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Battling to make ends meet? Financial planning expert offers 5 tips on how to build your budget

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Every day seems to bring new headlines about rising costs. <a href="https://www.news24.com/news24/africa/news/nigerias-big-unions-call-indefinite-strike-over-fuel-prices-and-the-cost-of-living-20230926">In Nigeria</a>, unions are threatening to strike amid soaring fuel prices; the country’s inflation rate <a href="https://www.cbn.gov.ng/rates/inflrates.asp">hit 25%</a> in August. The amount it costs to fill a food basket in South Africa <a href="https://pmbejd.org.za/wp-content/uploads/2023/09/PMBEJD_Key-Data_September-2023_27092023.pdf">keeps climbing</a>. Ghanaians <a href="https://www.reuters.com/world/africa/multi-day-protests-over-economic-crisis-grip-ghanas-capital-2023-09-23/">took to the streets</a> of Accra in late September to protest about the cost of living. A <a href="https://www2.deloitte.com/us/en/insights/industry/retail-distribution/consumer-behavior-trends-state-of-the-consumer-tracker.html">recent study by the audit and consulting firm Deloitte</a> found that 75% of South Africans were concerned that the prices for everyday purchases would continue to increase, while 80% of consumers across all income groups expected the prices of groceries, household utilities and fuel to rise. This stark reality means budgeting may be more necessary than ever. If you don’t know how to create a budget, then you shouldn’t feel bad – most adults aren’t taught how to create one. And most people don’t budget, because they see it as restrictive or unsustainable. But it need not be: once you appreciate that a budget can work for you, it can be a financially empowering exercise. It’s a cornerstone of financial planning because it ensures you are living within your means and helps you remain in financial control. As a financial planning academic, I focus in <a href="https://researchprofiles.canberra.edu.au/en/persons/bomikazi-zeka/publications/">my research</a> on improving financial wellbeing and promoting savings behaviours through interventions such as budgeting. Here are five guidelines for creating a budget. <h2>1. Apps vs spreadsheet</h2> A good place to start is to choose the format of how you’re going to budget. There are several <a href="https://www.sanlamreality.co.za/wealth-sense/setting-up-a-family-budget-that-works/">online templates</a> and apps you can use for budgeting. For instance, <a href="https://www.22seven.com/">22Seven</a> has gained popularity in South Africa due to its compatibility with several financial institutions, including the country’s big five banks. Similarly, <a href="https://www.the-star.co.ke/business/kenya/2021-01-25-budgeting-using-mint-app/">Mint</a> is a popular budgeting tool that is used in Kenya and Nigeria. If you prefer to put pen to paper, some online templates come with <a href="https://www.wonga.co.za/blog/free-budget-template">free printable budgets</a>. Creating your own <a href="https://create.microsoft.com/en-us/learn/articles/how-to-make-excel-budget">Excel spreadsheet</a> is an equally good approach. What matters most is using a tool that you can commit to. <h2>2. Itemising your income and expenses</h2> A budget essentially shows how much you’re spending in relation to how much you’re earning. So once you have selected your budgeting tool, you need to fill in your income and itemise how much you’re spending on each expense in a month. A budget can be considered a cashflow statement because it allows you to track money coming in (income) and money going out (expenses). If you are living within your means, your budget should indicate a surplus – more cash inflows than cash outflows. So budgeting provides an accurate account of your short-term financial position. <h2>3. A realistic account of expenses</h2> When you look at your financial statements, fill your expenses into your budget honestly and accurately. Don’t cheat! Since everyone’s financial situation is different, your budget will also be unique. Even though there is no one-size-fits-all approach to budgeting, it should still consider all of your expenses (both regular and intermittent). A general rule of thumb is that if it’s deducted from your account then you should treat it as an expense. This includes payments for housing, medical insurance, fuel, dining out, credit card repayments and even bank fees. <h2>4. Save first, spend later</h2> Now you’ve seen how much you’re spending. Either it’s too much – and you can plan where to cut back – or you have savings at the end of the month. When compiling your budget it’s important to demarcate how much will be in the form of savings. What’s more important is getting into the habit of saving before you spend instead of saving after spending. If you spend first then you’ve deprived yourself of the opportunity to save for a rainy day. Furthermore, <a href="https://eprints.hud.ac.uk/id/eprint/10231/1/Microsoft_Word_-_submitted_version_3rd_June_201.pdf">research</a> has shown that getting into the habit of saving has a transgenerational effect: it can be considered a cultural value that is passed on from one generation to another. So think of saving as paying yourself first. Once you have done so, you won’t feel guilty for treating yourself because you’ve already done the financially responsible thing by putting your savings aside. <h2>5. Considering assets and liabilities</h2> Once you’ve become comfortable with consistently budgeting, you can take it up a notch by including your assets (everything you own with an economic value) and liabilities (everything you owe) to determine your overall financial position. You can get a clearer picture of your overall financial wellbeing by compiling a list of all your assets, for example your savings and <a href="https://www.investopedia.com/terms/h/home_equity.asp">home equity</a>, in relation to liabilities (such as bank loans). Knowing your long-term financial position can indicate how financially resilient or vulnerable you are. In the event of a financial emergency, you will know which resources you can draw upon to meet an unexpected expense. By creating a budget (and sticking to it), you can protect yourself and your household from financial shocks. Consider the alternative. Imagine you haven’t budgeted and set savings aside. If a financial emergency were to arise, your next best bet would be to borrow the funds you need. You’d have to come up with a plan to repay what you’d borrowed while also building your savings. <h2>A healthy habit</h2> Getting into the habit of budgeting isn’t easy, especially if you haven’t done it before or you’re intimidated by the process. But, as the expression goes, “a journey of a thousand miles begins with a single step”. Think of budgeting as taking a small but important step towards reclaiming control over your finances and improving your financial well-being.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/214861/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/battling-to-make-ends-meet-financial-planning-expert-offers-5-tips-on-how-to-build-your-budget-214861">original article</a>. </div>

Money & Banking

If you have money anxiety, knowing your financial attachment style can help

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/ylva-baeckstrom-1463175">Ylva Baeckstrom</a>, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> The number of people struggling with money in Britain is at a <a href="https://www.theguardian.com/money/2024/mar/18/record-numbers-of-uk-people-in-debt-warns-charity">record high</a>. Financial charities say that people are contacting them for help with debt, paying bills and insolvency. The campaign group Debt Justice found in a <a href="https://debtjustice.org.uk/wp-content/uploads/2024/03/WalnutOmnibus-Debt-Justice-Policy-Development-Weighted.xlsx">survey</a> that 29% of 18- to 24-year-olds and 25% of 25- to 34-year-olds had missed three or more bill payments in the last six months. A majority (65%) of people don’t think they can survive on their savings for three months without <a href="https://www.money.co.uk/savings-accounts/savings-statistics">borrowing money</a>. Statistics from the UK’s financial markets regulator show that more than one-third of UK adults have less than £1,000 in savings. And a survey by Money.co.uk found that 30% of Brits aged 25-64 do not save at all <a href="https://www.pensionsage.com/pa/Nearly-one-third-of-Brits-are-not-saving-for-retirement.php">for retirement</a>. With figures like that, is it any wonder that 75% of people in the UK feel <a href="https://www.mentalhealth.org.uk/about-us/news/financial-strain-driving-uks-anxiety#:%7E:text=Almost%20three%2Dquarters%20of%20the,cited%20job%20insecurity%20or%20unemployment">anxious about money</a>? The current state of the economy is particularly scary for young people. Unless you were born with a trust fund (not most people), you are likely part of the first generation to be financially worse off than <a href="https://edition.cnn.com/2020/01/11/politics/millennials-income-stalled-upward-mobility-us/index.html">your parents</a>. Retirement seems like an impossibility, and you’re unlikely to own your own home. Eighty percent of people in their early 20s worry about <a href="https://www.youngminds.org.uk/parent/parents-a-z-mental-health-guide/money-and-mental-health/#Thelinksbetweenmoneyandmentalhealth">not earning enough</a>. It is important to start planning for your financial future early in your career, but you may find it overwhelming. The good news is, there are ways to overcome this. <h2>Finding your financial attachment style</h2> As a psychotherapist and finance researcher, I work with people to help them to increase their financial confidence and find the motivation to start planning. This often starts with understanding what influences their relationship with money. <a href="https://www.cambridge.org/core/journals/behavioral-and-brain-sciences/article/bowlbyainsworth-attachment-theory/6D35C7A344107195D97FD7ADAE06C807">Attachment theory</a> is a psychological concept introduced in the late 1950s. Your attachment style – which can be, for example, secure, anxious or avoidant – explains how you approach creating emotionally intimate relationships with other people. Some people feel secure building relationships, while others are extremely anxious. Some avoid close relationships altogether. Attachment style can also apply to your finances. If you feel confident and safe when it comes to money, you are secure in your relationship to saving and spending. But if the thought of opening an ISA or filling out a tax return, let alone planning for retirement, fills you with dread and panic, you may be anxiously attached. And if you if you push money worries to the back of your mind, you are likely avoidant. Attachment theorists and psychotherapists like me think that attachment styles are shaped by childhood experiences – for example, how well you were looked after by your parents or carers, and how safe and loved you felt. The way money was handled in your family growing up is likely to have set the blueprint for your <a href="https://www.sciencedaily.com/releases/2020/02/200225114410.htm">financial attachment style</a>. Outside influences like education or work experiences may shape this too. Although financial education is part of the <a href="https://maps.org.uk/en/work-with-us/financial-education-in-schools">school curriculum</a> in the UK, 76% of children leave school without sufficient <a href="https://maps.org.uk/en/media-centre/press-releases/2024/hundreds-of-thousands-leaving-school-without-money-skills#:%7E:text=In%20its%20poll%20of%201%2C012,knowledge%20they%20need%20for%20adulthood">financial knowledge</a> to manage their lives. Similarly, financial services like banks have done a poor job helping people establish secure financial relationships. Complex and <a href="https://www.pwmnet.com/private-view-blog-time-for-the-financial-industry-to-jettison-the-jargon">off-putting language</a> has placed a barrier between those who know about money and those who need to learn. If you feel unable to keep up with financial terms, or that you don’t understand money, this is likely to hurt your confidence in your financial planning abilities and fuel a more avoidant attachment style. Identifying your attachment style can help you nurture a better relationship with money. You will be able to understand and predict how and why you react to finances in certain ways. And, it can provide confidence by reminding you that money struggles are not necessarily your fault. <h2>Getting over financial anxiety</h2> Some of the recent financial trends spreading on social media may give an insight into your attachment style. Are you <a href="https://www.cnbc.com/select/what-is-loud-budgeting-trend-can-it-work/">“loud budgeting”</a> (being vocal about why you aren’t spending money)? This could be a sign of financial confidence and that you have secure financial attachment. Or are you “doom spending” (spending money you don’t have instead of creating a <a href="https://www.theguardian.com/lifeandstyle/2024/jan/31/are-you-loud-budgeting-or-doom-spending-finance-according-to-gen-z">nest egg</a> for the future)? You may be avoidant. Healthy relationships with <a href="https://www.nhs.uk/every-mind-matters/lifes-challenges/maintaining-healthy-relationships-and-mental-wellbeing/#:%7E:text=People%20with%20healthy%2C%20positive%20and,such%20as%20stress%20and%20anxiety">people</a> and <a href="https://www.nhs.uk/every-mind-matters/lifes-challenges/money-worries-mental-health/#:%7E:text=Our%20mental%20health%20might%20be,earning%20enough%20or%20currently%20unemployed">money</a> are both critical for our survival and mental health. As an adult, you have the power to improve these relationships. But because attachment patterns were formed early on, they are difficult to change. Therapy and other support can help you adopt healthier habits, as can increasing your financial knowledge. If you want to change your relationship with money, you should try to be mindful of what may be influencing you. While financial advice on social media may be useful and help young people feel more empowered to <a href="https://www.forbes.com/advisor/investing/financial-advisor/adults-financial-advice-social-media/">talk about money</a>, it can also <a href="https://www.mcleanhospital.org/essential/it-or-not-social-medias-affecting-your-mental-health">increase anxiety further</a> and be <a href="https://theconversation.com/if-you-get-your-financial-advice-on-social-media-watch-out-for-misinformation-222196">full of misinformation</a>. A good place to start for accurate and helpful information is the government’s <a href="https://www.moneyhelper.org.uk/en">Money Helper website</a>.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/225243/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ylva-baeckstrom-1463175">Ylva Baeckstrom</a>, Senior Lecturer in Finance, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/if-you-have-money-anxiety-knowing-your-financial-attachment-style-can-help-225243">original article</a>. </div>

