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Senior changes will to leave fortune to pets instead of family

An elderly woman in China has decided to leave her $A4.3 million fortune to her pets instead of her three children, after she claims they never visited or took care of her when she was sick. The Shanghai woman, known by her last name Liu, drafted the will a few years ago according to the <a href="https://www.scmp.com/news/people-culture/trending-china/article/3248592/elderly-china-woman-leaves-us28-million-assets-beloved-pets-instead-children-who-never-visited-even" target="_blank" rel="noopener">South China Morning Post</a>. However, as her three children rarely contacted her, and left her on her own while she was sick, Liu decided her cats and dogs were more deserving of her multi-million dollar fortune, and changed her will. Chen Kai, an official from the China’s Will Registration Centre headquarters, told her that leaving her entire inheritance to animals is illegal in China, but there is a way for her to ensure her pets get taken care of. “Liu’s current will is one way, and we would have advised her to appoint a person she trusts to supervise the vet clinic to ensure the pets are properly cared for,” he told the South China Morning Post. Another official added that Liu could always change her mind, if her children changed their attitude. “We told Auntie Liu that if her children change their attitude towards her, she could always alter her will again,” the official said. Image: Getty

Family & Pets

Fleetwood Mac legend’s eye-watering fortune revealed

Fleetwood Mac star Christine McVie left behind a $135 million fortune, probate documents revealed. The singer and keyboardist <a href="https://www.oversixty.com.au/news/news/there-are-no-words-fleetwood-mac-star-dies-aged-79" target="_blank" rel="noopener">passed away aged 79</a> in November last year following a short illness. McVie, who was living in London at the time, had suffered a <a href="https://www.oversixty.com.au/health/caring/fleetwood-mac-star-s-cause-of-death-revealed" target="_blank" rel="noopener">stroke and had cancer</a>. A year before her death, she secured a massive deal and sold the rights to her entire back catalogue of 115 songs. McVie played in several bands before joining Fleetwood Mac in 1970, just two years after she married the band’s bassist John McVie. She left the band in 1998 and returned to tour in 2014. Following her death, her former bandmates Mick Fleetwood and Stevie Nicks said: “She was truly one of a kind, special and talented beyond measure. “She was the best musician anyone could have in their band and the best friend anyone could have in their life. “We were so lucky to have a life with her. Individually and together, we cherished Christine deeply and are thankful for the amazing memories we have. “She will be so very missed.” In February this year, Fleetwood admitted that the band was most likely “done” for good following McVie’s death. "I think right now, I truly think the line in the sand has been drawn with the loss of Chris," he told the Los Angeles Times. "I'd say we're done, but then we've all said that before. It's sort of unthinkable right now." Image: Instagram

Money & Banking

What will be your legacy?

Maybe you’ve never thought about it, but how you’ll be remembered, and who you’ll be remembered by will be determined by the legacy you’ll leave. If you want your life to count then why leave it to chance when your legacy can be planned and purposeful, and in doing so, establish a firm foundation which generations can build upon? The mistakes of generations-past will be repeated by generations-future up until someone has the vision and determination to derive a different outcome. If not you, then who? A legacy framework Let’s play a game: what’s a word – just one word – you’d like others to use that encapsulates how you’d like to be remembered after you’re gone? For instance, assuming your name was Bobby, imagine a friend at your funeral saying “You know, I always found Bobby to be so…” It might be loving, or honest, or faithful, or sincere or any number of things. Now ask yourself this: "Is how I’m living congruent with how I want to be remembered?" If it is, great. If it isn’t, will you change while you still have time? If you’re interested in being organised and purposeful in leaving a legacy, consider this: your legacy is the summary of your deeds, which is the summary of your actions, which is the summary of your intentions. If you want to leave a bigger legacy then start by being purposeful with your intentions, impactful with your actions, and altruistic with your deeds. Largesse Your largesse is the way and extent to which you distribute money or gifts upon others. Largesse may be, but doesn’t necessarily have to be, financial. To be significant, largesse must be predominantly selfless. Any contribution to humanity that results in a gift qualifies, which is why the largesse of the likes of Nelson Mandela, Mahatma Gandhi and Mother Teresa remain significant. Perhaps the ripples of the contribution you leave won’t be as large or as wide as those of Mother Teresa, but that doesn’t make your effort any less important or less worthy. Many small things done well are usually far better than a few great things done poorly. But remember, a selfless act can’t be called so if there are selfish ambitions behind it. Selfish largesse is rarely remembered beyond one generation or is remembered for the wrong reasons like the legacy of any historical tyrant you care to mention whose selfishness caused the death of countless innocent lives. Remembering Nobel Alfred Nobel was a controversial figure for much of this life, and while his inventions improved the industrialised world, he was not universally loved. His work improving military explosives resulted in him being accused of high treason. Upon his death, Nobel bequeathed 94 per cent of his estate be converted into a fund and invested in safe securities, with the income earned from those investments to be ‘distributed annually in the form of prizes to those who during the preceding year have conferred the greatest benefit to humankind’. Why did Nobel perform such a generous act? No-one knows for sure but one possibility is that a French journalist, upon mistakenly reporting his death, eulogised Nobel as a ‘merchant of death’. Reportedly appalled, Nobel shifted his focus to philanthropy and used his fortune to create a legacy to further, not frustrate, humanity. Today, Nobel is revered for his substantial and ongoing contribution to the promotion of peace—a legacy of significance funded by his significant wealth. Do-Doing-Done How do you leave a legacy? First you’ll need to cast a vision for how you want to be remembered. Thereafter every thought and every action in every hour of every day is an opportunity to make a legacy deposit by acting congruently, or legacy withdrawal by acting incongruently, with your vision. The bigger your legacy balance, the more impactful your legacy will be. The trick is to remain persistently consistent with cycling through your intentions (what you want to do), your actions (what you’re doing), and your accomplishments (what you’ve done). Doing so will build momentum and scale. My old high school motto was Spectumer Agendo. It is Latin and means ‘By their deeds they shall be known.’ What are your deeds, and how will you be known? If you want your life to count, do more things that count! Don’t be consumed with petty people or petty matters. Remained focussed on the things you can control. Greek Proverb Here’s a Greek proverb that caught my attention recently: wise men plant trees under whose shade others will sit. This is a beautiful phrase that captures the notion of sowing a blessing today for others tomorrow; a lovely way to capture the concept of legacy. I might have taken the proverb a little too literally because etched on my heart is a vision to return the 600 hectares of land I purchased back in 2018 into a permanent multi-species native forest. If you don’t have your own legacy project on the go and rehabilitating environments, restoring damaged ecosystems or renewing habitat for wildlife is something you care about, you’re welcome to join with me, my family and others as we change the world one tree at a time. Find out more at www.TreeChange.com Will your legacy be a burden or a blessing? It’s not too late to decide, or change if you aren’t happy with the current situation. Edited extract from Steve McKnight’s Money Magnet: How to Attract and Keep a Fortune that Counts (Wiley $32.95), now available at all leading retailers or online at www.moneymagnet.au Image: Getty Images

