Money Worries and Your Intelligence

money worriesWe know that when we have money worries, they can seem all consuming.  If we go to bed worrying about money, when we wake up the next morning and it’s the first thing that pops into our head.

So, it would seem logical that when we’re in this all-consuming money worries state that we find it hard to focus on other things.  And more importantly, we find it hard to make sound rational decisions about anything (not just money). Continue reading

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Not all Dollars are Created Equal

not all dollars

If you happen to have cash in your wallet right now, take out a note and have a look at it.  It’s just a piece of paper.  It has a picture of someone famous on it, a few words and a number.  That’s what money is. 

In real terms, it is a medium of exchange created because bartering got a bit tricky, e.g. how do you value your cow when you want to swop it for a sack of grain.  But, as you will see, not all dollars are equal!

Sounds all very rational doesn’t it and it kept the economists happy.  But the economists forgot a very important point.  We aren’t rational!  So, when we see the piece of paper with pictures and numbers on it, we see a lot more than a symbol to buy stuff.  We see all sorts of emotions and meanings and it’s different for men & women. Continue reading

The Q&A Forum #6

Welcome back! This is the last video in our Q&A series where you get to ask us your money questions.

In this episode David from Christchurch, NZ, asks, “What is the best way to pay myself from my business?”

Then Anne from Perth, Australia, wants to know how much of her income should she allocate to paying off debt.

Did you miss out on sending us your question?

No problem, if you still have a question for us, send it to hello@moneymentalist.com and we will be happy to answer it for you.

See you in our next series!

Do You Know Your Numbers?

Your money

What do I mean when I say you need to know your numbers?  Let me explain.

You pull out your favourite pair of jeans that you haven’t worn for a while and you can’t quite get the zip up.  No, they haven’t shrunk, you have expanded (put on weight…).  So you decide to do something about it.

Off you go to the gym (or Weight Watchers) and what is the one of first thing that happens?  You get weighed, then the measured and body fat pinchers come out.  At the end of that first session, you know your numbers! Continue reading

Why is it so Easy to Spend Money?

easy to spend money

While this sounds a really simple question, the answer isn’t as straight forward as we would probably like it to be.

This simple question actually has two parts to it.

The first is why do we spend money and the second is what makes it so easy.  So, let’s look at these two components in isolation and put them back together.

The first question: Why do we spend money?

Continue reading

Three Critical Rules of Money Management

coins_2Happy New Year!  We hope that you have had a fantastic time over the Christmas/New Year period and enjoyed a least a few days off.

It’s (late) January, a time for reflection about last year and looking ahead at self-improvement for this year.  Once you have worked through the diet and exercise goals (they always seem to be fairly near the top of my list), there’s the money planning for the year.

Here are the Three Critical Rules of Money Management that you need to incorporate into your planning.

Continue reading

5 tips to help you cope with Money and Depression

Robin_WilliamsIt was with surprise and sadness that we learned of the death of Robin Williams.  How could someone who gave so much to everyone else not realise that he was loved in return?  The answer of course was that insidious illness, Depression.

Then I saw this headline in the NZ Herald “Williams was depressed and broke”.  It was only a few months earlier that Charlotte Dawson also suffering from depression and ‘jobless and penniless’ ended her life as well.  It seems that depression and money problems are a dangerous combination.

I don’t know the details of either’s financial circumstances other than what has been in the media.  But both had been in the situation of earning very good incomes during their careers, they enjoyed the good things in life and were able to be generous to their friends and family.  Then for whatever reason the money stopped flowing and life became even more difficult when combined with depression. Continue reading