What About Your Financial Health?
Over the last three plus years since my accident one of the very real worries I have contended with has been my finances. The longer I have been out of the work place, the longer I have gone without the excitement of promotion, new opportunities, pay increases. And the longer I have gone without Kiwisaver employee contribution or any Kiwisaver contribution for a significant period. All of this accumulates to a huge loss of potential wealth in the years ahead. These lost savings opportunities are lost compounded savings which, come retirement, could change the choices I have about how I live.
But the great news is, we can do something about it. We can find ways to at least minimize the impact and give ourselves the confidence to deal with the financial aspect of recovery head on.
If nothing else, taking control of your finances means you won’t look back at this time and think, “if only…”
Here are my top tips:
If you have a financial advisor, speak to them about your change in circumstances and revise any financial plans you have.
If you don’t have a financial advisor or just need a bit of help, identify someone who you trust that can help you sort things out if necessary. Don’t relinquish control or oversight unless it is a medical necessity. Stay connected to your finances, know what is happening, keep informed. Don’t shy away from your control, build it and let it empower you.
If you are on ACC or being paid by an insurer, set up your own Kiwisaver contribution. It will not be matched but it will be something.
Revise your personal budget and include, where you can, the additional costs for your treatment. If you need a massage budget for it, if you need more regular eye tests, doctors appointments include these.
Read up and get wise.
Review how your bank accounts are set up to ensure you are prepared for paying your expenses and yourself! (ie: savings) – Janet Xuccoa’s book has a great section about this.
I have found numerous books to be a life changer for me getting on top of my finances. These books have taken me from fearful to confident (mostly) and helped me understand what has been a barrier to confidently handling my personal finances.
I have divided my recommendations into books more specifically about women getting control of their personal finances and secondly, learning about investing to create wealth.
Empowering women to learn about their personal finance
Barbara Stanny, Prince Charming Isn’t Coming: How Women Get Smart about Money (This book was a game changer for me. Made me completely rethink my relationship with money)
Barbara Huson, Rewire for Wealth (I recommend reading the book all the way through and then go back and completed each of the tasks.)
Janet Xuccoa, Women and Money: Mastering the Struggle (great practical advice that is easy to action yourself)
Francis Cook, Tales from a Financial Hot Mess (Easy to read and helps reframe old ideas about savings, investing and the importance of getting out of debt)
*Barbara Stanny and Barbara Huson are the same person but you need to search for her under both names as they are never linked!
Learning About Investing
Danielle Town and Phil Town, Invested: How Warren Buffett and Charlie Munger Taught Me to Master My Mind, My Emotions and My Money
Guy Spiers, The Education of a Value Investor
Phil Town, Rule #1 Investing
Berkshire Hathaway letters to Investors, https://www.berkshirehathaway.com/letters/letters.html