Search

The Fierce Girl's Guide to Finance

Get your shit together with money

Category

Uncategorized

Tight-arse, tree-hugger tips to save money and the planet

I mentioned to a friend how infrequently I use my air conditioning in summer and she asked, “Is that because you’re a tree-hugger?” (Said in a loving way).

I realised that was a big reason, but also, I am a cheapskate and hate paying power companies. So when I thought about it, I figured the tight-arse and tree-hugger elements were 50-50. Things I do to reduce my environmental footprint also save me money, and vice versa.

So,  I’m sharing some of my all-time favourite products here. Like Gwyneth Paltrow on The Goop, but cheaper and less vaginal steaming (although… read on).

Tupperware Ventsmart

Absolute number one in the war on waste is a set of Tupperware ventsmarts. You can pop your celery in here and it stays crisp for three weeks. Legit! Mushrooms don’t go slimy or wrinkly, but instead keep for a couple of weeks. Salad mix takes at least 10 days to descend into that weird slimy state that happens in two days in its bag.

Honestly, these things are your saviour when you have the best of intentions, but accidentally get Grill’d for dinner instead of making stirfry.

Image result for tupperware vent smarts

Now before you tell me these sets are expensive, let’s talk about investments. You drop $100 on a set of these and they last a lifetime. Literally, they have a lifetime warranty. And you will have made that money back in the first year, just on the amount of dead veggies you haven’t chucked out. Fruit and veg take a lot of energy to grow and transport, and then they take a fair bit of cash to buy.

So if you want to avoid wasting both, pick yourself up a set (or three, which I have. And I live alone).

If you can’t stand the thought of having a Tupperware party (your loss, cos they are the best fun ever), I can totally hook you up with an awesome Tupperware lady who will send some to you. I’d also pick up a silicone baking sheet while you’re there, and you’ll hardly ever need baking paper again.

Norwex Make-up Removal Cloths

I have railed against the use of disposable makeup wipes for a long time. So wasteful! Except if you’re really drunk, maaaybe. As an alternative I used the little baby face washers you buy in the baby section of K Mart or big W. They come in a pack of 9 so you just use it once or twice then wash it with your towels. Simples!

But I could never get around using cotton pads for all my eye makeup, which is pretty full-on most days. Until this little cloth changed my life! One cloth takes off your foundation and eye makeup with nothing but water. You don’t even need to buy cleanser.

Norwex is a company that makes a bunch of chemical free cleaning products, and they are da bomb, I promise. They have parties, in the vein of Tupperware, but you can also order directly from a consultant. You won’t be surprised to hear I have a Norwex lady, so I can hook you up there too.

I subsequently found out that Enjo has a similar makeup product that won some award – I have used it and it’s also very nice but I already have my Norwex, sorry Enjo.

Olive oil spray bottle

I am obsessed with roasting every veggie ever. If you haven’t roasted Brussels sprouts you haven’t lived. They are best done with olive oil spray, but those spray cans you buy at the supermarket last about three seconds before you have to bin them. Plus I am very suss about the quality of the oil in them.

So my dad bought me one of these from the fancy kitchen shop in Leura and it changed my life! (Don’t know the brand but it is similar to this one).

Image result for olive oil spray bottle

You pump it to build the pressure then spray it on. Not only can you use the good oil, you can infuse garlic or herbs or chili. Get yourself one of these and you’ll never be ripped off by those cans again.

Moon cups and Thinx underwear

One of my feminist principles is that women shouldn’t be shamed about our bodies and their natural functions. Which means I talk about periods. I actually take some small pleasure in annoying men about it, but that’s incidental.

Anyway, I wanted to get tampons and pads out of my lady garden. Not only are they hugely wasteful, they are full of chemicals. I now use a combo of a JuJu cup and these amazing period underwear that honestly look like normal undies.

Some women can use a cup on its own but for whatever reason, it doesn’t seal 100% for me. I won’t go into the detail of how it all works, because others have done this for you, but I will say this: you can stop paying for feminine hygiene products. Never again grudgingly hand over your hard earned money for the pain of having a period.

