Money

How to Change Your Relationship with Money
Looking to learn how to change your relationship with money? From impulse shopping, maxing out credit cards and maybe even avoiding looking at your bank account then you’re in the right place.
We all have a unique love-hate relationship with money, right? We know we need it, but sometimes it just doesn’t seem to love us back. Especially for us ladies, it can be a tad more complex. Picture this – from juggling family and work, we’ve got some extra financial hurdles to tackle. But hey, we’ve got this!
So, let’s change the narrative! Let’s start by making friends with our finances, mastering our money game, and finally getting that financial freedom we’ve been dreaming about. Sound good? Awesome! Here’s a simple guide to get us started:
Become a money maestro: Let’s dive deep and learn all we can about personal finance, investing, and budgeting. This will help us make smarter decisions with our money.
Set up our financial finish line: Knowing where we’re headed makes the journey easier. Let’s set clear financial goals. Paying off that pesky debt? Saving for retirement? Starting an emergency fund? You name it!
Let’s budget like a boss: Knowing what’s coming in and going out is the secret sauce to financial success. Let’s get that budget up and running!
Say yes to saving: Automate those savings, ladies! It’s a hassle-free way to stay on track with our financial goals.
Invest in you: Time to put yourself first! Learning new skills, attending events, and upgrading our qualifications – it’s all about investing in our future!
By following these steps, we’re not just managing money; we’re making it our ally. Let’s take control and empower ourselves financially and by learning how to change your relationship with money we’re rising up and make some noise for our financial future!
Your Money’s Best Friends
Jumping into the financial deep end doesn’t have to be scary. Here are 4 simple ways you can work towards better your financial literacy:
Ladies Richer Every Day Community: We are dedicated to empowering and educating women to achieve financial independence. Join our community of older millennial ladies who support each other on the journey to financial sustainability and freedom. Together, we can make a real difference in your financial journey with the power of community and support.

Financial advisors: Sometimes, certain situations call for additional professional assistance to help us reach our financial goals. While they can serve as our personal money coaches, there are instances where we might benefit from the guidance and support of experts in the field. They can play a crucial role in our financial journey, providing the necessary expertise to navigate complex financial situations and achieve our objectives.

Podcasts: Make the most of your commute and listen to top-notch money advice from industry leaders. Tune in and get inspired as you learn about money management, investing, savings, budgeting and more – all without leaving your car!
Hey, remember – money doesn’t have to be our enemy. With the right tools and resources, we can build a positive relationship with our finances. One that empowers us, gives us control, and paints a brighter future. So, let’s not let financial challenges get us down. Let’s own it and take charge today!
Join our Ladies Richer Every Day community, we help ladies be richer every day through education and empowerment.
A community of older millennial ladies adulting together to reach financial sustainability and be financially free..
Join today!
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9 YEARS LATER: Being a One-Car Family and Why You Should Consider it in 2023

9 YEARS LATER: Being a One-Car Family and Why You Should Consider it in 2024

How we save $20,013 a year being a one-car family. It started almost 9 years ago we I got married and we were a one-car couple – it worked for us back then but I’m here to say that even now, 3 kids later, it still works for us. Learn how you could save $20,013 a year too by becoming a one-car family might be the difference between staying broker or reaching your financial goals.

Way back in 2014, our little family of two made a bold decision to try and stay a one-car family for as long as possible. At that stage we both worked full time but in a similar direction from our house so each day I would drop off my now husband at his office before going to my office for work. Or if he had appointments that day and needed the car he’d drop me at work. It was a great way to stay connected to each others lives because we got to spend the car trip to and from work catching up and chatting about what we were excited for that day, what we were dreading or what wins we’d had that day.

Then almost two years later we were blessed with our own little human, and with the imminent arrival of our first child we faced a decision: do we stay a one-car family or do what everyone else we know has done and get a second car?

