investments and finance are complicated concepts, remote from your life, IT’S TOTALLY UNDERSTANDABLE.

If you don’t identify with the blue-suited, white-shirted men of the finance industry, IT’S COMPLETELY REASONABLE.

There are definitely smart and talented women in finance. I know a bunch of them.

There are wonderful female advisers and money coaches like Vivian Goh.

There are boss-lady investment managers like Catherine Allfrey (ok I don’t know her personally but she works in my building and I secretly fangirl her from afar).

There are great female executives running super funds like Deanne Stewart (I fangirled her at an event once, in person).

There is even an amazing woman on the Reserve Bank of Australia Board! I’d go so far as to say I know Carol Schwartz, but I don’t think she knows me.

There just aren’t as many of these women as there are men. And it’s taking aaaaages to address the imbalance.

In the meantime, what can you do in the service of smashing the financial patriarchy?

  1. Search out like-minded women and their businesses. Women supporting women is obviously the best way to start. There are so many great women, so ask around or get Googling.
  2. Be conscious of the bias, then ignore it. Feel totally free to reject the notion that finance is a white guy’s game. It’s totally open and accessible to women who want to get acquainted. Resources like the one you are reading are evidence of that.
  3. Call out gender imbalance when you see it. Like I did to the poor editor mentioned above, if you see events or articles or even companies that are far too male, comment on it. We accept the behaviour we walk past. Also, feel free to take your business elsewhere.

And if all fails, just create your own squad, Taylor Swift, Bad Blood-style. That’s my master plan. Are you in?

Just a conversation with a (very) sassy friend who has mastered the art of life

So that title is a quote about me. I love it, but feel a little fraudulent because I have definitely not mastered anything.

Anyway, it’s by the awesome Erika Jonsson, and we are having a bromance, but the girl version. (Why isn’t there a female version of that concept? Oh that’s right, because it’s socially acceptable for women to admire and be supportive of each other. Yasss gurrrrl!)

She interviewed me for over an hour and somehow made sense of my feminist ramblings, publishing it on the Six Park blog. So, here I am, spilling the tea. Enjoy.

WHAT WAS THE FIRST THING YOU REMEMBER SAVING FOR? HOW LONG DID IT TAKE?

I didn’t really get proper pocket money as a kid, but when I was 13 I started working at a printing shop for $5 an hour and I saved up for a boom box – it was a double-cassette plus CD player, so I could use it to make mix tapes. I reckon it took me about six months and I had it until well after I moved out of home, so it was a pretty good purchase!

WHAT PROMPTED YOU TO START THE FIERCE GIRL’S GUIDE TO FINANCE?

I was doing work on what was then called Money Smart Week, and one of the things they asked everyone to do was have workplace events. So I got a bunch of PR girls together and ran these lunchtime seminars preaching the gospel of superannuation and it went from there.

In terms of launching the blog, I started out treating myself as though I was a client and considering my objectives and channels. But perfect is the enemy of done, so I just ended up starting and building the site myself (which is why it’s not very fancy).

Not that long ago I was listening to Gloria Steinem in conversation with Oprah, and her advice was: “Do the thing that only you can do.” There are so many strands to unpick before we can get close to gender equality, but the thing that I can unpick is helping women realise it’s not unfeminine to be good with money. I want to change that thinking that says we’re all about spending. Money is at the core of how much power we have.

WHY DO YOU THINK EXPENSIVE SHOES (THINK LOUBOUTINS AND MANOLOS) HAVE BECOME SUCH AN IMPORTANT REFERENCE POINT IN TALKING TO WOMEN ABOUT MONEY?

My theory is that it’s women signalling success to other women. I think women are particularly socialised to talk about how we spend money but not about how we make it or invest it. But money itself doesn’t signify power; it creates power by giving you choices and opportunities. If you’re spending that money on shoes that aren’t even very comfortable, you’re not taking control of that power fully.

One of the things that troubles me a lot at the moment is the obsession with cosmetics and injectables and really expensive beauty treatments. I’m not judging women who use these services, by the way, but every time you’ve got a 26-year-old woman getting Botox, it’s a way to disempower her, because she’s now embraced a spending pattern that will last through her 20s and beyond. We’re talking about hundreds and hundreds of dollars being spent, mostly by women, who think this is what they need as a minimum to show up in the world. It’s fine if you have all the money – great, go get a facial – but don’t do that before you’ve paid your bills and set yourself up for a life that will give you power and opportunities.

FIERCE GIRL IS FULL OF GREAT POP CULTURE REFERENCES, INCLUDING ICONIC FILMS AND SERIES SUCH AS LEGALLY BLONDE AND SEX AND THE CITY. WHO ARE YOUR FAVOURITE CHARACTERS AND INFLUENCES WHEN IT COMES TO MONEY?

One of the biggest singers in the world at the moment is Billie Eilish, who’s quite androgynous, and I find that really exciting – she’s giving a different version of femininity that’s not all about crop tops or high heels. When it comes to money, though, the women I admire the most are probably Beyonce and Rihanna. They’ve kept control of their business decisions and their empires and they’ve flipped the narrative. I know that’s a very capitalist way to look at things but if women can take away even a small amount of the thinking that says money isn’t about what you can spend but about the choices and opportunities it gives you, we’d all be better off – we’d all be a bit more Beyonce, right?