And if you’re squeamish about seeing or touching your own blood, I say get over it. We can never truly own our feminist power if we think that what our bodies make is shameful. Like, maybe you don’t have to sing the flow song, but you get the drift.



Make your own stock

Ok, this is less about saving money and more about not wasting stuff. But have you ever made your own stock? It’s the best! And now it’s actually trendy because it’s called bone broth and Sarah Wilson champions it. But it was cool when my grandma was around, so Mary White is actually the original hipster.

Next time you have a whole roast chicken (if you don’t, you’re missing out), save the carcass. Maybe freeze it and wait til you have two, depending on how much you want to make. Save veggie scraps or just throw an onion and a dying carrot or two in there (if you even have any after purchasing your Tupperware !). Add quite a lot of salt – at least a teaspoon – and herbs, even just the mangy old herb stalks.

If you want beef stock you can ask the butcher for soup bones – a marrow bone cut up smaller is good. I take a strange pleasure in watching the butcher cut them up on a band saw. Is that weird? Anyway if you get charged more than five bucks for them the butcher is ripping you off.

The process is the same as for chicken stock, although you may want to skim the fat off after it cools – it solidifies, so that’s easy. I chuck mine in a slow cooker but you can just simmer on the stove too, for a good few hours.

The worst bit is pulling the bones out at the end and straining it all (I always manage to spill some). It’s easier to strain it all into one bowl then divide into smaller containers for the freezer. Or even zip lock bags if you can deal with the plastic guilt.

The stock is great in soups and curries and also for generally feeling smug about life. Like, when people say they use stock cubes you can look at them with disdain, then talk about gut-healing bone broth.

So these are my hot tips. Shout out in the comments if you have any more!

photo credit: PeterThoeny Follow the stairs into spring via photopin (license)

The three numbers you need to care about

When they tack sport onto the end of the news bulletins, I have an uncanny ability to tune it out. Not on purpose – I just have zero interest in who sportsed harder than the other.

I’ll bet you do that with the business news too. You legit don’t care about the price of gold or Texas crude oil. You don’t care that the All Ords was down 4%.

I get it – even I only listen with half an ear. (Daily movements don’t mean much – it’s all about the trend lines.)

But there are some numbers in the world of economics that have a real impact on you and your life.

Keeping an eye on them not only makes you smarter, it helps you make better decisions.  So here is a list of numbers I watch and care about, even as someone who can barely use Excel. (Seriously, I can’t even do formulas – it’s like some sort of learning disability).

GDP Growth – This is a simple number with a huge amount of stuff sitting behind it. It’s kinda like saying ‘This is a smoky eye’ when actually this is 20 minutes, five make-up brushes, eyeliner, mascara and probably some swearing.

Gross Domestic Product Growth is a sign of how well the economy is doing: what business is up to; how productive people are (every time you check Facebook at work you are hurting the economy. JK! Well sort of); how technology is making things more efficient. You don’t need to know each thing, but you do need to know the effect.

When the economy is growing, things are pretty good. There are lots of jobs, people spend money, investments grow in value.

If the economy is going backwards, it’s called ‘negative growth’, (an oxymoron in my view, but a thing nonetheless). This is VERY BAD for jobs and general chill levels.

GDP growth is measured every quarter and if you have two consecutive quarters of negative growth, that is a RECESSION.

Now the weird thing (in a good way) about Australia is that we’ve now had over 100 consecutive quarters of positive growth. While all those Europeans and Americans had a post-GFC recession, we didn’t (see side note below).

But it hasn’t been amaaazing growth either, which is one reason why the Reserve Bank has cut interest rates so many times – to try and pump up the economy by making it cheap to borrow and invest.

Unfortunately, most of that borrowing and investing has been by consumers and not businesses. Hence the housing market has gone bananas, while business investment levels have fallen off a cliff (here are the stats if you’re interested).

The reasons behind that are complex, but I think it’s partly a risk-averse corporate culture, and partly because shareholders are demanding big dividends instead of putting profits back into the business.

