Financial Literacy Digest UNO: Respect Yourself
This week I'm delving into some of the research I've been doing over the last couple years about how to get on top of my money.
After being totally financially illiterate and wracking up credit card debt, I've been on a journey to seize control of my finances and revolutionise my relationship with money, wealth and earning.
I think it’s absolute lunacy that financial literacy isn’t taught at school, starting from a young age.
Money is a language. If you can speak it, you’re in a much better position to earn it.
This fact is often hidden from us. We’re told it’s rude to talk money, and Financial Literacy comes down to our parents to impart to us.
IMHO if Financial Literacy was taught widely and consistently, it would help to close pay gaps and contribute positively to balancing our economic inequalities.
I have conspiracy-theory-level suspicions around the reasons for keeping much of the population financially illiterate, when we’re living in a capitalist culture! But let’s stay out of rabbit holes. The gist is, the more you know about money, the better you are equipped to be smart with your own. I'm not an expert, but I have transformed my financial situation. And in the spirit of sharing the 'wealth', below are three tips (and a link to a spreadsheet) I've found empowering and useful.
I suggest you read through them methodically and hang onto whatever resonates with you.
And a caveat: all this money stuff can be intimidating. If you're overwhelmed, choose one thing to address and hone in.
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1. You Are Not Your Bank Account
You might not be happy with the numbers of your bank account, but it isn’t a reflection of who you ARE. Just like you are not your CV or your physical appearance.
We’ve all met someone who was dazzlingly good looking, intelligent, wealthy or talented, who ultimately turned out to be a flawed in some annoying way. The impressive thing they possess doesn’t make them good company.
I offer this because I want to make sure these tips don’t add insult to injury. If you’re struggling to stay out of overdraft, have no savings, always are running out — it doesn’t mean you’re worthless or unworthy or bad.
It means you, like me, have some work to do on your relationship with money. For my entire twenties I focussed on my relationship with my body, my career, food, my mental health, etc etc but NEVER money.
My Dad says, “Be kind to yourself about the things you didn’t know.” So let’s heed Ted McGee’s advice and not beat ourselves up for only learning about money now. Let’s just learn.
2. Dealing With Debt
Admittedly my relationship with debt has been chaotic and disorganised. When I was in credit card debt, I paid my minimum payments and then waited for a big gig to come along to clear the rest.
It worked. But that method cost me — not just in interest (19.25%) but in the stress that uncertainty brings.
If you’re in credit card debt: You are not a bad person. You are a normal human living in capitalism.
Now: Take a deep breath. Open your bills and figure out how much you owe. Brave knowing the truth.
Next: Get some help!
Here are some practical, helpful resources you can turn to, TODAY, to help you take control of your debt.
Go to a Debtors Anonymous Meeting. A 12-step program for people in debt or who chronically under-earn. Meetings happen online and in various cities around the world. They also have free literature on their website.
Visit mymoneycoach.ca for practical, informed advice on how to approach paying down credit card debt.
Google Dave Ramsey. He’s selling lots of stuff on his site but if you scroll down there are great free resources to help with debt.
Take one of Gail Vaz-Oxlade’s books out of the library (and watch old eps of “Til Debt Do Us Part’ online).
3. Get yourself Paid
There is a Steak House in Toronto & a Pub Theatre in the UK, that I never collected money from. I worked for them in 2005 and 2012 respectively and I haven’t forgotten.
At the Steak House I only did the training. They delayed their opening so long I was back at theatre school and unable to do the job. They called to remind me to pick up my cheque, but my sheepishness won out and the hours I’d spent in their corporate training went uncompensated.
I felt guilty chasing the Pub Theatre. Then when I did, I was overwhelmed by their request that I invoice them. I didn’t know where to find my Canadian banking details for an international transfer!? So I was never paid my share of the box office.
If you also struggle with claiming the money you’re owed, I have 2 steps for you.
First, chase what you’re owed.
Send the uncomfortable email. Pick up the phone. Send your invoice. Pester the people you’re waiting for money from. That money belongs to you. Go get it.
Once you have that mess under control, move on to Step 2.
Then, create an invoicing system.
This will depend on the kind of freelance work you do. I’m invoice for my solo show work, whereas my agents invoice for my acting and voiceover work.
When invoicing for yourself: Create a template with your address & bank details. Save it on your computer & phone. Pages has templates and so does Google docs. After a job INVOICE IMMEDIATELY.
If your agents invoice for you: Find out what the wait time is and make a note of it. In the UK it takes up to 90 days to be paid for my voiceover work.
I have a spreadsheet tracking my income. For each job I enter the date I did the job, a description of the job, the amount I expect to be paid and the date when I should be paid. You can download it and use it yourself here.
Sometimes I put an alert in my calendar to check with my agents if I haven’t received it by the date it's due.
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Don’t let your neurosis/shame/fear/anxiety/whatever be another impediment when you’re trying to get on top of your finances.
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