This week I’m looking at money and so I thought I’d dig out a blast from the past!
If you’re under 30 you probably haven’t seen one of these before. If you’re over 30 you probably haven’t seen one for 30 years.
1.7 billion $1 notes were printed. They were first issued on Valentine’s day 1966. At that time they were identified as belonging to the ‘Commonwealth of Australia’ but after 1974 they were identified simply as belonging to Australia (like the one above). They were withdrawn from circulation on 13th of May 1984 (almost 30 years ago) when the $1 coin replaced them.
I used to collect money so I have a few of these stashed away that I intend handing down to my kids and grandkids when the time is right.
Before I start on today’s topic though I just want to mention that I had many orders for Bodo Schafer’s audio recording taken from his best selling book ‘The Road to Financial Freedom’ after my last post. I am personally still listening to it over and over again and every time I take away something new.
I can not recommend it highly enough!
Have a look at http://www.simplybudgets.com.au/financial-education/bodo-schafer-products/ for more information.
There is no better way to improve your finances than to educate yourself in financial matters.
OK so now for today’s thoughts.
You know what money looks like. You can look at a bank note like the one above and it looks pretty simple. A few images, some squiggles here and there, a watermark and a bit of colour and viola, you have MONEY (don’t try this at home though!).
But there is really nothing simple about money when you consider all the different jobs it has to do for you. If you understand this and get to know them all you will benefit greatly.
So let’s have a quick look and identify as many as possible.
You use money to pay for:-
- Ongoing repetitive essential expenses such as electricity, rent, food, fuel, vehicle registration, insurance and a myriad of other basic needs.
If life took a turn for the worse these are the things you simply could not do without.
- Ongoing repetitive non-essential expenses such as the weekly Gold Lotto flutter, magazine subscriptions, children’s music lessons, consumer goods loan repayments, credit card repayments for stuff you had to have but couldn’t afford at the time, etc etc etc.
These are the expenses that make you suffer financially but you can’t stop them because of emotional reasons or addictions.
E.g. maybe your children are enrolled in a private school and you can’t afford the fees but you can’t move them to a public school because of emotional reasons. Or, maybe you just can’t live without four coffee’s every day!
- Ongoing but random non-essential, emotionally driven expenses such as attending a concert by your favourite band or musician, a day at the races, a charity ball, your child gets invited to birthday party, a friend you haven’t seen for years arrives on your doorstep in tears and needs accommodation and support etc etc etc.
These are particularly hard to rationalise and deal with. For some of them you feel like you might as well have some fun because you could get run over by a bus tomorrow and for others you feel like you simply can not escape the relentless onslaught.
- Ongoing replacement of essential and non-essential capital items such as your car, refrigerator, washing machine, television set, tyres, batteries, furniture and similar items.
These are sinister. They sneak up on you! You don’t notice your car losing value every day or your refrigerator gradually losing gas but one day you find out the hard way and then you’re up for a big replacement bill.
- ‘Once in a lifetime’ expenses that are semi-predictable, very desirable and arguably essential although the cost can vary wildly depending on how extravagant you choose to be. E.g. A daughter’s wedding, an overseas holiday, maybe a new house.
- Unpredictable expenses such as a car breakdown, a tyre blow-out, an unexpected dentist or medical expense, an accident etc etc etc.
- Charitable Donations. We all like to help others but knowing when to give and when not to give can be confusing.
- Saving for retirement. This would be easy if you started when you were 21 years old but at 41 life has so many financial challenges it seems to be too hard and at 61 it is pretty-well too late.
- Impulse purchases
- Speeding and parking fines
- Helping your children when they are struggling
And so on….
Of course there could be an ongoing debate over what is essential and what is non-essential; you need to make your own decisions. E.g. if you were from a Hamish community you might put electricity into the non-essential list but I am going to say it really is an essential item these days.
You may be able to think of more. Shoot me an e-mail with any I have missed.
And of course I’ve only looked at expenses. The flip side of that is the income. If you lose your job or your work is up and down all the time, money can seem to be way too hard
When you left school money seemed to be so simple! You went to work, you got paid and you went shopping. EASY!
It is possible to put a plan in place that will allow you to deal with MOST of these expenses most of the time. Life sometimes throws a curved ball at you and that can be very difficult to deal with, but what I do know is that if you take control what is controllable when the uncontrollable events do happen you are ini a much better position to weather the storm.
For over 18 years I have been helping people take control of what is controllable and giving them a system to put a little aside each week for the unexpected and once in a lifetime events.
If you want to get on top of your budget I want to help you. Send me an e-mail or visit my web-site or join me in a coaching program. I’d love to help.
I will be starting my next coaching group very soon so if you like that idea keep an eye on future e-mails.