Moist... And the "M" Word in Finance That Is Also Downright Uncomfortable to Talk About

01/23/23 • 33 min

Moist. It’s one of those words that produces an intense reaction in people.

The word “moist” can trigger a whole range of powerful and primitive reactions: arousal, disgust, aversion, nervousness, shame, and even... the giggles. This is true for both the person who says it and also for those who have to hear it.

Strangely enough, it’s not the only “m” word in the English language that can activate a potent and primitive response. The only other “m” word that I’ve seen create such a formidable response is of course, the most taboo subject of all... money.

Humans have many different ideas, thoughts and beliefs about money. These limiting beliefs severely curtail your potential because you’re subconscious mind is programmed to automatically deliver results that mirror back who you are and what you believe to be true (regardless of whether it’s real or imagined).

When you boil it down, the discomfort that people experience when the topic of money is broached, really stems from one or two dark places:

1. the fear of judgment

2. the fear of being exploited

Basically for those of you with limited resources, you may worry that others will look down upon you – in terms of your intelligence, work ethic or perhaps just your ability to manage money. And for those of you with plenty of cash, you probably want to hang onto as much of it as possible and not be taken advantage of.

Either way, the frames or limiting beliefs that you are currently using to look at (and define) money, may not be affording you with the best opportunity for success. Today I want to explore (with the help of our guest) how this plays out in real life (and maybe how this might be playing out in your life) as a first step to understanding how you can use different techniques to move past these obstacles to discover more empowering resources and enhanced financial opportunities.

Guest Bio:

Martin Bissett is the founder of the Upward Spiral Partnership in the UK – which specialises in enabling accountants to win higher end clients, create leaders from their ranks and save people from financial ruin. His reason for being is to focus accountants on the profound outcomes that their advisory expertise can create in the lives of their clients. At the same time, he also alerts accountants to the profound difficulties that can arise in the lives of their clients when they choose not to help their clients cure the financial, personal and strategic pain points that are keeping them awake at night.

Financial Foreplay® Highlights:

1. Undercapitalization is just a symptom of the problem – the root cause is lack of self esteem

2. If you want adults who are financially literate in their 30’s, you need to start educating kids about money when they are 9 years old

3. Process may fix financial measures but it will never fix the behavioural issues that led to the poor results in the first place

Get in Contact:

Linkedin - (1) Martin Bissett | LinkedIn

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Send us a text

Moist. It’s one of those words that produces an intense reaction in people.

When you boil it down, the discomfort that people experience when the topic of money is broached, really stems from one or two dark places:

1. the fear of judgment

2. the fear of being exploited

Guest Bio:

Financial Foreplay® Highlights:

1. Undercapitalization is just a symptom of the problem – the root cause is lack of self esteem

2. If you want adults who are financially literate in their 30’s, you need to start educating kids about money when they are 9 years old

3. Process may fix financial measures but it will never fix the behavioural issues that led to the poor results in the first place

Get in Contact:

Linkedin - (1) Martin Bissett | LinkedIn

Support the show

Previous Episode

Buy Now Pay Later & Other Forms of Sexually Transmitted Debt

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According to a recent Cost of living survey, most Australians have no savings at all. Over 10,000 people responded and only 38% reported having more than $5000 in savings, which is pretty poor. 23% admitted they could not find/raise $2000 in a week for something that was urgent and important.

That’s put these numbers into perspective – the rule of thumb for emergency savings is that you should have a minimum of 3 months living expenses. Right now the average household in Australia for example spends about $74,301 on general household living costs (or about $63,168 in America and £45,636 in the UK), which means the average person listening right now should have at least $18,575 (or £11,409) in your 3 month emergency fund.

This lack of emergency savings and inability to quickly raise funds for unexpected necessities such as a replacement fridge, tyres for your car, or dental surgery... really sets the stage for what I want to talk about today which is the disturbing surge in Buy Now Pay Later funding schemes such as Zip, Afterpay, Klarna etc.