YOU WROTE A POST ON SPENDING LESS AND SAVING MORE THAT WENT “LOW-KEY VIRAL” – WHAT ARE THE MOST POPULAR POSTS ON THE BLOG, AND WHY DO YOU THINK THEY’VE RESONATED THE WAY THEY HAVE?

The one I wrote about how to structure your bank accounts was wildly popular – it’s not rocket science, but it was a great simplification of how to think about things. By far the most popular ones, though, are the ones that are the most personal, including a recent post about the single biggest risk to your money. As someone who’s come out of a divorce, I’m fortunate to have an income and a career, but I didn’t come out of that situation in what I thought was a very fair way. If I could go back in time I would have protected myself a bit more. I think people really resonate with the authenticity of those kind of blogs. People connect with people, not instructions or tables – they want to hear stories.

(Erika’s note: one of my personal favourites, and the one that introduced me to Fierce Girl, is the Mindful Spending Manifesto, which doesn’t decree that you shouldn’t buy anything, but that you shouldn’t buy everything.)

WHAT WAS THE FIRST INVESTMENT YOU MADE OUTSIDE YOUR SUPER?

I’ve been putting extra into my super since I was 21 – though I lost a decent chunk of that in my divorce – and everything else has gone into my house. Other than a little Raiz account, I’m probably overweight in property! A lot of my wealth has gone into my home, but I’ve done that quite consciously because I do have a decent amount of super so I just really want to smash my mortgage while I can. When I feel like I’ve done that a bit more, I’ll probably go outside and invest in ETFs.

HAVE YOU EVER WRITTEN ABOUT BUYING FEWER COFFEES?

No! I’m not going to tell you how to write your Mindful Spending Manifesto! You need to decide what’s your splurge and enjoy it – then be clear about what you’re having and not having. You should see my premium spirits sideboard – there’s nothing on there that’s less than $70 or $80 a bottle, but I won’t buy cocktails at a bar. Everyone has their own thing that they have to work out. You shouldn’t have to feel bad about the things that make you feel good about your life, but you should put time and effort into thinking about them. Ask yourself whether the behaviours you’re engaging in bring you closer to your goals or push you away from them.

WHAT’S THE ONE THING YOU WANT EVERYONE TO KNOW ABOUT MONEY?

The thing I really want women to believe is that perfect is the enemy of done. There’s no perfect investment, there’s no perfect way of doing things – just do something. Don’t wait to be a perfectly informed investor – you don’t have to be Warren Buffett; there are so many small things to do like reviewing the dull insurance and consolidating your super. Get in there and have a go. You can always do a little bit better without having to be perfect.

Final note from Chief Fierce Girl: this isn’t a sponsored post or anything, but if you are wondering how to get started with investing, Six Park is totally worth checking out.

3 useful things to help you win the war on adulting

I’ve been adulting hard in 2019. I  finished a bathroom renovation and I got my car registered. Ok, maybe my dad took the car for a service and inspection, but I most definitely did the paperwork.

Anyway it got me thinking about what it means to be a fully functioning adult. Because even though I’m now 40 (wtf), I sometimes feel like a 21 year old, just trying to keep all that adulting, life-admin shit together. (Hence why my dad steps in now and then).

I don’t even have kids and I find it hard – so let me salute all the ladies out there who can deal with car rego and school permission slips (do they even have them anymore or is there some sort of app?). Anyway, I don’t know how you do it all.

But when it comes to money, I am doing ok. So I want to share with you a few things that every girl should have as a serious, responsible adult. This is not an exhaustive list, obviously, but it’s not a bad place to start.

1. A stash of emergency cash – An emergency is not a new outfit for a wedding that you forgot about. It’s your car breaking down and needing expensive repairs; it’s your hot water system exploding and needing immediate replacement; it’s getting out of a bad relationship that’s affecting your mental health.

The spectrum of reasons is wide, but the solution is the same: put at least a few thousand dollars aside with a different bank  –  so that you can’t see or easily access it in your everyday banking. Ideally, you want to have three months of living expenses in there. But if you can only manage a hundred or a thousand, do that and keep building a little at a time.

Some is better than none, so don’t let the ‘three month emergency fund’ rule keep you from getting on top of it.

2. A good banking or budgeting app – One thing I’ve learnt about money is that it’s a needy friend. Your bank account is totally NOT OK with sporadic texts and comments on her Insta posts.

She wants you to check in with her all the time, see how she’s feeling, has she been too busy, is she feeling sick, did someone absolutely flog her on the weekend at a bar around midnight. Ya know, the usual.

We really need to be frequently reviewing our spending, looking for cost overruns and also checking there are no suspicious transactions (cybercrime is real, y’all). Otherwise it becomes an avoidance thing of ‘God I don’t even want to look’. And a spiral of stress.

The next level of adulting to consider is a budgeting app that helps you set up buckets of money and lets you know if you’ve hit them. This is for the advanced level saver, and I know it’s not everyone’s gig. But something to consider.

