5 ways to learn about money - for free

Financial literacy is important. And who doesn’t love free money resources? Today I’d like to share with you where I go to learn about money and all things personal finance - without paying a cent.

Eventbrite

You’ll find plenty of free money events on Eventbrite. Simply sign up for free, and in your ‘Interests’, go to the ‘Business’ section and select ‘ Finance’.

You’ll be recommended local workshops and seminars about property, savings, investments, and much more - with a mix of paid and free events!

Sorted

Sorted is made by the New Zealand and is dedicated to helping New Zealanders sort out their money. You can create your own dashboard to track your money goals, plus make use of the handy calculators - including mortgage, debt, Kiwisaver, investing, and more.

Podcasts

A fun and easy way to learn about money for free is through podcasts. You can learn about money and improve your financial literary while driving, working out, grocery shopping - practically anything! Some personal finance podcasts I would recommend are She’s On The Money, My Millennial Money, and the New Zealand podcast, It’s No Secret.

Library

It’s free to sign up to your local library, plus free to request them to buy the books you want to read. Some of my favourite personal finance books are The Richest Man in Babylon, Smashed Avocado, Money Diaries, You are a Badass at Making Money, and of course, Mindful with Money.

Social media

Follow banks and finance companies on social media, so you’ll know when they host workshops, webinars, and more. Westpac hosts free Managing Your Money workshops on topics like budgeting, saving, buying your first home, insurance, and more. I also love YouTube personal finance channels, like The Financial Diet, Aja Dang, and Sorelle Amore Finance.

Good luck!

Sophia

Budgeting, saving, and making space for each other’s needs & wants

Money had always been an awkward topic to talk about.

So in 2018, when I first heard of the term 'getting financially naked' from Erin Lowry of Broke Millennial, I was pleasantly surprised to discover that my partner and I had already done it without knowing. Rather than shying away from the topic of money - how much we made, how much we had in our bank accounts, how much debt we had, how much we had in savings - we'd brought it up as easily as one would bring up what they had for lunch.

Talking about money wasn't the only thing that suddenly seemed simple and easy with him - being in a relationship was also much less complicated and messy, and full of more joy, affection, and communication. So, surprise surprise - my first real 'partner' (rather than boyfriend or girlfriend) became my husband!

Our (financial) relationship timeline

March 2016 Went on our first date + became a couple.

March 2017 I bought my house.

July 2017 He moved in.

September 2017 Made our first big purchase together - a 5 x 5 white cube shelf!

April 2018 Opened our first joint account.

November 2018 Went on our first overseas holiday as a couple to Melbourne, where we got engaged at Eureka Skydeck 88.

November 2020 Finally got married in Queenstown, after COVID delayed our March 2020 wedding!

As a couple, we've always been extremely open and honest about money. While personal finance books constantly cite money as the #1 topic couples fight about, I feel like my husband and I have avoided this due to a few reasons:

I took it upon myself to manage our money, purely out of curiosity and eagerness to try out the tips in all the books I read;

We are both the same with money - neither much of an impulsive spender or obsessive saver;

We talk about our money goals, and are on the same page when it comes to our personal goals, careers, kids, etc;

We both contribute to our fortnightly couple's budget, allowing both of our needs & wants to be met.

Today I'd like to share with you how we do this fortnightly budget. It's super quick and easy to set up and maintain, and of course, free!

How we budget (+ example!)

We use Google Sheets, which you'll find in the top right corner of Gmail or here.

Make sure you check the privacy settings!

We created three sections:

1. Our net (after tax) fortnightly income;

2. Our respective savings amount based on this income (we're currently saving 25%);

3. Our living expenses, which are the things we have to pay for every fortnight, like bills

Creating automatic calculations can be done by selecting the cells you want - for example, all of the cells with your incomes - then going to the Functions dropdown menu on the very right and selecting 'SUM'. This will add up everything in the selected cells.

You can do this for all three sections - income, savings, and expenses. For savings, select the cell where you want the calculation, look at the cell where your income is, then type the formula "=[Income]*0.25". (E.g. our formula looks like this: =D2*0.25 for 25%). It'll automatically calculate how much you need to save!

Then, create a calculation at the bottom that automatically takes your total joint income and subtracts savings and expenses, showing you what's left over.

You can do this by selecting the cell you want balance to show up in, then typing in "=A-B-C" where 'A' is the cell containing the sum of your income, 'B' is cell containing the sum of your savings and 'C' is the cell containing the sum of your expenses. (E.g. our formula looks like this: =E5-E11-E39)

Voila! This is our basic fortnightly budget. We then take this basic budget and create a specific budget, tailored to each fortnight and any expenses coming up.

Simply right click on the tab and click 'Duplicate'! We name ours to the date of my next payday, which happens first.

Now the fun part. Since everything we always pay for is copied over, we can put in anything we want to buy or spend money on that coming fortnight. My husband will put in $100 for a video game that's coming out within the next 2 weeks; I will put in $80 for an event I want to attend (I have one in our budget right now for a Modern Intuition & Manifestation workshop!).

Anything else specific also goes in here, like car rego renewals and whatnot.

As long as we save at least 20% and what's left over is not in negative, it works for us! Both of us get to buy things we want or attend events we're interested in, as we've made room for both our priorities. (Though we do sometimes find each other's chosen expenses questionable...)

You don't even need to set aside time to write this together. Because the spreadsheet is equally accessible to both my husband and I, we just put in expenses whenever something crosses our mind, whether we're at home, on the bus or at work.

When it's payday, we bring up the spreadsheet and cross out (strikethrough) the ones we've already paid, so we don't send a payment twice.

So what happens when we do find each other's expenses questionable? Like, do you really need to spend that much on this thing, babe?

