When money has a male face

When Winston Churchill was accused of being drunk by Bessie Braddock he is alleged to have replied,  “And you, Bessie, are ugly. But I shall be sober in the morning, and you will still be ugly”.

What a charmer. I bet Bessie wasn’t one of Winston’s greatest fans. Nor, were she still alive, would be Elizabeth Fry. For as the only female historical figure to feature on an English banknote, she has just been bumped off the £5 note by the former PM.

Quick quiz then. Do you know which leading figures feature on the following English bank notes?

1. The £10 note

2. The £20 note

3. The £50 note (old style)

4. The £50 note (new style)

Scroll down for the answers*.

Currently the £5 pound note depicts Elizabeth Fry reading to prisoners in Newgate Prison. From 2016 she will be replaced by Winston Churchill, giving every note a male face.

Feminist campaigner Caroline Criado-Perez has attacked the Bank of England for failing to eliminate gender discrimination under the Equalities act. Her solicitors have written to the Bank threatening court action and they have two weeks in which to respond. It’ll be interesting to see how they wiggle out of this.

Is this further confirmation that the money world is dominated by men? 

Which female figure would you like to see on an English bank note? I'm sure Maggie Thatcher might prove a popular though controversial figure, and I think Blue Peter presenter Valerie Singleton is a strong contender. 

*

The £10 note shows Charles Darwin, a hummingbird and HMS Beagle

The £20 note has Adam Smith, with an illustration of 'The division of labour in pin manufacturing'

The old style £50 notes feature Sir John Houblon and his house in Threadneedle Street. The new style £50 notes show Matthew Boulton and James Watt, with steam engine and Boulton's Soho.

“Now what…?”

Simonne on how to make sure your future's a dream ...not a nightmare.

We love hearing about how Sheconomics changes lives. An inspiring review on Amazon recently told how it transformed one business woman's life. She cleared her debts and felt huge excitement about being back in control financially. 

Often clients are in crisis when they call up Simonne at Wise Monkey. She helps them plan their ‘debt free day’ and says it’s positively exhilarating when that day arrives and they suddenly look out at the expansive horizon and new possibilities.

But then, frequently, the next question is where do I go from here?

A little financial planning could help you achieve your big dream.

In answer to this question, Simonne has three suggestions:

Step 1) Build a contingency fund
When money is no longer going into debt repayments it can be all too tempting to rush out and spend it. Start to build an emergency reserve now so you don't plunge back into debt. Enough to live off for three months is ideal, saved somewhere accessible (e.g. in a cash ISA).

Build this fund by arranging a monthly direct debit to go out soon after you get paid.Then the money is automatically saved each month, before you can get your hands on it and spend it.

Step 2) Take a long view
Next look to that horizon and see how your financial future looks.

If you have an employee’s pension scheme review it regularly, especially the contribution rate. Sometimes the employer will match contributions up to a maximum limit. Simonne found that clients who were paying 1% of their salary into a pension pot, and the employer likewise, could get matched funding up to 8%. So by finding that extra 7% (as little as 4.2% after tax for higher rate taxpayers), they could be putting 14% more into their future.

In fact Simonne found one client for whom an extra £60 per month would result in having £238 per month invested (counting in the added contributions from her employer and top-ups from tax/national insurance savings)! Fortunately all companies are being forced to pay into pension schemes for their staff over the next few years through auto-enrolment. So check this out if you’re eligible.

Some people reduce their contributions during an expensive period in life, like buying a house or having a baby, then simply forget to increase them again.

And self-employed people, under the current rules, have to finance more of their future for themselves. Many of the self-employed hope their business will be their pension, but that can be risky. Starting to make small amounts of savings, with the power of compound interest, can make a big difference.

Simonne says it’s all about having a strategy and not necessarily at any extra cost. With some careful strategic planning now you can make a massive difference to your financial future.

Step 3) Mind the gap

Most people's financial strategy is to drift along, put a bit of money aside when they can and hope for the best. But doing some simple maths could take your future planning a step further: 

A = Assess where you’ll be a a future date. Maybe the mortgage will be paid off and the kids might even be off your hands? Work out how much income you'll need per month in today’s terms.
B = Then simply check out what state pension you'll get, and any company pension. And add in any other income, or circumstances, such as a property downgrade for instance.
Calculate A – B and you've got your shortfall

Once you know your shortfall online pension calculators show you what you would need to be saving to generate enough to provide the income you identified at A.

Pensions are boring and the future's a long way off, right? 

If that's how you feel, think of it instead as a gift to your future self. 

