Mastering Your Money Mindset: How the Powerful Connection Between Managing Your Money and Unshakable Confidence Go Hand in Hand

Mastering Your Money Mindset: How the Powerful Connection Between Managing Your Money and Unshakable Confidence Go Hand in Hand

Nov 17, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Home Loan, Mindset, Mortgage, Relationships, Saving Money

How we handle money can have a big effect on how confident we feel, and the same is true in reverse.

Here are some ways that taking care of your money and having confidence are linked:

Financial success can boost confidence: Being able to manage our money and make money can make us feel good about ourselves and provide us with a sense of accomplishment. But having money problems can make us feel unsafe and lower our self-esteem.

Confidence can impact financial decisions: How confident we are can affect the choices we make about money. For example, if we are confident in our ability to make money, we may be willing to take more risks or start our own business. On the other hand, if we don’t feel confident, we might be more careful with our money and avoid taking risks.

Mastering Your Money Mindset: How the Powerful Connection Between Managing Your Money and Unshakeable Confidence Go Hand in Hand

How we think can have a huge effect on how well we do financially: With a growth mindset, we can learn and get better. This can help us solve problems with money and reach our goals. On the other hand, a fixed mindset can hold us back. This is when we think that our skills are fixed and can’t be improved.

Money can change how we feel about ourselves: How we deal with money can change how we feel about ourselves. If we judge ourselves by how much money we have, we might feel bad about ourselves if we don’t have as much as we think we should. If, on the other hand, we have a healthy relationship with money and see it as a tool to help us reach our goals, we can feel good about ourselves no matter what our financial situation is.

Managing your money, time, and confidence are all linked in the following ways:

Focus on what’s important:  When it comes to handling your money, you should pay attention to what’s most important to you. Figure out what you value and what’s most important to you, and make sure your financial choices reflect that.

Use technology to your advantage:  Technology is a strong tool that can help you keep track of your money and save time. Use apps and online tools to automate your finances, keep track of how much you spend, and make smart decisions about your money.

Money and building confidence: Taking care of your money well can help you feel better about yourself and what you can do. 

Here are some practical ways to build trust by taking care of your money:

Learn about personal finance and investing: This will give you more faith in your ability to handle your money well. You can learn more about money by reading books, taking classes, and talking to financial experts like myself.

Take action: Taking action is one of the most important ways to build confidence. Start small by making financial goals that you can reach, like paying off debt or saving money for an emergency fund. As you reach each goal, you’ll feel better about yourself.

Learn about personal finance and investing

Keep track of your progress: Keeping track of your progress can help you feel more confident in your ability to manage your money. Join programs like my “know your money” program which starts with understanding where you are financially so you can build on from there.

Celebrate your financial wins: No matter how small, celebrating your financial wins can help you build confidence and energy. Give yourself a small reward for reaching your financial goals, and use that good feeling to keep going.

By implementing these practical tips, you can improve your ability to manage your money and build confidence. Remember that building these skills takes time and effort, but the payoff can be significant in terms of your financial and personal well-being.

The LEARNING HUB helps you gain more financial knowledge, while providing you with the support and help you and others need. Join now for only $79 USD per month.

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Struggling with the high cost of living?

Struggling with the high cost of living?

Oct 31, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Financial Health, Financial Management 101, Mindset, Mortgage, Relationships, Saving Money, Self Development

Here are 9 ways to make your dollar go further and relieve some stress.

If you are looking for ways to tackle the rising cost of living, here are some things you can do TODAY to put money back into your pocket. Every dollar saved can make a difference!

As life changes, you need to review the major expenses in your household and see if you’re paying for things that you needed years ago but don’t now.

1. Take a look at your major costs.

When times are tight, it can make a world of difference to take a look at your subscriptions, recurring payments, gym memberships, and even your home, car, and health insurance. We recently went through the process of reviewing all our insurance policies, and we were actually surprised that we were able to save money and cut down on areas where we were over insured.  As life changes, you need to review the major expenses in your household and see if you’re paying for things that you needed years ago but don’t now. 