Money values

It all comes down to values: finding out what's important to your partner, and why - then, learning to understand and respect that.

For me, spending money on advocacy is the highest purpose for which my money can be spent on. Buying new books, attending spiritual workshops, they're nice luxuries to have - but donating to a cause I'm passionate about, or raising awareness of said cause, to me, has never had a definitive spending limit. Hence, the first year I decided to buy pâtissier-made rainbow cupcakes, rainbow lollies & rainbow mugs to raise awareness of Pride Month at work, my husband asked, "Why did you spend almost $400 on this?" and my (admittedly cheeky) reply was, "It's a small price to pay to contribute to social equality and elevate human consciousness."

This year, I spent $100 and still got to raise awareness for the LGBTIQ+ community with rainbow lolly bags. My husband, unsurprisingly, approved much more of this. :P

When I asked my husband the same thing - "To you, what's the highest purpose your money can be spent on?", he said, "Protection." This likely explains why he has health insurance and life insurance, which we pay fortnightly premiums on, and why I am content with health insurance covered by my family's plan but don't have my own life insurance - yet. I definitely understand the value of it, but it seems like something that would only become a priority for me when we have kids.

It's also because my husband has a very stable income - he's been at the same company for 7 years and has a great relationship with his team, as well as a shit ton of leave. His company also offers a lot of work perks, including a career break of up to 1 year off! He also has a strong individual emergency fund.

Who brings home the bacon?

We both do!

We earn the same income - roughly. He earns $3000 p.a. more than me.

While I earn income from a few different income streams - my salary, rental, and miscellaneous income from book sales, photography and candles - he earns all of his income from his salary.

Both have their pros and cons. I have do more to earn almost the same amount he does, but I love having the freedom to explore my creativity and curiosity. Profit has never been the top motivation behind my passion projects, but a bonus. Plus, if I ever lose one income stream, I still have other income streams I can work on.

Photography, for example, is something I've put on hiatus and stopped actively advertising for - but if I lost my job, I would probably pick it up again since it provides a consistent stream of income (people are always celebrating special milestones!), plus it's fun and perfect for introverts.

On the other hand, my husband can earn everything from just one stream of income, so has less to worry about - and doesn't need to keep income records or file an IR3 individual income tax return. Of course, if he ever decides to make a side hustle out of his skills and hobbies, like guitar & fantasy writing, I'll be there to support him, too.

If you're in a relationship, I hope you've found some inspiration for your own joint finances!

Looking for more money inspo? Follow me on Instagram at @mindfulwithmoneynz.

Love,

Sophia

You don't need to be rich to be financially stable

Today I'd love to share with you one of my biggest money beliefs: that you don't need to be rich to be financially stable.

Shortly after deciding to write this, I realised that being 'financially stable' is a very personal thing, and means different things to different people. So I asked friends, both in person and on Instagram: what does being financially stable mean to you?

The answers I got were fascinating:

‘Not worrying about how to pay for everything and living week by week.’

‘For me being financially stable means being able to go out and swipe my card without needing to check the balance.’

‘To have a better contingency fund in place so when big wants or needs come up it’s easy to afford!’

Whereas to the people I asked in person, it was more or less "Not living paycheck to paycheck."

What's my answer? For me, I would say that I feel financially stable now, but that I sure didn't before. But why? What has changed? Personally, I still look forward to payday and save up for big wants & needs (eg. diligently saving 40% of my income for our wedding last year; saving up for a new car & laptop this year because they're both old).

And it comes down to this: I don't lose sleep over money. When it comes to finances, I'm grateful to have peace of mind and not to worry much. Of course, it's not that I can afford anything my heart desires, but that if something comes up - a goal, a dream, a passion I want to pursue - I feel confident knowing that it is achievable. 

So what makes me feel financially stable now? If my definition is not losing sleep over money, what has changed to allow me not to worry and stress about it anymore? After all, I've had my financial ups and downs. Working 3 jobs at 21? Up. Moving to a new city on my own? Down. Landing my first corporate job? Up. Quitting a toxic job and spending the next year restoring my mental health and doing volunteer work? Down.

Here's why I believe that you can achieve financial stability, whether or not you consider yourself 'rich':

It's not about how much you make.

Financial stability sounds simple enough. Live within your means. Spend less than you earn. This sounds easy for most of us, but in reality, we're not truly spending less than we earn, even though we fool ourselves into thinking we're doing so. For a lot of us, buying a house, a new car, or a holiday has become more about if we can afford the monthly payments, rather than if we can genuinely afford to buy them at all.

What do I mean by 'afford'? For me personally, it means that everything you want and need to pay for can comfortably fit within 80% of your income. If you're earning $100,000 but spending $120,000, are you financially stable as opposed to if you're earning $50,000 and spending $40,000? What if you're earning $80,000 and you've proudly fit all of your expenses and financed purchases into $75,000, but you always feel like you have no room to breathe?

So how can you make sure you're on the right track to financial stability, regardless of your income? I do the following:

Look at the bigger picture.

It took me too long to realise that when I was broke, I was always living paycheck to paycheck because that was all I chose to see. I was only living in the now, and not thinking of the future. So instead of asking yourself if you can afford something right now, ask yourself if you can afford it over the whole year, and budget annually on top of budgeting your pay cycles. Take a holistic view. You might be rolling in it this month, but what about 6 months down the line? Will you be earning $3000 this month with only $1000 in expenses, but earn $50,000 over the whole year with $60,000 in expenses? Knowing that my entire year's savings & expenses fit within 80% of my annual income gives me a sense of financial stability.

Just because you can doesn't mean you should.