Money & Banking

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‘Girl math’ may not be smart financial advice, but it could help women feel more empowered with money

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/ylva-baeckstrom-1463175">Ylva Baeckstrom</a>, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> If you’ve ever calculated cost per wear to justify the price of an expensive dress, or felt like you’ve made a profit after returning an ill-fitting pair of jeans, you might be an expert in <a href="https://www.standard.co.uk/news/world/girl-maths-tiktok-trend-its-basically-free-b1100504.html">“girl math”</a>. With videos about the topic going viral on social media, girl math might seem like a silly (<a href="https://www.glamourmagazine.co.uk/article/girl-math-womens-spending-taken-seriously">or even sexist</a>) trend, but it actually tells us a lot about the relationship between gender, money and emotions. Girl math introduces a spend classification system: purchases below a certain value, or made in cash, don’t “count”. Psychologically, this makes low-value spending feel safe and emphasises the importance of the long-term value derived from more expensive items. For example, girl math tells us that buying an expensive dress is only “worth it” if you can wear it to multiple events. This approach has similarities to <a href="https://www.investopedia.com/terms/m/modernportfoliotheory.asp">portfolio theory</a> – a method of choosing investments to maximise expected returns and minimise risk. By evaluating how each purchase contributes to the shopping portfolio, girl math shoppers essentially become shopping portfolio managers. <h2>Money and emotions</h2> People of all genders, rich or poor, feel anxious when dealing with their personal finances. Many people in the UK do not understand pensions or saving enough to <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/workplacepensions/articles/pensionparticipationatrecordhighbutcontributionsclusteratminimumlevels/2018-05-04">afford their retirement</a>. Without motivation to learn, people avoid dealing with money altogether. One way to find this motivation, as girl math shows, is by having an emotional and tangible connection to our finances. On the surface, it may seem that women are being ridiculed and encouraged to overspend by using girl math. From a different perspective, it hints at something critical: for a person to really care about something as seemingly abstract as personal finance, they need to feel that they can relate to it. Thinking about money in terms of the value of purchases can help create an <a href="https://www.thetimes.co.uk/article/every-time-i-use-my-card-my-phone-buzzes-and-that-stops-me-shopping-ps0fjx6nj">emotional relationship</a> to finance, making it something people want to look after. <figure><iframe src="https://www.youtube.com/embed/GPzA7B6dcxc?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></figure> <h2>The girl math we need</h2> Women are a consumer force to be reckoned with, controlling <a href="https://www.forbes.com/sites/bridgetbrennan/2015/01/21/top-10-things-everyone-should-know-about-women-consumers/#7679f9d6a8b4">up to 80%</a> of consumer spending globally. The girl math trend is a demonstration of women’s mastery at applying portfolio theory to their shopping, making them investment powerhouses whose potential is overlooked by the financial services industry. <a href="https://www.theguardian.com/world/2019/oct/28/women-paid-less-than-men-over-careers-gender-pay-gap-report">Women are disadvantaged</a> when it comes to money and finance. Women in the UK earn on average £260,000 less than men during their careers and the retirement income of men is twice as high as women’s. As I’ve found in <a href="https://www.routledge.com/Gender-and-Finance-Addressing-Inequality-in-the-Financial-Services-Industry/Baeckstrom/p/book/9781032055572">my research</a> on gender and finance, women have lower financial self-efficacy (belief in their own abilities) compared to men. This is not helped by women feeling patronised when seeking financial advice. Because the world of finance was created by men for men, its language and culture are <a href="https://www.routledge.com/Gender-and-Finance-Addressing-Inequality-in-the-Financial-Services-Industry/Baeckstrom/p/book/9781032055572">intrinsically male</a>. Only in the mid-1970s did women in the UK gain the legal right to open a bank account without a male signature and it was not until 1980 that they could apply for credit independently. With the law now more (<a href="https://www.worldbank.org/en/news/press-release/2023/03/02/pace-of-reform-toward-equal-rights-for-women-falls-to-20-year-low">but not fully</a>) gender equal, the financial services industry has failed to connect with women. Studies show that 49% of women are <a href="https://www.ellevest.com/magazine/disrupt-money/ellevest-financial-wellness-survey">anxious about their finances</a>. However they have not bought into patronising offers and <a href="https://www.fa-mag.com/news/gender-roles-block-female-financial-experience--ubs-says-73531.html">mansplaining by financial advisers</a>. This outdated approach suggests that it is women, rather than the malfunctioning financial system, <a href="https://www.theguardian.com/commentisfree/2020/sep/16/women-are-not-financially-illiterate-they-need-more-than-condescending-advice">who need fixing</a>. Women continue to feel that they do not belong to or are able to trust the world of finance. And why would women trust an industry with a <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2019">gender pay gap</a> of up to 59% and a severe lack of women in senior positions? Girl math on its own isn’t necessarily good financial advice, but if it helps even a handful of women feel more empowered to manage and understand their finances, it should not be dismissed.  <a href="https://theconversation.com/profiles/ylva-baeckstrom-1463175">Ylva Baeckstrom</a>, Senior Lecturer in Finance, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/girl-math-may-not-be-smart-financial-advice-but-it-could-help-women-feel-more-empowered-with-money-211780">original article</a>. </div>

Money & Banking

Days are getting shorter and colder. 6 tips for sticking to your fitness goal

<a href="https://theconversation.com/profiles/juliana-s-oliveira-709434">Juliana S. Oliveira</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a>; <a href="https://theconversation.com/profiles/anne-tiedemann-409380">Anne Tiedemann</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a>; <a href="https://theconversation.com/profiles/cathie-sherrington-561141">Cathie Sherrington</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a>, and <a href="https://theconversation.com/profiles/leanne-hassett-1497197">Leanne Hassett</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Daylight saving ends this weekend. The days are shorter and getting colder. It’s less appealing to cycle to work, walk after dinner, or wake up early to hit the gym. But we all know daily physical activity is essential for our health and wellbeing. Physical activity releases feel-good neurotransmitters in our brains, which help to alleviate <a href="https://bjsm.bmj.com/content/57/18/1203">stress, anxiety, and depression</a>. It also helps <a href="https://www.cdc.gov/chronicdisease/resources/infographic/physical-activity.htm#:%7E:text=Regular%20physical%20activity%20helps%20improve,depression%20and%20anxiety%2C%20and%20dementia.">prevent diseases</a> such as diabetes, heart disease and some cancers. Regular physical activity can prolong life and improve overall quality of life. However, many of us find it difficult to achieve the <a href="https://bjsm.bmj.com/content/54/24/1451">recommended 150 minutes of moderate intensity physical activity</a> each week. In fact, three out of ten Australians and half of Australians aged 65 and over are <a href="https://www.aihw.gov.au/reports/physical-activity/physical-activity">inactive</a>. So, what can you do to stay motivated and keep moving regularly through the darker months? Here are some tips. <h2>1. Nail those goals</h2> Goals can provide us with a sense of purpose, meaning and direction. But just aiming to “get fit” is less likely to cut it than goals that are SMART: specific, measurable, achievable, realistic and time-bound. Specific goals are based on an observable behaviour or activity, such as step count, yoga, or competing in an event. Measurable goals can be tracked, so you can easily tell whether you have ticked them off. Achievable goals are realistic and based on your current fitness and abilities. But they can and should still be challenging. If you’ve only ever run 5 kilometres, it won’t be realistic to aim for a half marathon in the next month. But you could aim for 10 kilometres. Relevant goals hold personal meaning for you. Articulating why it’s important will help motivate you to do it. Time-bound goals include a target date for achieving them. You can always revisit your deadline if you’re ahead of schedule or if it’s too unrealistic. An example of a SMART goal could be: “I will walk 10,000 steps every weekday within a month.” Then you can break it down into short-term goals to make it more achievable. If you currently walk 6,000 steps each day, you can increase steps by 1,000 every week to reach 10,000 by the end of the month. <h2>2. Keep track</h2> More than <a href="https://www.deloitte.com/au/en/Industries/tmt/blogs/digital-consumer-trends-who-is-purchasing-what-now.html">90% of Australians own a smartphone</a> and more than <a href="https://www.deloitte.com/au/en/Industries/telecom-media-entertainment/blogs/digital-consumer-trends-touch-less-healthier-wiser.html">two in ten own a fitness tracker or a smartwatch</a>. These devices can help you track your goals and activity, keep you accountable and increase your motivation. A 2021 systematic review suggests fitness trackers and smartphone apps <a href="https://bjsm.bmj.com/content/55/8/422">can assist people</a> to increase their step count by up to 2,000 steps per day. <a href="https://bjsm.bmj.com/content/54/20/1188">Our research</a> demonstrated fitness trackers can also be helpful in increasing physical activity among older people. If you don’t have a fitness tracker, you can buy low-cost pedometers or track your activity times using paper and pen. <h2>3. Plan for success but prepare for barriers</h2> Take some time to think about the potential barriers that could prevent you from being active and plan solutions to overcome them. For example, if the cost of physical activity is too high for you, try to find options that are free, such as walking or running. You can also consider free online programs or streaming videos. If you find it difficult to fit exercise into your busy schedule, try exercising early in the morning before you start your day and laying out your workout clothes the night before. You could consider joining a gym with flexible timetables. A good strategy is to try to fit physical activity into your daily routine, such as walking or cycling to work. If you are living with a chronic health condition or disability, consider seeking guidance from a health professional such as an <a href="https://www.essa.org.au/Public/SearchAEP.aspx?WebsiteKey=44cfee74-3fc3-444e-bb5f-77729c390872">exercise physiologist</a> or <a href="https://choose.physio/find-a-physio">physiotherapist</a>. Start slow and gradually increase your activity and find something you enjoy so you are more likely to keep doing it. <h2>4. Team up with a workout friend</h2> Physical activity can be more fun when you do it with someone else. Studies show <a href="https://www.sciencedirect.com/science/article/abs/pii/S0167494322002953?via%253Dihub&sa=D&source=docs&ust=1712015093947627&usg=AOvVaw1XGQBMDMFspL5YrQtKo3h">working out with friends can be more motivating and enjoyable</a>. It can also help with accountability, as some people are more likely to show up when they have a workout partner. So, <a href="https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)60407-9/fulltext">find a friend</a> who supports your goal of being more active or maintaining your current activity levels. <h2>5. Plan yourself a little treat</h2> Make an appointment with yourself in your diary to exercise. Approach it as just as important as meeting a friend or colleague. One idea is to delay something you’d rather do and make it a reward for sticking to your activity appointment. If you really want to go out for coffee, do a hobby, or watch something, go for a walk first. Research shows <a href="https://www.nature.com/articles/s41746-019-0164-3">incentives can dramatically increase physical activity levels</a>. <h2>6. Find a coach</h2> If you want more support, <a href="https://bjsm.bmj.com/content/51/19/1425">health coaching</a> might be an option. Trained professionals work one-on-one with people, sometimes via telehealth, to find out what’s reducing their motivation to make healthier choices, such as exercise. Then they employ behaviour change techniques to help them meet their health goals. Our recent research suggests health coaching can improve physical activity in <a href="https://bjsm.bmj.com/content/58/7/382">older people</a> and those with <a href="https://www.sciencedirect.com/science/article/pii/S183695532400002X">chronic pain</a>. In <a href="https://www.gethealthynsw.com.au/#:%7E:text=About%20the%20Get%20Healthy%20Service&text=Delivered%20by%20NSW%20Health%2C%20the,and%20achieve%20your%20health%20goals">New South Wales</a>, <a href="https://lifeprogram.org.au/">Victoria</a> and <a href="https://www.myhealthforlife.com.au/">Queensland</a>, these sessions are government-subsidised or free.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/226619/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/juliana-s-oliveira-709434">Juliana S. Oliveira</a>, Postdoctoral Research Fellow, Physical Activity, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a>; <a href="https://theconversation.com/profiles/anne-tiedemann-409380">Anne Tiedemann</a>, Professor of Physical Activity and Health, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a>; <a href="https://theconversation.com/profiles/cathie-sherrington-561141">Cathie Sherrington</a>, Professor, Institute for Musculoskeletal Health, School of Public Health, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a>, and <a href="https://theconversation.com/profiles/leanne-hassett-1497197">Leanne Hassett</a>, Associate Professor in Physiotherapy, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/days-are-getting-shorter-and-colder-6-tips-for-sticking-to-your-fitness-goals-226619">original article</a>.

