Mel Browne Session for Lantern Partners Community

Michelle Cavell, founder of Lantern Partners, hosts financial expert Mel Brown, who shares insights on improving financial literacy and personal finance management. Brown emphasizes the importance of understanding money stories and myths, advocating for tailored financial strategies over one-size-fits-all solutions. She categorizes debt into four types and advises eliminating bad debt while embracing good debt for investments. Brown encourages getting comfortable with investing, highlighting the long-term benefits of consistent, small investments. She offers practical tips for financial improvement, such as cutting unnecessary subscriptions and negotiating better mortgage rates, aiming to empower individuals to take control of their financial futures.

• Mel Brown presents a session aimed at addressing personal finance management for business owners.
• The session focuses on practical tips and mindset changes to improve financial health.
• Mel emphasizes the importance of understanding personal finance beyond just knowledge acquisition.

"I want to give you some really simple things that you can do before we finish the year so that you feel like you know what I ticked that off my bucket list."

• Mel aims to provide actionable steps to help participants feel accomplished in managing their finances by year-end.

• Mel argues that age, income, and time are not the main barriers to financial success.
• The real barriers are the stories and emotions people associate with money, such as fear, apathy, and shame.
• Understanding, rather than just knowledge, is crucial in overcoming these barriers.

"It's not your age that's limiting you. It's not the amount you're earning in your business that's limiting your ability to develop wealth. It's not even your lack of time."

• Mel highlights that internal narratives and emotional responses are the true obstacles to financial growth.

• Many people feel overwhelmed, unclear, and hustled when it comes to managing finances.
• The current economic climate adds to the uncertainty and fear surrounding financial decisions.
• Historical financial cycles show that current uncertainties are not unprecedented.

"How do you feel when it comes to money, business, and investing at the moment? My, if I was using my word, it would be tired."

• Mel acknowledges the emotional fatigue many feel towards financial management and the need for a mindset shift.

• Financial literacy is low, leading people to rely on one-size-fits-all solutions that often don't work.
• People tend to consume financial advice at the start of the year but lack consistent follow-through.
• Understanding the difference between knowledge and understanding is vital for effective financial management.

"There's a really big difference between knowledge and understanding. And my concern is in the financial world, that's never been truer."

• Mel stresses the importance of moving beyond surface-level knowledge to a deeper understanding of personal finance.

• Research indicates that people prioritize having financial choice over owning a home.
• Current behaviors and reactions to financial uncertainty can limit future choices.

"The number one thing that the people that the thousands of people that I surveyed said that they wanted was choice."

• Mel points out that the pursuit of financial freedom is often hindered by reactive behaviors and a lack of proactive financial planning.

• Prescriptive financial advice, like saving a set percentage, doesn't account for individual circumstances.
• Financial advice needs to be personalized to be effective, similar to how exercise and diet plans are individualized.

"One-size-fits-all approaches don't work for all of us."

• Mel emphasizes the need for personalized financial strategies that reflect individual goals and situations.

• Mel advocates for a messy, personalized approach to finance, focusing on individual goals and habits.
• Understanding one's financial behaviors and motivations is key to developing effective financial strategies.

"It's about figuring out who you are, why you're acting the way that you do with money, what goals are important to you."

• Mel encourages participants to explore their personal financial motivations and create tailored strategies.

• Mel is an ex-accountant, financial advisor, and best-selling author with extensive experience in personal finance.
• Her work includes writing columns, speaking at events, and authoring books on financial management.

"I'm an ex-accountant, an ex-financial advisor, and a best-selling author."

• Mel's professional and personal experiences provide her with a comprehensive understanding of financial management.

These notes encapsulate the key themes and insights from Mel Brown's session, highlighting the importance of mindset, personalized strategies, and understanding in achieving financial success.

• The speaker shares a personal journey of financial hardship and recovery, stemming from a divorce and subsequent financial decisions.
• Emphasizes the importance of learning financial strategies and investing to achieve financial independence.
• Highlights the transition from personal financial struggles to becoming a financial advisor and ultimately achieving financial independence.

"I gave every cent of my divorce proceeds and every cent in my business and personal bank account to charity so that nothing that happened as a result of from then on could be put towards him."

