Where do we learn about money?

And how our beliefs impact our actions

Did you know 44 per cent of lotto winners lose their entire fortunes?

That’s because it’s not about how much money you have; it’s about what you do with it.

Money is a core survival issue. It’s central to our lives, regardless of how much you earn, where you live, what you buy or the decisions you make. Yet most people have very little idea about how to manage their money or training on how to financially prepare for the future.

“Poor” financial literacy

Most people never receive a formal financial education. Financial literacy is not taught in Australian schools, so you’re forced to rely on the lived experiences of your role models, usually your parents. This is how you form your money mindset.

Money mindset is your relationship, attitude and beliefs towards money. It’s usually formed unconsciously between the ages of two and 12, yet influences your decisions for a lifetime, unless challenged.

Without a good understanding of money or a clear financial plan, it’s difficult to get ahead, save or maintain a good financial position. And, unfortunately, if you make too many poor financial decisions, money can have a negative impact on your life.

However, if you can change your mindset, you can change your behaviour. And when you change your behaviour towards money, you’re on your way to achieving financial success.

Which “school of finance” did you attend?

School

 

“I learned Ancient History, but nothing about how to manage my money.”

 

 

Currently, there is no independent financial literacy program taught in Australian schools.

Parents

 

“I manage my money the same way my parents did, even though our circumstances are completely different.”

 

Youth today still rely on their parents as their leading source of financial knowledge, despite most Australians reporting financial stress. Consequently, bad habits are passed on.

The hard way

 

“I wish someone had taught me this when I was growing up.”

 

Most people learn money lessons from making costly mistakes.

Peers

 

“John at work invested in a new business, so that’s what I did too.”

 

Asking your mates, work colleagues or “rich friends” what they do with their money.

Managing your emotions

Just as your money mindset affects your financial decisions, so too do your emotions.

Fear, greed and desire are often the key drivers in financial decisions. Combined with a lack of experience or confidence with financial issues, you can end up making very costly mistakes.

 

Did you know sadness induces impatience and narrow-mindedness? When making financial decisions, this emotion can lead to “present bias” in which you favour instant reward over long-term returns.

Given that financial decisions often come with a sense of trepidation or urgency, you’re biologically wired to experience negative emotions, such as sadness or anxiety. However, when you learn to recognise these emotions, you can start to make better choices.

Making your money work for you

And the choice is yours. You can change and you can update your beliefs to suit your circumstances and goals. But you must be willing to see and do things differently if you want to achieve a different result.

This is where financial coaching can help.

The role of a financial coach is to educate you and give you the tools to bridge the gap between your money mindset and your real-life financial situation. With this skill, you can redefine your past, align your present and master your financial future.

Book a free consultation with a Reventon Money Coach  today!

Talk to the Reventon team and we’ll give you all the guidance you need to be a successful at investing your money.

Share:

Facebook
Twitter
Pinterest
LinkedIn

Latest Posts

Free Resources

Social Media

Your Name *
Phone Number *
Email Address
Cover Letter
Maximum file size: 5 MB
Resume
Maximum file size: 5 MB
how-to-identify-real-estate-hotspots-in-2022
10 tips for successful property investment PDF
Property Investment in South East Queensland
How to Buy an investment property without a deposit
Property Investment in Bendigo
What's In Store For Residential Real Estate In 2022
Guide To Your First Investment Property

Take the first step and

INVEST IN YOUR FUTURE

FREE APPOINTMENT.

Book a free consultation, no fees, no obligation, no pressure.

buy-an-investment-property-with-smsf

Content Unavailable

We’re making some changes to our website and the content you are looking for is currently unavailable. Please check back later or book a free consultation by clicking on the button below.

Income tax calculator

Want a breakdown of your income tax?

Drag the controller for your income and discover your take home pay and tax rates.

Stamp duty calculator

Confused by stamp duty?

Enter the property’s value and state or territory to discover exactly which fees and charges you’ll be required to pay.

Check out our other calculators too

Borrowing-power calculator

How much could you borrow on a home loan?

Enter your income details and spending habits to discover your borrowing-power on a future home loan.

Check out our other calculators too

Loan repayment calculator​

Want to work out your repayments on a home loan?

Enter the details of your loan and discover how much you’ll be paying each month.

Check out our other calculators too

Online budget planner

Have trouble sticking to a budget?

With the budget planner, you can log your incoming and outgoing expenses to keep track of your finances and set saving goals.

Check out our other calculators too

Property Investment in South East Queensland
What's In Store For Residential Real Estate In 2022
Property Investment in Bendigo
How to Buy an investment property without a deposit
10 tips for successful property investment PDF
how-to-identify-real-estate-hotspots-in-2022