Money Conversations To Have With Loved Ones: Part 2 of 2

The final eight money conversation starters from Print Discuss will now be answered by yours truly. Plus a bonus bank account related balance question that one found intriguing and mysterious, on the back of attending a tech industry conference called Vogue Codes back in 2023, will also be addressed.

In case you missed part 1 (the first 10 questions) - the link to that article can be found here.

Now to the questions (in bold) followed by my response to each. Thanks again. I trust that my responses will help you gain some clarity around your personal financial situation.

11. Is there something you regret buying? Why?

We would not be human if we cannot say that we have made at least one stupid and foolish financial decision in our lifetime, that proved to be costly. There are a number of small ticket items that (in Marie Kondo's words "sparked joy" at the time of the purchase, only to come down with post-purchase dissonance not long thereafter.

This is why I personally never buy things when tired, angry, upset, and in a hurry. I need to be a calm, relaxed and happy spender, rather than a big one, metaphorically speaking here of course.

Borrowing $50K for a 100% margin loan with put options in 2007 seemed like a good idea, yet was a stupid decision prior to the GFC and a business loss, all in the name of self-confidence, and "trying too hard" to get back on my feet ever so quickly. At least the loan was a tax deduction, and the dividends were fully franked. It was nice to walk away and say good riddance to this investment five years later. I would also not recommend buying Contracts For Difference (CFD's) in a Self Managed Super Fund (SMSF). that is completely f*!king dangerous. Do not invest in a business unless you fully understand it, and not until you are ready. Enough said.

Furthermore, I would only insure myself for things that would break me financially. For example, car and health insurance are great investments. Having insurance for a cracked screen on your phone would not break you financially in retrospect.

12. Did you receive an allowance from your parents when you were a child? What did you usually do with it?

From my birth mother (who passed away when I was 13 years of age), I was lucky to get $2 a week pocket money. That is despite our family being poor, ill, and living in public housing. Due to the myriad of my birth mothers different illnesses; she was on a pension, and the pension (social security) department at the time recommended I only receive $1.30 per week less in pocket money than what I was given. As my family were not great savers; that money went on candy and chocolate. I remember a time when my birth mother freaked out when she found out that I spent $14 a week on junk food. That was quickly replaced with healthy muesli bars.

With my foster family, I got around $5-8 a week, and I had to clean the bathroom for that sum. It's great to be a well-off adult, let me tell you.

One of my friends in childhood got a massive $50 a week from her parents. This discovery happened during a lesson in junior/primary school, where we all had to divulge how much pocket money we got from our parents each and every week; and $50 a week was certainly an outlier on the statistics/data collected.

13. What would you tell someone if they asked how much you get paid?

This is a really personal question, and can be an embarrassment when you are owning your own business.

Why? When freelancing, there will be many moments when your income is way less than a salary; yet full lifestyle and time freedom is definitely worth the trade off of earning a bit less than your peers who work for the man so to speak. Their income can be likened to an insurance policy. There are times where my weekly income is flourishing, and other times where I have just enough to pay the rent for that particular week.

With slow wages growth, it feels like nearly all of us are on poverty level incomes when inflation is high. It is no different to potential employers asking for your salary expectations in a job interview; it feels intrusive, because you cannot always compare apples and oranges so to speak.

14. Do you have any cryptocurrency such as Bitcoin? Where can you use that kind of money?

Not long after the Pandemic began in early 202o; I am of the understanding that Bitcoin became a currency in its own right. Cryptocurrency (or crypto) is another form of currency, and I have owned a bit of Bitcoin (not a whole Bitcoin through). I have also invested in Bitcoin Cash, Bitcoin Lite, Ethereum, and Ripple. I have made a fair bit of money - especially on codes BTC, XRP & ETH in sequence. I do not own any crypto as of right now, yet I soon will. I believe that a schooner of beer was the first item that you could buy on Bitcoin. You can buy it, and transfer some crypto from your wallet, into someone else's. Bitcoin is expensive, as there is only a certain amount available, and to mine Bitcoin on the blockchain is not cheap. A fair amount of electricity is used as well.

15. If a young person wanted to know what career they should pursue to make as much money as possible, what would you recommend they do?

This is a tricky one, as kids are usually in la-la-land when it comes to careers. I am sure that many of us have come across many five year olds wanting to be astronauts when they "grow up."

I only figured it out at age 40 (life begins at 40, ha) that I wanted to work with computers. Careers keep on changing, and by the time a young person enters and finishes college; new, fresh roles will exist. The unknown is with AI. You cannot go wrong with creating AI technologies and machine learning; yet it is something that you need to be passionate about.

Humans crave social interaction, and therefore a social role that cannot be outsourced for cheaper labour overseas should promise security. The old professions like Medicine, Law, and Accounting are still worthy, although all of these professions (but for Medicine) are vulnerable to AI. Nursing and working with animals would also promise security, yet the latter roles do not pay as well as they should.

Again, do what you love, and you never work another day in your life again. It is ok to change careers.

16. Do you and your friends lend money to each other? How much are you willing to lend or borrow?

I have had friends in the past who kept asking for money (like I am sure that many of us have); and lending money to friends (when they do not pay you back, which is nearly all of the time) can cause rifts in these friendships.

If lending to friends from now on, there would need to be an agreement/contract with interest rates attached, like a true loan. Same with family. They say that your bank balance is the average of the five closest people you hang around. All of my friends are also wealthy and/or well off, and therefore none of us need to ask each other for money at this point in time.

Sure, I love to be generous and to shout my friends and family while eating out; yet lending money to friends and family informally is an act that I would no longer recommend, for a myriad of reasons. It gets messy.

17. When you are walking around a big city, where on your body is a safe place to keep money? Is it safe in a handbag?

Keeping cash and cards in my purse in a handbag is pretty safe, as well as having Apple Pay on my iPhone, with a feature where you have to enter in a six-digit passcode every time you use your phone. When travelling, I do not carry much cash. That includes being on staycations, and when pet sitting. Ladies, your handbag has to be your best friend for safety reasons. And for the gents reading this; be mindful of your pockets at all times. If I am travelling light; I am safe with my phone and keys only. On other occasions, if I am out to exercise, and I shall not be out for long; it is fine to keep my money at home.

18. Imagine you have won ten million dollars. Who will you tell? What will you do with the money?

I would not tell anyone. I would donate a small portion to charity/a cause I care about. Giving and tithing is important. I would stick some in savings. I would definitely buy a large house to live in outright, with brand new furniture. The rest I would invest in shares, businesses, and property. And a round the world trip flying first or business class would be nice too.

Now to the bonus money conversation starter, that was asked of me at a tech conference last year. It is deeply profound and intimate:

Would you tell someone how much money you have in the bank? Why or why not?

This is a confronting question in and of itself. A true marker on your financial thermostat. If you had a high bank account balance (anything from $2K, to a healthy six or seven figure sum in the bank), you would be seen as cocky and arrogant (in my humble opinion). On the other hand, you would feel embarrassed if you had less than $100 in the bank full stop. With the latter, if you told someone that, they could be more likely to help you, offer support, or maybe offer you a low interest loan with flexible payment terms to name, so to help you get back on your feet after some form of financial setback. I have to confess that when I reached a healthy six figure milestone on a savings account last year; I did share this with two trusted friends, and the celebratory drinks were flowing. Otherwise I would not answer this question directly, as you can offend some people, and therefore rub them up the wrong way.

The above is no different to work colleagues (while in the corporate world) asking how much rent you pay per week. It is not related to your employment, and hence such is truly none of their business.

Looking forward to your comments. Thank you for your support once again, lovely readers and subscribers. The travelling continues for now.