Tackle money madness
Are you MAD? If you’re a woman under the age of 50, you’re more likely to be MAD than anyone else.
It’s one of those new fandangle terms for an age-old problem, Money Anxiety Disorder.
Females under 30 are marginally the maddest of all. Stop smirking lads, you’re not that far behind if you’re aged 30-49.
These gems all come from the latest 2017 survey on financial anxiety from National Australia Bank (the parent company of BNZ).
Under 30 and male? You’re significantly less anxious about money than anyone. Perhaps those still living off the bank of Mum and Dad are spiking the results further up the demographic.
There are some non-surprises in the data, such as men over 50 and anyone earning over $100,000 being less anxious. Singles and divorcees have the highest levels.
In the surprise basket, widows are less anxious. Perhaps that does ring true, because death is a great creator of perspective. The selfemployed are another low-side surprise. Is this because they have more personal control over their lives?
When it comes to spending, don’t ask us to cut back on internet or mobile phone use. It’s a stampyour-foot staple.
Only 14 per cent of us would attack our internet package and a mere 19 per cent would hack the mobile budget. Only 35 per cent would mess with our coffee and Netflix money.
Money is a powerful stressor that can keep you awake at night, cause panic attacks and feelings of helplessness. It tests relationships and causes communication breakdowns. Feeling that you have control is one of the most important factors in the cure.
On the whole, the results of this survey will ring true to most financial professionals. Regardless of economic conditions, these are the skews we come across when dealing with people and money.
Books inches thick are devoted to the topic of MAD. One expert suggests hypnotism. Another suggests grooming each other like primates will lower our financial anxiety. Picking fleas off another human isn’t practical enough to make my top ten MAD cures, which are: 1. Emergency fund. The biggest short-term measure to quelling anxiety is to ensure a few thousand dollars is tucked away in a savings account. I don’t care if you have to put the mortgage on hold and extend its term a few months to achieve this, if nothing else will give. Having no backup is mentally paralysing. 2. Be proud to be a budgeter. Be open that you are on a crusade. It helps make it happen. When you find expenses to cut, tell a trusted friend. Positive feedback lifts the spirits. 3. Live in the present. Anxiety doesn’t go away by thinking you will get a new job, a pay rise or an inheritance. Make change and take control of the life you have. 4. Calculate when debts will be paid. Know the day, the month and the year. Yes, even for the mortgage. Write them down and own those dates. 5. Talk, talk and talk some more. Share everything with your other half or take a friend into your confidence. 6. The custard plan. One by one, go through your worst-case financial scenarios. Write a solution next to each. Even if the answer is bankruptcy, front the solution. If it’s moving back home or the unemployment benefit, write it down. Everything is survivable. 7. Choices; yours not others’. Friends may have a nice car or a house full of iPads. They made their choices. Get over it. Take control of your choices. Don’t justify them to anyone, don’t flout them on social media, but understand why you made them. 8. Put retirement on autopilot, focus short term. Thinking too far ahead can be overwhelming and add to worry. Spend one block of time making sure you have a good KiwiSaver manager and you aren’t in a default fund. Set and forget until your anxiety is under control. 9. Career in order. Complete courses, look at promotion pathways and job changes. Only do this once you have short-term anxiety under control. You need to be impressive, not rattled. 10. KIPPERS under control. That’s Kids In Parents Pockets Eroding Retirement Savings. Selfexplanatory.
Don’t ever attempt to be anxiety-free. It’s a healthy fear in small doses.
Bottle a little bit of it and don’t be critical if your partner’s bottle is a wee bit more full than yours.
Janine Starks is a financial commentator with expertise in banking, personal finance and funds management. Opinions in this column represent her personal views. They are general in nature and are not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product. Readers should not rely on these opinions and should always seek specific independent financial advice appropriate to their own individual circumstances.