Money School

Looking for your first personal finance book? Look no further! Thanks Gemma for the review :)

'A pretty good read. Nothing revelatory in here but still a good reminder of how appealing it would be to be financially independent and time rich (or "FITR" as the author describes it), and what it takes to get there.

I need those reminders from time to time.

This book would suit people who haven't read much about personal finance before, the plain English explanations of financial concepts are very clear.'

2021 may have been and gone, but the ideas in this article still ring true: https://yhoo.it/3ZxNifh

Thank you Lucy Dean and Sarah O'Carroll at Yahoo Finance Australia for including a tip from Money School in this wrap up!

Q. Is there a way of dividing an offset account to budget for a specific thing?

A. It depends on your lender.

If you can have multiple offset accounts for free, you can use them to chunk out your budget that way, and just name each offset account for the item/area you're budgeting or planning for.

If your lender won't let you have multiple offsets for free, you could go for an app or use the 4Bs method (my preferred approach to planning my spending).

Personally, I don't like to use anything that jeopardises the protection online banking includes, so I don't do any external links to third party apps.

*** This question came up in the most recent seminar. It's the fourth time Lacey has delivered the 'Securing your financial future' session for Future Women and, as always, the participant questions were fabulous! Thanks to all who attended.

I don’t like blanket rules, including:

‘Save 20% of every dollar you earn.’

*** For some, 20% is way too high. ***

One in seven Australian adults is living on or below the poverty line.

Asking someone who doesn’t live with their parents and earns less than $500 a week to save anything - let alone 20% of their income - is usually ridiculous.

Sometimes, there’s too much month left at the end of the money, and that’s just the way it is.

If you can’t save right now, that's okay. Consider it a temporary situation.

One day, you’ll earn enough money to cover your basic living costs, and then you’ll earn a bit more and suddenly you’ll have the capacity to start saving.

Until then, don’t beat yourself up because someone set a blanket rule about 20%.

*** For others, 20% is way too low. ***

To qualify for the Savings Olympics, you’d need to hit at least a 70% saving rate.

That’s 3.5 times more saving than the 20% blanket rule.

My measly 50% rate probably wouldn't get me further than state championships, and even then I’d be lucky to medal.

When you can (a) earn a lot of money and/or (b) live on very little, you can save like a demon - and it would be worth considering, as it’ll get you to financial independence in a fraction of the time it’d take someone saving 20%.

Don’t take the easy route of 20% if you know you can save more.

*** So, what’s the right number for your savings rate? ***

There isn’t one.

There’s only what works for you.

Whether it’s 5% or 95%, your savings rate is just fine, so long as you’re happy with it and can sustain it.

I encourage you to be ambitious with your target, as you can always get money out of savings if you find yourself eating baked beans on toast seven nights a week. Once it’s spent, it’s gone.

But resist blanket rules like this one.

Whoever came up with that rule doesn’t know you or your circumstances. They can’t make that choice for you.

Is your personal finance strategy ready for a climate change affected Australia? 🌎

In this blog, Lacey shares a vital "what if" tale for every homeowner and investor: The first domino—property insurance—is looking shaky. If it falls, what's next?

So put on your walking shoes and take a walk down 'what if?' lane, as Lacey examines how climate related insurance instability could cascade through the mortgage market, banking sector, and even your superannuation.

She also explores several ideas for financial decision-making in a world of growing uncertainty, including:

💰 Keeping cash in the bank (and the bank 'bail-in' debate) or in a safe at home

⚖️ Storing physical gold

📈 Converting wealth to cryptocurrency
..or simply carrying on regardless.

This is a must read if you’re concerned about future-proofing your wealth.

Read the full article and join the conversation: https://bit.ly/4pexbyH

⚠️ Disclaimer: This post and the linked article are for educational purposes only and are not financial advice. Always seek professional guidance tailored to your specific situation.

So thrilled to hear the book is getting gifted to young women, hurrah! Thanks Pia :)

'I loved this book!

My only regret is that it wasn't around years ago when I first started out. It would have saved me a lot of time, effort and most importantly money.

After reading it, I also bought a copy for my daughters so that they can avoid a long painful learning curve and set themselves up from the start.

What a wonderful resource, full of great and easy to follow advice, and written by a woman! Pragmatic, easy to read and straight to the point. A must-read for all ages!

If not for you then gift it to someone. Best investment yet!'

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