• This quote illustrates a pivotal emotional decision that led to financial hardship, teaching the speaker valuable lessons in financial management and independence.

"By the time I was in my late 40s, I sold that business. I was a multi-millionaire financially independent in my own right."

• Demonstrates the successful financial turnaround and achievement of financial independence through strategic financial planning and investment.

• The speaker stresses the importance of not just knowing financial information but actively applying it to personal financial management.
• Encourages listeners to take actionable steps towards improving their financial situation, rather than just acquiring knowledge.

"There's nothing that I'm going to talk about today that you can't find out yourself. But my question to you is, but what are you doing about it?"

• Highlights the difference between knowing financial concepts and actively implementing them in one's life for financial improvement.

• Discusses the concept of "money stories" and how they shape financial beliefs and behaviors.
• Encourages listeners to identify and challenge their own money stories to foster a healthier financial mindset.

"When we own the story, we can write a brave new ending, but when we deny it, it defines us."

• Emphasizes the power of acknowledging and rewriting personal money stories to create positive financial changes.

• Identifies common financial myths and misconceptions that can hinder financial progress.
• Stresses the importance of questioning and debunking these myths to make informed financial decisions.

"Property will double every seven years. Property will never drop in value. I don't need to contribute to super. My business is my super. All myths."

• Lists prevalent financial myths that many people hold as truths, encouraging listeners to critically evaluate such beliefs.

• Examines how language, particularly minimizing language, can influence financial perception and behavior.
• Encourages using empowering language to foster a growth mindset in financial matters.

"If you're calling your business your baby, you want to keep it safe. You want to keep it warm and cozy and protected."

• Illustrates how describing a business as a "baby" can lead to risk-averse behavior, hindering business growth and experimentation.

• Differentiates between various types of debt: really freaking awful debt, bad debt, okay debt, and good debt.
• Provides guidance on managing and prioritizing different types of debt for financial health.

"Really freaking awful debt is payday loans, for example. Bad debt is we're going to look at in a moment. Okay debt is your mortgage. It's a student loans. It's a car loan if it's for a business purpose."

• Categorizes debt types to help listeners understand which debts to prioritize paying off or managing effectively.

• Personal discipline in various aspects of life, such as organization and routine, can influence financial habits.
• Disciplined individuals may handle credit responsibly, while others should avoid credit cards to prevent overspending.

"For you, this does not apply. You can use credit cards. Loy, who works for me, gets up at 5:00 a.m. every morning, goes for a run, she can use a credit card. She is disciplined in all areas of her life."

• The quote highlights how discipline in daily routines can extend to responsible financial behavior, allowing for the use of credit without negative consequences.

• BNPL services like Afterpay can lead to increased spending by framing payments as smaller, manageable amounts rather than focusing on the total cost.
• Businesses may feel compelled to offer BNPL options despite potential downsides for consumers.

"Afterpay did a really neat trick where it told millennial women when it first appeared that it was just a simple budgeting app to help them and it wasn't evil like credit cards."

• This quote illustrates how BNPL services market themselves as budget-friendly alternatives to credit cards, despite encouraging higher overall spending.

• Credit card points can be beneficial for business expenses but often lead to overspending in personal finances.
• The perceived value of credit card rewards can be outweighed by the costs incurred through overspending.

"When it comes to business, amazing points can be worth it. When it comes to personal spending, for most of you, I want to suggest 90% of you it's just not."

• The quote emphasizes the distinction between the utility of credit card points in business versus personal finance, advocating for the latter to avoid personal credit card use.

• Investing should be viewed as a long-term strategy, with a focus on time in the market rather than timing the market.
• Shares can outperform property investments over time, and diversification is key to a balanced investment portfolio.

"I want you to think that that share investing is not a short-term thing. It doesn't matter what the market is doing today or tomorrow because it should be a long-term investment."

• This quote underscores the importance of a long-term perspective in share investing, advocating for patience and consistency over reactionary decisions.

• Many individuals feel they lack the funds to invest, but finding additional cash flow and understanding basic investment principles can overcome this barrier.
• Small, regular investments can accumulate significant wealth over time, demonstrating the power of compound interest.

"If I took that 833 month, if I was able to find that, so this is money outside your business, outside of your personal spending over 10 years, that would be worth 164 using current rates."

