Well synkey girls we are, I think, out of the eye of the storm in regards to the financial crisis. Now that money, investment and debt has your attention perhaps you should examine your own financial situation. I suggest this because we see headlines saying that capitalism is to blame for the doom and gloom and the large financial institutions have ruined us all. This however is not entirely true; the bottom line is we have taken out the mortgages, maxed out our credit cards and then taken on high interest loans for consumables such as cars, furniture and whiteware.
For most of us digging deeper into debt is not our stated financial goal. The question is how do we rein in our destructive behaviour? Take an idea like that of a book club and join a money club. A recent article in the New York Times suggests you imagine a cross between Debtors Anonymous and Weight Watchers.
In a money club you discuss incomes, debts and spending habits. This will not be easy, but slynkey girls isn’t it time to get over our hang ups and start to talk about our borrowing and spending habits?
Most of us are too scared to admit our financial cluelessness and are ashamed of our bad decisions. We talk about sex far more freely than sharing the nitty gritty of our financial lives. Imagine the relief you would feel after you had unburdened yourself and found others in the same situation.
Following on from an Oprah show about a debt diet, a group of five women in Vancouver started a money club (have a look at their great website www.smartcookies.com ). So just in case you are thinking this is a great idea and want to form your own money club consider these guidelines;
- Members: it is best to meet with people who have similar concerns, who are in a similar stage of life.
- Commitment: A debt diet is like any diet – persistency is the key – initially it would be best to meet weekly and in between text and email each other – group support and therapy.
- Disclosures: Hiding issues is self defeating, full disclosure is essential.
- Trust: You need to promise not to talk about the money club – the hardest part of setting up a club is to have faith that others won’t discuss your situation.
- Agenda: The women in Vancouver have the same format at each session; good news from every member, a spending check in, individual debt reports, brainstorming how to make more money, a discussion topic someone has researched, and then goal setting.
By Sheryl Sutherland - B.A (Otago), Dip.F.A.C (Otago), DipPFinPlan (Waikato)
