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Mind over Money

Author Wendy Coslovich

Money is money, no matter how we look at it. If I paid $80 for my theatre seat and you paid $40 for yours, it’s still money that purchased the seat. If you stay in a luxury hotel and I stay at a camp site, we both still paid for it using money. So how come some of us are better at managing money than others. I call it FI – Financial Intelligence – If it were down to a simple formula such as “spend less than we earn,” then why aren’t we all sitting pretty? Because we are human, beset by greed, spend and consume, instant gratification and fear and unfortunately no “FI.” It can be a shock to come to the realisation that most of us “rent” our “lifestyles” all of which are encumbered with debts and a false belief in “job security.” 

Members of Hudson Financial Planning, having reached a point of realising that they want to improve their financial health have connected with their advisers and mapped out a strategy to reach financial strength. Money can be emotional, to say the least, and it isn’t always easy to stick to our plans. Life gets in the way and unexpected incidents crop up. However, with good navigation, they can be overcome. Having money doesn’t necessarily mean you will be worry free but knowing what to do with it, does help. You don’t essentially need a high income to become wealthy but have you ever entertained the idea that instead of working for money, have money work for you? One of the benefits of a lifetime membership is being able to speak to your adviser regularly and when you need to. In his book, The Cashflow Quadrant, Robert T Kiyosaki describes a quadrant of four types of people. E the Employee, S the Self Employed, B the Business Owner and I the Investor. As well as financial advice, we at Hudson are about educating our members to think beyond where they are at. No point giving someone a fishing rod and not telling them how to fish. Many are unaware of being in a quadrant or how to move from one position to another. We don’t know what we don’t know.

Most of us earn money and most of us spend it and based on this simple formula, we should all be the same financially but we are not. Therefore, the difference between those that are financially secure and those that are not is in what we are doing with that money. 

What are we doing with our money? Is your money working for you?  Do we understand assets and liabilities and are we using them in the right way? Is what you hold in your portfolio actually an “asset” or a “liability?” Our Members are calling in everyday to get direction with these questions and adjust their financial portfolio to create a more positive cash flow.  

Debt need not necessarily be a bad thing if it’s used correctly to create a positive cash flow and not to be used to fund a cycle of negative flow creating further debt.  Managing money is purely a practical matter and needs to be managed as such. If we change our thinking to see it as a commodity such as iron or steel, we would not get so sensitive about it and its effects on our lives and on nations. Finance can be fickle and fluid but if we stay unemotional, practical and hooked in to its flux, we can ride out the peaks and troughs of the economy and who knows, even smile along the way if you have a Hudson Financial Adviser on your speed dial. 

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