All our friends and even some family thought we should get a second car once the baby arrived (if not just before) even if it was a second hand, cheap old car. We were told “you really have to get another car” and “most people have more than one car already, when the baby arrives you’ll need a second car” and “do you really want to catch public transport to work, that’s such a pain”. Working in finance has certainly taught me that doing what every one else is doing isn’t necessarily to smartest financial decision in the long run and this felt like a moment where it was important to really stop, weight up the pro’s and con’s of continuing to be a one-car family before automatically going and spending $20,000 – $60,000 on a second car (they were cheaper back then), not to mention the cost of registration, insurance, maintenance and fuel.

After talking it over, we started to wonder whether we could get away with continuing as a one-car family.

We knew that buying a second car would add parking issues because we lived in an apartment with only one parking space. We would need to spend at least $20,000 for a semi-reliable second-hand old car, plus registration, insurance, maintenance which as time goes on would become more trips to the mechanic at presumably increasing costs and let’s not forget the cost of fuel (diesel or petrol because electric cars weren’t really a realistic option back then).

And all of a sudden we thought, if we’re financially going down to ONE (1) income for a little while WHY would we also add the cost of a second car which would extra financial pressure on us at a time when we’ll likely be sleep deprived and already feeling stressed as new parents!

So the decision was made.

We would try and continue to be a one-car family as a couple with a baby.
And if it really was too hard then we’d get a second car… like everyone else.

Do you know what happened?
It worked.

We worked out HOW to be a one-car family with a baby.

Then four years later we were blessed with another baby.
We now had two children and one car and we went through the exact same process of really working out for us, did we need a second car or could we STILL continue to be a one-car family.

And you know what, we worked it out and continued to stay a one-car family.

But this is where it started to get tricky.

Six years after our first baby was born, we found out that we had a third baby on the way.

This time our discuss about whether we should continue to stay a one-car family was a little different because it wasn’t JUST about the financial side of having a second car. This time we weren’t concerned about whether we’d be able to travel to all the different activities and work events we needed to, we’d over come all those obstacles.
This time the big question was do we upgrade to a bigger car because we would be a family of five and we only had a five seater car. With this third child we’d loose that spare seat.

We are still working out how to continue being a one-car family as a family of five but just like before I’m sure we’ll find a way. So you’re probably now wondering, Edwena how do you stay a one-car family, how do you make it work and why is it really worth it?

Why Being a One-Car Family Is Worth It

You might be starting to think that the hassle of being a one-car family isn’t worth the financial savings. In reality only you can decide that for your family but I still think we made the right decision to stay a one-car family even after having kids.

Here’s why:
- We are not paying $864 a year for a second car registration. The most common ‘unexpected’ bill family’s receive is that once a year car registration bill and every year it has increased from the year before.
- We eliminate the prospect of costly mechanics bills. The problem with having a car is the many “what-ifs” that come with them. The costs of replacing the radiator, or engine timing chain, or having ‘hard to find’ electrical issues that keep that one ‘fault’ light on the dash on.
- We are able to save more. Don’t believe me?
  The Australian Automobile Association transport affordability index shows us the data that owing a car in Australia can cost you up to $20,013 a year (Q4 2022).
  Personally we’d rather spend that money on travelling overseas for an awesome holiday or invest it (during covid) than spend it on a car but again… we aren’t like everyone else.
- Our family also has a lower carbon footprint by not having a second car. If you are concerned about your family’s impact on the environment then being a one-car family should be a no-brainer for you. This report from 2018 (which hasn’t been updated since) states that “a typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year”. Just something to think about.
How Being a One-Car Family Works

It’s now been almost 9 years and we moved homes to live in suburbia, and are still a one-car family. How do we do it? Well it isn’t that hard. Here is how we do it;

1. Walking

Seems logical that walking would be the first option but when you have a car the automatic default option for people is generally to drive even if were you are going in only a short distance.

Coffee is our ‘little luxury’ and is an important part of our morning routine so for our family we walk to our local coffee shop almost every day. We walk to the park, sometimes the supermarket and sometimes we just walk up and down the street – to burn our kids energy levels a little before nap time.

2. Sharing The Car With a Little Planning

This is SUPER important and I can’t emphases how important it is to plan ahead and communicate those plans with your partner.

Juggling working and kids is tricky and no-one questions that. But in order to be a one-car family communication about appointments coming up and social activities is the only way to make sure that you don’t accidentally both want to use the car at the same time.

