Honesty in spending will put you back in control
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.