Smart Money Strategy

CHAPTER 1Five Truths about Money

Before we start talking strategy, I'd like to ask you to explore your own attitudes towards, and your relationship with, money.

Consider the following questions:

• When did you start learning about money?
• Has money ever stressed you — or someone you know — out?
• Has your relationship with money ever felt like a love-hate relationship?
• How have you been influenced by others in your own relationship with money?
• Are you prepared to change how you manage your money?
• Are you willing to equip yourself with knowledge or seek financial planning advice to have a better relationship with money?

A big issue people have to overcome in their relationship with money relates to the preconceived ideas and assumptions they bring to the relationship. Many of these beliefs are not based on fact, and these unhelpful beliefs can impact upon your decision-making in a negative way. For example, many people don't understand what happens to their super at retirement. Despite what some people believe, you don't have to withdraw all the money from your super account and close it; in fact, doing so might have negative retirement consequences.

The truth is that many people haven't taken the time to think about the relationship they have with money and how their financial knowledge and personal biases impact what they do with their money. So, let's take a few moments to look at five truths about money — and how they might be impacting your financial life right now.

Truth ...