For us we have full visibility to each others calendars. This means that before I book an appointments or my husband books any appointments where we will want to use the car – we check our diaries first. It’s not hard but it takes a little getting used to at the beginning.

3. Getting Dropped Off

I told you about how before we had a kid we were a one-car couple and mentioned that I used to drop my husband off at his office for work before heading to my office. Well, we still do that. The difference now is that when one of us is getting dropped off the other is probably then looking after our kids.

This can mean that sometimes one of us gets dropped at the office, the airport or a cafe before we need to be there but when you have kids, a little bit of quiet time before a meeting starts isn’t a bad thing!

4. Using Public Transport

Were we live there a bus line which takes you to the train station and from there its a 1 hour train trip into the city centre. It is clearly by no means quick but it is an available option.

Most cities have some form of public transport options available. Not all towns do but cities certainly.

Public transport is often considered a sub-par way of travelling in America but certainly in places like Hong Kong, Melbourne, Singapore using public transport is almost the norm.

If you live in an area where public transport is an option – use it. It is generally cheap and a little smile might help you discover some friendly people (yes I’m a big fan of smiling at strangers, sorry not sorry if you think that’s weird).

5. Borrowing a Car From a Family Member

I don’t like asking to borrow a car from family or friends but there has been one occasion when our car was going to be at the mechanics for longer than anticipated. I had arranged appointments with clients in an area where public transport wasn’t available and catching a taxi or using a car riding app was going to be too expensive (over $100!).
Family and friends are an important part of community and I have found that when situations arise where we do need to borrow a car – we have been overwhelmed by just how generous our family and friends have been.

I think my Mum said it best “it’s a practical way of showing we care.”

6. Car Ride Sharing Apps

No doubt you’ve heard of Uber, Lyft and perhaps you’ve even heard of Shebah, the all women rideshare service in Australia.

Each one is a great service and I’ve used each one at different times including while travelling overseas.

Car ride sharing isn’t my automatic default when we are in a pinch to use a car. I am more likely to call a friend or family member or take public transport before using a car ride sharing apps service. This is just my personal preference but if it is late at night or I’m in a completely unknown city/country I’ll usually reach for a car ride sharing app for help.

I’ve found that when I am already struggling to navigate a city, then I’ll use one of these apps to help save time and the stress of working out how to get where I am going.

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5 Best Budget Apps in Australia

5 Best Budget Apps in Australia

Finding the 5 best budget apps in Australia may sound easy, but trying to find the best apps to help save you money is time-consuming. First you need to find them, download them, spend the time setting everything up, and only then can you finally take the app for a ‘test drive’ and see if it actually suits you.

So let me help you save some time with this list of the best 5 budget apps in Australia for Australians.

Your Bank’s App

Before you roll your eyes and think “come on, Edwena, pull the other leg” the truth is that Australian banks have been leading the financial world with their online banking and budgeting apps as they all jostle for your business.

They are genuinely doing a great job of it too.

Recently at Pinpoint Finance, I helped an older couple rejig some debt to help them prepare better for retirement. Their number one request was a bank that had a great budgeting app! We presented the options and then because we don’t have demo versions of the banking apps, the husband found friends with an account at each of the banks we recommended and got them to show him how each banks mobile and budgeting app worked and before he decided which bank they would refinance their debt to. This certainly isn’t the norm but it highlights the fact that in Australia the choice of banking institution to engage with is now so great that everyone is jostling to have the additional value customers are actively seeking.

Track My Spend

This is a free app that has been developed and is available through ASCI’s website MoneySmart. It is easy to use and allows you to track your personal expenses on the go giving you a better picture of what you are spending your money on.

You can use it to record expenses such as your weekly household budget, work or travel expenses, and even those cash expenses that are difficult to record, or the costs of a one-off special event such as a major family holiday.

One of the best things about Track My Spend is their spending categories feature, where you are able to allocate whether the purchase falls into “needs” or “wants”. This helps you to identify the areas where you can rein in your spending and start saving!