The market for BNPL is expected to grow 10 to 15 times by 2025, according to Bank of America. The UK market alone is set to double in 2021 after 1 in 4 British citizens spent £2.3 billion in BNPL debt added over Christmas period. That’s nearly 40% of all Christmas shopping. In Australia, 21% of BNPL consumers are missing payments – this has boosted the revenue for these payment providers by +38% -- and there is no clear regulation to protect consumers who may be vulnerable and susceptible to default due to their age or inexperience with managing debt. One in 10 people using these services already have debt arrears elsewhere, according to a wide-ranging FCA review into credit services.
Our guest today came on to my radar recently when I read a post on Linkedin where he pitched a new concept called #SaveNowBuyLater – a new product that he is building in his company Bambu, based in Singapore.

Bio:

Aki Ranin isn't a finance guy. He started his career at an early age, first building computers and then coding. For two decades his job was to design and build websites and apps for other companies. Eventually, that path led him to Singapore, where he faced a problem. He sold his house in his native Finland and thought he should probably invest that money somehow. Amazed at the lack of options, tremendous costs, and atrocious digital experiences offered by banks, he decided to build something better. Today, his company Bambu actually helps the banks offer simple savings and investing solutions to consumers through an automated online platform.

Financial Foreplay® Highlights:

1. The only party losing due to lack of regulations is the consumer – both the retailer and BNPL companies benefit from not having to report credit to third party bureaus the way that credit cards and other providers do

2. There needs to be a shift in behavioural psychology towards incentivizing the art of saving as consumer spending is leading towards consumer debt levels that are unsustainable

3. If you haven’t checked out Smarty Pig in the USA, it’s definitely worth a look

4. Instagram and other social media sites glorify the shots of consumers wearing their luxury watches, shoes or handbags but no one ever posts a shot of the debt collector banging down the door to repossess the purchases you defaulted on

5. Alibaba in China built a $100b saving platform (integrated into their platform) but the Chinese government stepped in to regulate it when it became a

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Next Episode

Here’s Why Your Bookkeeper is From Mars and Your Accountant is From Uranus

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If you are like most small business owners I work with, you went into business because you are good at what you do – graphic design, hospitality, construction, farming, retailing etc.

You may be one of the 95% of small business owners who discover that although you work like a dog every day, you have little to show for it. You may be feeling isolated because you don’t think there is anyone to discuss or share their greatest fears and challenges with.

Which leads me to one area I’m guessing is definitely harder to grasp than you thought it would be: the management of money.

If you are like most, you never dreamed that the ability to understand how money works would be very important. You thought: “That’s for the accountant (or bookkeeper) to worry about. Sure, the accountant shows me a few reports from time to time, but I don’t see the need to really understand what they mean. If there was a problem, he/she would tell me, wouldn’t they?”

You probably don’t realize that all those numbers - the financial DNA of your business - can tell you a lot more than you thought. They can tell you why you’re suddenly struggling to pay the bills. They can reveal why you’ll have to forego your salary - again - because there just isn’t enough cash.

The financial numbers are the story of your business. The numbers don’t lie. You just need to learn HOW to listen to them and use them to your advantage... which is why today we are going to practice a bit of Financial Foreplay®.

Bio:

Terrell Turner is an experienced Certified Public Accountant (CPA), finance leader, podcast host, speaker and founder of TLTurner consulting firm that is focused on making accounting and finance a little less complicated for business owners and business leaders. You may have already listened to his top rated podcast called “Business Talk Library” – and if you haven’t, I highly recommend it.

He holds a Bachelor’s degree from Lander University and a Master’s in Accountancy from the University of Notre Dame. After years of studying hard he launched his career in Public accounting with one of the Big 4 international accounting firms Ernst & Young, followed by multiple finance leadership roles throughout the US and Brazil with fortune 500 companies like Navistar and General Electric.

In addition to all of the fun of consulting, hosting a podcast and speaking engagements Terrell enjoys spending time with his wife Lola Turner and traveling to enjoy new experiences.

Financial Foreplay® Highlights:

1. Less than 3/10 of all businesses have a grasp on their numbers

2. Business owners always take their personal mindset (whether or not they have adequate savings buffer, spending habits etc.) into their business with them, which explains why most don’t have enough cash

3. Think of your income statement as if it were a major motion picture – you would have lead actors, supporting actors, investors, and critics

4. If you want to make a blockbuster movie (or successful business) should you focus on the supporting actors and critics or your lead actors?

Get in Touch:

· Business Talk Library Site – www.BusinessTalkLibrary

· LinkedIN - www.linkedin.com/in/terrellturner

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