Hon­esty in spend­ing will put you back in con­trol

Midwest Times - - PERSONAL FINANCE -

New re­search shows only 43 per cent of Aus­tralians are hon­est when they talk to their loved ones about their spend­ing habits.

Com­mis­sioned by money ex­pert and au­thor of The Break­fast Club for 40-Some­things Vanessa Stoykov, the sur­vey re­vealed men and women were prac­ti­cally on par when it came to be­ing dis­hon­est, at 41 and 44 per cent, re­spec­tively.

The data also high­lighted the two main rea­sons peo­ple were not hon­est was be­cause they knew they would be judged and be­cause they knew they had spent more than they should.

Also, a whop­ping 36 per cent of peo­ple never spoke about their fi­nances with any­one.

“The fact that so many peo­ple are ly­ing to their fam­ily and friends about how much money they spend is scary,” Ms Stoykov said.

“Hav­ing worked in the fi­nance sec­tor for over two decades, the most com­mon rea­son I find that peo­ple lie is be­cause they feel out of con­trol and that it’s much eas­ier to have their head in the sand than take real ac­tion.

“But mak­ing a change doesn’t need to be scary.

“It should ac­tu­ally be lib­er­at­ing, be­cause it will im­prove your life and put you back in con­trol.”

Ms Stoykov said there were key tac­tics any­one could use to curb their ex­penses with­out hav­ing to make ex­ces­sive sac­ri­fices.

At the top of the list is find­ing cheaper al­ter­na­tives to en­ter­tain­ment, such as mak­ing a night of watch­ing a movie at home rather than go­ing to the cinema.

Ad­di­tion­ally, mak­ing a list of items needed for the week, such as gro­ceries and stick­ing to it, is very im­por­tant, as is con­sol­i­dat­ing debt.

“Where pos­si­ble, don’t buy any­thing new — in­stead re­use and re­cy­cle what you can,” Ms Stoykov said.

Strate­gies as small as un­plug­ging elec­tronic de­vices you’re not us­ing can make a dif­fer­ence.

“Also, call your elec­tric­ity provider and ask if you can get a dis­count if you pay via di­rect debit — most ac­com­mo­date you and this can put ma­jor dol­lars back in your bank ac­count rather than theirs,” Ms Stoykov said.

“Tak­ing steps to­day to make you feel more com­fort­able with your money choices, and be­ing con­fi­dent to have an open and hon­est con­ver­sa­tion about fi­nances with your loved ones, will all sig­nif­i­cantly im­prove your en­tire life and fu­ture.”

Vanessa Stoykov re­flects on fig­ures show­ing dis­hon­esty in peo­ple talk­ing about their fi­nances.

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