When I feel like I’m getting a bit outta control, I track every dollar I spend (as per my new year resolution). I enter it into the TrackMySpend app, and it shows me where all my money goes. I like to enter it in manually  (as opposed to just reviewing my bank transactions), because it makes me think about each purchase.

In a cashless world, it’s easy to ignore exactly how much cash you’re dropping. So this is one way to create an additional mental barrier. (And yes, ‘Personal & Medical’ category, I see you and your outsize contribution. So what if I spent $400 at the naturopath? I haven’t even been to Priceline, so there).

3. A decent income protection policy

I know this is boring, but seriously, what happens if you can’t work because you’re really, seriously sick. Cancer, depression, an accident.

For a while there I was paying for this through my superannuation. Which is totally fine and if you do this, then great. I ended up getting a professional insurance review (for free, when I worked in a financial planning company). The outcome is a Rolls Royce policy that even pays my super if I can’t work. It’s very expensive, and I wince when I pay it every month.

HOWEVER, I am a single gal with no safety net other than my family, so I want the best. And then I hear about people like Kim, who beat breast cancer at 30 and had a double mastectomy; and is now battling cancer a decade later. Or the guy I met on the weekend (who is super cute and sweet, but that’s not relevant). He was in a car accident at 22 and spent four months in a coma before having to relearn pretty much everything in subsequent years, due to traumatic brain injury.

And I think damn, I guess I can afford it.

So, if you have an income, you should probably insure it. Talk to your super fund if you aren’t sure how to get started. (Also, note this is not the same as Life and TPD insurance that comes as a default; you need to add it yourself with most super funds).

Read more about the exciting topic of insurance here! We’re all going to die – so let’s just talk about it here, then move on

And that, my friends, is a completely randomly chosen list of things to help you win the war on adulting.

How much is enough? And other deep questions raised by Netflix

It seems like everyone is talking about Marie Kondo, the Japanese tidying-up queen. Her book even spawned a new verb: to KonMari.

Marie Kondo is now on Netflix, where she helps people who have become smothered by their own ‘stuff’, exhorting them to ponder each item and ask ‘Does this spark joy?’. (If it doesn’t, it’s out.)

I’m a fan of the concept.

When I left my marriage, I basically just took my clothes and shoes. Well, ok.  I also took the  Tupperware, the Le Creuset and my Mundial knife. A girl’s gotta cook.

I started again, and it was strangely liberating.

Yet how quickly we acquire more things. I’ve told myself no more kitchenware, but it’s hard. I recently gushed with envy over a friend’s omelette pan.

Which brings me to the a question I’ve been pondering for a while now: how do we know when we have enough?

Enough what, you ask?

Anything, really.

The big challenge of our modern lives and disposable incomes is simply saying no.

When you have money, there’s always more you can buy.

Maybe it’s one more cheap T-shirt. Maybe it’s another pair of designer heels. Maybe it’s one more eyeshadow palette, to get one particular colour.

Whatever your thing, you have the ability and opportunity to continuing indulging in it.

But there comes a point, hopefully before Marie Kondo has to step in, when it’s time to ask the question: is this enough?

It might be that you’re running out of space (or money).

Maybe you have so many Lorna Jane crop tops you struggle to rotate them efficiently (I hear that’s a thing, wouldn’t know myself).

Maybe your wife gets cranky at all the space your bikes are taking up in the garage (sorry dad).

Or maybe you just start feeling guilty about the impact you’re having on the earth.

I’ve been talking to people about this to get their view on this thorny topic.

I asked a girlfriend at work how many work outfits are enough. ‘Ten’, she replied. Two weeks of new outfits, then rotate again. ‘After all, a man normally has a couple of suits and ten shirts’.

The girls in the team nodded thoughtfully, then all agreed that was a preposterous notion. We could quite literally wear a new outfit for a month without duplicating it.

Which really gives you pause for thought. (And hopefully I have that pause, next time I’m in a changeroom.)

Pick your vices

My dad’s advice is to try and limit your number of vices to one. He has chosen bikes, and associated bike gear, as his vice. He claims to have culled to the very reasonable number of three. His wife remains unconvinced, but this is a woman with a chandelier in every room, so I’m not sure she’s blameless.

And if we all have our different vices, we also need to have things we’re happy to be a tight-arse about.

I have an obscene amount of fancy activewear, but use a Kmart handbag. My friend has an obscenely large collection of designer bags,  but buys cheap gymwear. We revel in judging each other about it.

It all comes back to mindful spending (more about that here). This is a concept that I have been spruiking for a while now. Amazingly, this week I spoke to someone who has adopted it!

She said it helps her when she’s having that moment in a store, for example, wondering whether she ‘needs’ a new top, or is just buying it for the sake of it.

But what I like about this approach is that it can actually give you freedom, not just constraints. Mindful spending helps you pinpoint those things that ‘spark joy’ and allocate resources that way. Guilt-free, by the way.

So there is no easy answer to ‘how much is enough?’, but there are definitely some road signs to help us on the journey to find out.

 

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.

 

Blog at WordPress.com.

Up ↑