Body

Millions of eligible Aussies about to receive financial boost

Starting this Wednesday, millions of Australians relying on Centrelink benefits will see a welcome increase in their payments. With indexation kicking in, fortnightly boosts ranging from $14 to $30 will be allocated to eligible recipients, depending on their specific circumstances and the type of payment they receive. This adjustment will not only benefit current beneficiaries but also extend support to more individuals, with an additional 77,000 parents now qualifying for higher payment rates. The eligibility criteria for certain payments have been expanded, particularly for parents whose youngest child is under 14, a significant extension from the previous threshold of under eight. Income and assets limits tied to these payments will also experience an uptick in line with the indexation process, offering further relief to recipients. But how exactly will these increments manifest across different categories of payments? For single parents, the fortnightly payment will see a boost of $17.50, while partnered parents will witness an increase of $12.30 individually. Moreover, the income free area will rise to $1,345 for each person, an enhancement of $20 per fortnight. Jobseekers with children or those aged over 55 will receive an additional $14.40 fortnightly. Single JobSeeker recipients without children and individuals aged over 22 on ABSTUDY will enjoy a $13.50 increase per fortnight, with couples receiving an extra $12.30 each. Rent assistance, however, will see relatively modest increments, ranging from $2.27 to $3.40, depending on the recipient's family situation. For those on the age pension, disability support pension, and carer payment, the increase is more substantial, with singles receiving an extra $19.60 and couples combined receiving $29.40 each fortnight. This brings the maximum rate of the pension to $1116.30 for singles and $1682.80 for couples, including pension and energy supplements. Amanda Rishworth, the Social Services Minister, explains that indexation plays a crucial role in ensuring that welfare recipients can cope with inflation and the rising cost of living – and that addressing these pressures remains a top priority for the government. This increase in Centrelink payments comes at a critical time when many Australians are grappling with economic uncertainty due to various factors, including the ongoing pandemic. While these adjustments may seem modest to some, they can make a significant difference for those relying on welfare support to make ends meet. It's essential for eligible individuals to stay informed about these changes and ensure they receive the full benefits they're entitled to. For those who may be unsure about their eligibility or how to navigate the system, seeking assistance from Centrelink or relevant support services can provide valuable guidance. As the cost of living continues to evolve, initiatives like indexation serve as vital mechanisms for maintaining the welfare safety net and supporting vulnerable members of society. By keeping pace with economic realities, these adjustments strive to provide meaningful relief to those who need it most, contributing to a more equitable and inclusive society for all Australians. Image: Getty

Money & Banking

How baby boomers are benefiting from Australia's "worst financial mistake"

A financial expert has explained how baby boomers have remained largely unscathed by the ongoing housing crisis in Australia. ABC finance guru Alan Kohler described the crisis as Australia's "worst financial mistake", as Adelaide has now become the country's second least affordable city. The South Australian capital, which has long been known as one of the more affordable places in the country to live, has skyrocketed in price, as the median price for houses and units in Adelaide was $721,376 in January, which is 7.9 times higher than the state's average full-time salary of $91,026. "There are a couple of things that might surprise you: Adelaide became the second, least affordable Australian city last year," Mr Kohler explained. "Adelaide has just taken over from Hobart in second place." "What's going on: put simply, incomes in Adelaide, Hobart and Brisbane are not keeping up with house prices, which are being pushed up by fast-rising population and by first-home buyers." Mr Kohler, a baby boomer, noted that when he and his wife bought their first home in Melbourne for $40,000 in 1980, he was earning $11,500 as a journalist, meaning his home cost just 3.5 times his income before a mortgage deposit. "When my wife and I bought our first house in 1980, the average house price was 3.5 times average income," he said. "Now, it's 7.5 times and rising." "That didn't have to happen: it's Australia's worst, economic mistake." Mr Kohler said parents were increasingly propping up the mortgage deposits of first-home buyers, as first-home buyer subsidies from the federal government only pushed up property prices. "Despite rising prices and crushing interest rates, first-home buyers were the fastest-growing type of borrower," he said. "The Bank of Mum and Dad coughing up early inheritances and politicians showering them with grants and concessions, desperate to appear to be doing something about affordability while actually making it worse." Image credits: Shutterstock / ABC

Money & Banking

Monty Python star's candid financial admission

Monty Python star Eric Idle has made a candid admission about the state of his finances, revealing why he still has to work at the age of 80. The comic legend admitted he receives only a fraction of the millions the Python team have made in the past because the finances are a “disaster”. In messages on X, formerly Twitter, Idle wrote: “I don’t know why people always assume we’re loaded”. “I have to work for my living. I never dreamed that at this age the income streams would tail off so disastrously." “I have been working and earning for Pythons since 1995. And now no more.” Idle also took aim at TV lawyer Holly Gilliam, the daughter of fellow Python member Terry Gilliam, who took over the Python brand in 2013 as part of HDG Projects Ltd. He said, “I guess if you put a Gilliam child in as your manager you should not be so surprised”. “One Gilliam is bad enough. Two can take out any company.” Daughter Lily Idle backed him, writing online, “I’m so proud of my dad for finally finally finally starting to share the truth.” The Pythons, who also included John Cleese, 84, Michael Palin, 80, and the late Terry Jones — made a fortune thanks to their iconic cult films, including Life of Brian, hit stage show Spamalot, which Idle co-wrote, and the original Flying Circus BBC TV series. They were back in the limelight in 2014 with Monty Python Live (Mostly) — One Down, Five to Go: a reference to former member Graham Chapman who died in 1989 aged just 48. It featured interpretations of some of their famous sketches, and reportedly earned the surviving members at least £2 million ($3.87m AUD) each. Image credits: Getty Images

Retirement Income

Thinking of using an activity tracker to achieve your exercise goals? Here’s where it can help – and where it probably won’t

<a href="https://theconversation.com/profiles/corneel-vandelanotte-209636">Corneel Vandelanotte</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> It’s that time of year when many people are getting started on their resolutions for the year ahead. Doing more physical activity is a popular and <a href="https://link.springer.com/article/10.1007/s13668-016-0175-5">worthwhile</a> goal. If you’re hoping to be more active in 2024, perhaps you’ve invested in an activity tracker, or you’re considering buying one. But what are the benefits of activity trackers? And will a basic tracker do the trick, or do you need a fancy one with lots of features? Let’s take a look. <h2>Why use an activity tracker?</h2> One of the <a href="https://doi.org/10.1186/s12966-020-01001-x">most powerful predictors</a> for being active is whether or not <a href="https://www.sciencedirect.com/science/article/abs/pii/S0140673621026301">you are monitoring</a> how active you are. Most people have a vague idea of how active they are, but this is inaccurate a lot of the time. Once people consciously start to keep track of how much activity they do, they often realise it’s less than what they thought, and this motivates them to be more active. You can self-monitor without an activity tracker (just by writing down what you do), but this method is hard to keep up in the long run and it’s also a lot less accurate compared to devices that track your every move 24/7. By tracking steps or “activity minutes” you can ascertain whether or not you are meeting the <a href="https://www.health.gov.au/topics/physical-activity-and-exercise/physical-activity-and-exercise-guidelines-for-all-australians/for-adults-18-to-64-years">physical activity guidelines</a> (150 minutes of moderate to vigorous physical activity per week). It also allows you to track how you’re progressing with any personal activity goals, and view your progress over time. All this would be difficult without an activity tracker. Research has shown the most popular brands of activity trackers are generally reliable when it comes to tracking basic measures such as <a href="https://doi.org/10.2196/18694">steps</a> and <a href="https://doi.org/10.1123/jmpb.2019-0072">activity minutes</a>. <h2>But wait, there’s more</h2> Many activity trackers on the market nowadays track a range of other measures which their manufacturers promote as important in monitoring health and fitness. But is this really the case? Let’s look at some of these. Resting heart rate This is your heart rate at rest, which is normally somewhere <a href="https://www.healthdirect.gov.au/resting-heart-rate">between 60 and 100 beats per minute</a>. Your resting heart rate will gradually go down as you become fitter, especially if you’re doing a lot of high-intensity exercise. Your risk of dying of any cause (all-cause mortality) is much lower when you have a <a href="https://pubmed.ncbi.nlm.nih.gov/28552551/">low resting heart rate</a>. So, it is useful to keep an eye on your resting heart rate. Activity trackers are pretty good at tracking it, but you can also easily measure your heart rate by monitoring your pulse and using a stopwatch. Heart rate during exercise Activity trackers will also measure your heart rate when you’re active. To improve fitness efficiently, professional athletes focus on having their heart rate in certain “<a href="https://chhs.source.colostate.edu/how-to-target-heart-rate-training-zones-effectively/">zones</a>” when they’re exercising – so knowing their heart rate during exercise is important. But if you just want to be more active and healthier, without a specific training goal in mind, you can exercise at a level that feels good to you and not worry about your heart rate during activity. The <a href="https://doi.org/10.1097/HCO.0000000000000437">most important thing</a> is that you’re being active. Also, a dedicated heart rate monitor with a strap around your chest will do a much better job at measuring your actual heart rate <a href="https://doi.org/10.1038/s41746-020-0226-6">compared</a> to an activity tracker worn around your wrist. Maximal heart rate This is the hardest your heart could beat when you’re active, not something you could sustain very long. Your maximal heart rate is not influenced by how much exercise you do, or your fitness level. Most activity trackers <a href="https://jamanetwork.com/journals/jamacardiology/article-abstract/2566167">don’t measure it accurately</a> anyway, so you might as well forget about this one. VO₂max Your muscles need oxygen to work. The more oxygen your body can process, the harder you can work, and therefore the fitter you are. VO₂max is the volume (V) of oxygen (O₂) we could breathe maximally (max) over a one minute interval, expressed as millilitres of oxygen per kilogram of body weight per minute (ml/kg/min). Inactive women and men would have a VO₂max lower than 30 and 40 ml/kg/min, respectively. A reasonably good VO₂max would be mid thirties and higher for women and mid forties and higher for men. VO₂max is another measure of fitness that <a href="https://doi.org/10.1001/jamanetworkopen.2018.3605">correlates well</a> with all-cause mortality: the higher it is, the lower your risk of dying. For athletes, VO₂max is usually measured in a lab on a treadmill while wearing a mask that measures oxygen consumption. Activity trackers instead look at your running speed (using a GPS chip) and your heart rate and compare these measures to values from other people. If you can run fast with a low heart rate your tracker will assume you are relatively fit, resulting in a higher VO₂max. These estimates are <a href="https://doi.org/10.1007/s40279-021-01639-y">not very accurate</a> as they are based on lots of assumptions. However, the error of the measurement is reasonably consistent. This means if your VO₂max is gradually increasing, you are likely to be getting fitter. So what’s the take-home message? Focus on how many steps you take every day or the number of activity minutes you achieve. Even a basic activity tracker will measure these factors relatively accurately. There is no real need to track other measures and pay more for an activity tracker that records them, unless you are getting really serious about exercise.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/219235/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/corneel-vandelanotte-209636">Corneel Vandelanotte</a>, Professorial Research Fellow: Physical Activity and Health, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/thinking-of-using-an-activity-tracker-to-achieve-your-exercise-goals-heres-where-it-can-help-and-where-it-probably-wont-219235">original article</a>.