I have a love/hate relationship with 'enjoy now, pay later' schemes. I love using them to delay payments and in turn maximise credit interest on my bank accounts, but I hate the stories I hear of people getting into debt because they get suckered into buying things they don't actually want or need. (I also hate the excessive messaging of 'treat yourself' or that self-care is all bath bombs & champagne without actually working on yourself.)

So what do I do? Personally, I don't use Afterpay, Laybuy, and the like unless I can afford to buy what I want outright. That way, I know that I can make the repayments whenever I want plus never be charged late fees - which I read up on beforehand. It's all good when you're signing up for '4 easy fortnightly payments', but are you aware of the $10 late fee and potential additional $7 late fee for each if you don't meet them? Did you know that consistently having failed payments affects your credit score? I know it doesn't sound fun, but knowing what you're getting into will give you peace of mind - and a sense of financial stability.

Be true to yourself. 

I know how this sounds: "How does this relate to financial stability?" Being true to yourself is about spending your money on what you truly want, and what's in line with your values. As the book Love Your Life, Not Theirs says, so much of our spending comes from a place of jealousy and insecurity. We buy what we think will look good to others; we say yes to things we don't love or value to feel like the version of ourselves we wish we could be.

When you stop the comparison and people-pleasing, you realise you don't need to say yes to every drinks invitation; you don't need to buy a new outfit for every occasion, and you don't need to buy a fancier car than you care for (and can afford) to impress others. You are free to live authentically and be true to yourself; to spend that money on what truly makes you happy - whether that's art supplies, writing classes, photography gear, inspiring books, hiking gear or concerts and other genuinely meaningful experiences!

I actually think this is why I saved so much money and was so financially stable even when I was only working part-time in 2018 - I spent so much time at home, with noone to impress and no marketing or ads to see. I also hardly went on Instagram back then. That year I hardly bought anything apart from groceries & the occasional book - I wore what I had and even made my own skincare!

It's not about being the best. It's about being better than you were yesterday.

For me personally, an essential part of being financially stable is not being stagnant or falling deeper into debt - it's about consistently growing and moving forward. 

Y'all know I am a huge believer in the 80/20 rule, or living on 80% of your income and saving 20%. Sometimes it's easy to save even 40% when you've just gotten a bonus or expenses are low; at other times you might only be able to save 10% due to unexpected costs or a special event. Now that saving for our wedding is over, I am content with 20 - 30% every fortnight.

But some fortnights, I simply can't or rather, don't prioritise saving this amount. For example, the week of Valentines this year, my fiancé and I spent $300+ on dinner and a concert, while I also gifted him an online masterclass costing $155 and paid a $400 deposit for our holiday to India.

Even with this much spending on a special event and bucket list goal, I still saved 10%, à la The Richest Man in Babylon, which advises you to save every tenth copper. The idea is that no matter what, you're always working towards your financial goals. Can't do 20%? Do 10%. Can't do 10%? Do 5%. Either way, your savings are still increasing or your debt is still reducing, without requiring much sacrifice on your part. It's a win-win! Honestly, if I could go back in time and give my 21 year old self financial advice, it would be to save whatever you can, because at least you're still moving forward - rather than the mindset of 'It's so difficult, why even try?'

Another reason saving by percent and not dollar amount is the best way to save? It feels easy.

Say your fortnightly income is $1600. Does it seem easier to say 'Put $160 away into savings' or 'Put 10% - or 1/10th - into savings'? Both are exactly the same, but doesn't making the amount only a tiny fraction of your income seem so much more painless - like you're giving up less? It also works perfectly for people who are self-employed or earning an inconsistent income!

So there's my thoughts on what it means to be financially stable: it's not about being rich. It's about looking at your money holistically, spending in alignment with your values, and working towards financial stability - one step at a time.

I hope you've found this helpful! As always, you can leave your thoughts or ask me anything using the contact form.

Love,

Sophia 

Money habits I nailed in my 20’s

Today, I’m back with another reflective post. After sharing my financial regrets, I’ll be sharing with you mindful money habits I’ve done right – from my teens to mid 20’s.

Mindful Money Habit No.1: Starting work at an early age

I was a motivated young teen. At the age of 14, I decided on my own to start earning a regular income by delivering newspapers – the Eastern Courier and Property Press – around my local area of Bucklands Beach, Auckland.

At the age of 15, I started working at Warehouse Stationery – my first proper job. This means I’ve been working for over a decade! It might not seem like a lot, but it means I experienced ‘the real world’ sooner and had more time and experience in the workforce. Honestly, I’d give this as advice to my own children when I have them – to me, the earlier the better.

Mindful Money Habit No.2: Having multiple income streams

I’ve always worked multiple jobs or had multiple income streams; sometimes out of necessity, most times out of passion and curiosity. To make a long story short:

In 2012, I worked three part-time jobs (in beauty, in retail, and in a nightclub).

In 2013, I worked two jobs. The part-time beauty job had turned into my first full-time job; I later picked up waitressing & bartending at a restaurant & bar on weekends.

In 2014, I also worked two jobs: I’d switched full-time jobs and later on, started bartending at a club on weekends.

In 2015, I dedicated myself solely to one job working as an insurance consultant. It was my first corporate job and the one that changed much of my life.

In 2016, I was still at the same corporate job, but started thinking about turning my passion for photography into a side hustle. So, alongside this job, I photographed an engagement shoot, a graduation shoot, and an engagement party!

In 2017, I bought my house and started earning rental income by renting out the second bedroom. I had a full-time corporate job, and later, a part-time job in banking. I continued to shoot events here and there – in that year, it included a few graduations and a wedding. As such, I had two consistent streams of income and a third occasional stream of income.

Late 2017 – early 2018, I launched my candle shop on Etsy! 