Side Note Why politicians matter to the economy – if you aren’t interested skip to the next section.

Remember K Rudd sending everyone some free money in 2008 (the ‘stimulus’ program)? That was to avoid a recession. The idea is that if everyone keeps spending, the economy will keep growing.

Sounds simple right? And it is, if you believe my friend Keynes (he’s my friend in the way Beyonce is – we don’t actually hang out. Also, he died in 1946). Keynes says if consumers and business stop spending then the government needs to step in and spend instead. Or give consumers the cash to spend (hello K Rudd!).

The alternative approach is where the government cuts spending to the bone – called ‘austerity’ – and then hopes for the best. It’s been proven to be totally fucking useless and just sends countries into deep, long-term unemployment (see Greece, as an example).

But the weird thing about economic policy is that governments often do stuff that has never been proven to work, because it’s based on the ideology of the people in charge.

Like, tax cuts for business and rich people have never been proved to trickle down to the rest of the economy, but Malcolm Turnbull and Donald Trump fucking love them anyway because they love business and rich people. OK, end of side note.

Inflation – measured as the Consumer Price Index (CPI), this tells us how much prices have moved. They take a ‘basket’ of goods and services – food, clothes, school fees, petrol etc – and track how much people are paying for them.

Some prices go up – hello, glass of wine in a bar! (I paid $13 for one the other day. I nearly vomited). And other prices go down, like TVs and clothes from H&M.  When they are all added and averaged, it gives us the inflation rate – most recently 2.1%.

Why does this matter? Well every time things get more exy, the money you have in your hot little hand is worth less. So you don’t want inflation to be too high.

But if it doesn’t grow at all, it’s a sign that the economy isn’t healthy, so you don’t want it too low either.

Tricky huh?

The Reserve Bank has decided the ‘just right’ level of inflation is 2-3%, so this is the their ‘target inflation band’. If the rate falls below it, they might cut interest rates (see why this stuff matters!).

Or they might not, depending on what else is going on, like house prices going crazy.

TBH, the Reserve Bank has a pretty tough job. Their overall goal is to keep the economy humming. But it’s harder than doing a wedding seating plan. Like if you put that cousin with that friend, they will argue about Trump. And where do you put that lone friend who doesn’t know anybody? Should you put all the single peeps together, or is that telling them they are non-married losers who should be separated from society?

Well that’s how the RBA feels when they try and balance inflation with house prices, growth with avoiding a bubble, stimulus with fairness. And worst of all, they only have ONE TOOL for doing this: interest rates. Up, down or on hold.

And that’s why inflation matters – not just because it affects your spending power, but because it drives interest rates. If you have a mortgage, that matters.

And if you don’t, it still matters, because it affects a) the price of the property you might buy one day and b) the investors buying the property you rent.

Wages Growth – This is very closely related to unemployment, and right now, these two numbers are not good friends. They grew up as besties – doing the same stuff together. When unemployment was low, wages went up. That’s how they rolled.

But in the past few years, they’ve really started going separate ways. One of them likes raves and EDM, the other is into Indie bands at pubs. One of them is vegan and wears recycled fashion, the other is shopping at Forever 21 and gets eyelash extensions.

Don’t believe me? Check out this RBA graph – see where they diverge and also how damn low wages growth is now.

Image result for wages growth unemployment australia 2017

What’s changed is the amount of UNDER-employment – people who want to work more but can’t find the hours. They stay out of the headline unemployment rate but are still economically disadvantaged.

Which is a long way of saying that the economy is complicated, yo.

You should care about wages growth because it relates to your market price as an employee. On a national scale, it’s getting harder to march into your boss and ask for a payrise. So you need to make sure you stay relevant and in-demand, and that you’re acquiring new skills that increase your value. You may also need to be realistic about your payrise expectations (soz).

The Upshot

I know, that was a long and detailed foray into economics. And hardly any celebrities to break it up (well, we had K Rudd and Keynes, I guess).

But I want you to know that this stuff matters. It’s not just numbers on the news; it’s stuff that makes a genuine difference to our lives and should affect our voting decisions.