‘Know tomorrow comes’ is the 7^th Law of Sheconomics. That needn’t be all doom and gloom. See it as a gift to the woman you’ll be in 10, 20,30 years time. Look after her, make sure she’s ok, and she’ll be immensely grateful to you. The steps you take now could dramatically effect whether her life is a dream .... or a nightmare.

What can be more exciting than knowing the dream life you want in the future ... and planning how to get there?

Do you need some emotional reconditioning when it comes to money?

Whether we’re strapped for cash or mega-rich, our relationship with money can be a highly emotional one. A mere mention of the ‘M’ word triggers all sorts of complex feelings in many people. Why? 

It may be because of the way our parents talked to us about money. Or due to bad habits that we have developed as adults. However, one thing is for sure. If you can improve your relationship with money you’ll feel happier and healthier all-round.

Financial decisions are always rooted in our psychology. Shall I buy this or not? Attack this money problem or ignore it?  Spend for today or save for tomorrow? 

These choices involve a tug-of-war between the sensible part and the emotional part of our brain. The emotional part may be our childish self. The one who wants to leave decisions to someone else. The one that’s scared of responsibility. Impulsive or even greedy.

Many financial decisions involve a tug-of-war between the sensible part and the emotional part of the brain

Giving in to the emotional side can affect our self-esteem as much as our bank balance. It  leaves us feeling empty, anxious or even depressed. These feelings can trigger a spending spree or financial meltdown. Then before we know it we’re caught in a vicious cycle. My research has found eight out of ten women use shopping as a way of treating their moods, so it’s vital to seize emotional control.

In Sheconomics we captured some of the troublesome thoughts women said they have about money. Perhaps you recognise some of them yourself:

• I'm ashamed to own up to not understanding my finances
• I'm totally confused when it comes to making any money decision
• I don't feel grown up when it comes to money
• Money worries keep me awake at night
• I'm scared to face up to my debts
• I’m worried about making the wrong money decision
• I'm embarrassed about how much money I've wasted over the years
• Shopping is how I lift my spirits when I'm feeling low

How many of the above apply to you?  

If it’s three or more you may be letting your emotions rule your money. The emotions that crop up most regularly are fear, guilt and embarrassment which, if not dealt with, risk harming your financial situation. A bad financial situation can affect physical and mental health or damage relationships. That's why emotional management is where financial management begins. 

Frightened about money? Fear leads to paralysis so try these small actions to help beat it:

• ·      Trick yourself into saving by setting up an automatic direct debit into a savings account each month.
• ·      Subscribe to a friendly money newsletter so you are drip-fed with money matters (see www.sheconomics.com).
• ·      Confide in someone who’s good with money, own up to your fears.

 

Embarrassed about money? If you feel ashamed at how little you know or how badly you manage your money, try these:

• ·      Explore a jargon-free website (e.g. www.savvywoman.co.uk or www.sheconomics.com).
• ·      Schedule regular money chats with your partner or close friend.
• ·      Make yourself negotiate a better deal (e.g. on your mobile phone/energy contract) or demand a refund for poor service or shoddy goods.

 
Guilty about money? Guilt can lead to secrecy or pushing money problems under the carpet. Try these strategies:

• ·      Get a sensible money buddy. Shop with them, and talk through money issues too.
• ·      Leave your credit card at home. Carry only the cash you can afford to spend, no more.
• ·      Organise your paperwork into bold coloured files and visit them often.

As well as these, use some emotional reconditioning strategies to help bring the sensible part of the brain back into play. And continue to monitor your money emotions to keep them in check. Try to:

1. Identify the emotion. Be as specific as you can. (Am I ignoring my credit card bill because I’m ashamed of buying that expensive make-up?).
2. Ask where it comes from. The cause may not always be obvious. Is it a reaction to the present or a voice from the past? (My mother always felt bad if she spent money on herself, she made us feel the same).
3. Challenge the emotion. Is it useful now? (My mother had to be frugal  - but as long as I can afford it and budget carefully, I needn’t be so hard on myself).
4. Connect with what you want. Think of a future goal not your current feelings. (I’d like to get the deposit for a house, I’ll feel proud to own my own place).
5. Do something different to act against the emotion and change your feeling. (I’ll pay the bill,  enjoy what I’ve bought, then budget for saving and spending each month).

Finally, for a simple financial health and free practical advice visit www.moneyadviceservice.org.uk

This article first appeared in Healthy magazine May 2012. Available from Holland and Barrett stores or via online subscription.