2. Look at how you’re paying for things.

You could save money in the short term by switching some of your subscriptions or payments from monthly to yearly, or you could temporarily reduce your spending by putting these items on hold to free up some cash in the short term.  Once you have more surplus cash, go back to yearly payments for subscriptions, as you can get a deal or save by paying for the full year.

3. Check your home loan rate.

If you want to save money, your home loan is a great place to start. Now is the time to review your home loan if you haven’t already. There are many features within your home loan that can make a BIG difference to the interest portion your bank or lending institution charges at the end of the month.  One example is that if you have an offset or redraw facility, learn how to maximise to take full advantage of how using these can save you money on your regular mortgage repayments.

4. Review your online streaming services.

I often review my online streaming services to see if we’re using them as often as we think and a month back cancelled those that I barely used.  There are so many out there, and do you really need them all?  By cutting down on one or two, you could save up to $20 – $30 per month, and that’s a big saving when money is tight. So think about canceling subscriptions to some of the streaming services you no longer regularly use.

By cutting down on one or two subscriptions, you could save up to $20 - $30 per month, and that’s a big saving when money is tight.

5. Cut down on take-away food

One of the biggest expenses for most households is buying takeout.  Take away food outlets are a time saver for busy people, but they are one of the biggest expenses in many households.  By saving $50 – $100 per month and not buying takeaway food, this can make a huge difference to your bank balance and can be used to pay down potential credit cards or other debt, which in the end will enable you to have more cash flow.

6. Plan your meals and think outside the box.

Sorry to be the bearers of bad news, but it is true: sticking to a reasonable meal plan can save you dollars at the checkout. Make a week long menu with everything from breakfast to dessert planned out, and include the family in what they’d like to eat. By getting them involved in the process, they are more likely to enjoy the food you’re cooking.  Make it a family event and teach your kids the power of saving by preparing and cooking meals the whole family will enjoy. Cook a little extra and freeze it, so on the days when you don’t feel like cooking and want to order take away, you can grab what you cooked the week earlier for dinner or lunch.

7. Shop for groceries online.

You can stick to your budget and meal plan when you shop for groceries online. Wednesday is a good day to shop at the supermarket because that is when many stores update their weekly specials.

8. Look at separate spending and savings accounts.

With your regular bills, put aside a set amount for your ongoing expenses into a separate account and have them directly debited from that account so they are paid automatically without you having to think about it.  All you need to do then is put regular money into that account at payday to ensure the amount is in there when the bills are due.

By having a separate spending account for bills, this stops you regularly dipping into your savings for non-essentials  

I have more information on how to manage your spending and savings and you can find this in the “Learning Hub” at financialmanagment101.com.au

9. Compare petrol prices

And last but not least, the costs of fuel today are so high that it’s sucking every dollar from you just to fill up your tank today!  

There are apps that you can get on your smart phone to check daily fuel prices, so I would encourage you to do this when your tank is around ¼ – ½ left to go, so you don’t fill up at the last minute and have to pay a higher price.

Want more help managing your money?  Then check out this course that helps you budget and save your hard earned money.

Use apps that you can get on your smart phone to check daily fuel prices.
Mastering Budget and Savings Techniques by Karen G Adams - Financial Management 101
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Flat Chat: Why Units Could Soon Become Hot Property

Flat Chat: Why Units Could Soon Become Hot Property

Oct 27, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Financial Health, Financial Management 101, Home Loan, Mindset, Mortgage, Self Development

Could a smaller dwelling be a solution for you, with apartments, units and townhouses widening their appeal in the property market? If you’re considering your options, reach out to discuss your situation today, there could be a rewarding solution for you!

Apartments stand out as an affordable choice when it comes to cracking the property market, not to mention downsizing. But a looming shortage may soon push unit values higher.

Apartments stand out as an affordable choice when it comes to cracking the property market, not to mention downsizing. But a looming shortage may soon push unit values higher.

For many of us, buying a house on its own block of land is the ‘great Australian dream’. While plenty of people achieve this goal, our property journey is often book-ended by apartment living.

For first home buyers, units can be an affordable choice, costing around 30% less than houses according to CoreLogic.

Then, as we head into our senior years, an apartment offers secure, low-maintenance living, often with a wealth of amenities right on the doorstep.

