A leading financial advisor has revealed how she has adjusted her spending to better manage her money during the coronavirus pandemic this year, and why buying a home isn’t the only way to get early and get rich.
Canna Campbell, from Sydney, said the pandemic has taught us a lot about navigating and taking care of our finances, and for her it was a huge opportunity to reassess.
Understanding your money value system is the most important way to get your finances under control, Canna said in a video about her Youtube Channel.
“It helps you handle sacrifices better and really exercises your self-control when it comes to working toward your financial goals.”
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A leading financial advisor has revealed how she has adjusted her spending to better manage her money during the coronavirus pandemic this year (photo Canna Campbell)
Understand your monetary value system
Figuring out your “money value system” means sitting down and reminding yourself of the one or two things that are most important to you, and most of all others.
“My value system is time and choice,” Canna said.
“I appreciate having time for myself, having time with my husband and my family and my friends, and the more time I have with them the happier and healthier I am.”
The best way Canna makes more time for herself and her loved ones is to build passive income streams so she can ‘choose to work because I want to and not because I have to’.
“When it comes to saying no to something or putting something on hold, it’s so much easier when you have a monetary value system,” Canna added.
“I enjoy knowing that I live a life that is aligned with my value system and that generally makes me happier in life.”
Figuring out your “ money value system ” means sitting down and reminding yourself of the one or two things that matter most to you, Canna said (pictured)
2. Don’t think you have to buy a house
The second way Canna has reassessed this year is that she realized that getting up the property ladder isn’t absolutely necessary if you want to retire early.
While the financial advisor has invested in a Sydney property, Canna said this isn’t the only way to get rich – and you can think much more about your passive income streams.
“Forget the lifestyle goal of desperately wanting a home, even though there are certain social pressures that can tell us this is the ultimate goal,” she said.
“The reality is that having your own home is actually quite a financial handicap as you have to bear the burden of all the ongoing ownership expenses, including interest, tier taxes, council fees, water bills and general wear and tear.”
When you rent, Canna said you can outsource many of the biggest costs and use your money elsewhere:
While I am happy with my financial situation and I am very grateful for what I have built, I think it could have been a lot stronger and that by now I might even have retired had I used all that excess cash flow just grow my passive income stream, ”she explained.
Focus on what’s most important to you, and if that’s not owning a home, don’t think you should buy one just because it’s what society tells you to do.
Canna (pictured) said buying your own home isn’t the only way to get rich – and you can think much more about your passive income streams
Canna said one of the biggest and most positive money changes she’s made this year is her decision to use her social media in a positive way and follow people who inspire her to save.
3. Use social media in a positive way
Canna said one of the biggest and most positive money exchanges she has made this year is her decision to use her social media in a positive way.
“ Social media is getting a bad rep and we’re constantly being told to stop because we spend too much time there, but it’s really who you want to follow that could let you down, ” Canna said.
Rather than following stores that encourage you to spend and fashionistas that make you want to shop, she recommends looking for profiles in the debt-free community that celebrate saving, investing, and paying off debt.
“I like to follow the debt-free community and people posting about the stock they just bought and the passive income they are building,” Canna said.
‘That feeds my motivation and inspiration.’
For ideas on who to follow them on Instagram, check out who follows Canna herself profile.
What’s the worst financial advice Canna has heard?
* The financial advisor said the worst advice she’s heard is that you should always ‘upgrade, upgrade, upgrade’.
* Canna said the worst she has heard is the ‘moment you get to your first place, live in it for a while, sell it and move to a bigger place’.
* She believes this is not a good idea as you dig deeper and deeper into a mortgage and never free up cash flow to diversify or acquire real financial assets.
Source: Canna Campbell