Free financial advice: the definition of irony
What was your attitude to money when you were a wee seven years of age? Can’t remember? Neither can we.
This week we got a bit of a lesson on finance from smartMonday by Aon superannuation (our newest client!). They told us that our perspective on money is set by the time we are seven, which surprised us – but the good news is, with a bit of effort, you can change relationship with money.
The session was called “8 Smart Habits”. Presented by Paul Gordon, Aon’s Principal consultant, it really got us thinking (and giggling). The first step, we were told, was to self-diagnose how we relate to money. To be blunt, most of us are not instinctively good with finances. We have good moments and bad moments (impulse online purchases, we’re looking at you).
Did you know that if you start saving $4 a week from age eighteen, by the time you are 65, thanks to compounding interest, you would have saved over $350k? Neither did we! Unfortunately this news came between five and twenty-five years too late for the people in our studio, but there are ways to catch-up. What we did learn however the power of small amounts of money which grow to pay for holidays, shoes we’ve been lusting after, or debt relief.
Paul got us reflecting on what exactly we wanted from money and where our priorities lay. At the end of the day this relationship is personal and needs to work for the individual. None of us find it fun stressing about money. But by taking on-board some of the hints and tips from the session, we can make small changes and decisions which reduce finance-related anxiety throughout our lives and for when retirement comes. The best bit about the talk was that Paul admitted he is a reformed financial sinner and had learned some lessons the hard way. This made us feel much better about our own prospects.
As with all good things that are free, there is a catch. Paul and his colleague Janine Robertson have written a book which goes through all these learnings in detail. Well, it’s not much of a catch really, as there were a bunch of things which we may forget, but reading the book will help refresh our memories. Spenditude, A Life-Changing Attitude to Money will hit shelves on 1st September, so keep your eyes peeled. www.spenditude.com
It’s also worth reaching out to Paul and asking him to speak at your company. He doesn’t charge, but he will plug their book at some point, which is a good trade, in our opinion.