Apartment demand is outstripping supply

Apartments may be affordable today, but a lack of new apartment construction, coupled with rising immigration levels, points to a looming apartment shortage according to CoreLogic.  And that could push values higher.

Over the next few years, new apartment construction is forecast to be 40% lower in the 2010s, leading to a shortfall of over 100,000 homes by 2027. Close to 60% of the new home shortfall is expected to be in the apartment market.

On the demand side, CoreLogic says a stronger-than-expected level of migration into Australia has seen overall housing demand “skyrocket”. Historically, new migrants head to the high-density areas of our big cities, putting extra pressure on the unit market.

As CoreLogic explains, with interest rates potentially easing in 2024, greater demand and tight supply could fuel a “price boom” in the unit market.

Why more of us are choosing apartment living

Modern apartments are packed with the latest design and sustainability features, meaning they are no longer the poor relation of freestanding houses.

Across our major cities, apartments now account for 30% of all homes, up from 23% in 2010. And the appeal doesn’t just lie in affordability.

Today’s apartments usually come with a wealth of benefits, including:

Government Schemes: because apartments are generally cheaper than houses, they’re more often under the price caps for a range of government schemes, including the Home Guarantee Scheme, stamp duty concessions, and first home owner grants (usually for new builds). These schemes can be combined to potentially save you tens of thousands of dollars and get you into the property market years sooner.

Sought-after Locations: apartment living can be the difference between living close to work, or facing a long daily commute from the outer suburbs.

Lifestyle Advantages: the days of apartments being cramped and lacklustre are over. A variety of on-site amenities, from barbecue areas to pools, gyms and car-wash bays, make unit living convenient and relaxing.

Low maintenance Living: not interested in spending precious spare time mowing the lawns or cleaning the gutters? It turns out plenty of others aren’t either. Unlike houses, units require minimal upkeep, letting residents enjoy more quality time.

Improved Security: if you’re after a lock-and-leave lifestyle, modern apartments fit the bill. Advanced security features add up to a safe and secure living environment.

Modern apartments are packed with the latest design and sustainability features, meaning they are no longer the poor relation of freestanding houses.

Is now the time to take the leap?

Right now, apartments still present an affordable option for first-home buyers, downsizers and investors.

The median apartment price across our state capitals is currently $637,593 – but if CoreLogic is correct, that figure could soon increase as demand outstrips supply.

So if you’d like help exploring your options to purchase your first property – for example, with just a 5% deposit via the Home Guarantee Scheme – then get in touch today to discover your borrowing power.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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How to Help Someone With Financial Stress?

How to Help Someone With Financial Stress?

Sep 25, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Health, Financial Management 101, Home Loan, Mortgage, Saving Money, Self Development

Supporting someone with money stress can be challenging because they may be resistant to accepting help or discussing their financial difficulties with you. 

Often people don’t want you to know they are struggling because of judgement, but this is the time to be the friend or family member to support them. There is always a way out and often they can’t see that due to the stress they are experiencing.  

Sadly some people feel the only way out is to leave this earth and that only leaves the loved ones behind with sadness and more stress than ever before.

Simply checking in with someone, taking them out for coffee, and listening to how they are doing can go a long way toward helping and being the supportive person they need.

Here are some ways to help them while still giving them space to maintain their dignity:

LISTEN ACTIVELY

Start by being a good listener. Let them talk about their financial concerns and stress without offering advice or judgment. Sometimes, just having someone to vent to can relieve some of the emotional burden.

YOU CAN HELP WITHOUT GIVING MONEY. YOU CAN SHOW YOUR SUPPORT IN OTHER WAYS.

Offer your time, company, or help with things that do not cost money, like doing chores around the house, running errands, or giving emotional support during hard times.

PUT AN UPBEAT SPIN ON ANY DISCUSSION OF MONEY AND ALWAYS ASSUME THE BEST.

You could say, “I have been looking into some great financial resources that I think could help anyone, and I thought you might find them interesting,” instead of “You need help with your finances.”

RESPECT THEIR PRIVACY.

Give them space and privacy when it comes to their finances. Do not ask them too many questions or force them to talk more than they want to.