There are actually tons more cool figures I could have included in here, but hopefully this gives you a taste for that exciting world of ‘the national accounts’. Woot woot! Let’s party with Bey!

 

photo credit: https://www.flickr.com/photos/hongatar/ 

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)

I know you’re bored AF of the Budget, but just read this one thing

Because I am going to give you a useful view on it, probably with some swearing, and then you can go back to drinking that glass of sav blanc.

First question: Is the Super Saver Scheme the BEST THING EVER for first home buyers? 

No, not really. But it’s not bad either.

The best thing that could happen for the poor young first home buyer is that we stop immigration, use more contraception and go back to living with three generations in one house. None of which I am actually advocating – but the point is, supply is the biggest issue.

I listened to a story on ABC Radio National this week, about the economics of population growth (that’s the kind of party girl I am). Our population is growing faster than ever, and we have to house everyone. At the same time, the number of people who live in each dwelling has gone down a lot since the 1960s. I found this graph in a delightful RBA research paper on house prices (which I read so you don’t have to).

I live by myself, so I am guilty of driving this trend. But the ethics of resource consumption aside, it’s clear that we have too many people and not enough housing, and this will keep prices high for the foreseeable future.

However, that’s OVERALL. House prices rise and fall in line with the fate of the particular cities and towns they’re in. Townsville, Mackay and Perth are just some of the places that have faced steep falls in prices, as the mining industries propping them up have faltered. Hence why the old property investment game is a bit tricky.

“But what does this all mean for me?”

This is a bit of a diversion to say a couple of things: 1. The government isn’t going to solve house prices for you and 2. if you want to buy a property in Sydney or Melbourne you’re kinda screwed.

Well, not completely. There are other ways to get into the market – they just take longer. For example, the ‘rentvesting’ idea: rent where you like living, buy where you can afford to. My new boss, who is a famous finance guru (cos who else would I do PR for?) reckons you should buy not just one, but two or three properties this way.

The key is, they are in areas where the price is more manageable. Regional towns or smaller capital cities (although probably stay out of Brisbane high-rise apartments for the moment – they went a bit nuts building them and have too many now).

You buy these places, build up the equity in them, and then eventually sell them to buy your dream home. That’s the theory anyway – the execution needs to be pretty spot on, so you don’t end up with some shitty properties languishing for years.

Obviously this is a long-term play – five or ten years even. But you won’t die just because you aren’t living in a house you own. The key is that you’re doing something.

The worst fucking option is renting, moaning and spending your money on shit you don’t need ‘because I can’t afford a property anyway’.

But even doing this requires a deposit. Which brings me back to the initial question: how good is the Super Saver Scheme (SSS)? 

Look, it’s better than a slap in the face with a wet fish. Jessica Irvine, whom I love, has a done a great job of breaking down the detail for you here. But I’ll give you the highlights:

  • It’s a good discipline – once you put that money in there, there’s no pulling it back out for a splurge on a new dress or a fancy holiday you just had to have. It’s either ‘spend it on a property’ or ‘get it when you’re 67’ (see ya bye, money!).
  • It’ll mean you pay less tax going in – the cash that goes in gets taxed at the super rate of 15% instead of your personal rate of up to 47% (depending on how much you earn). Think about it like this: for every $100 of your pre-tax pay, you get to keep $85 if it goes into the SSS. If you just took it in your take-home pay, you’d keep as little $53 (in theory – progressive tax means it would be a a bit more than that).
  • …And going out. Anything you earn on the money you save will be taxed at your marginal rate, less 30% when you take it out. If you’re on the 37% rate, you pay just 7 cents. But that’s not bad – if it was bank interest you could pay your personal tax rate – which, as mentioned above, is likely higher.

Of course there are tons more annoying details but if you want a disciplined way to save, and you think you’re getting slugged on your income tax (don’t we all?), it could be a go-er.

“Hey, what about the bank tax? Should I care about it?”

