Your property and your money

The article discusses the importance of money in making decisions about downsizing, renting, or buying a house. It emphasizes the influence of one's relationship with money on property decisions. Childhood beliefs about money and painful experiences related to wealth and income can impact financial decisions. The article also mentions that a house is now seen more as a financial asset than just a place to live. Financial maturity involves identifying goals, assessing resources, and planning finances. The emotional aspect of choosing a house is also discussed, emphasizing the importance of a clear vision and considering the impact on family and community. The article concludes by highlighting the value of developing financial maturity in understanding one's relationship with money. Hello, Joe Modita and welcome to the Insight Post for the 18th of October 2023, My Poverty and My Money. Money is central to the downsize rent buy dilemma for M2NES parents that I addressed last week. Money makes the world go round. Money might even be the prime motivation for selling the house where you raised your family. So your relationship with money will influence your property decision. The more mature your attitude to your financial affairs, the better your decision will be. Many practical and emotional elements make up your financial maturity and you can assess your money maturity with this quick and free scorecard. Three elements of financial maturity are particularly influential. Childhood beliefs around money. Dealing with innocence and pain are the first steps in achieving a financially mature approach to your decisions around property. I remember being sceptical about the influence of childhood hopes and fears on my adult financial behaviour. Still, as I dug deeper and experienced the effects of childhood beliefs around money, I grew more understanding of their role. It is worth exploring with a friend some of the painful experiences around money that happened to you all those years ago. What was your reaction to the wealth and income of others? What was their response to your approach to money? Did you experience pain or envy? Do those feelings still influence your financial decisions? And don't be fooled into thinking it happened so long ago that childhood financial pain and shame no longer matter. Used asset or investment asset. A hundred years ago, house prices rarely moved. That has now changed of course and a house is seen as a financial asset more than a used asset. It is certainly possible to make money out of property. Like friends of mine, you buy a wreck, live in it whilst putting it to rights and sell, hopefully at a profit. The question though is what is enough for you and do you have enough? The answers to these questions are central to your decision about your house and financial maturity involves identifying your financial goals, addressing your financial resources and planning your finances. House or home. This is the emotional side of the second question, summed up in the words of Ralph Waldo Emerson. A house is built of bricks and beams, a home is made of hopes and dreams. You'll probably address the question in your dreams when you think about the place you want to live in. Your approach to your family and friends will probably influence your choice. In money maturity terms, it is about having a clear vision centred not on yourself but on your more expansive community. The journey to financial maturity. Financial maturity is a valuable skill that will help you with those difficult decisions around your way of life because nearly everything involves money. However, the real benefit of the journey to financial maturity is to set you thinking about your relationship with money and the broader aspects of money that you may only sometimes be aware of.