How To Money

Personal Finance Book List: Edition #1

I absolutely love to read, and recommending books to others is an absolute joy. Today I want to introduce you to some fantastic books to read on your personal finance journey. They cover a range of topics from investing to minimalism.

The Year of Less — Cait Flanders

This is a phenomenal book that really makes you examine your relationship with the stuff in your life, and whether you are a mindful consumer. Cait provides a refreshing and honest view of she overcame her unhealthy relationship with money and material possessions. The book definitely made me start selling my unused items on Gumtree and think about my purchasing decisions. Ask yourself — ‘Do I really need it?’

The Simple Path to Wealth — JL Collins

If you’re looking for a book that gives you a no-nonsense approach to planning your financial future with the greatest level of ease possible, then this book is the one for you. Although written from a US perspective, JL certainly includes useful aspects in this book for all readers and is a huge advocate of making money simple and easy to understand. One of the reasons so many people stay away from the share market, is the sheer number of products and companies out there to choose from, but JL cuts through the noise and points you in the direction of index funds, or ETFs (for Australians) and examines the simple math behind building wealth through it.

The $1000 Project — Canna Campbell

This book has a big focus on starting your saving and investing journey, by breaking it down into achievable $1000 chunks. She goes through most of the traditional money saving methods such as selling your old stuff and renting out a room while putting her own spin on it. It’s worth a read if you want some help in setting your financial goals and intentions out.

Unf**k Your Finances — Melissa Brown

This is the financial freedom handbook for Gen X & Y. In this book, Melissa teaches you how to ‘financially adult’, by helping you sort out your financial life, become financially resilient and finally to become financially well. The book breaks down key financial concepts into easily digestible bites, from your financial goals to debt. Melissa runs an accounting and financial planning business and is a regular writer in Australian financial publications.

People say that money is not the key to happiness, but I always figured if you have enough money you can have a key made. ~Joan Rivers

Millennial Money — Patrick O’Shaughnessy

Patrick uses this book to explore one of young people’s greatest advantages, ‘the chance to build a fortune by making early investments in the stock market’. He clearly steps out how to get started, and reminds young people that holding cash over time erodes your purchasing power. The book introduces three key principles to follow when investing in the stock market: go global, be different, and get out of your own way.

Feel free to let me know your favourite personal finance books in the comments below.

Until next time,

Kate

The Importance of Financial Education

“A wise person should have money in their head, but not in their heart.” ~Jonathan Swift

Over the last few weeks the financial services industry has been all over our newsfeeds, TV and newspapers, and if you’re like me the Royal Commission has made it into the lunchtime conversations at the office. There’s been some devastating stories and disgraceful misconduct exposed, and countless articles on questions to ask your financial planner and how to avoid being ripped off by your financial institution.

My big takeaway from all of this, is that you can never truly trust any sole person or corporation with your life savings. I wonder how many times we have to hear these devastating stories, before we take control of our finances? Who knows what the consequences will be for these individuals and corporations? A warning? A fine? Maybe even jail-time?

Only one thing’s for sure — you need to take control and responsibility of your finances, and you need to financially educate yourself.

You are going to learn most of your financial lessons along the journey, but it needs to be your journey, When you outsource your finances to someone else, they make the mistakes and they learn the lessons, and you miss out on so much. Yes, sometimes it is appropriate and even necessary to seek out professional financial advice, but without a basic level of financial literacy you have no way of knowing if the information they provide to you is in your best interests.

I have definitely made mistakes and lost money along my own financial journey, but I have owned those mistakes and I have learnt from them. It’s not something that you can master overnight, rather I think of financial education as a lifelong journey of knowledge and lessons. I can’t promise you that your journey will be easy, but I can pretty well guess that it will grow and empower you.

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” ~Ayn Rand

While all of these news stories may make you want to run and hide from the industry all together, it is important to know that for every bad seed out there, there are countless others who are passionate and dedicated to the industry and to providing you with high a high quality service.

I know young Australians want to learn about their finances and take control, but they often feel as though it is out of their power. Let me tell you right now that no one can force you into signing the dotted line for a financial product. You can choose everything from your transaction account to your superannuation, but most people don’t realise how much choice they actually have when it comes to their finances.

The main thing that I hope you takeaway from this — is that it’s never to early or late to take back control, and get started on your financial education journey.

If you want to get started, the most important resource I would like to suggest to you is ASIC’s MoneySmart website, which has such a huge wealth of knowledge contained within. They also offer free downloadable guides that cover a whole range of topics from first-time investing to planning your superannuation.

Another good resource for those interested in investing for the first time is the Australian Securities Exchange (ASX) website, where they offer free online courses, videos and even the ASX share game (where you can try out investing without using your own money).

I’d love to hear your thoughts on financial education in Australia, so please feel free to reach out via email at hello@katecampbell.info or in the comments below.

Until next time,

Kate


April 2018 Letter

Well, that’s a wrap on another busy and exciting month! I’ve been busy working on my RG146 qualification this month which has been interesting, and it’s definitely been a learning curve. I’ve also been smashing out a few university assignments, so it’s good to see some progress there.

If you’re looking to kick-start your morning routine, one of my favourite podcasters and bloggers has a great episode on starting your day off on the right foot — check it out! While you’re there — make sure you check out his article full of examples of great personal portfolios and websites, if you’re thinking of putting one together.

I’m not sure how I came across this video by Michelle Phan, but I found it deeply moving. She left Youtube a year ago and made this video to share why she made the decision to leave it all behind.

Money can’t buy happiness, but it can buy time. Sometimes you have to let go of things to move forward and create your own happiness.

I was also referred to MealPal this month by some colleagues, which is a subscription service where you can skip the queue and get meals for less than $8.00. I think at the moment they are only operating in Sydney and Melbourne CBD in Australia, with over 100 local restaurants offering meals every weekday and the ability to pre-order your meal and skip the queue. I’ve really enjoyed MealPal so far, and it’s definitely saving me money on lunch in Melbourne CBD (which is getting quite pricey).

New on the How To Money Platform

HTM Article: What is a Bond?

HTM Article: Getting Started on How To Money

HTM Podcast Episode 11: Getting Familiar with Bonds

Interesting Reads from Around the Web

The Ultimate Guide to Studying for Tests and Exams — College Info Geek

How to Take Notes in College: The 6 Best Systems — College Info Geek

17 Ideas for the Modern World of Work — altMBA

How to Build a Micro-Niche Site — Bren on the Road

If we Taught Walking in School — Derek Magil

If we Taught Bike Riding Like we Taught Careers — Praxis

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Have a wonderful month!

Kate