Fearless Finance

Do you have a positive or negative money mindset and how does this influence your financial life?

Your money mindset is a major predictor of your actions, and, ultimately therefore, your financial success. Limiting beliefs around money are major obstacles to creating financial success, so aim to maintain a positive outlook toward money.

Negative money mindset traits include:

Whereas positive or empowering money mindset traits include:

This episode suggests 8 ways to improve our money mindset including expressing gratitude, cutting off negative self-talk and keep moving forward.

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Back in 2009 I had an idea to help inspire and empower children on the topic of money. That idea grew into The Financial Fairy Tales an award winning and best selling series of children's books which have been enjoyed in over 15 countries around the world.

In this episode I share how that happened and where the idea came from.

To find out more about the Financial Fairy Tales visit our website or my Amazon author page here.

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Welcome to this special series on the 7 Steps to Financial Wellbeing - #7 The Importance of Having Multiple Streams of Income

The last two years in particular have highlighted that our job security is out of our hands. What is within our control however is the opportunity to develop multiple sources of income to supplement or replace income from our job.

In this episode I discuss 4 ways to increase your income, by utilising your:

Resources mentioned

Rich Dad, Poor Dad by Robert Kiyosaki

Investing doesn’t need to be complicated or time consuming. Overtime it’s a practice which can increase your wealth and security which is something we can all aspire to.

Welcome to part 6 of the 7 Pillars of Financial Wellbeing series. In this episode we will explore the importance of starting a pension and how to combine ones you may have from previous jobs.

Also an easy guide to beginning with investments, including index funds, ETFs and dollar cost averaging.

This podcast is intended for education and entertainment purposes and should not be taken as financial advice. Stocks or investments mentioned are for example purposes only.

Pension Bee - https://www.pensionbee.com/

Revolut 

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I hope you will enjoy this week’s episode as part of my series on the 7 Pillars of Financial Wellbeing

“You become what you think about most of the time” - James Allen

Are your thoughts mainly on opportunity, prosperity and gratitude? Or do you focus on fear, lack and frustration? If your thoughts are on a high vibration, gratitude, optimism joy and so on, you are more attractive to money. Specifically, more likely to recognise opportunities and take action towards attaining them. If the opposite is true and you find yourself in a funk, worried about debt or how you can pay the rent this month, then those low vibrational states will continue to attract feelings of worry and lack, leading to their physical manifestation – thoughts become things.

On a more practical level you will not notice opportunities to improve your financial situation or lack the belief and confidence to take action. Maybe there is a promotion on offer at work or you want to apply for a higher paying job elsewhere. From a low energetic state you will likely either let the opportunity pass or not do yourself justice in an application or interview. Your subconscious will be limiting your ability to fully engage with the process.

It's useful to start by examining where our beliefs come from. For may they are formed in childhood before the age of 7. Overhearing our parents fight about money, negative influences on TV, our culture and religion all have a powerful impact on our developing young minds. Next time you watch a movie, notice whether the bad guy is rich. You’ll be amazed how often this plot line is used.

Think about the phrases you heard about money growing up. Chances are that most of them were negative: “Money doesn’t grow on trees”, “Money is the root of all evil”, or my Mum’s favourite “A fool and his money are soon parted”. This last one has influenced me decades later to shop around for bargains and avoid impulsive buys, irrespective of how much money I have at the time.

Thing is as an adult do you want your 7 year old self running your life? No matter how well intentioned your parents were, their financial situation is not the same as yours today. Chances are high that they inherited their beliefs from their parents and grandparents before that. Factor in shortages caused by World War 2 and even the Great Depression and its easy to trace where generational beliefs of worry and lack came from.

The first step is uncovering these limiting beliefs and bringing them into the light. You can do this with some self-reflection or with the help of a coach or therapist. Make a list of the things you learned about money growing up. For the ones which are negative, re-write them as a positive. For example, “Money is the root of all evil” could become “money is a source of freedom and joy”. Let’s dig deeper. Which of these statements is absolute truth? Both of them, neither of them? If neither is completely true, and neither completely false, why not choose the more empowering one? If you don’t accept it right now that money is a source of freedom and joy, that’s because you have spent decades believing the opposite.

It is going to take some time and repetition to accept the new belief. Techniques such as NLP, hypnotherapy and tapping can help uncover and install new beliefs. Many people use affirmations, where you repeat empowering statements, or use visualisation to reinforce new beliefs.

If you have any comments or questions please get in touch via our social media channels or be kind enough to leave a review with your podcast host.

Resources mentioned 

As a Man Thinketh - James Allen

Mindset - Carol Dweck

For many of us, some form of debt is a fact of life, but in my view it’s something we should use for our advantage rather than against us.

Carrying a lot of consumer debt such as credit cards and loans acts like an anchor dragging behind us or trying to drive with the handbrake on. Not that I am demonising all kinds of debt, far from it. How difficult would buying a house be without a mortgage or many of the functions of modern life without some kind of credit option?

My purpose here is to encourage you to pause for a moment and think about how much debt you have and how quickly you can pay it off.