Goodbudget

This app is a modern digital version of the envelope budgeting method, where the cash for each month’s expenses is taken out and divided intoenvelopes for each budget category – for example, groceries, transport, eating out or rent. Or if you’re familiar with the Barefoot Investor then he calls them buckets – same method.

The simple concept is that you stop spending money from a category/envelope/bucket once you’ve emptied it, or even before then if you’re really disciplined.

Goodbudget helps you to stick to those budget limits. Rather than discovering that you overspent when it’s too late, you can plan your spending beforehand and only spend what you have.

This app is also great for couples to manage the combined household budget and check know how each partner is tracking because you can access it from multiple devices.

The free version allows you to create 20 envelopes plus access the app across two devices. The paid version is $6 per month or $50 a year and for the paid version you get unlimited envelopes and accounts plus access to the app across five devices. An extra bonus of the paid version is that your data and transactions will be available for 5 years which is fantastic to see how your money management and goals have been met year-on-year. That kind of insight is invaluable!

PocketSmith

PocketSmith was created by our Kiwi neighbors I’ve still included them in this list of Best Budget apps in Australia because they are very popular here. PocketSmith integrates with 165 different Australian banks (didn’t know we had that many banks here? Well we actually have over 400 but that’s an article for another day). Again, like PocketBook this means you don’t have to manually enter all your expenses onto the app, the app will sync with your bank accounts and credit cards to track where your money is actually going.

This app has a couple of really fancy features that may make you realize the value in a paid budgeting app. First up, if you have a small business and make transactions that you then need to log in Xero – you can link your Xero account to PocketSmith and send the expense over to Xero (amazing!).
Next up, a feature I have only ever seen in clunky budgeting software built by software engineers for software engineers in the early 90’s – the ability to run ‘What-If’ scenarios on your financial projections. What this means is that you can have all your known bills entered to help you make sure there is enough money to pay them all on time but also, you can then run a ‘What-If’ scenario to see whether an impromptu $15,000 trip to Scotland is going to cause you financial stress once you return or not.

The free version requires you to manually import all your expenses. The paid version imports your transactions for your bank accounts and credit cards and starts from $10.95 per month with 10-year projects or you can get a more expensive paid version for $21.95 per month with 30-year projection capabilities.

Pinpoint My Family Budget

Pinpoint My Family Budget isn’t exactly an app and I’m also a little biased about this one because this is a budget that I created myself for my family and then further tweaked to be able to help my Pinpoint Finance clients prepare for when the banks would scrutinise their bank accountants during the home loan application process.

This is the budget you get when you’re wanting to buy your own home or investment property and need to make sure everything is squeaky clean!

It’s the budget you get to take control of your finances when you have a goal in mind.

So those are my top five budget apps that I suggest you check out, to save you having to trawl through endless internet searches looking for the right one! Open the links above and have a look for yourself, you’ll soon know which option is best for you.

Have fun!

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How To Change Your Wealth Ratio

How To Change Your Wealth Ratio

How to change your wealth ratio is something I believe every person should learn and be aware of in their life. Wealth and wanting to be wealthy is often seen as a ‘dirty’ ambition but being part of the worlds Top Rich List won’t just change your life. It will also open doors to opportunities that didn’t exist to you previously, and depending on how you use your wealth it can impact the world for the better (think Bill Gate’s working to rid the world of malaria and fight against AIDS and tuberculosis).

Because you are here reading this article it is clear that you want to know how to get from where you are financially at the moment, to joining the worlds wealthiest and richest people. I’m not going to lie to you – it isn’t easy. You’ll have to work hard, understand very clearly your own financial position and develop skills and habits around money that most don’t follow.

Let’s start with the definition of rich and wealthy.

Rich and Wealthy

The definition of rich and wealthy are often thought to be the same thing however as your wealth grows you’ll soon discover that the way you think about money changes and you’ll start to realize there is a difference between the two.

If you have read any of Robert Kiyosaki‘s books you’ll be very familiar with the distinction he uses “The rich have LOTS of money but the wealthy DON’T WORRY about money.”

Now that you recognise the difference between being rich and being wealthy which one would you rather be? Wealthy? I thought so.

What types of wealth are there?