MAKE MONEY PROBLEMS MORE COMMON BY TELLING STORIES OR GIVING EXAMPLES OF PEOPLE WHO HAVE HAD MONEY PROBLEMS AND GOTTEN THROUGH THEM.

This can show them that many people have trouble with money and that asking for help is not a sign of weakness.

Know that it might take them some time to open up or accept help. Wait your turn and let them lead the conversation and decision-making.

BE PATIENT.

Know that it might take them some time to open up or accept help. Wait your turn and let them lead the conversation and decision-making. 

OFFER HELP WITHOUT BEING OBVIOUS.

If you find articles or financial resources that could help, share them in a quiet way. You can send them an article or a link instead of talking directly about their money.

SUGGEST PROFESSIONAL GUIDANCE.

If you believe they would benefit from professional financial advice, make a non-confrontational suggestion. You might say, “I know someone who is really knowledgeable in this area. Would you be interested in talking to them? It might give you some new insights.”

AVOID OFFERING FINANCIAL ASSITANCE.

Do not give them money directly unless you are sure it will not hurt your relationship or encourage them to act irresponsibly. Instead, focus on helping them feel better and giving them information.

Tell them you care about their well-being and are ready to help them in any way they feel comfortable.

EXPRESS YOUR CONCERN.

Tell them you care about their well-being and are ready to help them in any way they feel comfortable. Make it clear that you are not judging them, but that you care about their happiness and health as a whole.

STAY SUPPORTIVE.

Keep being there for them, even if they do not accept your help or ideas right away. Let them know that you will always be there for them.

It is important to give them their independence and let them decide for themselves what to do with their money. You can give them help and resources, but in the end, they have to be ready to take steps on their own to deal with their money stress. 

 Your patience, understanding, and willingness to not judge them can go a long way toward helping them get through their money problems.

The LEARNING HUB helps you gain more financial knowledge, while providing you with the support and help you and others need. Join now for only $79 USD per month.

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Which Comes First: Emergency Fund or Paying Off Debts?

Which Comes First: Emergency Fund or Paying Off Debts?

Sep 21, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Home Loan, Mindset, Mortgage, Saving Money, Self Development

When money is tight, it can be hard to pay down debt and build up an emergency savings fund at the same time. But it is still possible with careful budgeting and good money management. 

Here’s a step-by-step plan on how to do this:

1. ASSESS YOUR FINANCIAL SITUATION

Start by looking carefully at your money. Write down everything you earn and everything you owe, including the balances, interest rates, and minimum monthly payments.

2. MAKE A BARE-BONES BUDGET

Make a simple budget that covers only the most important costs, such as housing, utilities, groceries, transportation, and insurance. Cut back as much as you can on spending you do not have to.

3. PAY OFF HIGH-INTEREST DEBTS

Pay off your debts with the highest interest rates first, as this will save you money in the long run. All debts should have the minimum payment made, but any extra money should be put toward the debt with the highest interest rate.

4. SET REALISTIC GOALS

Find out how much you can afford to put toward debt repayment and savings each month. Be careful and make paying off debt your first priority.

5. BUILD A SMALL EMERGENCY FUND

Even though it is important to pay down debt, having a small emergency fund can help you avoid going deeper into debt if you have to pay for something unexpected. Start with a small goal, like $500 or $1,000, and slowly raise it as time goes on.

Having a small emergency fund can help you avoid going deeper into debt if you have to pay for something unexpected.

6. USE WINDFALLS/UNEXPECTED MONEY WISELY

If you get money you did not expect, like a tax refund or a bonus, put some of it toward paying off debt and some into an emergency fund. This helps you move forward in both areas.

7. SAVE AND PAY OFF DEBTS AUTOMATICALLY

Set up automatic transfers to your emergency fund and to your debt payments whenever you can. This makes sure that you always move closer to both goals.

8. LOOK FOR WAYS TO MAKE MORE MONEY

Look for ways to make more money, like part-time work, freelance gigs, or selling things you do not use. The extra money can be used to pay off debts and save money.