In 2018, I worked part-time, continued earning rental income, continued making & selling scented soy candles, continued photographing events (this time I was popular with birthday parties), did a few research panels, and in November, started working for the government in a full-time corporate job. Messy? Yes, but it was a very fun and enlightening year, full of personal and spiritual growth.

Now, in 2019? Since leaving my government job near the end of the contract, I have two streams of income: a full-time job and rental income.

Why am I proud of this mindful money habit? Looking back, I’m proud of the fact that I’ve gained experience in a lot of different industries and types of work. I can say that I’ve worked in tax, sales, customer service (online, face to face, contact centre – inbound & outbound), retail, hospo, makeup artistry, general insurance, life insurance, banking, administration, and more. All of this is valuable life experience to me – the extra streams of income and extra value for my CV have been a bonus!

Mindful Money Habit No.3: Having a strong work ethic

I’ve always worked hard, both in terms of effort and time. For example, at my job as an insurance consultant, if I didn’t think you were being treated fairly, I’d literally do anything to make sure you were looked after, even if it meant repeatedly negotiating with underwriters. I like to think I always went above and beyond to make something complicated, simple and easy for customers!

My efforts paid off especially well in April-June 2016, when I won a $150 Prezzy card for being in the winning team in a competition for the most sales that quarter, and another $50 Prezzy card for individually making the most life insurance referrals. This coincided with one of our six monthly bonuses, based on our performance. To add to this, thanks to various incentives happening at the same time, I also won movie tickets and fuel vouchers! I rarely paid for fuel that year, as I spent little to begin with and simply accumulated fuel vouchers.

But I was very generous with my time, too: I volunteered for lots of overtime. Opportunities came up every week, and I would always volunteer to do additional hours without hesitation. This was great because overtime hours paid at 1.15! My office was 15 minutes walk from home, and most people going home from 4-5pm meant that my extra hours could be spent in a peaceful, quiet office mostly in solitude. When I was with a customer, I’d give it my all. But when I wasn’t, I could blissfully spend my time reading, writing, or organising my life (I spent a good deal of my downtime in the evenings planning my London & Paris trip itinerary).

I was also always willing to work public holidays if given them; especially because they were paid at 1.5 and always gave me a day in lieu I could use later on!

Mindful Money Habit No.4: Joining Kiwisaver from the beginning

Since I’d been a member of Kiwisaver since my very first job, I’d accumulated over 10 years of savings when I used my Kiwisaver first home withdrawal to pay for part of the deposit on my house. My whole working life, I hadn’t thought much of it – but I’m glad I’ve always stuck to it and kept consistent contributions for so many years! The only exception was my recent 6 month contribution holiday / savings suspension.

Another personal win is that in recent years, I’ve chosen to be conscious about where my Kiwisaver is invested, after much research into the ethics behind the scheme. Now that I’m aware, I’ll always have my Kiwisaver invested with an ethical provider.

Mindful Money Habit No.5: Personalising my bank accounts

Saving and spending money is psychological. This is why it’s easier for people to pay off debt starting with the smallest balance, rather than the highest interest rate (debt snowball vs. debt avalanche): it’s motivating and creates momentum!

A money tip I’ve often heard is to personalise your accounts – with names, pictures, and goals. For as long as I’ve had my BNZ account, I’ve always done this. Given I’m able to have up to 25 YouMoney accounts at once, I’ve found it best for clear record-keeping to have different accounts for everyday spending, flexible saving, long-term saving, as well as necessities – split into power, water, internet, insurance, food, events, and miscellaneous bills (where I like to keep a little ‘buffer’ every pay).

But what makes saving easier, and creates more resistance to spending, is also having accounts created for specific goals – such as ‘Melbourne’, ‘Japan’, or ‘Wedding’, with pictures that create excitement. Excitement is, of course, key to self-motivation. As someone who loves colours and vision boards as a way of manifesting, my accounts now look like a mini digital vision board for a well-organised dream life, slowly coming together.

While BNZ was the first to offer personalised accounts, I know that nowadays, you are able to do this at most other banks, such as ANZ and Kiwibank!

Mindful Money Habit No.6: Investing in myself

I’m proud of myself for learning and developing my candlemaking and photography skills, and having them to fall back on in case anything goes wrong. While I know I need to get myself out there more and actually promote my work, I now know for sure that people love both my candlemaking and photography work and are happy to pay for it, which gives me a strong sense of security (and warm fuzzies of appreciation). Rather than having to go out and get a part-time retail or hospitality job if need be (like in the past), I can confidently rely on myself rather than external circumstances. Skills can’t be taken away – only constantly refined and improved on to become even better.

Another bonus to this is that, as cheesy as it sounds, I am passionate about these skills. I happily put my energy into them, even when I’m not getting paid for them. And the more time and effort I invest into my side hustles and myself, the more I myself achieve personal growth – unlike putting more time and effort into working for a company. Plus, since I’ve learnt the ins and outs of income tax at my government job, I already know exactly what to do about my taxes if I ever dive into the exciting and scary world of self-employment!

If you have a talent or skill you are passionate about, why not use it? I’ve met people who speak 5 languages fluently, have played a musical instrument for over a decade, or are just exceptionally knowledgeable about a certain field – and I always ask, “What are you doing here?”

There are so many opportunities out there. I genuinely believe that if half the people in the workforce dedicated themselves to turning their passion, hobby or skill into an extra source of income, we could all work part-time instead of full-time and spend the other half of our time doing something we love and enjoy.

“Don’t ask what the world needs. Ask what makes you come alive, and go do it. Because what the world needs is people who have come alive.”

What do I want you to get out of this blog post? The inspiration to use your talents and skills to grow and to invest in yourself, and the knowledge that working hard and giving everything 100% is well worth it!

