Book Review > All About the Money, Honey!

All About The Money, Honey! is written for women, by a woman, based on the insights of women. It uses cooking analogies to guide readers through sound financial planning practices to achieve financial independence. It even includes favourite recipes from Australian female personalities. It is written for the newcomer to financial planning and the financial planning advice is sound. The author also discusses a subject often not found in financial texts - compatibility of financial plans with personal value systems.

The author, Julianne Dowling, is a freelance journalist with a background in financial services and previous publications in newspapers and magazines. She is also an experienced investor and small businesswoman.

The book is easy to read, informative and takes a common sense approach to an area of life that many women have thrust upon them and find daunting. The cooking metaphors are useful and not overused. If you know a woman who wants or needs to take more control over their financial well-being and is feeling overwhelmed then this may be the book to get them in the driver’s seat.

All About The Money, Honey! presents its information in ten chapters.

1. Into the Kitchen
2. Cutting Back on Sweets
3. Out of the Frying Pan
4. Beyond Home Economics
5. Dinner For One
6. Chief Cook and Bottle-washer
7. The Super Souffle
8. Investing: the Smorgasbord
9. The Catering Conundrum
10. Top Tips from Cluey Cooks

Chapter 1 deals with getting to grips with your financial position. ‘First, write a wish list – your goals, your financial ‘menu’. Ask yourself: ‘What do I want my life to be about?’ 1 The author suggests that you align your financial goals with the ‘real’ you. Her practical advice is to save 30 percent and use the remaining 70 percent for living and to divide the saving component into short term funds which would then be spent on something substantial such as renovations or a holiday and longer term funds for superannuation and investment. More experienced investors will recognise this advice from The Richest Man in Bagdad and other texts. By the end of the first chapter readers will have established their goals, consistent with their individual value system, and estimated their net worth.

Chapter 2 extols some standard advice on the value of budgets and some sample budgets to illustrate what can be achieved. The objective is to create positive cash flow. Chapter 3 suggests that unless money problems are faced nothing will change. It gives some steps to success and advice on credit card management - nothing new here.

Chapter 4 deals with property matters: property or shares, buy or rent, renovations, saving money when you purchase, hidden extras. Anything property is in this chapter including buying a home after divorce and using savings to assist children in buying their first home. Apparently over 70 percent of women say they would prefer to own property rather than shares or managed funds because they believe it is a safer investment and one that they can relate to.

Chapter 5 addresses financial issues for the single woman through the various stages of life. It offers a valuable perspective, ‘One of the primary assets all women have is their income. …. View your income as a good thing and treasure it. It’s a key to your present and future wealth.2’ Chapter 6 gives advice about managing finances along with the many other responsibilities than most women carry, mother, wife, carer, employee, running a house etc.

Chapter 7 provides up-to-date information on superannuation and gives plain language advice on salary sacrifice and tax effectiveness.

Chapter 8 gives basic but sound investment advice for the novice taking a woman’s perspective. It advises women that being a part of a couple is not a financial plan of itself! Most women think property when they think investment and this chapter explains managed funds, shares, margin lending and education bonds. Sensibly, it commences by introducing risk and its role in investment.

Working for someone else doesn’t allow many women the time to meet their other responsibilities in the way that they want to. Working in you own business can provide that solution. Chapter 9 gives advice from women who have done just that.

Chapter 10 finishes the book with some ‘top tips from cluey cooks’3:

• Choose the right adviser
• Seek independence
• Manage risk
• Asset allocation is key
• Have a strategy.

This book is written for adult women and in a style that most women will find accessible and entertaining. It is written for women who are new to financial planning. It is a good entry level book for women who have been through a personal trauma such as bereavement or marriage breakdown and have had new or bigger financial responsibilities thrust upon them.

And some of the recipes are worth trying as well!

1. P 2
2. P 84
3. P 20

Lesley Smith is a member of the AIA.