I hear you asking and my answer is, only a little bit. Those banks are not just gonna take the hit to their bottom line, so they will pass it on to either staff, shareholders or customers.

I suspect a bit of each. Interest rates on mortgages and credit cards could rise – if they do, shop around to one of the banks who isn’t paying that tax (remember, it’s only the Big 4 plus Macquarie bank, and odds are you don’t have private banking with the latter).

And although bank-bashing is a national sport, let me just remind you that anyone with superannuation probably is a shareholder in them. The Big Four are called that for a reason – they are the four biggest companies on the ASX. And if your super account is made up of about 40% Aussie shares (most default funds sit somewhere around that level), then you, my friend, own a shitload of bank shares.

So before you gleefully stick the boot into the big greedy banks, remember they are funding your retirement. (Well, not mine – I’m in Australian Ethical and they only invest in Westpac).

So, of course other stuff happened in the Budget, but everyone else has covered that. For a Fierce Girl about town, these are some of the more relevant ones. And now, we may never speak of this again.

Like this post? You should totally sign up for my emails! Little box on the top right there!

You could follow me on Facebook too, but you know, Facebook doesn’t like my swearing and so you may not see much stuff. Swearing is cool, yo!

What’s holding you back from being Fierce?

It was always going to be tight. I found it hard to negotiate the notice period at my old job and the start date of my new job. Well, when I say ‘negotiate’, I mean I didn’t do that at all; I just did what everyone asked me to.

And so it was that I found myself at Queenstown airport yesterday, with heart racing and palms sweating. With all the demands from employers old and new, I ended up flying to a wedding in Queenstown for about 72 hours. What I didn’t know is that Queenstown is in the Top 10 most difficult-to-land-in airports in the world, with the runway flanked by mountains and choppy winds. The pilots tried to land twice, failed, then flew on to Christchurch to refuel and consider their options.

All this was revealed after we’d cleared customs and reached the gate, and so began a three-hour wait to see if the plane would come back to Queenstown, if it could land, and whether I could start my new job today.

I was pretty zen at first, but as the time dragged on, I cursed my decision to cut it so fine, and my failure – two year earlier – to negotiate down the excessive notice period in my contract.

Thank goodness for those lovely pilots at Jetstar (you didn’t think I’d be on a full-price airline did you?). They finally landed on the tarmac and hauled us back to Sydney.

Knowing your value

It’s a strange thing. If you ask me whether I’m good at my job, I’d say yes. My skills are in demand, I’m a specialist in my field, I bring a wide range of experience. And yet, I have never asked for a payrise. (Click here if you want some tips on that).

In fact, I forgot to ask about salary in my last performance review. I’ve never negotiated a starting salary, always taken what they offered.

This is nothing less than a failure on my part. Because most pay increases are incremental, the earlier you fatten your pay packet, the greater the increase next time. If I hadn’t been so damn nice, there’s a good chance I would make more money now.

This was brought into stark relief for me in the last few months. I was headhunted by a recruiter who was puzzled by the mismatch between my level of pay and years of experience.  I stumbled and mumbled when he he asked what salary I was looking for next.

Then when my employer replaced me, they hired someone with less talent and paid him more. It makes me angry, but at myself more than anyone.

Here I am, cheerleading for the girl squad and telling them to take life and money and career by the balls, but I’m not the best example.

However, I’m trying. I had an ex-investment banker give me a stern talking-to at the wedding. I had an old client make me promise I wouldn’t resign again without him coaching me. I had a colleague promise her I’d never again say in an interview “I’m not that focused on money”. Yeah, that was an actual thing I said. WTF.

The cost of pleasing others

I’ve been trying to unpick the puzzle about why I’m my own worst enemy in this sense. Why do I dislike asking for money? Why do I feel uncomfortable putting a dollar value on myself?

One factor was a fear of the price I’d pay. I believed that if a company paid you more, they expected a pound of flesh for it. That every pay rise would come with a concomitant increase in work. That’s not the case, in reality. You learn to work smarter, you find balance by being good at what you do and you learn to create boundaries.