Mind

Why you should beware spending rewards and BNPL programs

Malware is software designed to disrupt and destroy, and there are plenty of ‘wolf in sheep’s clothing’ financial programs doing just that to people’s financial futures. Some that come to mind are programs (yes, they’re called ‘programs’) that make it easier to spend and / or reward and incentivise spending, and harder to make good financial decisions. When you get tricked into spending, or spending more than you otherwise would, you transfer your wealth to someone else. The more wealth you consume, the less you have for later on. Let’s consider two marketing malware culprits to avoid wherever possible. Rewards Programs Beware programs that trick you into thinking that spending is good. Consider Flybuys for example. It is a rewards program where you generally receive one Flybuys point for every dollar spend. Therefore, to earn 1 000 000 Flybuys points, you need to spend $1 000 000. What if I told you that the cash value of one Flybuys point is 0.5 cents? That would mean to earn 1 000 000 Flybuys points you’d have to spend $1 000 000, yet that $1 000 000 is really only ‘worth’ $5000. They’ve actually created a system where you think you’re being rewarded on a one-for-one basis (i.e. one dollar spent equals one point) when really you’re being rewarded at the rate of half of one cent for every dollar spent. Additionally, when it comes time to redeem your points, the products you can ‘purchase’ are valued at top dollar, rather than at any discounted price you might be able to find if you shopped around. Buy Now Pay Later (BNPL) Back in the day, department stores offered something called lay-by. This was where you could grab a product off the shelf, take it to the store’s lay-by counter and enter an arrangement with them to pay it off over two or three instalments. Once you’d made the final payment, the product was yours to own and take home. Lay-by was a great option for people who couldn’t access or didn’t want to use credit cards. There were no upfront fees associated with lay-by, and there was certainly no interest charged. Lay-by has been reborn and rebadged as BNPL; you pay by instalments, and you can take the product with you immediately. You won’t pay any fees provided you make the required instalments in full and on time. If you don’t, then you’ll be slugged with establishment fees, late fees, account-keeping fees and payment processing fees. The danger is that BNPL is easier to access than traditional debt options such as credit cards because BNPL is not technically credit since providers don’t charge interest. But BNPL is consumer debt with instant gratification, and that makes it credit in my book. Afterpay is one of the biggest BNPL providers on the planet. It advertises that it is a ‘free service’, provided you pay on time. If you don’t, their late fee is $10 per missed payment, plus an additional $7 if the payment is still outstanding after a week. It doesn’t sound like a lot, but if you had bought something that only cost $20 and forgot to make a $5 instalment, then the $10 fee is 200 per cent of the missed payment. Ouch! Don’t forget that the fee is per missed payment. If there were other purchases made, then the fee would compound. Late fees, however small, can quickly cascade into a significant sum of money, potentially many times more than the instalment due or even the price of the item purchased. Plus, there are other consequences of missed payments—black marks on credit records, difficulties borrowing for other debt such as a home loan, and the possibility of additional fees as debts are passed over to debt collectors. BNPL organisations profit from users who fail to meet their repayment obligations, and so part and parcel of running a successful business and growing profits would involve them doing well when their customers do poorly. You can’t expect corporate behemoths to do the right thing by you if it’s the wrong thing by them. The best you can do is gain the skills and awareness you need to know when you’re being played. Marketing malware disrupts your ability to accumulate wealth by tricking you into believing you are getting a better deal than is the case. Ideally, you’d avoid using it at all, but if it’s too late for that, then you need to clean up your code as soon as you can. Being rewarded for spending money you haven’t yet earned is a toxic combination that will poison your efforts to attract and keep a fortune that counts. Make sure you are a good shepherd of your financial flock by being vigilant in keeping an eye out for marketing malware wolves, and not falling for their enticing yet financially disempowering charms. Edited extract from Steve McKnight’s Money Magnet: How to Attract and Keep a Fortune that Counts (Wiley $32.95), now available at all leading retailers. Visit www.moneymagnet.au Image: Getty Images