You may be surprised to learn that there are four different types of wealth and only one relates to financial wealth. As you are likely starting to notice being wealthy isn’t just about your bank balance.

The 4 types of wealth are:
- Financial (Money) – which I’ll help you learn more about the longer you stick around
- Social (Status) – nope, sorry I can’t help with this one
- Time (Freedom to do what you want with your time) – I’ll help you with this one
- Physical (Health) – sorry, I can’t help with this one either
Can you imagine your life if you had all four types of wealth? To be financially secure and not worry about money, you have a social status that opens doors to otherwise unheard of opportunities, the time to be able to take a holiday or vacation for six months if you so desired and having the health that will help you live a long and active life.

Your Lifetime Wealth Ratio

Your lifetime wealth ratio is a simple formula developed by budget blogger J. Money at Budgets Are Sexy. It’s the type of formula that will likely give you the kick up the bum you need to really make changes to your financial habits. It will shatter any illusions you have that earning well over 6 figures automatically means you have a great lifetime wealth ratio which is why I like to use this formula – it helps put your financial life into perspective.

How to calculate your lifetime wealth ratio:

Lifetime Wealth Ratio = Net Worth / Total Income Earned to Date

The tricky part in this equation isn’t determining your Net Worth it’s determining your Total Income Earned.

If you’re American you can login into your Social Security Administration website and get the an estimate of your lifetime taxable income to date.
If you’re Australian and have only one superannuation account you can login your super account and get an estimate of your lifetime taxable income to date.

Now you have both your current Net Worth and your Total Income Earned to Date figure take a deep breath pull out the calculator on your phone and punch in the numbers.

Lifetime Wealth Ratio Score
- 0%-10%: You’re on par with the average not the wealthy
- 10%-25%: You’re young and this will improve over the next 40 years
- 25-50% – Well done you’re starting to make a difference
- 50-100% – Excellent! You need to be here to be wealthy
- 100%-1,000% – Wow… Congratulations! Keep it up! For you it’s all about mindset now and making a positive impact on the world around you!
How’d you go? Happy with your ratio?

Change Your Wealth Ratio

Knowing your Lifetime wealth ratio is perhaps the best way I have ever seen to frame in your mind what your ‘financial past’ looks like and where you want your ‘future financial self’ to be.

If your lifetime wealth ration is lower than 50% I urge you to sign up to my email newsletter below, learn more about money and putting what you learn into practice. Become the wealthy person you want to be and know you can be. You now have a clear goal! I know you can achieve it!

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Pay Off Your Home Loan Faster: 5 Simple Hacks

Pay Off Your Home Loan Faster: 5 Simple Hacks

Paying off your home loan faster may seem like it’s an unachievable pipedream but it isn’t! And it’s one of the best ways to super-charge your own financial progress.

Owning your own home outright, mortgage free, is a feeling like no other! And it IS possible. No more loan repayments, no more worries about where interest rates are heading…just you and your home with loads of extra money in the bank each month to save, invest and enjoy.

Helping people pay off their home loan faster is what I do every day, and when I get the call “Edwena, we paid off our home loan!” it is a GREAT day for them, for me and my team.

But how do you pay off your home loan faster than the 30 years the bank gives you?

5 Hacks to Paying Off Your Home Loan Faster

Have the right loan for your needs

You might be thinking ‘The ‘right’ home loan is just the one with the cheapest interest rate, right?’ but the cheapest, no-frills loan available isn’t necessarily the best loan for you! It’s all about finding the loan that COSTS you the least, and the interest rate is only one part of that.
The ‘right’ loan for you depends on what phase of life that you are in or how you engage with your money on a day-to-day basis.
Features such as a ‘100% offset account’ or an attached credit card, or fixed interest or dozens of other features all combine in a home loan, and those other features (and picking the right features for how you use your money) are just as important as the interest rate!
Like all your major expenses you should be checking every 2-3 years that your home loan matches your needs and is going to be suitable for the upcoming 2-3 years. We call it our ‘home loan review’ and we do it with all our customers every few years, but whatever you call it just remember to do it.
Earlier this year I helped a family refinance their home loan to a lender that suited their needs much better! The result was that they are saving $16, 174 per year from making the switch to a lesser-known bank.
That’s money they can use to improve their lifestyle and pay off their home loan faster, AT THE SAME TIME!!! If you need help just ask.