Body

Could you cope with a shock to your bank balance? 5 ways to check you are financially resilient

<a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Imagine the dentist has just said you urgently need a A$2,000 dental crown. A week later, a pipe in your bathroom bursts, causing $8,000 worth of damage. Suddenly, you’ve been hit with a $10,000 financial shock. As the cost-of-living crisis plunges more households into financial uncertainty and at least <a href="https://melbourneinstitute.unimelb.edu.au/data/taking-the-pulse-of-the-nation-2022/2023/australians-face-challenging-budgetary-constraints#:%7E:text=Over%20the%20past%20six%20months,has%20increased%20to%2060%20percent.">one-third</a> of Australians struggle to make ends meet, it’s more important than ever to ask yourself: how financially resilient am I? Being financially resilient means you aren’t left financially devastated when an expensive emergency creeps up on you. Here are five key signs of financial resilience. <h2>1. You have a plan for what you’d do if you suddenly lost your salary</h2> Financial resilience means having a plan to fall back on during tough times. This extends to how you’d make money if you lost your job. In practice, that means things like making sure your skills and contacts are kept up to date so you can more easily find a new job. You might also consider whether a “side hustle” job such as tutoring could work for you in the short term, and how you’d put that plan into practice if needed. Perhaps you have a spare room in your home you could rent out for a period of time if you lost your salary. Those examples won’t work for everyone, of course, but it’s still worth asking yourself the question: what would I do if I lost my salary tomorrow? <h2>2. You have enough liquid assets to meet an unexpected financial expense</h2> Liquid assets means money that can be accessed quickly and easily to overcome an unplanned financial expense. Savings are a good example. They provide a buffer so you can cope in the short term if a financial shock strikes. The federal government’s Moneysmart website suggests you aim to have enough in your emergency savings fund to cover <a href="https://moneysmart.gov.au/saving/save-for-an-emergency-fund">three months of expenses</a>. Having an <a href="https://moneysmart.gov.au/glossary/offset-account">offset account</a> as part of a mortgage is another option that provides a buffer. Putting money in an offset account helps you save while reducing the amount of interest on a home loan. You can still access the money in an offset account at any time. <h2>3. You have bought the right financial products, such as insurance</h2> Financial products, such as insurance, hedge against potential losses. Personal insurance is important because it provides income in the event of death, illness or injury. Examples include: <ul> <li> life insurance (which pays out to your beneficiaries, such as your partner or children, when you die) </li> <li> total and permanent disability insurance (which means you may get some money if you acquire a disability that prevents you from working) </li> <li> income protection (which provides you with an income if you can no longer work) </li> <li> trauma cover (which covers a life-changing illness or injury, such as cancer or a stroke). </li> </ul> Check if your superannuation has any of these insurances included in it. <a href="https://www.griffith.edu.au/__data/assets/pdf_file/0030/295770/FPRJ-V4-ISS1-pp-53-75-insurance-literacy-in-australia.pdf">Research</a> has found that many Australians are underinsured. <h2>4. You can still pay your debts when times are tough</h2> Being able to borrow money can help when you’re in a tight spot. But knowing where to borrow from, how much to borrow and how to manage debt repayments is crucial. Financially resilient people use debt responsibly. That means: <ul> <li> not using debt for frivolous expenses like after-work drinks </li> <li> staying away from private money lenders </li> <li> being cautious about buy-now-pay-later services </li> <li> watching out for debts with high interest rates, such as payday loans and credit card debt </li> <li> maintaining debt repayments consistently. </li> </ul> If you’re having debt problems, talk to your lender about renegotiating your repayment arrangements, or contact the <a href="https://ndh.org.au/">National Debt Helpline</a> on 1800 007 007. <h2>5. You are financially literate</h2> Being financially literate means you can assess the benefits and risks of using savings or taking out debt to meet an unplanned financial need. As I have <a href="https://theconversation.com/are-you-financially-literate-here-are-7-signs-youre-on-the-right-track-202331">written</a> before on The Conversation, key signs of financial literacy include tracking your cashflow, building a budget, as well as understanding what debts you have and which to pay first. It also means storing your money across different places (such as superannuation, savings accounts, property and the share market) and understanding how financial assets like cash, shares and bonds work. Being aware of your financial strengths and weaknesses, and having financial goals is also important. Nobody is born knowing how to make sound financial decisions; it’s a skill that must be learned. It’s good to think about the resources you would draw upon to help get yourself out of a difficult financial situation – well before disaster strikes.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/218126/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/could-you-cope-with-a-shock-to-your-bank-balance-5-ways-to-check-you-are-financially-resilient-218126">original article</a>.

Money & Banking

5 financial lessons you should impart to your adult children

Ultimately, we want our kids to live long, happy, healthy lives. Financial security is central to achieving this dream. So it may be time to have a chat about matters of money and ensure they are well set up for a prosperous future! While there are many important things to instil in future generations, the five below are perhaps the most crucial current-day issues for your adult children to master. <ol> <li>Avoid BNPL</li> </ol> Buy now, pay later (BNPL) schemes have taken off in popularity in recent years, allowing shoppers to purchase and use goods straight away yet pay for them over time in instalments. Sound too good to be true? Indeed. Most schemes attach hefty penalties and interest for missed or late repayments – much the same as credit cards. The debt quickly balloons, and can become unsustainable. The best approach to instil in your children is to always live within their means. <ol start="2"> <li>Avoid sexually transmitted debt</li> </ol> Joint finances, loans, credit cards, utilities, subscriptions, vehicles, businesses, property… all of these and more are shared liabilities. Even if a partner is the one who racks up the debts, your child is equally responsible for repaying them. This is what I call sexually transmitted debt. It could be inadvertent (such as having a partner who, despite their best intentions, is simply bad with money); hidden (like gambling addiction), deliberate (financial abuse), lose their job, have an accident, get seriously unwell. Either way, sexually transmitted debts can create long-term and even life-long problems, regardless of whether the relationship that created those debts survives: repayment struggles, credit constraints, bankruptcy, legal woes. When it comes to money, your children (and yourself) need to think with their head, not their heart. <ol start="3"> <li>Start investing </li> </ol> The number one thing financial advisers hear most is “I wish I started years ago”. Investments typically grow over time. The more time you allow, the bigger their value. Younger adults have big demands on their hip pocket. However, even starting with small investments allows compound growth to work its magic. Plus, given the housing affordability constraints facing younger generations, investments that can be sold or leveraged could better help them onto the housing ladder in future. Superannuation is another investment to pay attention to from a young age: managing investments, ensuring they are in a cost-effective fund, and avoiding mistakes – like consolidating funds without getting advice, which can inadvertently see them consolidate into a poorer performing fund or cancel attached insurances that had preferential terms. <ol start="4"> <li>Get a will</li> </ol> While young people may feel invincible, untimely deaths or disablement claims sadly can and do happen. And often unexpectedly: land transport accidents and accidental poisoning, together with suicide, make up <a href="https://www.aihw.gov.au/reports/life-expectancy-deaths/deaths-in-australia/contents/leading-causes-of-death">the biggest causes of death for under 44s</a> in Australia. Not having a will and a nominated executor complicates matters for grieving family and can delay all-important access to finances. How would your child’s partner and kids (if they have them) survive if their super, insurances and other payouts are delayed through probate? Remember to point out that superannuation (and other structures like companies and trusts) are treated separately from a will, and so need beneficiaries nominated within them. Younger people are also less likely to have discussed their final wishes with loved ones – funeral arrangements, burial vs cremation, organ donation, inheritances etc. This is where a separate statement of wishes can be useful. <ol start="5"> <li>Get insured</li> </ol> Insurances – save perhaps vehicle and house/contents – are rarely on the minds of younger people. But they should be. That is because many insurances are cheaper and offer better coverage when people are younger and free of any health complications. That includes private health, life and permanent disability, and income protection cover. Other insurances, like asset protection, can also be more lucrative to lock-in early. Just think about how the Ts and Cs on insurances have changed (become more restrictive) since you were their age! So encourage your adult children to scrutinise their insurance coverage. (And keep them away from drugs and smoking to stay healthier for longer!) Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> Image credits: Getty Images