Another issue is impostor syndrome. I question, in my heart, whether I deserve more money. Whether I’m that good or useful or worthwhile. Usually I can tell that bitch inside my head to shut the hell up, but not all the time. Sometimes she stands at the edge of my thoughts and whispers such taunts to me.

But I think the biggest issue is my tendency to be a people-pleaser. I don’t want to rock the boat by being troublesome. I don’t want to be the difficult one who makes a fuss. I feel uncomfortable making others uncomfortable. And so I leave difficult conversations about money well alone.

So now that I have identified these issues I can work on them. I can be alert to my own pitfalls.

When I was in that airport, waiting for the plane to break through the clouds, I decided that I had hit rock bottom on people pleasing. Today is the day where I start saying no more often. Where I value myself and my skills and my time more dearly. Where I start learning how to put aside the discomfort of negotiation, and do it anyway. I can do hard things in other areas of my life, so surely I can do it here.

I tell you all this not just because I am a massive over-sharer (although I am), but as a cautionary tale. I see a lot of women consistently undervalue themselves or question their worth in dollar terms. Granted, I’ve also seen women go hard in negotiations, (sometimes against me, their boss!) and succeed in getting more than they had been offered.

The tendency not to make demands seems to sit somewhere alongside the female tendency want to be smaller, less troublesome, less Fierce.

The world pushes us to take up less space all the time: to diet away our body fat, not to get ‘too big’ (as a weightlifter, I’m sometimes warned against this fate). We are told to quieten our voices lest we be called ‘shrill’ (god knows I have been).

All of these are simply attempts to stop us owning our power, and I admit, I fall for it sometimes. I doubt myself, I question my talent, I wish to be leaner. And so do many, many women I know and love.

So I encourage you to question which behaviours are holding you back from being truly Fierce.

What is stopping you from owning your power? Because whether or not we acknowledge it, our wealth is tied up deeply with our power. Our power to demand something from the world. Our power to say, “I am here, working and caring and sweating and delivering, and I ask you to remunerate me accordingly”.

Nobody will give us anything more than we ask, so we must to learn to ask.

And I am learning to ask.

Photo credit: Queenstown Airport by Curtis Simmons

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.

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

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.

IWD2017: 4 grown-up things every woman should do with her money

Yay, it’s International Women’s Day! What are we going to do to celebrate?

We could start a bloody revolution that changes the course of history for the century. Oh wait, that’s already been done – by the Russians in 1917. Yep, for realz. The revolution kicked off when thousands of women took to the streets protesting against food shortages on IWD 100 years ago.

There was no hashtag for it then, and not even a Snapchat story, so did it even happen?

But anyway don’t let me get started on history stuff because I won’t get to the real point. And that is:  equality means equal pay and equal opportunity, and we don’t have either of those yet.

I don’t really want to delve into the 17% pay gap issue – or more concerningly, the huuuge gap between men’s and women’s super balances (up to half, in some age groups).  But they exist, they suck and they appear to be stubbornly sticking around.

But those stats are averages, and we all know that Fierce Girls don’t care about averages. We defy averages. And so here is the Fierce Girl’s Guide to being a grown-up woman who tells the patriarchy to go back to the 20th century where it belongs.

1. Get serious about tracking your spending. I have been resistant to this whole idea for years. I am not that kind of girl. But then I got to my last payday and had seriously messed up cashflow issues. (Yep, I am far from perfect with money).

Thing is, I didn’t feel like I spent much. Sure I had to pay rego and stuff for my car, and it was holidays etc. But seriously where did my cash go? So I downloaded the MoneySmart TrackMySpend app (totally free, thanks Government!) and started recording.

And then I realised that this exercise is life-changing in the same way as keeping a food diary. When you have to write it down, you don’t want to spend/eat it. It’s a serious accountability tool.

And so, it’s not until you create some proper boundaries and systems that you can truly get on top of things.

2. Get your super sorted. I know, super is dull and stuff, but it really, really makes a difference when you get onto it early. And it’s a quick and easy adult task you can tick off.