Check for sneaky charges made by the bank on your account

Double-check your account to see if you are paying any account keeping fees. Paying this fee each month may not seem like a big deal but paying a monthly account keeping fee or an offset account fee is just like paying a higher interest rate – ask yourself whether it is worth it to you and your family and whether this fee is giving you enough of a benefit. Is it REALLY helping you get to your goal of paying off your home loan faster, or is it actually slowing you down?
This is why it’s so important to regularly re-check that you’ve got the right loan for you and how you use your money! If you lack features you need then it will cost you, but also if you’re PAYING for features you don’t need, then that will ALSO cost you!

Make extra repayments regularly

If you think that making extra repayments doesn’t make much difference, or you really can’t be bothered making extra repayments then let me stop you right there!
Making extra repayments isn’t as hard as it sounds and it can make a massive difference to how soon you become debt free.
Remember that the bank wants you to give them back the money they lent to you and every bank offers the ability for you to automatically make additional repayments regularly.
If you’ve set up automatic direct debit repayments the easiest thing to do is increase the amount you automatically deposit onto your mortgage each month – even if it is only by $20 each week, it will make a difference. Obviously the more you pay extra, the bigger the impact, so if you can afford $50 per week extra then consider if that’s perhaps a better way to use that money than whatever you’re doing with it right now.
As you make extra repayments, the principal amount you owe to the bank decreases. Keep in mind that the majority of each repayment you make is actually INTEREST, and only a small amount is PRINCIPLE. But every EXTRA dollar you repay is actually going against the PRINCIPLE, which is the bit you’re trying to repay!
This means that over time you will pay less in interest (actually a LOT less in interest!) but also that you will have paid off your home loan faster than the anticipated 30 years.

Lump-sum payments

There are times in life when you will receive lump-sum payments for one reason or another. You perhaps get a tax refund, your work gives you a bonus, or you receive an inheritance. Adding these lump-sum payments to your loan will dramatically improve how quickly you are able to pay off your home loan.

Focus on paying off your home loan faster

Try this simple trick: Make a decision that paying off your home loan faster is a priority. It’s the number 1 thing you want to do! Focusing on paying off your home loan faster will mean that your subconscious will help you find and think about more ways to pay off your home loan faster.
It’s amazing what happens when you get your subconscious on your side. Suddenly expenses that you thought were ‘essential’ don’t seem so important, and you’ll find yourself having ideas about how to save money in ways that don’t really hurt your lifestyle at all, or at least not in ways that REALLY matter to you.
You may even find spare cash in the couch, at the bottom of your handbag or in a forgotten jacket pocket. If you decide that it’s important then you’ll start noticing spare cash in lots of places. Putting this money into your home loan instead of a separate savings account or spending it (like most of us do) will help you’ll save more in interest on the loan than you’ll earn with a separate savings account, and it’s a sure-fire to pay off the loan sooner. If your home loan offers redraw (as most do), you’ll be able to access the money in an emergency.

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What are the Different Types of Wealth
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What are the Different Types of Wealth

‘How many different types of wealth are there?’ isn’t a trick question or a rhetorical question. After my recent article ‘How to change your wealth ratio’, you wanted to know more about the different types of wealth there are and asked if I could elaborate a little further.
You might be surprised to learn that there are more types of wealth than simply just financial wealth since financial wealth is the most spoken about type of wealth and has been for centuries.

To help lay the groundwork for what are the different types of wealth lets first look at Maslow’s Hierarchy of Needs, yes the psychology theory from 1943 because it is here that we start to see what is now known as the different types of wealth and why they are important.

Stay with me, I promise you will have one of those ‘a-ha’ moments soon.

Maslow's Hierarchy Of Needs

You probably learnt about Maslow’s Hierarchy of Needs at school as a kid, I kind of remember learning about it but it certainly didn’t mean much to me back then – other than having to memorize the 5 elements to be able to pass a test. You can see the pyramid below.