• The quote highlights how seemingly small monthly investments can grow substantially over time, emphasizing the importance of starting to invest regardless of initial amount.

• Women often perceive themselves as having less time to invest due to societal messages and personal perceptions of age, impacting their financial strategies.
• Encouraging women to view investing as viable at any age can help overcome these barriers.

"But what about me? I don't have 30 years. Am I too old to start? And the answer is no."

• This quote addresses the common concern among women about the adequacy of time for investing, affirming that it is never too late to begin.

• Small, consistent efforts, such as dedicating 15 minutes a day to financial tasks, can lead to significant improvements over time.
• Cleaning up one's financial environment and making informed decisions can contribute to financial success.

"What could you do over the next four weeks for 15 minutes a day that you could feel like you were starting to have a win financially?"

• The quote suggests that even minimal daily efforts can accumulate to create substantial financial progress, encouraging proactive financial management.

• Encouragement to unfollow, unsubscribe, and unfriend from sites, influencers or brands that lead to unconscious spending.
• Example of a businesswoman who unsubscribed from 700 retailers, highlighting the excessive subscriptions people may unknowingly have.
• Emphasis on the concept that willpower weakens with use, leading to impulsive spending when stressed or relaxed.

"I want you to unfollow, unsubscribe, and unfriend from 25 sites, influencers, or brands causing you to spend unconsciously."

• Suggestion to reduce exposure to unnecessary spending triggers by managing digital subscriptions.

• Recommendation to swap, pause, or stop five subscription services to save money.
• Finder research indicates an average of $1,200 in unused subscription services per person.
• Encouragement to apply business expense management strategies to personal finances.

"Week two is to swap, pause, or stop five subscription services. Research from Finder this year said that most of us have $1,200 in lazy or unused subscription services."

• Highlights the financial impact of unused subscriptions and the potential savings from reevaluating them.

• Challenge to find an extra $27 a day through various means such as online surveys or service sign-ups.
• Personal anecdote about saving $3,000 a year by changing health insurance coverage.

"Week three is to find an extra $27 for a day. It could be an online survey. It could be signing up to Mad Paws."

• Encourages proactive efforts to identify and generate additional income or savings.

• Advice to request better interest rates on mortgages and other loans.
• Simple email script suggested for contacting banks or brokers for rate reductions.

"Week four is the biggest bang for your buck. If you have a mortgage, ask for a better interest rate."

• Emphasizes the potential savings from negotiating financial terms with institutions.

• Suggestion for partners to split super contributions, especially after career breaks for childcare.
• Importance of having super in one's own name for financial security and equality in relationships.

"A bonus for you is if you've had a career break for children, I want you to ask your partner to split their super with you."

• Highlights the significance of superannuation management in long-term financial planning.

• Assertion that earning alone cannot lead to wealth; importance of investing and financial intelligence.
• Encouragement to identify actionable steps from the session to implement financial strategies.

"You cannot earn your way to wealth. You can't entrepreneur your way to wealth."

• Stresses the need for investment and strategic financial decisions beyond income generation.

• Discussion on various investment apps and platforms, their features, and considerations for choosing one.
• Explanation of custodial versus chess ownership in shares and the importance of understanding investment terms.

"Sherzy's is great and Pearl is great and comrade's great and it Toro is great and Mumu is great, but the answer is what's actually right for you."

• Advises on evaluating investment platforms based on personal goals and preferences.

• Options for investing on behalf of children, including holding investments in trust.
• Considerations for tax implications and transfer of investments when children reach adulthood.

"Yes, is the answer. So, not all will. And if your kids, if your child's under 18, they won't be able to hold that in their own name."

• Provides insights into planning and managing investments for future generations.

• Advocacy for ETFs and passive investing as a means of achieving diversification.
• Examples of popular ETFs that offer exposure to various markets and sectors.

"I'm a fan of ETF and passive investing and I personally believe most people shouldn't own individual shares."

• Promotes the use of ETFs for simplified and diversified investment strategies.

• Encouragement to take immediate action on financial strategies discussed.
• Information on accessing additional resources and support through the speaker's website and social media.

"My website's melissabbr.com.au if you put forwardlanternpartners you'll get the you don't need to put your info in. You'll get the downloads for today."

• Provides avenues for further learning and support in financial management and investing.