Money & Banking

7 ways to create realistic financial goals that you'll actually stick to

Establishing robust financial habits not only fosters comfort but also alleviates anxieties about the road ahead. A positive change in our financial circumstances commences with a shift in our money mindset. When you shift to creating lasting change, you can achieve more than you believe is possible. When creating financial goals that you’ll actually stick to, parallels can be drawn between achieving physical and financial fitness. Let’s take a look. <ol> <li>Precision in Goal Setting</li> </ol> Just like any other endeavour, the path to financial well-being requires setting clear objectives that are both quantifiable and feasible. Whether it's building an emergency fund or saving for a major purchase, your goals need to be well-defined and measurable. Just as a fitness regimen consists of various exercises targeting different muscle groups, your financial goals should cover different aspects of your financial life. <ol start="2"> <li>The Inaugural Step</li> </ol> The hardest part is starting – there will always be competing priorities. Think of it as taking one step at a time. Starting your financial goals might feel overwhelming due to competing priorities and uncertainties. Start small and build momentum gradually. Establish a budget, track your expenses, and save a modest amount regularly. <ol start="3"> <li>Avoiding Extreme Measures</li> </ol> Remember, lasting change comes from sustainable actions. Financial quick fixes like waiting for bonuses or tax returns won't foster healthy habits and can lead to financial fatigue. Instead, embrace gradual progress; small efforts compound over time. The allure of crash diets can be tempting, but they rarely yield lasting results. Instead, opt for consistent, manageable actions. Focus on building sustainable habits, like making regular contributions to savings or investments. <ol start="4"> <li>The Power of Knowledge</li> </ol> Equip yourself with information. Education is a powerful tool in achieving financial well-being. Understanding the options available is pivotal to making informed financial decisions. Gain a comprehensive understanding of your financial options. Research investment opportunities and strategies that align with your goals. Knowledge empowers you to navigate the complex landscape of personal finance confidently. <ol start="5"> <li>Exploration of Strategies</li> </ol> Just as someone might prefer running over cycling, finding financial strategies that resonate with you enhances your chances of long-term success. Experiment with diverse approaches to identify what resonates best, reducing stress and enhancing commitment. Opt for strategies that resonate with your values, minimise stress and amplifying commitment. <ol start="6"> <li>Consistency </li> </ol> Success lies in cultivating steady habits over time, ensuring enduring benefits. Just as regular workouts lead to improved physical health, cultivating small, consistent financial habits over time leads to enhanced financial well-being. Set up automated transfers to savings accounts, make incremental increases in contributions, and avoid overspending. <ol start="7"> <li>Intermittent Rewards</li> </ol> Occasionally treat yourself. Sporadic indulgences can enhance well-being and acknowledge hard-earned victories. Rewarding yourself for achieving financial milestones enhances your commitment and prevents financial fatigue. It's essential to strike a balance between frugality and enjoyment. By embracing these principles, we not only engineer realistic financial objectives but also cement a commitment to achieving them. That’s the key to lasting financial prosperity. Amanda Thompson, author of Financially Fit Women, is a sought-after speaker and qualified financial adviser. As the founder of Endurance Financial, Amanda is driven to support women to have a great relationship with money and own their own financial success. For more information visit <a href="http://www.endurancefinancial.com.au">www.endurancefinancial.com.au</a> Image credits: Getty Images

Money & Banking

What does financial abuse really look like?

Sally is in her 20s, lives in a dilapidated rental home and works three jobs. Fifty-something Sarah owns a large home, drives a Mercedes and is a corporate executive. Pensioner Scott, in his mid-70s, still lives in the home in which he and his late wife raised their children. Who would you say is more vulnerable to financial abuse? The answer, you may be surprised to learn, is all three. Financial abuse, according to the government’s <a href="https://moneysmart.gov.au/living-in-retirement/financial-abuse">MoneySmart</a>, is a type of family and domestic violence: “It often happens alongside other types of violence, such as physical or emotional abuse. It can leave you feeling vulnerable, isolated, depressed and anxious. It can also take away your independence.” Commonly a spouse or partner is the perpetrator, but it can come from any relative or friend. A <a href="https://www.commbank.com.au/content/dam/caas/newsroom/docs/Cost%2520of%2520financial%2520abuse%2520in%2520Australia.pdf">2022 Commonwealth Bank report</a> suggests over 623,000 Australians experienced financial abuse in 2020 alone – roughly one in 30 women and one in 50 men. Anyone – regardless of age, wealth etc. – can be a victim. Financial abuse has many faces Just as finances are complex, so too is financial abuse, which can be viewed from many angles: <ul> <li>Couples: One partner controls everything money related. I know of one instance where a woman’s partner went so far as counting coffee pods; another checked car mileage to stop his partner driving further than school drop-offs.</li> <li>Exes: Not working specifically to avoid paying child support; withholding information to delay settlement; bullying into a menial settlement.</li> <li>Multi-generations: Children or grandchildren milking elderly relatives; seizing control over their finances and living arrangements.</li> <li>Non-relatives: Such as friends buying property together without properly documenting everything, then fighting come sale time.</li> <li>Business relationships: Duped signatures on trust and business documents; hiding debts; impeding or undervaluing someone’s exit.</li> </ul> Warning signs There are common warning signs that you, or someone you know, is suffering financial abuse: <ul> <li>Pressure to make decisions: to invest your money or superannuation in crazy things that go bust, or to do nothing and not keep up with inflation (let alone grow your wealth), go guarantor on a loan, or sign power of attorney.</li> <li>Draining money: using your money to fund their business or investment on the promise a return is coming that never does (which could be poor management or deliberate deceit). This could continue for years until you’re left homeless and bankrupt.</li> <li>Unfair claims: your partner came into the relationship with nothing and stays just long enough to make a claim on your home.</li> <li>Controlled spending: this may start small (‘Don’t spend so much on clothes!’) but can become extreme. </li> <li>Blackmail: I’ve heard of people denied access to their grandkids unless they gave their son/daughter money or amended their will.</li> <li>Restricted access: you’re denied access to your own or joint finances, from having your own accounts, or are banned from working to earn your own income and superannuation.</li> <li>Tracking: sharing your location by smartphone may sound practical or safe but is open to abuse.</li> <li>Social isolation: cutting you off from friends and family; pressing for an interstate move.</li> <li>Reckless spending: your money is spent haphazardly – you may be kept in the dark or pressured not to ask questions.</li> <li>Tying down: trapping you into a big mortgage to crimp your freedom.</li> <li>Guilting: I have seen wealthy adults guilt their less fortunate parents into paying their bills, and gambling addicts guilt partners into paying their debts (with no intention to address their addiction or plan to pay it back).</li> </ul> Protecting yourself The best prevention of all is to avoid thinking ‘it won’t happen to me’. So many victims of financial abuse once thought exactly the same. Other tips include: <ul> <li>Speak up: Sometimes, starting a conversation can be enough to deliver positive change and even save a relationship (avoiding divorce is cheaper for everyone!)</li> <li>Have an emergency fund – cash only you can access, easily, in a crisis.</li> <li>Keep separate bank accounts – deposit your income here, then transfer money for joint bills into a joint account. </li> <li>Make decisions together – don’t leave money matters to your partner/children. It’s your money too.</li> <li>Get outside perspective: financial advisers are accountable to you as their client and help provide visibility over your assets, liabilities and risks. Ensure they are qualified and currently practicing.</li> </ul> If you think you may be a victim of financial abuse, I beg you – seek help immediately. Suffering in silence and letting the situation snowball is the costliest thing you can do. Both financially and emotionally! <a href="http://www.lifeline.org.au/">Lifeline - </a>13 11 14 <a href="https://www.1800respect.org.au/">1800RESPECT - </a>1800 737 732 <a href="https://www.familyrelationships.gov.au/talk-someone/advice-line">Family Relationship Advice Line - </a>1800 050 32 <a href="https://goodshep.org.au/">Good Shepherd Australia Financial Independence Hub - </a>1300 050 150 <a href="http://www.ndh.org.au/">National Debt Helpline - </a>1800 007 007 Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> Image credits: Getty Images

Money & Banking

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#GirlMaths: a seemingly innocent and fun way to justify expenses that can have serious financial consequences

<a href="https://theconversation.com/profiles/janneke-blijlevens-150258">Janneke Blijlevens</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/angel-zhong-1204643">Angel Zhong</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>, and <a href="https://theconversation.com/profiles/lauren-gurrieri-5402">Lauren Gurrieri</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> These shoes are perfect, made for me! I have to get them! But really, I should be paying off my car loan instead. I can’t justify this purchase. Or can I …? We all know this feeling, this tension between what you really want to do and what you really should, or shouldn’t, do. What you are experiencing is <a href="https://www.britannica.com/biography/Leon-Festinger/Cognitive-dissonance">cognitive dissonance</a>. It’s a psychological discomfort we feel when our behaviours and our values or beliefs do not match. Not to worry, we can make that discomfort simply disappear with a good dose of #GirlMaths! <h2>So what is #GirlMaths?</h2> GirlMaths recently became a viral phenomenon on TikTok after New Zealand FVHZM radio hosts Fletch, Vaughan and Hayley used #GirlMaths to justify one host’s mother’s expensive dress purchase as basically free because the dress was going to be worn at least four times. <iframe id="tc-infographic-904" class="tc-infographic" style="border: none;" src="https://cdn.theconversation.com/infographics/904/f0b5e215a804bb450e609c397b96c7fcbf46172f/site/index.html" width="100%" height="400px" frameborder="0"></iframe> Since then, influencers have added to the #GirlMaths trend with gems such as “If I buy it for $100, wear it, and then resell it for $80 then I basically wore it for free”, “If I pay with cash, it means it’s free”, and “If I just returned something, then purchase something new for the same amount of money, then it’s free”. The reason #GirlMaths resonates so well with everyone and allows it to go viral is that we are very familiar with this type of thinking. The mental gymnastics of #GirlMaths needed to justify cost-per-wear or cash-is-free is a perfect display of behavioural biases and heuristics, such as confirmation bias and denomination bias, being applied to everyday consumption decisions. <h2>The psychology of decision-making</h2> Behavioural biases and heuristics are shortcuts in our thinking that help us make decisions quicker and easier, and are great for reducing the cognitive dissonance we sometimes experience. Our brain has a lot of decisions to make in a day and simply doesn’t have the power to scrutinise every little detail of every <a href="https://theconversation.com/what-shall-we-have-for-dinner-choice-overload-is-a-real-problem-but-these-tips-will-make-your-life-easier-193317">decision</a>. These shortcuts in our thinking may facilitate the decision making process, but they don’t always mean we make the most optimal decisions. Confirmation bias is a bias where you justify your decisions by considering only the evidence that supports what you want and ignore the evidence that would mean you’d have to make a different decision. Cost-per-wear does sound quite financially savvy. It is just like bulk-buying pantry essentials, right? The issue is you are ignoring the facts such as: 1) your disposable income does not match this expense in light of your utility bills, 2) you could rewear a cheaper dress all the same, and 3) by spending money on a fancy dress, you lose the opportunity to spend the money on other better investments for wealth accumulation, or to pay off your car loan. <h2>The financial and social costs</h2> But it’s all a bit of innocent fun, right? Surely people won’t take #GirlMaths that seriously? We beg to differ. First, the term is unnecessarily gendered. Gendered language operates to reinforce societal expectations with a particular gender and can promote stereotypes, biases and binary categories. In this case, the term “girl maths” reinforces problematic stereotypes that equate women with consumption, frivolity and extravagant spending. When stereotypes are reinforced within our own social circles, we are more likely to <a href="https://journals.sagepub.com/doi/abs/10.1177/0146167299025007004?casa_token=dOhnQVtFwPsAAAAA:XSBdix5AB6bDfGjNgfbX9OIjstw4KE071GP0l60mAxvHJMaEwkyPERqHXf3z9PhctWJUl6h7TgTHg_U">internalise these as part of our identity</a>. By representing women in a less favourable way, the term operates to both demean and discriminate on a gendered basis. This is heightened by the use of “girl” as opposed to “woman”, which implies someone is childlike or lacking in knowledge or experience. It also begs the question what “boy maths” - set up as something opposing and different - might connote. Second, the #GirlMaths trend reminds us of the power of “<a href="https://theconversation.com/fintok-and-finfluencers-are-on-the-rise-3-tips-to-assess-if-their-advice-has-value-161406">finfluencers</a>” – social media content creators amassing huge online followings by sharing advice on anything from budgeting to buying a house, to investing. These online gurus appeal to Gen Z and millennials, simplifying complex financial concepts into digestible nuggets, much like #GirlMaths simplifies purchases based on cost-per-wear or cash-as-free. Just as regulators such as <a href="https://moneysmart.gov.au/other-ways-to-borrow/buy-now-pay-later-services">ASIC</a> repeatedly warn us of the dangers of buy-now-pay-later services, we must caution the #GirlMaths trend as a dangerous cocktail for young women who are susceptible to the “advice” of finfluencers. The trend resembles BNPL by breaking down expenses into smaller, more palatable portions, making purchases seem justifiable and affordable at the moment. Denomination bias describes this tendency to spend more money when it is denominated in small amounts rather than large amounts. We find it much easier to spend $50 four times than $200 all at once. However, the convenience of these shortcuts in our thinking can obscure the hidden financial risks. You may overlook the bigger picture of your financial health, and spend more than what you can afford. That’s why a large number of BNPL users find themselves ending up in a <a href="https://www.choice.com.au/money/credit-cards-and-loans/personal-loans/articles/bnpl-submission-to-treasury">modern debt trap</a>. <h2>The perils of #GirlMaths</h2> The danger of #GirlMaths to young women lies in the cocktail of feeling oddly familiar and reinforced in this biased thinking, the problematic stereotypes that shape identities, and the power of finfluencers, who wield increasing influence over the financial choices and decision-making of young women. While the term may initially come across as innocent fun, it’s crucial not to underestimate its potential harms. Instead, let’s champion the use of inclusive language in finance that doesn’t perpetuate gender biases. And if you’re a staunch supporter of #GirlMaths, we strongly urge you to take into account the possible adverse financial consequences of these quick-fix spending habits.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/211903/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/janneke-blijlevens-150258">Janneke Blijlevens</a>, Senior Lecturer in Marketing, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/angel-zhong-1204643">Angel Zhong</a>, Associate Professor of Finance, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>, and <a href="https://theconversation.com/profiles/lauren-gurrieri-5402">Lauren Gurrieri</a>, Associate Professor in Marketing, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/girlmaths-a-seemingly-innocent-and-fun-way-to-justify-expenses-that-can-have-serious-financial-consequences-211903">original article</a>.

