Six Stones – 2. Protect

Risk.

A lot of people fear it, a lot of people avoid it, a lot of people profit from it.

But what is it, what are we referring to, why does it matter – and most crucially, why should you care?

This second part of our Six Stones series is dedicated to helping you answer these questions as you rebuild after your divorce.

My Six Stones Project

Thinking back to when I started this project, I’m not sure if I mentioned that it’s my plan to release six different segments of our Six Stones series.

All six of our Stones are a crucial part of your financial path – and building your knowledge and experience in each part brings you closer to achieving Cash Confidence after your divorce.

Stuff or Seconds? Making Better Financial Decisions

Occasionally, it can be useful to think of things in black and white terms.

It simplifies decisions and bumps them out of the rational mind into the subconscious. It works best for those dichotomies without a correct answer:

Sweet, or Savoury? (Savoury)

Sand, or Snow? (Sand)

Silly, or Serious (Silly)

Six Stones – 1. All Done!

The financial world is a (deliberately) complex one, with traps, conflicts and predators all over the place.

Which makes it an intimidating place to find yourself in for the first time. Maybe you’ve never managed your finances before, maybe this is the first time you’ve had to balance a budget or make any financial decisions. 

And, I bet, you’re a bit nervous about getting it wrong.

Six Stones – 1. Frustrations

Yes, it’ll mean you have to delay this particular piece of gratification, this time around.

But by doing that now – by getting back up after hitting this wall – you’re also bringing forward the point where you can do these things from a position of strength, security and confidence.

Which is way better than putting it on the credit card…

Six Stones – 1. (The Path to) Better

Managing your money under the barrage of noise, nonsense and Instagram is an exceedingly odd thing to do.

It’s old-fashioned, boring, difficult – all those things that we’ve talked about already.

But you know what else it is?

Six Stones – 1. The End Product

You probably have a relationship with a bank already.

If you’re like most people, you don’t have any particular fondness for them but hey, you’ve always been with them and it’s too hard to change stuff.

Which I get. Changing direct debits and cards and PINs is a real pain in the neck.

Six Stones – 1. Deliberate Priorities

1)      ‘Account-keeping’ or other monthly fees

Frankly, you shouldn’t be paying these.

There are enough zero fee options out there to make these insidious things disappear. However, sometimes, you have to meet some other requirement (a set amount of deposits each month, for example) to have the fees waived.

Six Stones – 1. Louise and her Accidental Structure

This is what I call an ‘accidental’ structure because it’s come about by circumstance, and is based around habits.

What we want to build is a ‘deliberate’ structure.

This is the kind of structure where everything has a place and a reason for existing. There are – ideally – no unnecessary parts in a deliberate structure.

Six Stones – 1. Meet Louise

Meet Louise

Louise is 46 and works as an office manager at a local law firm. Her and her ex separated two years ago and while it was tough telling their two kids, it was undoubtedly the right thing to do.

Louise recently finalised her property settlement with her ex, a few months ago. All of the required transactions have been done.

They had to sell the family home, but they’ve split her ex’s super between their two accounts. She’s kept one of the cars but had to take on the rest of the 5 year loan that’s linked to it.