Love,

Sophia

Money mistakes I made in my 20's

Today I'll be sharing with you some personal finance stories from my 20's - or shall I say, my early 20's!

This topic has often been on my mind, but I've always been a little hesitant. As a believer in the Law of Attraction - which encourages manifestation of your best life through thoughts, actions & beliefs grounded in positivity, gratitude, and living in the present - it has always felt unconducive to dwell on the past and on mistakes.

But, I believe reflecting on the past can be incredibly valuable. If you look back on your past self and dislike who you were, or where you were in life, it's a sign that you've grown and become a better person since then. Your growth is what makes it possible for you to have that realisation. It's the same with personal finances.

So, I'd like to introduce you to the hot mess I was in my early 20's, and the freeing changes I've made since. You could even call it my own financial #glowup! Please note these are definitely not all overnight fixes; whether they've taken weeks, months, or years to improve upon, they are all things younger me could have done better over the last 8 years.

Early 20's: Paying for stupid / unnecessary things
Late 20's: Being self-sufficient / making conscious spending decisions

University is such a beautiful time in your life. You are fresh out of high school; young, ambitious, and naive.. The perfect prey for banks and financial companies to sell you financial products and services you don't need. With all their exciting newfound financial independence, this is why students are the best targets for tertiary overdrafts, credit cards, and personal loans - easy! Effortless! Instant approval!

I was a naive 17 year old when I started uni. Luckily, even back then I was a little cynical. I remember having an appointment at the University of Auckland ANZ branch when the personal banker asked me if I wanted to protect my belongings (translation: buy contents insurance). Even with him insisting I needed it, I knew in my heart that I didn't. While a lot of uni students have high-value possessions, I had just the clothes and shoes that fit into my little inner city apartment plus a Sony Vaio laptop. He didn't get the sale.

Then, one day, I was walking through the quad when someone with a clipboard asked me if I wanted to have my 'tax refunds' managed by them. I signed up without thinking. And just like that, for the next 10 years, they were my tax intermediary.

This was incredibly foolish and it came to light just how stupid it was after I started working for the national tax department. And, sorry to say, it is a stupid mistake to make for most people who are 9-5 salary/wage earners. First of all, tax refunds are not guaranteed, as tax bills are just as common - intermediaries just use that to sell you a promise they won't always be able to fulfill. Secondly, if you are a salary/wage earner and want to find out if you have a tax refund or a tax bill, all you've ever needed to do was ask IRD yourself.

Intermediaries use the unjustified public fear and resistance against IRD to sell you their services, when it is just as easy - and completely free - to ask IRD directly.

The idea that IRD wants your money is a blatant lie. If you have an income tax bill, intermediaries can't make that go away; they will ask you to pay it on behalf of IRD. If you have an income tax refund, intermediaries will deliver this good news to you while pretending they made it happen - while discreetly taking a portion. IRD will give you all of it.

Even for people who aren't salary/wage earners, getting your end of year tax assessment is easy. I've seen too many people pay an agent hundreds to do something they could learn to do in 30 minutes. Even if you have 4 streams of income - say your salary, rental income, self-employed / side hustle income, and dividends, it's all entirely possible to grasp - and complete - filing an income tax return in one afternoon.

IRD's policies are also inherently very lenient and compassionate. But hey, I can't go into detail here or this post will never end.

As for thinking IRD is big and scary, instead of nice, friendly, and on your side? Absolutely untrue. I know for one that many people who I spoke to told me I had simplified and made tax easy to understand for them, really helped by educating them, made their refunds straightforward, and made their debt repayments painless & manageable. I can also say with certainty that the people are IRD are normal human beings like you and me, and some of the friendliest I've ever met at that!

Lesson: Do your research. Get quotes. Read the fine print. Do it yourself. 

Early 20's: Ignoring my bills
Late 20's: Diarising my bills

I used to dread receiving bills, so I never paid attention to them. As soon as I got my bills, they'd get lost somewhere in my paperwork, only to be forgotten until or after the due date. As a result, incurring late penalties, fees and interest was a normal occurrence - which, of course, I ignored too.

In recent years, it's given me satisfaction - a 'got my shit together' kind of satisfaction - to be super organised with my paperwork. In fact, I got a big pink ringbinder I call my 'Life Folder' - with tabs for inspiring articles from magazines, e-books I've printed, home related documents (such as rates), and bills. Even better, I've digitised most of my bills so I receive them via email and have access to them whenever or wherever needed.

But the most effective change is also the simplest: I started diarising my bills! In my diaries, on my monthly calendar spreads, I've made a habit of noting the date that a bill is due - whether it's to be paid by me or direct debited. My bills are always paid early or on time, and late penalties, fees and interest is now a thing of the past. I even do my best to avoid regular banking fees - my partner and I still have monthly account fees waived on our individual and joint accounts thanks to staff work perks.

Lesson: Diarise. Stay on top of things. Don't be lazy. Make it fun - my Life Folder and diary are illustrated and colour-coded!

Early 20's: Saving what I had left over after spending
Late 20's: Spending what I had left over after saving

Pay yourself first. This is one of the most important personal finance rules to live by, if not the most - one that I've talked about here.

If you don't pay yourself first, who are you working 40 hours a week for? Not yourself, that's who. If you receive your paycheck then pay all of it to your landlord, your bank, your power company, your supermarket, or your phone service provider, or give it all to Netflix, Spotify, or your favourite restaurant or bar, you've worked 40 hours for everyone but yourself.

Yes, I speak from experience. I used to spend my fortnightly pay on everything other than investing in myself. My money went to eating out at restaurants, going to the bar for drinks, buying new clothes, or simply paying rent and utilities. My mentality was that I'd save what was left over after spending - but, like many others with this mentality, there was never any left over.