Money & Banking

How to make your money count

How you use your money will be how you’re remembered. For some, the amount of money or wealth they accumulate is the score by which their success is measured. More wealth equals more success. Yet shrouds don’t have pockets, and dead is dead. In order to make your money count, it has to be used, not hoarded. Others use their wealth to purchase a more comfortable ride through life. That’s certainly possible, yet materialism is like fame: addictive and at the same time self-deprecating; there will always someone else who is richer than you and has more toys than you. The quest for more is insatiable. Instead of being defined by the wealth you’ve accumulated and have stored, why not be defined by the wealth you’ve accumulated and have deployed? The 3C’s of Significance The secret to making your money count is a process I call ‘the three Cs of significance’: care, cause and context. Identifying a care and resourcing a cause that supports it will add a context to your money that transcends dollars and cents. The 3C’s are a way of adding significance to your wealth and giving meaning to your life. Let’s look at each of the 3Cs. Care Everyone has at least one care etched on their hearts at birth or engraved on their hearts from life experience. If you were to shut out the ‘busy-ness’ of life and listen to the quiet voice of your soul or engage your self-awareness by looking for issues that trigger an above-average or disproportionate emotional response, you’ll likely identify what you care most about. Possibilities include social justice issues, animal welfare, the environment, politics, gender and social equality, faith, health, nutrition, sport … the list is just about endless. Furthermore, there are niches within niches. For instance, animal welfare might be your thing, and within that, you might be particularly concerned with the wellbeing of koalas, and more specifically, orphaned koalas in south-east Queensland. The ‘thing’ you care about may be a burning passion or just a glowing ember. It may also change over time. For the moment, all that’s important is that you identify something you care about. Does something come to mind? If it helps as an illustration, cancer became an unexpected care that was recently etched on my heart. Prior to being diagnosed with skin cancer, I was aware but not particularly concerned about cancer, but that all changed when a spot on my face turned sinister. Now I had something to care about! Cause Once you have a care in mind, the next step is to find a cause – a person, program, charity or organisation that is doing work that relates to the matter(s) you care about, and offer to become a partner in, or sponsor of, that work by making a financial contribution. The secret to knowing the cause is to stop thinking ‘me’ and start thinking ‘we’. Sometimes the things we care about seem too big, complex or challenging to do anything meaningful about. Or we assume our resources are insignificant compared to the scale of the problem. When we are overwhelmed, the temptation is to feel defeated, to conclude ‘why bother’, and use our time and energy to solve survival problems closer to home. Don’t be put off by what you can’t do—be empowered by what you can. It’s very unlikely you’ll be the only person in the world who cares about the issue on your heart, and you may find an already established ‘cause’ you could partner with to be the change you hope to see. If you’re interested, the Peter McCallum Cancer Centre was a ‘cause’ I found that related to my ‘care’. Context The cares you advance based on the causes you support will provide a context for your money that transcends dollars and cents. Your wealth gains meaning based on the means it provides for the causes you care about. Your life will count because your money counts, and the significance you generate will make you feel more significant. But how will you create the context for your dollars? Will you give time or money or both? And how frequently will you give? Time or money? Many people giving small amounts is just as effective as a few people giving large amounts. You can only give from what you have. If you have money, give money. If you have time (including expertise), give time. If you have both, give both. There’s usually a lack of ‘resource-ers’ over ‘resources’; that is, a shortage of people who can pay for the labour and materials needed to resource the care. Frequent or infrequent giving? Experience has taught me that it is better to give less, more often, than more, less often. Most charitable organisations would rather have guaranteed financial supply over several years, than unreliable and infrequent one-off donations. Why? Because with guaranteed funding they can create, administer and execute programs they know they’ll be able to resource and fund through to completion. Here’s a final suggestion: rather than giving from capital, give repeatedly from the recurrent income your invested capital generates. Giving capital is something you do once. Investing the capital and giving the income is something you can do forever. For example, say you had $50000 to donate. One option would be to donate it in one lump sum. Another option is to invest it and donate the annual income. Assuming you achieved an after-tax return of 8 per cent per annum, then after 12.5 years of giving you will have given the same amount (i.e. $50,000), except the second option would allow you to keep giving and supporting causes you care about for years and years to come—a magic pudding that gives and gives and never runs out! Some people like to count their money. Others like to make their money count. How will you be remembered – for the way you counted your money, or the way you made your money count? If you don’t like the answer, be sure to do something about it while you still can. The secret to making your money count is to put it to use by supporting causes that do good work in fields you care about. Edited extract from Steve McKnight’s Money Magnet: How to Attract and Keep a Fortune that Counts (Wiley $32.95), now available at all leading retailers or online at www.moneymagnet.au Image: Getty Images

Money & Banking

Why your iPod could now be worth a fortune

After Apple announced the discontinuation of the iconic iPod, the amount of listings for the popular device has skyrocketed on online marketplaces - and so have the prices themselves. The first iPod Classic was first launched in 2001 with a $399 price tag that shocked fans at the time, and now, the news has brought some prices back up with some caveats. “With iPods discontinued, you might be asking whether it’s time to cash in on some of your old tech,” James Andrews, money.co.uk’s personal finance editor, told <a href="https://www.dailymail.co.uk/sciencetech/article-10805019/iPods-selling-THOUSANDS-eBay-Apple-announces-discontinuing-20-years.html" target="_blank" rel="noopener">The Daily Mail</a>. “The first thing to say is don’t get excited by list prices on eBay. While a few models are selling for thousands, the vast majority are selling for far less. “But that doesn’t mean you couldn’t pick up a reasonable amount. Do a search and check recent sold prices for models like your own to see what you’re likely to get. “In general, the best prices go to iPod Classic models, in great conditions and with all the leads needed included. If you're lucky enough to have an unopened U2 Special Edition iPod from 2004 in the back of a cupboard, it could make you thousands.” If you’re wondering just how much you can get for your devices, here’s a rundown. iPod Classic The original model, which launched in 2001 and went for six generations, could bring you some decent profits - particularly if you have a first generation model. According to the Daily Mail, a first-generation 5GB iPod Classic sold on eBay for $1,599 plus a hefty $114.60 for shipping. iPod Mini The smaller model, which came in a range of bright colours, was also slightly cheaper than its predecessor - but sellers seem to have also made smaller profits so far. Originally retailing at $249, one eBay seller offloaded their second generation device for $324.99, while another sold their first-gen iPod for $290. iPod Shuffle The cutesy model came without a screen and retailed for just $99, and it appears it also hasn’t seen a huge increase in value. In February this year, one first-generation iPod sold for $129.99, while a second-gen device sold for a slightly heftier $199.99 in March. iPod Nano A slim version of the iPod Mini, this version retailed for $149 and came with a big tech development: colour screens. According to recent eBay sales, the iPod Nano has more than doubled in value, with two second-gen iPods selling for over $380 in February. iPod Touch The last ‘new’ line of iPods, the iPod Touch was revolutionary in that it introduced us to touch screens, it could surf the web, and it had heaps of storage for music. Originally selling for just shy of $300 in 2007, the device has earned some online sellers between $3,470 for a sixth-generation device and a whopping $6524 for a fourth-generation version. But, no matter which kind of iPod you have, the amount you’ll get from selling it off will depend on the condition it’s in and whether it has all the cords it first came with. Image: Getty Images

