Fear of money

Could that really be a thing? Yes, it is.

Over my years of helping people choose the right mortgages and insurances, I’ve come across many who look embarrassed when the talk turns to deposits, cash projections, lump sums and interest rates. Sometimes, they freeze and mumble, “I’m sorry, I’m just not good with numbers.”

My guess is it’s about 10% of the population. That’s one in 10 people who feel lost when it comes to making decisions that will drastically affect their future wealth and wellbeing.

So here’s my suggestion:

Talk to your friends who feel lost or panicky about money.

Maybe it’s a sister is who lives pay packet to packet. You could help them set up an emergency fund and start channelling regular payments to a pension plan.

Maybe it’s your best mate who always spending on tick. You could help them work up a simple budget.

Maybe it’s the friend who really wants to buy a house but never seems to get their ducks in a row. You could show what worked for you and suggest ideas that they might use.

You don’t have to ‘fix’ them. Just be a trusted friend.

 I get it – these might not be easy conversations. People often get embarrassed or defensive. So be clear that you’re not trying to take over; just suggesting ideas. 

The key thing is to wait for them to initiate the conversation.

The fact that they’ve revealed their fears or frustration provides a way in. They might have reached a decision that they need to get better with their finances, and you’re the person they trust to have that conversation.

If numbers are your thing, you’ll be perfectly placed to help out. Remember that we all have strengths and weaknesses. Theirs just happens to come with dollar signs attached.

A confession.

Science was never my thing despite having an outstanding teacher. I was just bored and feel sure I zoned out during all those lessons at school. The irony of now having a nephew who is an astrophysicist is not lost on me!

But I love numbers. I can see the patterns and I am fascinated by the way small changes in calculations make a huge difference over time. For example, compounding interest is one of the wonders of the world, and once you understand this, it will change your life. 

My friends who are great with words, or fixing machines, or emotional support, might be less interested in numbers – but I can help them out. And of course, I deeply appreciate the difference they make to my life. We all have different things to offer.

Financial education is empowering.

To make it easy, we write articles (such as this one) to explain now money works.

And if you have a friend or family member who struggles with numbers, but wants to buy a house – send them our way. We’re always happy to provide tips so they can start the process of getting a deposit and making themselves mortgage-worthy.

Just send them this article – or use the link below to book an appointment.