In my mid-late 20's, I learnt that a good, realistic part of your income should always be invested back into yourself and your financial future - whether that's paying down your debt or saving for your goals and dreams. Paying yourself first ensures that no matter what, your finances are growing. They're progressing and become better and better, rather than staying stagnant or diminishing. Once I switched my mentality from spending first, saving later to saving first, spending later, my whole financial life changed.

Lesson: Pay yourself first. Save then spend; don't spend then save. 

Early 20's: Making minimum payments
Late 20's: Paying as much as possible

In my early 20's, I had a Q Card. Every month I'd receive my Q Card bill for a minimum monthly payment of $50, and every month I'd pay $50. What an idiot I was! This minimum monthly payment never reduced, but it should have if I had made more than the minimum monthly payment (quickly too!) .

The amounts financial companies ask you to pay on credit cards or personal loans (Q Card isn't either of these but is similar) pays off principal and interest, so by me always making the minimum monthly payment, the principal hardly made progress as the interest would always catch back up.

Since my mid-20's, I've transformed my mindset. I genuinely feel proud to pay as much as I can over the minimum monthly payment. The bank asks me to pay $50? I'll pay $100. I'll even keep on sending extra payments when I get unexpected money in the form of a work bonus, tax refund, overtime or holiday pay, side hustle income, or anything else. I may just be a personal finance nerd, but it is so satisfying to see the balance, interest, and minimum monthly payments consistently reduce. Ah, the freedom of having financial breathing space.

Lesson: Don't just pay what you can. Pay as much as you can.

Early 20's: Being completely out of balance
Late 20's: Following 50/30/20

When I moved to a new city by myself at 21, I rented the first apartment I could - a gorgeous, modern, centrally located but hella expensive apartment in the heart of Wellington CBD. With the high rent and expensive water & power bills (apparently, we couldn't choose our providers), my finances were completely out of balance. At one point, I remember my expenses taking up 90% of my income. That's 90% on fixed expenses and 10% on flexible expenses (eg. food). Completely insane.

When I became aware of the 50/30/20 rule, where 50% of your income should go to fixed expenses, 30% to flexible expenses and 20% to savings, I made a conscious effort to live on 80% of my income and save 20%, no matter what. My finances went from out of balance (90/10) to balanced and sustainable (80/20), to being in great shape (70/30 or 60/40)! If you are spending too much on the fixed expenses, you must find a way to cut down - whether it's moving somewhere more affordable, reducing your internet or phone plan, or downgrading 'nice to have' luxuries in your life. If 21 year old me had looked around for more affordable living situations, she wouldn't have been living paycheck to paycheck every fortnight!

Lesson: 80/20 your income.

Early 20's: Banking where my parents did
Late 20's: Banking where it's best for me

My parents opened up a bank account for me when I was young, which was with The National Bank. As The National Bank became ANZ, I stayed with them until even after I left uni and started working full-time. It wasn't until years later that I started making my own decisions about where I choose to bank, and realising that where you were isn't always where you should stay - in life, or with finances.

Since then, I've been with BNZ, ASB, and Kiwibank.. All depending on the financial products & services they're advertising at the time. I've learnt that loyalty doesn't necessarily get you anywhere, so open up as many accounts as you want, wherever you want, to maximise all of their benefits (just keep track).

For example, I love YouMoney at BNZ, Save The Change at ASB, and Notice Saver at Kiwibank. You've just got to find what works for you - what's a priority for your family, your partner, or your friends may not be a priority to you. Those of you who know me know how I feel about ANZ, and personally, I love knowing that BNZ and Kiwibank - the only two I'm with now - have ethically invested Kiwisaver schemes and support local NZ communities.

Lesson: As Fleetwood Mac would say, you can go your own waaaaay - go your own way!

Early 20's: Not believing in myself, staying stagnant because I 'just wasn't good with money'
Late 20's: Educating myself and believing in my own growth and potential

Believe it or not, this is the number one key to the success in my personal finance journey! Mindset is more important than numbers could ever be.

People dismiss manifestation as a silly spiritual concept, but manifestation is the entire reason your life is the way it is today; where you are where you are at today. Whether you know it or not, you've created your life as it is with your thoughts, actions, and conscious or subconscious beliefs.

My beliefs about my own potential held me back in life personally and financially. In my early 20's, I believed that I wasn't smart and knowledgeable, and - for some reason - that I couldn't be. In my mid-late 20's, I started believing in myself - and that has led me to be who I am today, the same person writing this very personal finance blog.

Years ago, I always told myself and others that I 'just wasn't a personal finance person' or just 'didn't understand money'. I dismissed educating myself in financial literacy as being too complicated and too much work, so I never put in the effort.

Once I started believing in myself, I had both the curiosity and the confidence to learn about personal finance and money management without the voice in my head telling me I couldn't. Working in insurance, banking and tax definitely helped, but that was only a tiny part of it. (I know because you wouldn't believe the number of people working in the financial industry who don't understand their own finances.)

I started reading books, watching Youtube, and listening to podcasts. I started taking notes of what financially successful people do. I started reading reviews of financial products or using financial tools online, like Canstar and Sorted. I started implementing different savings strategies until I found what worked for me. All of this, simply from believing in myself! I may not know everything there is to know about personal finance and managing money, but I definitely know a hell of a lot more than I did before I made the decision to just start. 

Lesson: Believe in yourself. Whether your goal is to be debt free, to own your own home, to travel, or to achieve the work/life balance of your dreams, you create and manifest your own financial freedom.

I hope you've enjoyed getting to know early 20's me - the one who wasn't so mindful with money. I also hope you've found value in my financial life lessons!

As always, you can share your thoughts with me on this blog or anything else by using the contact form.