If you only do one thing, find your forgotten super and roll it into one account (speak to your fave super fund and they will likely do it for you).

If you do two things, make sure your fund has all your correct details and check how much you have saved. Knowing the amount can really make it feel like real money that you own.

And if you get really effing excited, review your investment option. Are you taking on the right level of risk for your age? If you’re under 45 or so, you might want to boost returns with a more aggressive approach. But I’m not qualified to tell you that – call your fund and ask them.

And finally, at Defcon 5 level of super enthusiasm, put some extra money in! Did you know any amount you put in from your pre-tax salary gets taxed at 15% – instead of your income tax rate of up to 47%?

Anyway, I have a whoooole post about super – one of my fave topics – that I would point you to.

3. Have a separate, possibly secret, stash of money. If you’re a single gal, this is simple – just put a bit away, every pay, into a separate account that has an extra level of irritation to access e.g. a separate online bank or a term deposit. Just as long as you can’t crack into it for a 2am round of shots or for a mid-arvo premenstrual retail therapy session.

This is money to buffer you against the slings and arrows of outrageous fortune.

If you’re coupled up, just make sure it’s separate. You need something that you can call on if the relationship goes south. Whether it’s secret is up to you. Marriage vows, trust, partnership – I get it, they matter. Totes up to you. Just have the cash, one way or another.

Oh, right, here’s a post about this very issue. (Just be careful your ex-husband and his lawyer don’t read it and accuse you of hiding assets in your divorce settlement) (and yes that actually happened).

4. Learn some stuff about money and investing and finance. This stuff might seem a little boring. And it is, I guess, compared to iPanda – an entire website dedicated to baby pandas (which I HIGHLY recommend).

However, can a panda cub give you security, opportunities and choices? No, only cash money can do that. So take an interest. Read some blogs like this or Financy. Listen to podcasts like Freakonomics or Planet Money. Maybe even check out the personal finance or  business sections of the newspapers.

Knowledge is power, and money is power. So put those together and you will be a total bad-arse WonderWoman, wielding a calculator and making it rain.

Also, talk to your girlsquad about this stuff. As much as it’s important to discuss the hotness of young Justin Trudeau, it’s also useful to share your tips, challenges and ideas about money. And to support their money goals. (Oh wait, here’s another blog I prepared earlier!)

So, the message here is simple. Being empowered requires money. And the better you are at managing that money, the more we will be worthy of all the opportunities and privileges our foremothers fought for. So go forth and be fierce!

 

Why the baby boomers have all the money, and what we can do about it

I love my parents, and my parents’ friends and all the wonderful baby boomers in my life.

But geez they annoy me as a generation.

Swanning around in million dollar properties they paid 25,000 bucks for. Earning a tax-free income in retirement. Cashing in on their free university qualifications without a HECS debt in sight.

Baby boomers account for 25% of the population but own 52% of the wealth. They built their careers and wealth over an unprecedented period of economic growth.

Did you know we’ve now had more than a hundred quarters of positive growth? This is like having a hundred consecutive days of perfect dieting with no accidental chocolate incidents – i.e. practically unheard-of. (I admit we have lived through this period too – but with a lower base of assets to grow from).

Sure they had the recession in the 90s and the 1987 stockmarket crash. They had to live through skinny jeans before lycra was invented, and they didn’t get to play Where in the World is Carmen Sandiego at school. I’m not saying their lives were perfect.

But they have done ok, and Smashed Avo-gate brought this simmering divide to the surface. It’s partly because the world has changed so quickly, so deeply. Home ownership used to be an expectation for any adult with a job and a bank account. It’s now a mythical place of $100,000 deposits, heartbreaking auctions and million-dollar median prices.

The luckiest among us will get help from our parents. Others have parents who can’t or won’t contribute, creating a further divide.

So, what can we do about it? How can we stop those greedy (but totally loved and appreciated!) baby boomers from stealing our futures?

Don’t get mad, get even. And get advice.
Investment Trends says baby boomers account for four in five dollars under advice (i.e money being looked after by financial advisers). That means they are out there getting financial advice while all of us suckers are messing around reading The Fierce Girl’s Guide to Finance. JK! That’s a great idea!

