Navigating the world of personal finance can be overwhelming, even for an adult who has quite a bit of experience in the working world.
Yet with some smart planning, a good strategy, and an understanding of the basics you should be able to develop the money-management skills you need to get your finances under control.
And that’s what I discuss in today’s show with Australia’s leading finance columnist Effie Zahos.
While many people listen to this podcast because they’re interested in property investing, money management is a critical part of any type of investing, and especially real estate investing.
You need good money management to save your first deposit and once you own a property or two money management is even more important.
So don’t let the financial world intimidate you.
You may not have been taught much about finances, but I believe that 80% of personal finance is not financial education, but financial behaviour.
If you can modify your behaviour with your finances, you can modify your financial future.
And even if you don’t have money problems, I think you’ll enjoy my chat with Effie today as we discussed her new book and some lessons that we should be teaching our children and grandchildren.
And of course, I will be sharing my regular mindset message with you.
Ditch the Debt and Get Rich
The Covid-19 pandemic impacted just about every Australian.
Some people manage to cope well financially – others did even better financially turning lemons into lemonade, however, many Australians ran into financial difficulty with some only managing to stay afloat by raiding their super or putting a pause on their debt
It was just another example of the rich getting richer and they did so by understanding the way money and finance works.
Now you know one of the aims of my podcast and my blogs is to make more and more Australians financially fluent and help them get control of the finances.
So, I was pleased to hear that leading Australian finance commentator and author Effie Zahos has just published a new book called Ditch the Debt and Get Rich.
Effie Zahos is one of Australia’s leading personal finance commentators, with more than two decades of experience helping Aussies make the most of their money.
She’s a regular money expert on Channel 9’s Today Show and on radio around Australia and was editor of Money magazine and is now Editor-at-Large at Canstar.
Some of the subjects that Effie and I discussed
• Effie’s journey and why she believes it’s so important to be the best financial version of yourself and learn the right things to teach your kids about finance.
• Why more Australians aren’t wealthy and how they’ve become an instant gratification society.
• The importance of mindset in developing wealth.
• Money personalities – The animal traits that correspond to how you deal with money: Peacocks, Squirrels, Sloths, Owls, Ostriches
• The problem of buy now, pay later, and how to be more aware of the tricks retailers use to get us to spend.
• How to break the cycle of living payday to payday by no longer setting yourself up for failure. And how to put yourself on a bare-bones budget to catch up.
• Common money mistakes.
• Debt repayment strategies.
• How to think rich in order to become rich.
• How children learn financial literacy from their parents.
• Some of the lessons Effie has learned over many years writing and speaking about finance. • It’s not what you earn that counts it’s what you spend.
• Compound interest can make you a millionaire. The great Albert Einstein once said: “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it”.
• Learn to say no
• I am my best investment
• I will continue to make mistakes
• love your superannuation fund
• Set your savings on autopilot
• Have a plan and stick to it
• The people who will most benefit from Effie’s new book: savvy investors, people who need a nudge, and people who want to be a better financial version of themselves
Some of our favourite quotes from the show:
“There’s a whole science behind behavioural finance, and that’s why I think reading your new book Ditch the Debt and Get Richis important.” – Michael Yardney
“Some financial discipline early in life will allow people to have those enjoyments later on.” – Michael Yardney
“The gap between what you gain and how much you avoid offsetting the gain is the figure that matters the most.” – Michael Yardney
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