Money & Banking

Four myths about the financial side of divorce

<a href="https://theconversation.com/profiles/emma-hitchings-388514">Emma Hitchings</a>, <a href="https://theconversation.com/institutions/university-of-bristol-1211">University of Bristol</a> and <a href="https://theconversation.com/profiles/gillian-douglas-1428314">Gillian Douglas</a>, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> It’s no wonder many people think divorce involves going to court, huge legal fees and decades of spousal payments, considering these are the cases that dominate our headlines. However, the kinds of divorce cases reported in the news involve the very rich, and are far removed from the reality for most couples. The Law Commission of England and Wales, the body responsible for law reform, <a href="https://www.lawcom.gov.uk/project/financial-remedies-on-divorce/">recently announced a review</a> of the law of finances on divorce, with a scoping report due in September 2024. Review of this law is much needed, given the legislation governing how couples in England and Wales sort out their financial affairs upon marriage breakdown mainly dates back to the 1970s (the <a href="https://www.legislation.gov.uk/ukpga/1973/18">Matrimonial Causes Act 1973</a>). The problem is that key politicians <a href="https://hansard.parliament.uk/lords/2023-03-08/debates/3AB3D708-24E5-4FF2-8481-05EFA27E2593/DivorceFinancialProvision">who have been calling for change</a> still rely on the issues raised in these <a href="https://hansard.parliament.uk/lords/2018-05-11/debates/89A33706-7DCD-4FA0-AE0D-B06E11FAF264/Divorce(FinancialProvision)Bill(HL)">exceptional, “big money” divorce cases</a>. We need to correct the misleading narrative about divorce if reform is to address the needs of the 110,000 couples <a href="https://www.gov.uk/government/statistics/family-court-statistics-quarterly-july-to-september-2022">who get divorced in England and Wales each year</a>. Although there is limited research about this issue, we do know enough to challenge the following myths. <h2>1. Spouses are often forced to fund costly legal battles</h2> Family courts grant divorces and the fee is currently £593. However, it is not mandatory for a divorcing couple to get an additional order regarding their finances, and there is no need for expensive court hearings. In fact, <a href="https://www.gov.uk/government/statistics/family-court-statistics-quarterly-july-to-september-2022">fewer than 40%</a> of those divorcing each year do so. While there is no authoritative data on average legal costs incurred in these cases, it seems that, for many couples, the costs of sorting out their financial arrangements need not be high because the courts are not involved. And even those couples who do use the courts for their financial matters overwhelmingly settle rather than fight their case, which limits their legal costs. Only <a href="https://www.gov.uk/government/statistics/family-court-statistics-quarterly-july-to-september-2022">13% of financial orders</a> made in a divorce are actually decided by a judge after contested litigation. The rest are consent orders: orders finalised by the judge on terms that have already been agreed by the divorcing couple. <h2>2. Everything is split 50/50</h2> The law does not lay down a principle of equal sharing of the marital assets on divorce. However, the courts <a href="https://www.lawteacher.net/cases/miller-v-miller-mcfarlane-v-mcfarlane.php">do accept this is a desirable goal</a> if this can be done while meeting both parties’ needs – and those of their children. Research suggests that, rather than rigidly applying a 50/50 split, couples focus on their needs first and <a href="https://research-information.bris.ac.uk/en/publications/financial-remedies-on-divorce-the-need-for-evidence-based-reform">particularly those of their children</a>. This can result in an unequal split of the value of the main asset most couples have – the former marital home. <h2>3. Men have to pay lifelong maintenance</h2> Some news media object to the current law as they claim it allows an ex-wife to be supported <a href="https://www.dailymail.co.uk/news/article-5965629/Surveyor-marriage-ended-16-years-ago-WINS-Supreme-Court-battle.html">for the rest of her life</a> by her former husband (or vice versa). The argument is that this casts ex-wives as dependants who cannot look after themselves, and prevents husbands from moving on after their divorce. In reality, lifelong maintenance is rare, and even limited ongoing financial support is uncommon. The most recent data found that only 16% of court orders involved any kind of ongoing spousal support – of which, two-thirds were for a fixed term. Nearly all such orders involved <a href="http://www.nuffieldfoundation.org/sites/default/files/files/briefing%20paper%20Jun%202018%20FINAL.pdf">dependant children</a>, with the order terminating when the youngest child reaches a certain age or stage of education. <h2>4. London is the divorce capital of the world</h2> Some news media <a href="https://www.theguardian.com/lifeandstyle/shortcuts/2015/feb/24/divorce-rich-husband-london-english-law">report</a> that the courts’ endorsement of the principle of equal sharing has led to some wives, married to oligarchs, sheikhs and tycoons, seeking divorce through an English court due to its “generous” treatment of them. For example in 2021, a High Court judge ordered Sheikh Mohammed bin Rashid al-Maktoum, the emir of Dubai, to pay a <a href="https://www.businessinsider.com/why-london-divorce-capital-world-for-mega-rich-2019-7?r=US&IR=T">£554 million divorce settlement</a> to his former wife, Princess Haya. By their nature, these cases are atypical – that’s why they make headlines. But why should the fact that English law takes spousal equality seriously be a matter for regret? The 1970s legislation aimed to ensure the non-financial contributions of spouses, such as home-making and caring, should be recognised. Judges have been clear <a href="https://uk.practicallaw.thomsonreuters.com/3-503-7596?transitionType=Default&contextData=(sc.Default)&firstPage=true">it is discriminatory to assume</a> the breadwinner spouse is making a greater contribution to the relationship and should keep a larger part of the wealth than the other who takes on the role of carer. Surely this is an enlightened position. That doesn’t mean we shouldn’t update the law, though. Working patterns have changed but women still earn, on average, <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2022#:%7E:text=Image%20.csv%20.xls-,The%20gender%20pay%20gap%20has%20been%20declining%20slowly%20over%20time,up%20from%207.7%25%20in%202021.">less than men</a>. They are still more likely to assume the bulk of <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/familiesandthelabourmarketengland/2021">child care</a>, <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/familiesandthelabourmarketengland/2021">work part-time </a>, and, in consequence, have <a href="https://adviser.scottishwidows.co.uk/assets/literature/docs/women-retirement-report-2022-press-release.pdf">smaller pensions compared with men</a>. The result is that, far from being treated generously, women still come out of divorce <a href="https://ses.library.usyd.edu.au/bitstream/handle/2123/26207/Fisher_2018_AJFL_Final.pdf?sequence=1">financially worse off than men</a>. But there is still so much we don’t know about how divorced couples divide their assets. Since the norm is for couples to stay out of the courts, there is no official record of how the majority of the divorcing population arranges their finances. That’s why <a href="https://research-information.bris.ac.uk/en/persons/emma-hitchings">one of us</a> (Emma) is leading the Fair Shares Study, expected to publish in autumn 2023. This will provide the <a href="https://www.bristol.ac.uk/law/fair-shares-project/">first nationally representative picture</a> of couples’ finances on divorce. We need a law that meets the needs of all divorcing couples rather than the few wealthy exceptions, and a major corrective to the myths that abound in this area of family law.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/202975/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/emma-hitchings-388514">Emma Hitchings</a>, Professor of Family Law, <a href="https://theconversation.com/institutions/university-of-bristol-1211">University of Bristol</a> and <a href="https://theconversation.com/profiles/gillian-douglas-1428314">Gillian Douglas</a>, Professor Emerita of Law, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/four-myths-about-the-financial-side-of-divorce-202975">original article</a>.

Money & Banking

How to set realistic exercise goals you’ll actually stick to

We often think that exercise goals need to be huge mountains, feats that are big and hard to achieve. But when your goals are unobtainable you fall into the New Year's Eve cycle, where the excitement you feel at the beginning wavers after just a short time. The same goes if your goals are too small: you will only feel the sweet taste of success after a bit of hard work. Exercise goals need to be realistic. They need to stretch you enough so that you can become more than who you are at this moment without breaking you. Here are the top tips from Dr Brett Lillie – author of Rediscover Your Athlete Within – on how to set realistic exercise goals so you can achieve them on your own terms: 1. Follow the Principles Designing your goals begins with the core principles; be specific, clarify your destination, make it measurable, in bite size action steps that are achievable in a clear time frame. The goal posts. 2. Start where you are Be truthful about where you are right now. On one hand think about your body and be realistic about your physical capacity. On the other, have fun, be creative, get curious. What do your exercise goals make you feel? At the end of the day, we're only as old as we feel. It’s easy to fall into the “I’m too old, I can’t possibly do that” trap: get out of that thought and jazz it up. 3. Make your goals compelling Bob Proctor is famous for asking, ‘Is it big enough and scary enough’ to pull you out of your present circumstances and not playing small? A realistic goal doesn’t need to be climbing mount Everest, but it does need to stretch you and take you out of your comfort zone. The more meaning you give your goals, the more why you attach, the more realistic they become, the more they excite you and get you out of bed before the alarm. 4. Find the balance When you set goals, they are really signposts along your life journey, “in between” destinations that you are moving in the right direction. There are times where it is spring, and everything just seems to be going your way, heading into summer, you’re ticking boxes, only to head into Winter where nothing seems to be happening. No need to feel discouraged. As the change of the seasons, exercising needs balance too. Make rest and recovery part of your goals. 5. Stay on track Once you start exercising, the beginning bit is relatively easy, it’s the honeymoon period. The closer you get to your goal, the greater the effort, the more distractions begin to appear. This is the time you smile to yourself, you stick to your promise, you know your goal is just over the next ridge about to appear. Remind yourself you’re still progressing even if it doesn’t quite feel like it. You are still moving forward, and you have momentum. 6. Set yourself up to win Setting yourself up to win is about removing the clutter in your life, both mental and physical. When you’re young you just juggle the growing kids, a career, responsibilities and you multi task like a pro. However, it is putting your attention on the one thing that makes the big things that matter happen. Deliberate attention will give you the greatest success. So think: What is crowding your mind? And your environment? Are there worries or piles of unfinished projects cluttering your world? Clearing the decks is making way for the new. What is your one thing? Making an exercise goal realistic is about deciding what is truly important, then actually writing it down and turning it into a priority in our life. It is in our PM years where the views and values we hold tend to change, we look for the deeper meaning, more heartfelt fulfilment and think about the legacy we are creating. Recognise that setting exercise goals that are realistic is you taking the time to decide what is most important to you and why, setting a promise in place. Look for the wins, acknowledge the progress and celebrate your life every day. Dr Brett Lillie, author of Rediscover Your Athlete Within, is a sought-after speaker, coach and rehab professional who helps people rekindle their love for movement and find their mojo so they can live their best life. To find out more about Dr Brett’s programs, go to his website <a href="https://www.brettlillie.com/" target="_blank" rel="noopener">www.brettlillie.com</a>