Love,

Sophia

How to manifest money

My first experience consciously manifesting money was at the NZ Spirit Festival. I attended a workshop called 'Tapping into Money', which taught us the power of tapping on meridians to remove energy blocks and tap into a mindset of abundance, and was surprised to have seemingly manifested money that very night. From the $180 I made from selling concert tickets, to the $50 I made selling my extra festival ticket, to the $500-600 I'd receive later thanks to two photography enquiries in one night, it was excitingly strange and synchronous.

Since then, I've learnt plenty on the topic, mostly thanks to Youtube & books. Among the self-help books I've read this year, the money-related books I've read are Creating Affluence by Deepak Chopra, The Richest Man in Babylon by George S. Clason, and You are a Badass at Making Money by Jen Sincero. I've also bought Conscious Money by Patricia Aburdene and The $1000 Project by Canna Campbell to add to my reading list!

What stands out to me is that, no matter how practical and tangible people think money is, everything I have read or watched touches on the most important aspect of attracting more money and building wealth: your mindset.

No, manifesting money isn't praying to the Universe to give you money while you're sitting around doing nothing, or the opposite - working to the point of burn-out. It's not simply using Law of Attraction and positive affirmations to say, "I am wealthy" - it's so much more than that. Here's the best lessons I've personally learnt about manifesting money.

1. Transform Your Subconscious Limiting Beliefs

Your subconscious beliefs guide everything you do in life. They manifest themselves into conscious thoughts, which manifest into your everyday actions, which manifest into your behaviour, which manifests to become your character. Your thoughts & beliefs, conscious or subconscious, are so powerful, everything you have in your life now is a result of what you have manifested!

Put another way: everything is a result of your personal choices, and we often make our choices by doing what feels or seems right. This definition of what's 'right' stems from our beliefs.

When it comes to money, many people don't even realise they have negative subconscious beliefs about money. A lot of people still consider money to be a taboo topic to talk about - why?

Is it because we were taught that money is evil or corrupt? Or that rich people have no morals? Or that you have to be a sell-out to be wealthy?

Some examples:

• Jen Sincero shared in You are a Badass at Making Money one of her subconscious blocks: her father always expressed his love and support in the form of financial assistance, so subconsciously, she always thought that if she were to be financially successful and no longer need his help, she would be pushing his love away.

• Some women are afraid at the thought of earning more than their husband in the fear of emasculating him.

• Some people believe that you can't be rich and spiritual, or that your friends & family will treat you differently if you become financially successful.

• Other people may subconsciously push money away because growing up, money was the cause of conflict in their household, so they grew up to believe that money = bad.

I never related to any of these. For example, I'd love to earn more than my husband and be able to treat him to surprises while taking the pressure to provide off his shoulders. It'd be surprise weekend getaway galore! (Side note: everyone please watch the stand-up comedy Hard Knock Wife by Ali Wong on Netflix; it's vulgar and hilarious - but has so much truth regarding gender roles)

Then one day I had an epiphany and realised: I did have a subconscious limiting belief!

A few years ago, I remember constantly saying things like

"I don't know anything about personal finance."

"I'm not good with money."

So I never tried.

Fast forward a few years later and perhaps it was working in the financial industry, or perhaps it was becoming a lot more mindful about everything in my life thanks to minimalism, but my belief became that I am a person who is mindful with money. Good with money = me. Financially sensible = me. Knows and seeks knowledge & wisdom about personal finance = me. 

I had a mindset shift - from a 'fixed mindset' to a 'growth mindset' (search Carol Dweck). I cultivated my growth mindset, and identified with being mindful with money.

And so, I enjoy things like personal finance Youtube channels and books because I believe I am more than capable of understanding, learning and growing from them. I spend mindfully instead of just watching money leave my bank accounts then wondering where it went because I think of myself as a mindful person. I understand financial terms because I sought to learn instead of saying, "I'm not a personal finance person so why try?"

The lesson I take from this? Don't subconsciously limit yourself by defining yourself as what you are or what you're not. If you define yourself like I did, your subconscious will find ways to reinforce that, to make it a reality. Why? Because your mind has a very clever defense mechanism and likes to prove that what you believe is right.

So believe that your potential is limitless. Believe that you are always open to radical personal growth. I feel like nowadays, instead of dismissing something as simply something I'm not cut out for, I'll at least give it a chance - you never know, it could open up a whole new world of possibilities!

2. Embracing Opportunity + Taking Action

One thing I love about The Richest Man in Babylon is that, even though it is such an old, wise piece of financial wisdom from the 1920's about extremely practical wealth building techniques, it still touches on manifesting money. Not in those words, but there was a part I completely did not expect: how to attract 'good luck' and 'good fortune' from their goddess Ashtar. This is among tangible money advice like "save every tenth copper".

The answer? Opportunity and action. Be open to opportunity, and when opportunities arise, don't procrastinate - take action. According to the book, "men [and women, it's 2018!] of action are favoured by the goddess of good luck".

Another truth echoed in You are a Badass at Making Money: money is currency, and currency is energy. If you sensed negative energy or animosity from someone and felt like they didn't want you anywhere near them, would you want to make friends with them and become best buds? Energy matters. Once you raise your vibrational frequency, this shift opens you up to new opportunities you weren't seeing before, and attracts more of that abundance to you. It's been scientifically proven that people who are stressed out fail to see information that is clearly right in front of them; this also applies to opportunities in your life, financial or not (this can also be applied to finding love).

Have an open mind and an open heart. Take inspired action on the opportunities that come your way that excite you and speak to you.