Technology

Princess Diana’s nephew set to inherit fortune

Louis Spencer is set to one day inherit his family’s incredible historic estate. 27-year-old Louis is the youngest son of Charles Spencer, and yet he is still heir to his father’s earldom thanks to England’s primogeniture rules. These archaic set of laws sees that titles are passed down to firstborn sons. His inheritance will include the Althorp estate, where Louis' late aunty Princess Diana lived from the age of seven until her marriage to Prince Charles. It also the place where the royal is buried. Louis' sister Lady Kitty Spencer recently addressed the issue of primogeniture while speaking to Town and Country, calling it a "tricky" topic. "[A]s times are changing, attitudes are as well," she said. <img style="width: 500px; height: 281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7841339/daily-3.jpg" alt="" data-udi="umb://media/bdf7155d1db74b62bb226ab766f991c9" /> "I'm relaxed about it, because I know that it's all out of everyone's hands. As it stands, it's Louis to inherit, and Louis will do an incredible job." Louis' status as the Spencer heir, along with being the first cousin to Prince William and Prince Harry are both major reasons as to why he's considered one of the world's most eligible royals. In 2019, Tatler magazine included him in a list of unmarried men from royal families that included Denmark's Prince Nikolai, Prince Mateen of Brunei and Prince Constantine Alexios of Greece. Louis, whose title is Viscount Althorp, is the fourth child and only son of Charles Spencer and his first wife, Victoria Lockwood. His older sisters are Lady Kitty and twins Lady Amelia and Lady Eliza. While he and his sisters prefer to lead a relatively private life, the family made headlines when they were guests at Harry's wedding to Meghan Markle at Windsor Castle in 2018.

Money & Banking

5 everyday items that could be worth a fortune

<h2>Typewriters</h2> Germer says his nephew calls these “antique mechanical keyboards”. He adds that anything with gears, push buttons, and tubes are especially fascinating to the younger generation who have grown up in a wireless world. “Old typewriters need to be in working condition and will sell for $US20 to $US100; fully restored, in the low hundreds,” says Germer. <h2>Auto parts</h2> You might want to check under the tarps or in the back of your garage – there could be some dusty gems. “Hood ornaments, car vases, and hubcaps are the most collected for themselves because of decorative value. Headlamps and other body parts are often repurposed for the industrial design look,” notes Germer. A hood ornament in decent condition, for example, can draw $US20, but if you discover a rare one, it could collect a tidy sum of up to $US2,500. <h2>LEGOs</h2> Maybe not the one you stepped on in the middle of the night, but specific LEGOs are worth their weight in gold. For example, the 2010 mini-figure Jessie from Toy Story 2 in like-new condition is selling for around $US10 on Bricklink.com. A LEGO Harry Potter and the Order of the Phoenix Hogwarts Castle Set recently sold for $US450. However, some of the most coveted LEGOs are the missing parts from valued sets – like a window, steering wheel, or rare colour brick – and can bring up to hundreds. <a href="http://www.handyman.net.au/ultimate-lego-tables-youve-got-see">Check out these ultimate LEGO tables you’ve got to see</a>. <h2>Magazines</h2> Magazines, newspapers, programs and the like are in a category called “ephemera,” Jacquie Denny, cofounder of EBTH says. That’s collector lingo for any printed matter that wasn’t made to last. “The value of items in this category is related to rarity, condition, and the number of issues,” notes Denny. Surprisingly enough, they don’t have to be ancient. A special edition Life magazine from 1969 featuring the Woodstock musical festival sold for $US113 on EBTH. <a href="https://www.readersdigest.com.au/travel/tips/how-to-pay-for-your-holiday">Dreaming about your ultimate holiday? Find out how to pay for it with this great advice.</a> <h2>Not-so-old cookbooks</h2> You don’t have to have an out-of-print Julia Child cookbook to earn some extra bread. Betty Crocker cookbooks that were mass-produced and widely used can be worth $US10 to $US500, depending on their condition (ideally, not too many fingerprint stains on the pages). But signed cookbooks by a famous chef can sell like hotcakes. “Cookbooks published by a celebrity chef will generally perform better if signed and sold while their market is current. If they’re sold after the chef has lost popularity, the value will be greatly diminished,” Denny says. Written by Lisa Marie Conklin. This article first appeared in <a href="https://www.readersdigest.co.nz/money/25-things-your-house-right-now-could-be-worth-money">Reader’s Digest</a>. Find more of what you love from the world’s best-loved magazine, <a href="https://readersdigest.innovations.co.nz/c/readersdigestemailsubscribe?utm_source=over60&utm_medium=articles&utm_campaign=RDSUB&keycode=WRA93V">here’s our best subscription offer</a>.