Body

How your favourite things can boost your financial wellbeing

<a href="https://theconversation.com/profiles/jingshi-joyce-liu-1424398">Jingshi (Joyce) Liu</a>, <a href="https://theconversation.com/institutions/city-university-of-london-1047">City, University of London</a>; <a href="https://theconversation.com/profiles/amy-dalton-1425283">Amy Dalton</a>, <a href="https://theconversation.com/institutions/hong-kong-university-of-science-and-technology-1153">Hong Kong University of Science and Technology</a>, and <a href="https://theconversation.com/profiles/anirban-mukhopadhyay-1425284">Anirban Mukhopadhyay</a>, <a href="https://theconversation.com/institutions/hong-kong-university-of-science-and-technology-1153">Hong Kong University of Science and Technology</a> The cost of living crisis has left many people struggling to afford basic necessities such as food and heating for their homes. On the other hand, the top ten richest men in the world <a href="https://www.weforum.org/agenda/2022/04/economic-inequality-wealth-gap-pandemic/">doubled their wealth</a> during the COVID pandemic while 99% of people became worse off. While this is a comparison of two extremes, many people attempt to “keep up with the Joneses” – looking at what the people around them own and striving to afford the same things. Comparing material wealth and resources to those around you is even more common when others are better off. It’s hard not to wonder why someone else has a nicer car or better clothes. Lots of <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/jasp.12631">research supports</a> this tendency, <a href="https://journals.sagepub.com/doi/full/10.1177/00222437221141053">including our own</a>. For example, when we asked American people to watch a video about research on income inequality in their own country, unsurprisingly, it made them think about their own wealth and how it compares to those around them. And we found that it doesn’t matter how wealthy a person is. Relatively well-off people still tend to look upwards in this way. There is nearly always someone who has more money or owns a better car, a bigger house or the latest gadgets. But while money may not buy you happiness, <a href="https://journals.sagepub.com/doi/full/10.1177/00222437221141053">our research shows</a> that a favourite possession can actually help to make you feel happier when facing income inequality. Thinking about a single treasured possession – even something small like a favourite book gifted by a friend or a keepsake from a trip – can help prevent these feelings of deprivation and actually boost your wellbeing. We used the <a href="https://www.investopedia.com/terms/g/gini-index.asp">Gini coefficient</a> – a common measure of income inequality – to analyse more than 31,000 Instagram posts from 138 countries. We found that posts tend to convey less happiness in places with more income inequality (i.e., when the Gini coefficient of the location of the post increases). We focused on posts that were about favourite possessions (that used hashtags such as #favouritething, #favthing), comparing these with posts about favourite things in general, that is things that aren’t “owned”. The latter posts used hashtags such as #fashion or #favoritepeople. Posts that used hashtags about general consumption and favourite things that aren’t “owned”, such as music or friends, were typically less happy and posted in areas with more income inequality. But when we looked at posts that used hashtags about favourite possessions, such as #favouritething or #favthing, we found there was a weaker relationship with income inequality. So whether a post was happy or not wasn’t linked to the equality of the area it was posted in. These posts about favourite possessions were therefore less affected by income inequality. This means that encouraging people to think differently about things they already own could help some cope better with inequality. Rather than focusing on how much you own, which tends to exacerbate social comparison and undermine happiness, focus instead on your favourite possessions. Our research indicates that people who do this tend to make fewer material comparisons, and are happier as a result. <h2>Simply remember your favourite things</h2> A treasured possession doesn’t even have to be particularly expensive. From a memento purchased on a trip abroad, to your grandmother’s embroidered cushion, a football jersey that reminds you of your old school teammates, or even that tattered t-shirt of your favourite band, such items can feel priceless to their owners because they are unique and their value transcends any kind of price. In a separate multi-country study using an online questionnaire, we asked 1,370 participants from China, India, Pakistan, the UK, Spain, Russia, Chile and Mexico to describe either every item of clothing they had recently purchased, or a single favourite item of clothing. After participants described these things, we asked them about their wellbeing, as well as their perception of income inequality in their country. Those who thought about recent clothing purchases reported lower wellbeing when thinking about income inequality in their country. In comparison, those who talked about a single favourite piece of clothing were not as affected by the income inequality they perceived around them. Three more online experiments with over 2,000 participants <a href="https://journals.sagepub.com/doi/full/10.1177/00222437221141053">revealed that</a> when people are reminded of their favourite possessions they feel less affected by income inequality because they are making fewer material comparisons. In one of these studies, we found that merely describing a favourite possession made people less likely to compare their wealth to that of others. When people stopped making these comparisons they were happier – even those living in places with more income inequality. <h2>#FavouriteThing</h2> Our research shows the benefits of focusing on a few favourite things that we own, rather than thinking about the amount of possessions we have and what else we need to “keep up with the Joneses”. Hashtag trends like #ThrowbackThursday encourage people to post photos on certain themes. In a similar vein, encouraging more people to post photos of their favourite possessions using hashtags like #FavouriteThing could do a lot to help boost happiness during the cost of living crisis. Income inequality is rampant and the cost of living crisis has only made its effects worse. But we all possess something dear to us that can keep us from comparing ourselves to others and help protect our wellbeing in this difficult economic environment.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/201997/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/jingshi-joyce-liu-1424398">Jingshi (Joyce) Liu</a>, Lecturer in Marketing, <a href="https://theconversation.com/institutions/city-university-of-london-1047">City, University of London</a>; <a href="https://theconversation.com/profiles/amy-dalton-1425283">Amy Dalton</a>, Associate Professor of Marketing, <a href="https://theconversation.com/institutions/hong-kong-university-of-science-and-technology-1153">Hong Kong University of Science and Technology</a>, and <a href="https://theconversation.com/profiles/anirban-mukhopadhyay-1425284">Anirban Mukhopadhyay</a>, Lifestyle International Professor of Business and Chair Professor of Marketing, <a href="https://theconversation.com/institutions/hong-kong-university-of-science-and-technology-1153">Hong Kong University of Science and Technology</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-your-favourite-things-can-boost-your-financial-wellbeing-201997">original article</a>.

Money & Banking

Financial guru reveals how to shop at Costco without membership

With the cost of living crisis, people have started abandoning their local supermarkets and heading to Costco to do a shop that doesn't break the bank. While best known for its deals, shoppers must have a membership with the wholesaler, meaning they pay a yearly fee of $60 to shop there. However, one bargain hunter and money-saving expert has revealed how to shop at the supermarket without paying the membership fee. To access a Costco without a membership, shoppers need a shop card, financial guru Little Birdie explained. The cards can be preloaded with any amount from $25 to $999.99, with recipients then able to use them for purchase in store. There is a catch - the cards have to be bought by a current member, and can’t be used online, or in fuel stations, Birdie continued in her TikTok. Currently, there are only 15 stores across Australia. Parents of larger families have reported getting hundreds of dollars off their grocery bills by buying in bulk at Costco. “Every time I go to Costco, my favourite part is seeing how much money I saved. Yesterday was my first trip there in a few years. I spent $593,” one woman wrote on Facebook. “I did a (fake) online order with Coles, selecting equal quantities as what I have purchased at Costco. Coles would have cost me $783.” She claimed the quality of the products, particularly meat, is better than other stores and is the ideal place to purchase expensive dog food in bulk at a quarter of the price. “We actually ended up saving around $35, on approximately six weeks food for our dogs. But the real win is that we have it already, and don't have to get stress when we're running out and all the supermarkets are out of stock!” The wholesaler has served to help many families in desperate times with one woman saying she <a href="https://www.oversixty.com.au/lifestyle/food-wine/groceries-option-even-cheaper-than-aldi" target="_blank" rel="noopener">saved a whopping $600</a> by shopping at Costco. Image credit: TikTok

Money & Banking

5 ways alcohol can sabotage your weight loss goals, according to an obesity doctor

