The definition of tough love is: love or affectionate concern expressed in a stern or unsentimental manner (as through discipline) especially to promote responsible behaviour.
For some time, Financielle content has slipped into a bit too much of a "softly softly" approach, trying to gently nudge people to make better money moves. Maybe I was playing it safe? Maybe I was worried about offending some people?
This weekend, I did an Instagram "Ask Me Anything" session and for the first time in a long time, I spoke completely honestly and openly, without fear of judgement, because I decided that as a money strategist I wouldn't be doing my job properly.
And oh my life - did my DMs blow up! It seems, along with your personal trainer and your best friend after a couple of Whispering Angels - you guys love tough love!
A couple of questions that I was asked were:
Q: Pay off car finance or use the money for a bigger deposits?
A: Pay off the car, every damn day. Get rid of car leases, they are the thing that is going to keep you from building wealth; waste of your income every month (or do both).
Q: Do you believe people on a low income / low opportunity individuals can also be financially successful?
A: 100%. I complete believe anything is possible, but we cannot get away from the fact that people with different opportunities whether it be income levels, upbringing, colour of skin, gender and general luck in life have a harder battle than others. Don’t forget, there are a lot of people with higher income levels and no money. Some people have a high income and negative net worth. Don’t just focus on income, the way you use your income is very important.
Q: Can you safely get into debt?
A: Nope, you can’t. I would never ever advise anyone to go into debt other than a mortgage. You have to save your a*** off to try and build up the funds you need for the renovation. Don’t forget when you borrow money you are likely to spend more because it doesn’t feel like your money. When you save in cash, you will be more savvy with that money. You’re not going to be left with debt at the end of the renovation so that you can enjoy the house more.
The reaction was amazingly positive for these direct responses. The answers are a little out of context, for example my bashing of car finance is linked to a much bigger issue that can't be tackled on Instagram Stories alone. When you understand the why and the how, you understand the bigger picture and can build your own strategy to win with money.
The way I see it, you come to me for a different way of looking at money - why would I answer like everyone else? So I guess watch out for more truth bombs - always presented with love and with passion for you winning. So maybe sometimes you don’t like what I say, just like you don’t really appreciate a personal trainer requesting 20 more burpees, but maybe deep down, you know that I want what’s best for you and you know I’m right.
I guess this brings me back to The Financielle Playbook. All the goods are in there. The secret sauce is in there. The tools to build your own strategy are in there - and I’ll be here, the whole time, cheering you on (with a little bit of tough love).