Retirement Income

Fame and fortune isn't the key to happiness

If you’ve ever dreamt of fame and fortune, Prince Harry and his wife Meghan Markle turning their backs on the royal lifestyle might seem churlish. So too their desire to be “financially independent”. As a senior royal, Harry is at the height of his popularity – a popularity that marrying Markle has only amplified. On top of the millions he has inherited from his mother and great grandmother, he gets millions more annually, both from his cut of the “sovereign grant” paid by the British government and the allowance from his father (from the revenues of Duchy of Cornwall estate). Harry and Meghan aren’t exiting the family firm penniless, but if they stayed they would be looked after in luxury for the rest of their lives. Madness? No. Research suggests Harry and Meghan would be well and truly in their right minds to be sick of royal fame and fortune. Psychologists, economists and philosophers have confirmed three things. First, money can’t buy happiness. Second, we want to feel we have earned our success and popularity. Third, being looked after from the cradle to the grave has its downsides. In short, having everything handed to you on a platter just isn’t satisfying. Money doesn’t buy happiness Even though this statement is arguably a cliché, there is good <a href="https://www.payscale.com/career-news/2013/05/study-proves-money-cant-buy-happiness">evidence</a> it’s true. While money buys happiness up to a point, the positive effects of money on happiness <a href="https://psychology.unl.edu/can-money-buy-happiness">level off</a> once individuals have obtained enough wealth to live a comfortable life. This relationship has been observed at the country level, with multiple studies showing that, once a nation reaches a certain level of wealth, national happiness does not increase in parallel with extra wealth. This is known as the <a href="https://esrc.ukri.org/about-us/50-years-of-esrc/50-achievements/the-easterlin-paradox/">Easterlin paradox</a>. According to economist John Helliwell, a co-editor of the <a href="https://worldhappiness.report/ed/2019/changing-world-happiness/">World Happiness Report</a>, the <a href="https://www.researchgate.net/publication/8364900_The_Social_Context_of_Well-Being">social context</a> – marriage and family, ties to friends and neighbours, workplace ties, civic engagement, trustworthiness and trust – is more important than wealth. <div class="embed-responsive embed-responsive-16by9"><iframe class="embed-responsive-item" src="https://www.youtube.com/embed/JjLh0guxERQ"></iframe></div> One reason given for why wealth doesn’t buy individuals any more happiness after a certain point is that money becomes both a reason and means to distance ourselves from others. To paraphrase Christopher Ryan, author of <a href="https://www.simonandschuster.com/books/Civilized-to-Death/Christopher-Ryan/9781451659108">Civilized to Death: The Price of Progress</a>, what people tend to do with extra money is buy separation, whereas researchers “<a href="https://www.wired.com/story/why-are-rich-people-so-mean/">have concluded again and again</a> that the single most reliable predictor of happiness is feeling embedded in a community”. Extraordinary wealth, then, sets us against what we are programmed to do by evolution: seek out the company of others and band together in a community. Research has repeatedly shown this has a huge mental health cost. <div class="embed-responsive embed-responsive-16by9"><iframe class="embed-responsive-item" src="https://www.youtube.com/embed/MB5IX-np5fE"></iframe></div> Importantly, too, how we earn our money affects how much we enjoy it. <a href="https://www.ncbi.nlm.nih.gov/pubmed/29320930">Research</a> among more than 4,000 millionaires in the US, for example, showed those who were “self-made” were moderately happier than those who inherited their wealth. Taken together, these factors help explain why Harry and Meghan’s wealth might, psychologically speaking, be more curse than blessing. The popularity paradox Most of us, particularly teenagers, <a href="https://www.scientificamerican.com/article/cracking-the-popularity-code/">crave popularity</a>. According to <a href="https://yougov.co.uk/ratings/politics/popularity/royalty/all">a YouGov poll</a>, Harry is the second-most-popular member of the British royal family – pipped only by Queen Elizabeth. Some are convinced <a href="https://theconversation.com/prince-harry-and-meghan-markle-why-half-in-half-out-just-isnt-an-option-for-royals-129726">he won’t keep this popularity</a> without his royal status. Why would someone want to give up being liked and loved by stepping out of the limelight? Because <a href="https://en.wikipedia.org/wiki/Attribution_(psychology)">psychological research</a> shows people feel less pride in their achievements if they attribute it to external reasons. In this case, that would being born as a royal for Harry, and being pretty and marrying into a royal family for Meghan. For their popularity and success to mean something, they would need some “internal attribution” – that it has something to do with their own abilities, effort and skill. In a world that values meritocracy, as Alain de Botton argues, we need to “own our success” — the very thing Harry and Meghan cannot do as royals. <div class="embed-responsive embed-responsive-16by9"><iframe class="embed-responsive-item" src="https://www.youtube.com/embed/MtSE4rglxbY"></iframe></div> Trapped by certainty Most of us aspire to being financially secure for the rest of our lives. Many of us would give a lot to know what lies ahead. But while there is comfort in some sense of security and predictability, knowing exactly what the future holds might be a curse. This is because humans thrive also on feeling a sense of freedom and choice. So just as having no certainty can take its mental toll, so does feeling one’s future is totally predetermined and that you have no real control over the way your life will unfold. Psychologists call the motivation to regain a freedom after it has been lost <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4675534/">reactance</a> – and this might be something strong within someone, for example, who has lost freedom due to marrying into a high-profile family. Seizing control Do the reasons above explain why Harry and Meghan have left the royal fold? We can’t say that. Only they know their motivations. But what we do know is that all the research points to fortune, fame and security not necessarily leading to a good, happy life. These things can in fact be burdens, <a href="https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0139156">bringing out</a> our worst, not our best. That happiness comes more from community connection, merit, effort and making our own decisions is good news for the rest of us. Let’s hope it works out for Harry and Meghan too.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/130132/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/jolanda-jetten-301309">Jolanda Jetten</a>, Professor, School of Psychology, ARC Laureate Fellow, <a href="http://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-science-backs-harry-and-meghan-turning-in-their-royal-privilege-fame-and-fortune-arent-the-keys-to-happiness-130132">original article</a>.

Money & Banking

Big inheritance: Gloria Vanderbilt leaves bulk of her fortune to son Anderson Cooper

Before she passed away last month, Gloria Vanderbilt told her son, journalist Anderson Cooper, that he should not expect any trust fund. “My mom’s made clear to me that there’s no trust fund,” Cooper said in a 2014 interview with Howard Stern. “There’s none of that.” However, the <a rel="noopener" href="https://pagesix.com/2019/07/01/gloria-vanderbilt-leaves-almost-everything-to-anderson-cooper/" target="_blank">New York Post</a> reported that the late socialite left Cooper almost all of her estate, which was estimated to be worth US$200 million. Vanderbilt’s will, which was reportedly filed in court on Monday, stated that Vanderbilt’s eldest son Leopold Stokowski will get her Manhattan pad, but “all the rest” of her property is going to the CNN news anchor. Her will did not leave anything to Vanderbilt’s middle son, Chris Stokowski, who has reportedly been estranged for 40 years. Cooper has previously said he does not believe in inheriting money. “I think it’s a curse,” he said. “From the time I was growing up, if I felt that there was some pot of gold waiting for me, I don’t know that I would’ve been so motivated.” Vanderbilt – the great-great-great granddaughter of railroad tycoon Cornelius Vanderbilt, <a rel="noopener" href="https://www.oversixty.com.au/news/news/a-life-in-pictures-remembering-gloria-vanderbilt" target="_blank">died at the age of 95</a> on June 17 after a long battle with stomach cancer. She made her success as a fashion designer and businesswoman with her own lines of <a rel="noopener" href="https://people.com/style/gloria-vanderbilt-built-denim-empire/" target="_blank">denim</a>, apparels, fragrance and household goods.