In this episode we look at 3 ways to reduce the impact of consumer debt including:

Resources mentioned

Save money on your credit cards video

The Financial Liberation Programme

Did you know that around 50% of people in the UK have never checked their credit score, yet this invisible hand is influencing many aspects of our financial lives and ultimately may be costing us thousands in avoidable interest

From how much you spend on your credit card to the amount of debt you carry, your personal finances should be just that, personal – but were you aware that the credit reference agencies are carefully tracking your every financial move. These companies collect data that can influence some of the biggest decisions in your life, from getting a new mobile phone or car to renting or buying a home. Yet often the first time you realise there’s an issue with your credit score is when you’ve just been rejected.

In this episode we explore the factors which make up your credit score, what to do to improve it and what to do if you find an error. I mention research by Which and their quiz - here is the link

A definition of financial wellbeing I have been using refers to a feeling of certainty and empowerment around your money, both now and for the future. Setting up an effective money management system is certainly one way of helping achieve that and gaining valuable peace of mind.

This episode outlines how you can better manage your money with a simple yet effective system.

1. Additional Bank Accounts - Opening an additional bank account can be easily achieved by either contacting your existing provider or perhaps opening a new one with one of the online banks such as Revolut or Starling in the UK. I suggest having 2 current accounts plus a savings account.

2. Pay Yourself First - Regular listeners will know that this is a recurring theme on the podcast, but it’s an important principal so it bears repeating. Rather than waiting until the end of the month and hoping there is a little money left to move to savings, after all the bills and everyone else has been paid, make yourself a priority. I am going to ask you to set up an automated transfer for two amounts. The first is for savings, the second for Walking Around Money.

Let’s concentrate on savings first. Take a proportion of your income and move it to a new or existing savings account. How much, well that depends on your circumstances. In some ways the habit is more important than the actual amount. Because you are showing yourself and the universe that you are now taking control of your finances and honouring your financial future by paying yourself first.

As a rule of thumb aim for 10% of your monthly income, more if you can but less is ok if that is what your current circumstances will allow.

The second transfer is for your Walking Around Money, or WAM. This is discretionary income which is not already allocated for bills, food or credit card repayments for example. Again, knowing your numbers is crucial here because by understanding how much you need to cover your monthly costs, you will also know how much you have left to spend as you please. You can transfer your WAM either monthly or weekly to your newly minted second bank account. Then only use this account for your day to day spending, secure in the knowledge that it will be topped up again at the end of the week.

3. Using Your Primary Bank Account -  Your original bank account is used to receive your monthly salary and from it you pay all your bills and regular expenses. You feel secure knowing that all your expenses are covered and automated. Then you can leave that account to happily run along in the background, with just the occasional check to make sure you have included everything and there is always a small positive balance. Meanwhile you have a growing savings account thanks to your regular contributions and a weekly allowance which you are free to spend as you like.

Don't miss out on the other episodes in the series by subscribing. Visit our website fearlessfinance.co for a free download of the 7 Steps to Financial Wellbeing and follow us on our social channels

Understanding where you are now, where you want to be and creating a plan to get there.

A definition of financial wellbeing involves feeling comfortable and empowered around money both now and for the future. Therefore, a better understanding of where you are now and where you want to be is a great first step in improving yours.

How much money is in your bank account right now, how accurate could you be? Within £100? Within £10? If that was challenging, you are not alone. When I ask that question to a group, the majority has no idea. Yet most of us know how much we earn and will soon notice if an expected sum on payday is different by even a small amount.

So what’s going on? It would follow that the gap in our understanding is in how much we spend.

A great starting point in financial planning and regaining control of your money is to know your numbers.

Make a list of your regular outgoings, housing costs, food, transport, subscriptions etc. Next add on other spending, which is less predictable such as nights out, or clothes maybe. If you total the list, you now have a pretty good indication of how much you spend each month and where it goes.

One of the most popular categories for New Year’s resolutions is around money. Many people set well intentioned ones such as to get out of debt or increasing their income. One of the keys to effective goal setting is to understand your why. Having a compelling reason for doing something will help you find the way to achieve it.

Some things are more under your control than others. For example, getting out of debt is achievable by identifying spare money and targeting debts in a systematic way. Stop spending money on credit cards and look to switch to lower rates of interest will also accelerate your success. Doubling your income is more of a challenge especially if you earn a salary. Mostly because there are more factors beyond your control. However, if you ask powerful questions you can expect to receive powerful answers.

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There is also a free download available summarising my 7 Steps to Financial Wellbeing

In this episode I look back over the first 21 episodes of the Fearless Finance podcast and remember some of the great guests I have interviewed.

Starting with author Will Rainey who shares his 3 top tips for teaching our children about money.

Listen to the full episode with Will here

Next is Master Theta Healer Karen Abrams who shares how entering into the Theta brainwave can connect with our true essence and help turn fear into action.

For the full episodes with Karen click here

Then finally comes Sam Neffendorf who is an EFT Tapping practitioner and explains how he has helped clients break through limiting beliefs to gain new confidence and success.

For Sam's full episode click here

Please get in touch, its always great to hear your comments and questions and let me know which episode you enjoyed most.

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