But it might not be enough. I’m not a profesh, and I can’t tell you what’s best for your circumstances.
Sure, advice isn’t free, but it is an investment. Do it early, do it right and it will pay dividends in future. It’s like the difference between messing around at the gym on your own and losing half a kilo in six months, or getting a PT and dropping 5kg in six weeks.

And just like paying a PT makes you really think twice about eating that piece of cake (because hey, you just dropped 80 bucks on a workout), getting a financial plan can make you much more focused and disciplined. If you want to find a good one, my homegirl Nicole P-M has a good column about this.

If you still don’t want to stump up for the full box and dice, you could look at a digital option – aka Robo-advice. Decimal and Stockspot are some of the bigger players (but I haven’t used them so can’t provide a recommendation).

Take Baby Boomer advice with a very big grain of salt. The stuff our parents did to get ahead was done in a different world. Back in the 80s you could get 15% interest for sticking money in the bank. Inflation could be up to 10% as well, but worst case scenario, that’s still a 5% gain.

The best you can hope for today is a 3% interest rate if you shop around. Inflation has been hovering around 2%. So, that’s a big old 1% gain for stashing your money in a bank. (Don’t understand the inflation thing? Check out this post).


Before 2008, the world hadn’t heard of quantitative easing (i.e. governments printing money) or negative interest rates (an actual thing). Now, bank deposits barely keep up with anaemic inflation rates (and in countries like Switzerland you have to pay the bank to look after your money, thanks to negative interest rates. I shit you not).

Buying property was a stretch, but a sure bet for building wealth. You could probably even do it on one income. Today, a mortgage that’s 6 or 8 times the average income means you both work and possibly pay for childcare too. And the stockmarket generally doesn’t deliver the double-digit returns it did back then.

The finance industry calls this a ‘low growth, low return’ world.
So hey, thanks boomers for setting that up!

I’m sorry that have no good news for you on this front. It’s going to be like this for a while yet.
What it does mean is that taking advice from your folks can be tricky. They’re in a different headspace (in retirement or close to it) and need to focus on protecting their nest egg.


But we don’t.


There’s a concept called ‘pushing up the risk curve’ – it means that you take on more risk in order to chase higher returns. Instead of buying bluechip stocks you buy cheaper, more speculative ones. Instead of investment grade bonds you buy unrated ones. Instead of buying fixed interest bonds, you buy shares with high dividends.


Remember when you first start drinking alcohol and it took you two Bacardi Breezers to get hammered? But as you increase your ‘piss fitness’ you need a whole six pack and some shots to get to ‘hilarious drunk shenanigans’ level.

Similarly, we need to take more risk in this environment to get the same returns as before.


I am NOT saying go to Vegas and put it all on black. I am NOT saying attend a property spruiker seminar that promises you vast riches if you sign up RIGHT NOW, TONIGHT ONLY!

What I am saying is that we may need to look at something more aggressive than a bank account. Buying bank shares because your dad says they’re good? Maybe not. Buying an investment property because your parents made a killing on a Gold Coast apartment circa 1994? Maybe think twice.

The good thing is, we are young. We can tolerate more risk. If we go backwards we have many more years to go forward.

So just make sure you run any well-meaning advice through a filter, the same as you would when your mum gave you fashion advice as a teenager. (On second thoughts, my mum probably had some useful insights then). 

And short of just asking your folks to stump up funds for a house deposit, I don’t have a lot more advice than this: save more, spend less. That’s what a lot of our parents did. My family ate at the Yarrawarrah Windmill Chinese Restaurant once in a while, but that was the eating out budget. They didn’t get a new iPhone every two years. We had the world’s shittiest cars (Subaru Enduro – wtf). They never took to us to Disneyland. And that’s how my parents ended up paying off the house.

So, take the best bits of the boomers, ignore all the cushy tax breaks they’ve made for themselves, and crack on with you own money goals.

 

Blog at WordPress.com.

Up ↑