Alcohol and weight loss “Hey Siri, can I still lose weight if I drink alcohol?” Goodness, we only wish the answer was that simple. Research is mixed (no pun intended) on whether alcohol can lead to weight gain. That’s because weight is complex – and some people notice a shift on the scale when they consume alcohol, while others don’t. As a doctor who specialises in the science of weight, I can say what we do know is that many of these alcoholic drinks are energy-dense (meaning high in kilojoules) and provide little to no nutrition, which may put a damper on your weight loss efforts. Here are five major reasons alcohol can impede you weight loss efforts. Your body views alcohol as a toxin Your body metabolises and eliminates alcohol from the body with the help of two enzymes: Alcohol dehydrogenase (ADH) and aldehyde dehydrogenase (ALDH). When you imbibe, these two work together to break apart the alcohol molecules, producing a toxic substance, acetaldehyde, then acetate, so that your body can get rid of it – and fast. Here’s why that matters when you’re trying to lose weight. Since your body prioritises alcohol digestion, it puts digestion of other nutrients (like fat, carbs, and protein) on the back burner. In other words, your body might put off metabolising fat and carbs when it’s busy breaking down alcohol. Over time and repeated patterns, this could lead to increased fat storage and weight gain. Alcohol can cause inflammation Alcohol can impair the functions of the gut, liver, and other organs – interfering with the immune system and causing systemic inflammation. Alcohol consumption stimulates a cascade of inflammatory responses, one of which is the release of cortisol, the stress hormone. And research has shown that persistently high levels of cortisol are associated with obesity. That’s why it’s best for people with obesity, who are already at an increased risk of inflammation, to limit or avoid alcohol. Alcohol affects sleep - and sleep impacts weight It may seem like that nightcap helps you fall asleep, but alcohol can actually disrupt how well you snooze. One study, which looked at participants’ heart rates and ability to relax during sleep, showed that even small amounts (0.25 grams per kilogram or less) of alcohol decreased those markers of quality of sleep by 9.3%. And the more you drink, the worse you sleep – the same study linked moderate drinking to a 24% decrease in sleep quality, and heavy drinking to a 39.2% decrease in sleep quality. You may think a few nights of low-quality shut-eye is harmless, but research has shown that just one to three nights of poor sleep can lead to insulin resistance. Over time, that could put you at risk of obesity. Alcohol is often full of sneaky of sneaky kilojoules and sugar Many mixed drinks, tasty as they might be, contain added kilojoules and sugar on top of the naturally occurring sugars and kilojoules in alcohol. Even a so-called “lower-kilojoule” option, like a vodka tonic, can have as many kilojoules and grams of sugar as a serving of ice cream. Before you know it, your 30ml serving of vodka just jumped from 280 kilojoules to 700 kilojoules when you add 200ml of tonic. Have a few of those, and you’re looking at upwards of 2000 or more kilojoules on liquid alone – kilojoules that don’t provide your body with the best nutrition. Let’s compare these 2000 kilojoules in a few vodka tonics to a 2000-kilojoule meal of salmon, brown rice, and steamed veggies. The drinks are empty kilojoules, whereas the meal has fat, fibre and protein to keep you fuller and satisfied for longer – a win-win while trying to lose weight – while also providing high-quality nourishment. Drinking impacts food choices Have you ever noticed after drinking alcohol, you get a sudden hankering for a fast food run or pizza delivery? That’s because alcohol can impair decision-making and lead to impulse decisions when it comes to food – and research suggests it may even stimulate the appetite. Those who drink alcohol with a meal also tend to eat more – 30% more, according to one study. While alcohol won’t impact everyone’s weight the same way, it’s best to be mindful of how much you drink when trying to lose weight. Consider skipping it altogether or aim for moderation. Just know that even if you follow the limit for moderate drinking as recommended in the Australian Alcohol Guidelines by the National Health and Medical Research Council (NHMRC) —no more than 10 standard drinks a week and no more than 4 standard drinks on any one day – it still adds up over time. Several studies have shown that the risk of obesity is roughly two times higher in adults who consume alcohol than in those who don’t. Considering mocktails (non-alcoholic beverages) are popping up on more and more bar menus these days, rest assured your after-work social hour will still be filled with cheers. Just be sure to opt for a lower-kilojoule option, such as soda water with a squeeze of fresh lime or a craft mocktail with half the amount of simple syrup. Image credits: Getty Images This article originally appeared on <a href="https://www.readersdigest.com.au/healthsmart/diet/5-ways-alcohol-can-sabotage-your-weight-loss-goals-according-to-an-obesity-doctor" target="_blank" rel="noopener">Reader's Digest</a>.

Body

How to tell if your partner is stealing from you

Financial infidelity can take many forms and it can be devastating to a relationship. From secretive purchases to hiding debts, dishonesty about income to secret investments, it can cause significant harm to both partners. If you want to avoid becoming victims of financial infidelity, it is important to communicate openly and honestly about your finances. Taking responsibility for your financial health is good for your wellbeing. Whether it’s being pro-active in the face of financial infidelity or recovering the damages, being aware of the common forms and red flags can help you build strategies to move forward. Here is what you need to know. Common financial ‘secrets’ Money lies take several forms and they all involve secrecy, for example, buying items without informing your partner, gambling or other expenses that are unaccounted for, frivolous spending on unnecessary items, not disclosing debts or loans, and lying about how much money you make or your financial situation. Then there are the secret bank accounts and investing money without your partner's knowledge. Your partner may be harbouring one or many of these common financial secrets, so knowing the red flags will help you bring the dishonesty to the surface. Signs of financial infidelity It is important to keep an eye out for signs of financial infidelity. The red flags that will call out secretive behaviour include new credit card statements or bank accounts that you know nothing about, new items appearing in your house that you didn't buy, packages not addressed to you, new passwords on financial accounts and an unwillingness to discuss money matters. Your partner's behaviour is also a warning. Pay close attention to reactions that don’t seem authentic and displays of paranoia about you opening the mail – especially the bank and credit card statements. Moving beyond financial infidelity If you suspect your partner is guilty of financial infidelity, there are simple steps to help you both move forward. First, you will need your partner to come clean. Ask, listen, and be supportive. They may be feeling embarrassed or ashamed, and fearing judgement. Next, get help. Consider a professional. This could be both financial and personal – by planning a way forward together, you can re-affirm your views about money and trust in your relationship. Financial infidelity can destroy trust in your partner, so you both must be willing to work towards healing the hurt and reducing the risk of future money sins. Make money a talking point When it comes to financial matters, maintaining honesty and trust in your relationship can be challenging. To be on the front foot, try talking about money regularly. Normalise it. For example, talk about your bank balance, who is paying what bills, what you’d like to buy and how you plan to buy it, your savings plans, how your superfund is performing. Set up these conversations in advance and use them as a time to check in on your money goals. You must both feel empowered to ask money questions, so the more you make money conversations the norm, the better. Create a personal finance village Try adding someone to your personal finance village. Consider working with an accountant or financial advisor who can independently help you and your partner to plan open discussions in a safe manner to address your financial issues. Ask their advice on enabling ‘safe’ confessions like having a no-judgement rule for raising money sins. Allow yourselves the opportunity to come clean on spending and work out how best to address this going forward. This offers you the freedom of being on the same page financially and working towards the same financial goals. Finding yourself in a situation involving financial infidelity can be utterly devastating. Of course, the best way of addressing any kind of money cheating is to know the red flags and avoid it altogether. However, as this is not always the case, consider getting professional advice on working towards common financial goals so you can move forward in a positive way. Remember, communication and honesty are key to a healthy and successful financial relationship. Jacqui Clarke FCA, FTI, GAICD, JP, author of Stop Worrying About Money (Wiley, $29.95), is a trusted advisor, board member, executor and veteran business executive. As a personal wealth and money management expert and over three decades of experience , 25 years at Deloitte and PWC helping high-net-worth families, individuals and business owners to build, manage and preserve their wealth. Her message is simple: with careful planning and effort, you can manage your money, so it doesn’t manage you. <a href="https://www.jacquiclarke.me/">https://www.jacquiclarke.me/</a> Image credits: Getty Images

Money & Banking

Life is too short - it's time to choose a Life List over a Bucket List

Author Kate Christie has rejected the idea of creating a Bucket List and instead has had a mental shift that allows her to now fully embrace the joy of creating a Life List. Here’s why… A month after I turned 50 my ex-husband was diagnosed with pancreatic cancer. Eleven months later he was gone. He was 54. He left behind our three beautiful children to try to come to terms with a chasmal loss that they don’t yet fully appreciate. Life is too short. With the diagnosis of a terminal illness there is no hope. There is just a decline - sometimes slow and sometimes devastatingly quick, where you have to bear witness to the process of death. You are forced to grieve the loss of someone before they have even gone. It is brutal and life changing. The paramount decision I made after my husband’s death was to stop putting ‘life’ off until later on the assumption that I have all the time in the world. I rejected the idea of creating a Bucket List and instead I have fully embraced the joy of creating a Life List. What is a Life List and why choose it over a Bucket List? A Life List is a long list of everything you want to achieve or experience while you are still young enough to fully achieve, experience, and enjoy it. It is the exact opposite of a Bucket List - which is generally defined as a list of the things you would like to experience before you die — that is, before you ‘kick the bucket’. It’s time to embrace a Life List over a Bucket List if: • You are not focused almost exclusively on travel and adventure. What about everything else that’s important to living a many-faceted brilliant life such as learning, being of service to others, and nurturing your relationships? • When it comes to travel, you don’t necessarily want to just experience crazy adventures that might actually hasten you kicking the bucket - such as swimming with sharks dressed in a wetsuit looking like a very edible seal. • You are not simply looking to create a list of obligations — the things you never, ever made time for in your life but which now you need to get through lickety-split and tick them off the list before you die … from exhaustion. • You are not interested in asking: What do I want to do before I die? Instead, you want to ask: What do I want to do while I am still young enough to enjoy it? 3 Steps to Creating Your Own Life List 1. Pick up a pen. The act of writing your Life List will significantly increase your chances of achieving your goals. 2. Include 3 types of goals on your Life List: • Go Big Goals - The big, hairy, outrageous goals that take planning, or are new experiences, or will take you outside your comfort zone (for example, last year I walked The Larapinta Trail in Central Australia; and I have been cold water swimming almost every single morning for 2 years…) • Go Small Goals - Include a range of smaller, life-affirming, inspiring goals that provide the daily fuel that makes your soul sing. Go Small or short-term goals can be implemented in the near future and generally without extensive planning. • Go Now Goals - Seize the day! Engage in acts of spontaneity to keep you on your toes. Because life is too short. It is too short to the point that we need to live it every single day. We need to think deeply about what is most important to us and we need to prioritise those things - today. We need to purposefully plan to invest our time for the greatest possible joy. We need to invest our time in the people we love most. We need to invest our time in creating memories, in being of service to others, in generating happiness and fulfilment and wonder. And we need to start doing this right now. Because later might be too late. Kate Christie’s book ‘The Life List: Master Every Moment and Live an Audacious Life’ is available from Booktopia and Amazon Image credit: Shutterstock

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Battling to make ends meet? Financial planning expert offers 5 tips on how to build your budget

If you have money anxiety, knowing your financial attachment style can help

‘Girl math’ may not be smart financial advice, but it could help women feel more empowered with money

Days are getting shorter and colder. 6 tips for sticking to your fitness goal

Millions of eligible Aussies about to receive financial boost

How baby boomers are benefiting from Australia's "worst financial mistake"

Monty Python star's candid financial admission

Thinking of using an activity tracker to achieve your exercise goals? Here’s where it can help – and where it probably won’t

Could you cope with a shock to your bank balance? 5 ways to check you are financially resilient

5 financial lessons you should impart to your adult children

7 ways to create realistic financial goals that you'll actually stick to

What does financial abuse really look like?

#GirlMaths: a seemingly innocent and fun way to justify expenses that can have serious financial consequences

Four myths about the financial side of divorce

How to set realistic exercise goals you’ll actually stick to

How your favourite things can boost your financial wellbeing

Financial guru reveals how to shop at Costco without membership

5 ways alcohol can sabotage your weight loss goals, according to an obesity doctor

How to tell if your partner is stealing from you

Life is too short - it's time to choose a Life List over a Bucket List

Our Partners

News

Shop

Catalogues

Newspaper

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Compare

Games

Information

Keep up to date

Search

Battling to make ends meet? Financial planning expert offers 5 tips on how to build your budget

If you have money anxiety, knowing your financial attachment style can help

‘Girl math’ may not be smart financial advice, but it could help women feel more empowered with money

Days are getting shorter and colder. 6 tips for sticking to your fitness goal

Millions of eligible Aussies about to receive financial boost

How baby boomers are benefiting from Australia's "worst financial mistake"

Monty Python star's candid financial admission

Thinking of using an activity tracker to achieve your exercise goals? Here’s where it can help – and where it probably won’t

Could you cope with a shock to your bank balance? 5 ways to check you are financially resilient

5 financial lessons you should impart to your adult children

7 ways to create realistic financial goals that you'll actually stick to

What does financial abuse really look like?

#GirlMaths: a seemingly innocent and fun way to justify expenses that can have serious financial consequences

Four myths about the financial side of divorce

How to set realistic exercise goals you’ll actually stick to

How your favourite things can boost your financial wellbeing

Financial guru reveals how to shop at Costco without membership

5 ways alcohol can sabotage your weight loss goals, according to an obesity doctor

How to tell if your partner is stealing from you

Life is too short - it's time to choose a Life List over a Bucket List

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