Individual freedom is pointless without financial freedom

Individual freedom, in many ways, becomes pointless in the absence of financial freedom.

This recent weekend we exercised our democratic right and voted for the next Prime Minister of our great nation. It’s all part of the freedoms we have come to expect in Australia,

BUT 

Individual freedom, in many ways, becomes pointless in the absence of financial freedom.

I am continually seeing on social media and in the press, stories relating to women and the absence of their financial freedom. With headlines like:

“A new report highlights the significant impact domestic violence has on women’s financial security and safety.“

“An estimated 15-17 per cent of Australian women are affected by domestic violence over the course of their lifetime, with an economic cost of around $13.6 billion to the Australian community.“

“Poverty means many women cannot leave a domestic situation; they are unable to access the critical support they need.”

“Women want to be financially independent and secure, they are desperate to recover from their experiences and they need support to do that.”

“It’s not just women from the boomer generation, research shows that millennial women, more than any other generation, leave financial decisions to their husbands.”

“The report found that 69 per cent of fathers and 52 per cent of mothers with children under 21 said they were fine with their daughters’ future spouses handling long-term financial planning.”

“43 per cent of female breadwinners said they also leave financial decisions to their husbands.”

As a female financial broker who specialises in both commercial and residential lending and having spent 12 years working for 2 of the big 4 banks in Australia, I have now come full circle and see why it is essential to talk about money, be educated about money and the importance of having a positive money mindset. 

I often hear people say:

“That’s all too much to think about. I don’t even know where to start?”

Well, here are a few of my reflections and strategies when thinking about money.

• Do not let money overwhelm you and don’t stick your head in the sand. 
• Break it down into manageable pieces.
• Create a plan, and set life goals, big and small, financial and lifestyle. 
• Create a budget, money coming in – money going out.
• Make a list of all your debts, limits, repayments, loan life, and interest rates.
• Choose a debt to pay off in full – it’s often said to pay off the card with the highest rate, but I find paying off the smallest loan size first can help. This gives you a sense of achievement and success.
• Set up automatic payments on all your bills and loan repayments to avoid late fees.
• Create automatic savings by setting up an emergency fund and consider paying a little extra each week to super.
• Take care of your belongings – maintenance is cheaper than replacement.
• Know you credit score. It determines your interest rates in some instances. A low credit score can be seen as someone with reckless financial habits and not a good financial risk for lenders. This is not limited to the banks, but also providers of credit such as gas and electricity and phone plans.
• Pay your home loan at a higher interest rate. Not only will you be ahead, but it also won’t hurt as much when you get that rate rises. 6 per cent is where rates are heading, so the experts are saying.
• Spend less than what you earn and borrow less than what you can afford. 
• Take an active role in your finances, talk to your partner, and go to financial meetings, such as the accountants and banks with them.
• Know what you are signing.
• Take care of yourself first and foremost.
• Create a great support team, and talk to your accountant, Financial Planner, broker or even a counsellor.
• Have a look on social media there are some great support groups and like-minded people sharing their journeys and offering support.

Fact

Women live longer than men and 80 per cent are going to end up alone, whether because of longer life expectancies or divorce. 

I would love to hear your thoughts, so why not leave your comments below?