Legal

Why Anderson Cooper won't get a cent of mum Gloria Vanderbilt's $290 million fortune

Socialite, heiress and fashion icon Gloria Vanderbilt passed away this week with an estimated $290 million to her name. However, her surviving three children, which include CNN anchor Anderson Cooper, aren’t expecting to inherit any of the remaining wealth. It’s an arrangement that they’ve all been aware about for years. Cooper revealed to Howard Stern during a radio interview reported by <a rel="noopener" href="https://www.businessinsider.com.au/anderson-cooper-wont-inherit-mom-gloria-vanderbilts-fortune-2014-4?r=US&IR=T" target="_blank">Business Insider</a> several years ago that he’s not getting anything from his mother. “My mum’s made clear to me that there’s no trust fund. There’s none of that,” explained Cooper. <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/BT4tS_4l7UR/" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/BT4tS_4l7UR/" target="_blank">My mom just joined instagram @gloriavanderbilt. She thinks it is the best thing ever. she has 30k followers and can't believe that many people would want to follow her. Now she emails me several times a day asking for advice about what to post next.</a> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/andersoncooper/" target="_blank"> andersoncooper</a> (@andersoncooper) on May 9, 2017 at 2:06pm PDT </div> </blockquote> However, it’s something that Cooper is OK with. “I don’t believe in inheriting money. I think it’s an initiative sucker. I think it’s a curse.” He justified his point by saying he’s “doing fine on my own”. “Who has inherited a lot of money that has gone on to do things in their own life? From the time I was growing up, if I felt that there was some pot of gold waiting for me, I don’t know that I would have been so motivated.” <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/Bvo7a-BHEkx/" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/Bvo7a-BHEkx/" target="_blank">Just came across this photo with @andersoncooper and Carter. It was probably taken around 1979. It seems like yesterday.</a> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/gloriavanderbilt/" target="_blank"> Gloria Vanderbilt</a> (@gloriavanderbilt) on Mar 30, 2019 at 9:40am PDT </div> </blockquote> Ms Vanderbilt also spoke about her difficult relationship with her inheritance, telling <a rel="noopener" href="https://www.nytimes.com/2019/06/17/style/gloria-vanderbilt-death-dead.html" target="_blank">The New York Times</a> about her experience. “I’m not knocking inherited money,” she explained. “But the money I’ve made has a reality to me that inherited money doesn’t have. “As the Billie Holiday song goes, ‘Mama may have and Papa may have, but God bless the child that’s got his own’.” At the time of her passing, Ms Vanderbilt had reportedly already spent a great deal of her fortune, as well as donating to charity.

Legal

Prince Harry’s $35 million fortune under threat

It has come to light that Prince Harry’s $35 million trust fund, set up for him by his late mother Princess Diana and the Queen Mother, could be targeted for tax reasons thanks to a US legal loophole. Despite Harry and Meghan marrying in May this year, the new Duchess of Sussex is still technically a US citizen. While it’s believed she has officially applied to become a British citizen, apparently – even though she is a royal now – her application process doesn’t receive any special treatment and could take several years before she is granted UK citizenship. Which means, in the meantime, the former actress is legally required to pay US income tax on any earnings or allowances she receives whilst residing in Britain. But now that she is married to Prince Harry, it could mean his own earnings could be affected too. Royal aides speaking to the Sunday Express in the UK, stated, “We’re looking at a level of financial exposure the royal family has never had to face before.” They added, “It’s the royal household’s worst nightmare … Everything has to be declared.” Along with Meghan’s own $7 million fortune she amassed during her acting career, British media has reported that the US taxman could also have his eye on her designer clothes, jewellery, homes and gifts the new Duchess has received as royal proceeds. The Duke of Sussex lives off his $35 million trust fund inheritance, earning an annual salary of around $525,000 a year. But the US government could potentially count that towards Meghan’s income in the UK too. Do you think Harry and Meghan should have to pay US tax on their royal earnings? Share your thoughts in the comments below.

Money & Banking

Why Prince Harry inherited more of the Queen Mother’s $24m fortune than Prince William

When the Queen Mother passed away on March 30 in 2002, aged 101, she left behind an AUD$24 million fortune. Great-grandson Prince Harry inherited a large “bulk” of her inheritance, substantially more than his older brother Prince William, but there’s a good reason why. It turns out the Queen Mother, knowing Prince William was second in line to the throne, wanted to ensure Prince Harry’s financial future was secure. When Prince Charles becomes King, Prince William will in turn takeover the title of Prince of Wales – which means inheriting the Duchy of Cornwall and its private estate. However, Prince Harry – who is currently sixth in line to the throne after Prince William’s children Prince George, Princess Charlotte and Prince Louis – will not receive anything. A BBC report the same year the Queen Mother died stated the “bulk” of her $24 million estate will go to Prince Harry “since William will benefit financially becoming King”. While it is unknown the exact amount the Duke of Sussex inherited, his great-grandmother certainly rewarded the royal in financial terms, to compensate for his line of succession to the throne. The rest of the Queen Mother’s estate (the items in her homes) was left to her eldest daughter Queen Elizabeth II. Her youngest daughter Princess Margaret passed away one month earlier on February 9, 2002, aged 71. When Prince William and Prince Harry’s mother Princess Diana passed away in 1997, her sons received an equal split of her fortune.

Money & Banking

7 ways to revamp your living room without spending a fortune

If your living room feels dull and lifeless it's time for a new look. Using a balanced combination of light, colour and texture, you can transform a tired space into a room you don’t want to leave. And the best part? It doesn't have to cost you a fortune. 1. A floor rug A floor rug can bring visual warmth and ties in the elements of a room creating a succinct space. In open plan areas it can also help ‘zone’ the living room and segregate it from the dining room. Note: Make sure you consider the size of the rug. A rug too big or too small can change the dynamics of a room. You can find a reasonably priced rug discounted through some wholesalers. 2. Couch pillows and a throw Pillows and throws are a great way to revitalise a room. Simply changing the materials and colours of them can transition your room from summer to winter in a matter of minutes. Bold colours, pastels and thin materials can be great for summer, yet thick materials, heavy textures and muted tones are perfect for winter. Note: Mix and match colours of the same season. 3. Framed prints Framed prints can form interest in a room, create a talking point with visitors and set the style of your living room. You can find some fantastic pieces from secondhand stores. Just remember that you want to match the ‘style’ of the room with the print, not necessarily the colours. 4. A vase and flowers It is surprising how flowers can liven up a room. They bring a pop of colour and a sweet scent that cannot be artificially mimicked. Try keeping the vase a neutral colour or using a large recycled jar, and chose flowers that last, such as natives, kale flowers or greenery fillers. 5. A coffee table Consider the shape and size of the coffee table to suit the layout of your sofa’s. You may find you need to compromise on the size of the table to fit the space. Think about the finish of the table. A timber table top may not always look good with timber floors. 6. A lick of paint Paint is an easy way to transform a room and you can do yourself. Try a feature wall to give new backdrop to framed prints or paint the entire room for a complete overhaul. If you are confident with your decorating skills, try your hand at stenciling. Tip: Make sure you use a complementary hue if you are creating a feature wall. 7. A side table It’s a useful piece of furniture to have. You can move it to suit the room layout and it can be used to sit a lamp, an indoor plant or just your cup of coffee! Like the coffee table, you may want to think hard about the shape and size of the table, and try not to match it with the coffee table. Written by <a href="http://www.ellevidovichcopywriter.com.au">Elle Vidovich. </a>