Today Maslow’s Hierarchy of Needs has a more direct impact on me because I can see it’s value in life.

As we go through different phases of life, where we fit on the hierarchy also moves.

There is a clear point in the hierarchy where you aren’t concerned anymore about food, water, shelter. You aren’t concerned anymore about employment or the instability of renting a property. There is a point where you are surrounded by a loving family and a clear sense of connection to others.

Once these desires and needs have been meet that is where we start to view life differently, were we start to view wealth differently. Is is where we start to look back down the list of desires and needs and reassess what are the other types of wealth that we hold that aren’t just financial.

Why is it important to understand the different types of wealth?

There are four basic kinds of wealth:

Financial (Money) – which I’ll help you learn more about the longer you stick around

Social (Status) – nope, sorry I can’t help with this one

Time (Freedom to do what you want with your time) – I’ll help you with this one

Physical (Health) – sorry, I can’t help with this one either

Based on my own life, and that of close friends, you can get a point in life where you view wealth as more than just financial wealth. That’s hard to do when you’re struggling away towards the bottom of Maslow’s hierarchy, were earning more money is crucial to meeting the basic life needs we all have. But as you move higher up the hierarchy making more money will be less and less critical, and increasing your wealth in other areas will become more and more important to you.

Understanding the different types of wealth will allow you to pass on to your children values around not only money management, which is important but also around these other three areas of wealth.

Teaching your children that their physical health is important (no-one wants an obese child who will die before them from an early heart attack), that your social status is more than not being mean or a jerk to people it’s about caring for others and your community and being part of something bigger than yourself, and that your time is also a valuable type of wealth that you alone are the master of, and to use that time wisely.

How can Knowing the Different Types of Wealth Impact Your Life

Looking over Maslow’s Hierarchy of Needs and determining where you fit currently and then determining your lifetime Wealth Ratio, and what type of wealth you already hold will help you decide what you want to focus on next in your life.

For our little family, knowing the different types of wealth has meant that we have felt more comfortable putting up our hands to be part of the Board for a local Children’s Hospital Fundraising Foundation and helping to raise over $2 million in four years, something both my husband and I find incredibly rewarding at a personal level but would not have considered if we hadn’t taken the time to review our situation and deem that we were in a position to be able to pursue a higher purpose.

But it’s vital to look after yourself BEFORE you can really help look after others, after all, if you burn out or can no longer meet your basic needs, then you’ll no longer be in a position to make a big difference in the lives of others.

So take a moment to self-assess. Where do you think you are in the hierarchy? You might be at different levels in different areas of your life. Perhaps all your physiological needs are met (I certainly hope they are!) but there’s some way to go before you’re in a position to really self-actualise your best life. That’s ok! We’re in that same place, we’re doing just fine but truth be told we could certainly be doing better.

And that’s why we think about things like this, to help us to do better. What are the areas of your life that you think need the most urgent attention, to get them into line and move you a bit further up that hierarchy of needs towards your best life?

Is money-wealth the most important thing for you to be focussing on? Or perhaps could you sacrifice a bit of money-wealth in return for more time-wealth, and actually move UP the hierarchy of needs as a result?

Same with your health-wealth. No amount of money is worth killing yourself for.

And what about your social-wealth? Are you a part of a community that really builds into your best life? How are your family relationships? Should you perhaps think about sacrificing a bit of money-wealth and time-wealth, to improve your social-wealth?

Only you can answer these questions for yourself.

This blog is mostly focussed on building your money-wealth, because once you have that under control you can afford to spend more time creating wealth in other ways as well, but it’s important not to be so single-minded about building your money-wealth that you completely neglect these other important parts of your life.

Money is important, of course it is, but it’s the OTHER three types of wealth that REALLY help you move up Maslow’s Hierarchy of needs towards your best life. So make sure you’re building your best life by always keeping in mind the OTHER kinds of wealth, and take the time every once in a while to check yourself against the hierarchy of needs and see if the types of wealth you’re working on are the ones you need the most.over

THANKS FOR READING

Knowledge itself is transformative which is why our blog exists; it’s to help you.
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