3. Know Your Why + Practise Gratitude

You don't attract more of something you're not grateful for. Gratitude turns what you have into enough and brings more of what you love and appreciate to you. Referring back to my point before, if you subconsciously believe for any reason that money is negative, that association will manifest into a lack of money in your life. This isn't exclusive to money, either - if you're not grateful for other things in your life, you will spend money trying to fill that void, when all you really seek is happiness, contentment and fulfillment that money can't buy.

That's why it's important to have a heart of gratitude and express thanks for the ways that money has enriched your life. Receive it with gratitude. Use it with gratitude. Everyone has a reason they want more money, but don't often truly define their why. My why always connected back to my sense of purpose & passion and being able to give back and to inspire. Your why will drive your motivation in reaching your goals. Here's how some of my why's have manifested:

• I'm grateful for money because it allows me to volunteer every week and give back to the community.

• I'm grateful for money because it allows me to use my talents to inspire others and spread joy & happiness.

• I'm grateful for money because it gives me more time & freedom to do what I love.

• I'm grateful for money because it allows me to invest in my knowledge and my physical & mental health - like buying books of value and fresh nutritious foods.

• I'm grateful for money not only because it gives me the sense of security of owning my own home, but because it gives my partner a sense of security and peace of mind too.

• I'm grateful for money because it supports me in my wildest goals & dreams.

• I'm grateful for money because it helps me to reach my highest self. With money, I've been able to purchase tickets to so many events & workshops to upskill, inspire & motivate myself, and learn new things!

4. Believe in Abundance + Practise Generosity.

We live in an abundant universe. More abundance for someone else does not mean less for you, and vice versa. I say this not just about money but also about success. I've definitely come across toxic people who attack others' flaws and try to bring them down, and why? Because deep inside, they believe that more success for someone else means less success for them. That's why I love Rupi Kaur's poetry: one of them reminds us, "Your accomplishments are not my failures."

Another piece of advice I consistently come across in every personal finance book, Youtube video, podcast, e-book.. Is that you need to give! For example, from the financial advice of money experts Dave Ramsey and his daughter, Rachel Cruze, they always advise for everyone to include giving in their budgets. Giving is essential because it puts you in the mindset of abundance instead of one of lack. You are able to let go of the conscious or subconscious belief of, "This hard-earned money was so difficult to come by, I should hold on tight and never let go."

Instead of acting from a mindset of lack, acting from a mindset of abundance means that, hey, it's okay, by creating a flow of money/generosity I will also attract this flow of money/generosity back to me. When I have practised being generous, people have been generous with me - not just in terms of exchanges of money but time, effort, gifts, and acts of kindness.

There is so much more to manifesting money, and if you're interested I'd highly recommend the books I mentioned at the beginning of this blog post. I know it's been a lengthy one, so if you're here, thanks for reading and I hope it inspired and helped you!

Love,

Sophia

What’s on your reverse bucket list?

Hi friends,

Have you ever heard of a reverse bucket list? While a bucket list is a list of everything you want to do before you die, a reverse bucket list is simply the opposite. It's a list of amazing things that you've already achieved and experienced.

My kikki.K bucket list book is very dear to my heart. A brief stay in hospital in 2015 inspired me to purchase a timeless journal to write down all my goals, dreams and aspirations - where I want to travel, milestones I want to achieve, concerts I want to go to, and more.

It's fun to read over it when I'm going through a rut and feeling 'blah', sometimes adding to it - but now, I realise that it tends to constantly keep me focused on the future. Future goals. Future plans. Future achievements. Why not also count and celebrate everything I've already achieved?

If you have a minute, I’d love to invite you to take a moment to be mindful and grateful with me. Here's my reverse bucket list; I'd love to hear what's on yours.

Sophia's Reverse Bucket List

• Graduated from uni with a Bachelor's degree in Criminology

• Bought a house

• Travelled to Sydney & Melbourne

• Travelled to London & Paris (solo)

• Travelled to Hong Kong & Thailand

• Moved to a new city on my own and lived there for 2 years. One of the best cities in the world, at that - our capital, Wellington, New Zealand!

• Completed a year long 'Happiness Project' in 2014, inspired by The Happiness Project by Gretchen Rubin - dedicating 12 months to being my best self in health, spirituality, money, fitness, love & relationships

• Learnt & perfected the art of making candles, and started my online Etsy shop

• Seen my some of my favourite artists Lorde, Yumi Zouma and Paramore live - Yumi Zouma three times

• Photographed several weddings, graduations & birthday parties. I look forward to shooting many more!

As for what's on my bucket list?

I used to have over 50 goals & dreams written down, but since then, some of them have been achieved (yay), some of them I no longer desire, and some of them seem more like a to-do than a bucket list goal (ie. saving up for an expensive wedding photography workshop I want to attend). So at the moment, I've got a mini bucket list with my biggest goals, dreams & desires.

Sophia's Mini Bucket List

• Travel to Japan. In particular, I want to do it on a Topdeck Travel tour.

• Go to Eureka Skydeck 88 in Melbourne again, this time with my partner. Last time I went, it was so incredibly beautiful and breathtaking I promised myself that when I met the love of my life, I would take him/her there.

• Use my knowledge to teach something to the world. I have written a lot of blogs, but I want to get out there for real and write a book, start a Youtube channel or teach a Skillshare class. Who knows? I can only imagine it will be rewarding and exciting.

• Have a magical Queenstown mountaintop heli wedding.

• Do an escape room.

• Travel to Bali in Indonesia, Jaipur & Auroville (Pondicherry) in India, and Amsterdam, The Netherlands.

What's on your bucket list or reverse bucket list? Whether you share yours or not, I sincerely hope that you'll feel immensely accomplished, joyful, and grateful for everything you have already achieved and experienced. It's satisfying to realise that while we may have a long way to go towards living the life of our dreams, we have already come so far from where we used to be.

Love,

Sophia