Home & Garden

Why Meghan Markle won’t get a cent of Prince Harry’s fortune

We hope Meghan Markle has saved some of her Suits earnings, because if reports are anything to go by, she won’t be able to share in Prince Harry’s fortune any time soon. You see, unless she renounces her American citizenship, Meghan will continue paying tax to the US Internal Revenue Service (IRS). Of course, she intends to become a UK citizen once she weds in May, but she will not become naturalised until after she’s lived there for three years. “Even when married to a member of the British royal family, as long as she remains a US citizen she will have to pay income tax,” royal expert Marlene Koenig told <a href="https://www.thesun.co.uk/fabulous/5266389/surprising-reason-prince-harry-unlikely-to-share-fortune-with-meghan-markle/" target="_blank">The Sun</a>. “If she has investments in the United States, say for example a retirement plan that she set up, if that’s making money, she would have to pay up. “This is even on money earned outside the United States. If she receives money from her husband or his family, and that’s considered income, she would have to pay income tax on that.” It could cause some problems for the royal accountants, however, as if Meghan has more than $382,000 worth of assets in any tax year, she must file a Form 8938 document detailing all of them. And given she earnt $63,000 per episode of Suits and has an estimated net worth of $6.3 million, it’s likely she will indeed have to file this document. Harry, on the other hand, received half of Princess Diana’s $36.2 million estate and shares a $6.4 million annual allowance with the Duke and Duchess of Cambridge. “You can be sure that those at Buckingham Palace and those who run the accounts are looking very carefully at all of this to make sure that the royal family’s money does not get reported to the IRS!” Koenig said.

Money & Banking

10 old toys that are worth a fortune now

One person’s trash is another’s treasure and nowadays, many vintage toys are valuable to all sorts of collectors. If you are thinking of clearing out any of your old belongings, make sure you check to see if they are worth anything! Scroll through the gallery above to see if you are the owner of any of these valuable items. Do you own anything on this list? Let us know in the comments below.

Retirement Life

Creepy mannequin turns out to be worth fortune on Antiques Roadshow

In proof that you <a href="http://www.oversixty.com.au/news/news/2016/01/man-old-blanket-worth-a-fortune/">never really know what you have lying around the house</a>, a British woman appearing on popular show Antiques Roadshow has discovered an old mannequin stuffed with horse hair is worth more than the large painting she brought in for valuation. In true Antique Roadshows fashion, the large painting by the woman’s father is valued at £4000 to £6000, but Molly the Mannequin is worth between £10,000 to £15,000. The mannequin, which actually features in the painting, was gifted to her father who eventually passed it on the woman. “She’s beautifully made,” expert Rupert Maas remarks about the mannequin. “She’s fully articulated under here with a wooden skeleton.” “It would have been every expensive originally in the 19th century. It might have cost 50 pounds in old money…” he continues, before shocking the woman with his estimation of its value today. Watch the moment below: <iframe width="400" height="500" frameborder="0" src="http://www.bbc.co.uk/programmes/p05kdd78/player"></iframe>

Art

Woman finds tiny paintings in attic worth a fortune

In proof that you <a href="http://www.oversixty.com.au/news/news/2016/01/man-old-blanket-worth-a-fortune/">never really know what you have lying around the house</a>, a British woman appearing on Antiques Roadshow has discovered two 18th century Chinese paintings in her attic that are worth a whopping $34,500. The woman told Antiques Roadshow expert David Battie that she had no idea the two paintings, which were roughly A4-sized, were worth anything at all. "They've been in my loft for 14 years," she said. "My husband bought them in a boot sale about 15 years ago… he doesn’t even remember what he paid for them." <iframe width="560" height="315" src="https://www.youtube.com/embed/utREJ1OfRLY" frameborder="0" allowfullscreen=""></iframe> But, as you can see in the video above, she was in for a pleasant surprise. Battie explains to the growing crowd, “I just think they are the most amazing things I've seen in ages. I'd get them out of the attic and spend a bit of money getting them cleaned because I think they would fetch 15,000 – 20,000 pounds.” What a find! Are you a fan of Antiques Roadshow?

Art

How this man turned a family recipe into a fortune

To say Bruce Picot’s fortunes have turned around in recently years would be the understatement of the century. And it all started with a jar of peanut butter. Picot, who at that stage owned a laundromat in New Zealand, had purchased a jar of generic peanut butter from the supermarket, only to be shocked by the sugar content. Picot told News.com.au, “In New Zealand, we never used to have sugar in our peanut butter. But I had seen American peanut butter which loved putting sugar into their spreads, and I knew that would eventually come here. “About 12 years ago, I purchased a 1kg tub of regular peanut butter, and all I could taste was the sugar. It was really disappointing and disgusting.” Picot was so incensed he called customer support to complain, who informed him that the sugar content was to cater for modern tastes. But instead of accepting this, he opened the family vault and try his family’s recipe for peanut butter. Picot says, “My mum and aunt used to make peanut butter at home, by using an old Vitamix blender. They would roast some peanuts and squash them up at home in the kitchen. Then they’d add a little salt, and that was it. Peanuts and salt.” Picot made a couple of jars for his family. His son, who was 12 at the time, loved it so much that he shared it with his friends. And it was not too long until word spread. Picot says, “They gave me $5 for a jar of the peanut butter because they thought it was the best. That’s when I thought that maybe people would actually buy it if I made enough of it.” Here’s where Picot’s story takes a twist. As his laundromat business struggled, Picot was diagnosed with Macular Degeneration. No longer able to read or write, he eventually had to give up his business completely which was keeping him afloat. So, Picot decided to go for broke and take his peanut butter to a local market. It was not too long until word spread and soon Picot was selling jars faster than he could make them. “People from all over New Zealand started to come and see me in Nelson, and locals would come back every week to buy another jar,” he said. “It was really starting to work, and some people started to ask about ordering online, so that’s when I decided to start a mail order business.” Demand kept rising, forcing Picot to invest in a proper manufacturing facility. Today Pic’s Peanut Butter is found in supermarkets around the world with 15,000 jars of peanut butter made every day (working out to be 2.5 million jars a year). And Picot couldn’t be happier, “It’s wonderful to be able to say to people they can get the peanut butter in big supermarkets because everybody knows where they are.” What a lovely story! Do you have any family recipes? Who knows, you could be sitting on a goldmine. Image credit: Facebook / Pic’s Peanut Butter