Talk with your creditors about your money situation. In some cases, you may be able to negotiate lower interest rates, lower minimum payments, or a delay in payments to make it easier to handle your debt.<br />

    9. TALK WITH YOUR CREDITORS

    Talk with your creditors about your money situation. In some cases, you may be able to negotiate lower interest rates, lower minimum payments, or a delay in payments to make it easier to handle your debt.

    10. REVIEW AND ADJUST REGULARLY

    Check in on your budget and financial goals every so often. Change how you pay off debt and save money when your income and expenses change.

    11. CELEBRATE MILESTONES

    Celebrate your successes, no matter how small they are. Every dollar you save in an emergency fund or pay off of a debt is a step toward financial stability.

    Remember that building an emergency fund and paying off debt are long-term goals. It’s okay to progress slowly if your income is limited.

     The important thing is to keep working toward both goals, even if progress is slow. Your money situation will get better over time, and you will have a stronger financial base.

    At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire.  Join our LEARNING HUB today!

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    How To Build An Emergency Savings Fund

    How To Build An Emergency Savings Fund

    Sep 19, 2023 | Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Mortgage

    Building an emergency savings fund is a crucial step in achieving financial security and peace of mind. 

    Here are some strategies to assist with building an emergency savings fund:

    1. SET CLEAR GOALS

    Determine how much you want to save in your emergency fund. It is often recommended to have at least three to six months’ worth of living expenses, but you can start with a smaller goal and work your way up.

    2. CREATE A BUDGET

    Develop a detailed monthly budget to track your income and expenses. This will help you identify areas where you can cut back and allocate more money to savings.

    3. PAY YOURSELF FIRST

    Think of the money you save for an emergency fund as a must-have expense. Set up transfers from your regular account, where your pay goes, to your savings account when you get paid. This makes sure that you always save.

    4. REDUCE UNNECESSARY COSTS

    Review how you spend your money and see if there are any expenses you can temporarily cut back on or stop. Put the money you save into your emergency fund.

    Reviewing your monthly subscriptions is a wise financial habit that can help you save money over time.

    5. INCREASE YOUR INCOME

    Look for opportunities to boost your income, such as taking on a part-time job, freelancing, or selling items you no longer need around your home. All and any extra income can then be put into your emergency fund.

    6. USE BONUSES AND UNEXPECTED MONEY/WINDFALLS

    Any unexpected windfalls, such as tax refunds, work bonuses, or cash gifts, can be a great way to jumpstart your emergency fund. Instead of spending this money, save it.

    Remember that building an emergency savings fund takes time, and it is fine to start small. The key is to develop a consistent savings habit and stick to your plan over time.<br />

    7. OPEN A SEPARATE SAVINGS ACCOUNT

    Consider opening a separate savings account specifically for your emergency fund. Look for a savings account that offers a better interest rate than a regular savings account, allowing your money to grow faster.

    8. BUILD GRADUALLY

    Do not feel like you have to hit your savings goal right away. It takes time to build up an emergency fund. Celebrate small steps along the way to stay motivated.

    9. AVOID USING THE FUND FOR NON-EMERGENCIES

    Define what you think of as an emergency and promise to only use your emergency fund for real emergencies, like medical bills, car repairs you did not plan for, or losing your job.

    10. REVIEW AND ADJUST

    Check in on your budget and savings progress. Change your savings goals and how much you put in as your finances change.

    11. CONSIDER THE WINDFALL STRATEGY

    If you get a big bonus, like an inheritance or money from a legal settlement, you might want to put some of it in your emergency fund to save money faster.

    12. SEEK PROFESSIONAL ADVICE AND HELP

    If you’re struggling to save or need some help, consider consulting a financial advisor or financial educator who can help you create a savings plan tailored to your specific situation.

    Check in on your budget and savings progress. Change your savings goals and how much you put in as your finances change.

    Remember that building an emergency savings fund takes time, and it is fine to start small. The key is to develop a consistent savings habit and stick to your plan over time. 

    Having an emergency fund can give you peace of mind and financial security when unplanned expenses come up.

    Interested to learn more?  Then head over to the LEARNING HUB and take the 5 Day Challenge or the 21 Day Kick Start program to help you get on your way. 

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