Retirement Income

10 money lessons we can learn from the less fortunate

Rob Stock is a finance expert from New Zealand. In this piece, he talks about the lessons that have been learned from a course designed from low income earners in west Auckland, and examines how we can apply these sometimes-harsh lessons to our own lives. The idea that you have a "money personality" is widely pedalled. I am a saver. I am a spender. I am an impulse buyer. They are statements that sound like our money natures are immutable. But they are far from it, a study of the low income people who have completed the ANZ-funded MoneyMinded course in south and west Auckland suggests. Those who do the course, which is provided by the Solomon Group, have often been sent by Work and Income. These are people who are getting by on the lowest rung of our economic ladder. But the before and after behaviours, attitudes and the way people who have done the course, see themselves has been revealed in a study by University of Auckland Business School professor Peter Boxall. Boxall's report contains lessons for everyone on facing up to their financial failings and the changes to your wealth, health and sense of hope that come with doing so. Lesson 1: Anyone can change Boxall's study showed that there were "statistically significant" changes for the better in 92 per cent of the behaviours and attitudes of the people who had done the course in the last couple of years. There were behavioural changes. Just under half of those surveyed said they had paid bills on time before doing MoneyMinded. Afterwards, that jumped to over 80 per cent. There was evidence that core money beliefs had changed as well as behaviours. Before doing the course four in ten people agreed to the statement: "I believe money is there to be spent." After, that dropped to three in ten. If you doubt your ability to change on your own, get yourself trained. Lesson 2: Changes of behaviour can bring new hope Boxall found that before doing the MoneyMinded course, just under 30 per cent of people felt the way they managed their finances would have no impact on their future. That's a fairly hopeless view of the world. It speaks of people who feel their income is just too low for financial literacy to make any difference to their long-term hopes. After the course, just 8 per cent still thought that. People have learnt is that money smarts can make a difference, even on tight budgets, though Boxall said those with households incomes of $25,000-$45,000 showed more positive changes in attitude and behaviour compared to those on lower incomes. Lesson 3: Get a money buddy One-on-one, you can only learn so much from a financial literacy teacher, but when you do that learning with others, the impact is magnified. When asked if they had learned "a lot" from the other people on the course, 94 per cent said they had. In fact, many participants are still in contact and are there for each to talk money matters over when there's a need. Lesson 4: Even the poorly-educated can learn money skills Basic literacy and numeracy are massive challenges to many. Literacy is measured on a scale of 1-5, where levels one and two are people who can't deal with anything but relatively simple printed material. Things like loan contracts and bank terms and conditions are anything but simple. Lesson 5: Get a rainy day fund Before doing MoneyMinded, 63 per cent said they were unable to cope with unexpected expenses. That dropped to just 3 per cent afterwards. Just under a third had savings for emergencies before doing the course. Afterwards that rose to eight in 10 people. A lack of savings can result in pressure to take on high-interest debt and is a big source of stress as families are never more than one unexpected bill from disaster. Lesson 6: Plug the spending leaks The blight of many financial lives is the "lost opportunity". This is generally the money that could have been saved, or paid off debt that was blown on something essentially pointless, like a habit of buying more clothes than you could reasonably wear in a week, daily energy drinks or coffees bought from cafes. Everybody has "spending leaks", which are things they spend on which don't improve their lives in any substantial way, but reduce their ability to amass savings and clear their debts. To go from being a spender to a saver, a person needs to spend less than they earn. A quarter of those surveyed said they knew before the course how to identify their spending "leaks". That rose to over 90 per cent after. Lesson 7: Anyone can save Plugging the leaks led to a big jump in those who identified themselves as "more of a saver than a spender", from 20 per cent to 70 per cent. Most saved around $10 a week. It's not a lot, but the vast majority of people on the course had household incomes of $25,000 or less, so saving anything is a triumph of determination, restraint and skill. Lesson 8: Learn to say no Saying no, even when you do not have the money is hard, even if it means taking on debt to stump up the readies. But learning to say no is a skill like any other. Confidence to say no when there was no money to make a contribution jumped from just over 40 per cent of people to just over 70 per cent. Additionally, said course founder Frank Solomon, people who had actual savings felt more empowered to give, while limiting it to an affordable amount. Lesson 9: Debt and the mobile shopping trucks are big issue Social Development minister Anne Tolley has come up with a plan to try and limit the damage she believes the mobile shopping trucks are causing. It follows a re-writing of the laws designed to limit the damage caused by loan sharks and other fringe lenders. Mobile shopping trucks are in fact lenders. If you have no cash, you can call them up, and take the goods on tick. There's no money to be paid immediately, but the buyer incurs a debt to be paid back through a series of instalments. The interest rates charged are often high. One in five taking the MoneyMinded course said they had truck debt. Lesson 10: It's not about the money. Being good with money is about doing your best for your family. When asked to agree or disagree with the statement "Since doing MoneyMinded, I feel able to better provide for my family" 97 per cent agreed. And 86 per cent reported feeling less stressed about their futures. Are you good with money? Let us know in the comments. Written by Rob Stock. First appeared on <a href="http://www.stuff.co.nz/" target="_blank">Stuff.co.nz</a>.

Money & Banking

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Senior changes will to leave fortune to pets instead of family