Worry Free Money - Book Review

TITLE: Worry Free Money
AUTHOR NAME: Shannon Lee Simmons
AUTHOR CREDENTIALS: Financial Planning Coach and Founder of The New School of Finance in Canada.
GENRE: Financial Planning
NUMBER OF PAGES: 328
PUBLICATION DATE: 19 December 2017

SYNOPSIS/SUMMARY: How to enjoy your money by spending it. Yes really! Once your spending and retirement needs are taken care of, it's time to enjoy your money.

From Amazon;

"Worry-Free Money takes a different approach to finances, looking at the root causes of the pressure to spend and showing why traditional budgets don’t work. It is a deeply practical book that will help you break the cycle of guilt, understand why you overspend, banish “Unhappy Spending” from your life, learn to recognize your “F*ck-It Moments” and find hope—and have fun—while getting your money under control."

I can honestly say I've worried about money for pretty much my entire life. Mostly my lack of it and after a failed marriage just trying to keep out of debt and stop living paycheque to paycheque. Shannon's new book would have helped immensely should I had access to it back in the 80's.

You have an amazing opportunity right now to avoid all the traps and snares that I unwittingly fell into by reading and acting on all the fresh new ideas Shannon has laid out for you in her new book.


If you struggle with money and feel like your just spinning your wheels most days, then this book will help you. Let's pop the hood and take a closer look.
 - PW.

Chapter 1 - Feeling Broke Leads to Being Broke

We all worry about money most of the time, I know I do.When you worry about money you feel broke. 

We all worry about money most of the time, I know I do. When you worry about money you feel broke. In this chapter Shannon introduces us to the term 'F*ck it Moment'. 

This is when you have given up overspending and undersaving so you end up just saying F*CK It and swipe the credit card again and again. 

I'm sure we've all had those feelings of inadequacy so we spend and experience moments of telling ourselves we deserve this, so spend away and just F*CK It!

Chapter 2 - The Joneses and the Life Checklist: A Double Blow to Your Finances

You are asked to go through goals you are proud of having achieved and lifestyle expectations you want to meet and where you feel the sting of inadequacy?

We have all heard of the phrase keeping up with the Joneses. Shannon uses the example of Mona and Nate and how different life is than keeping up with the Joneses. She gives us a 'Life Checklist' of our very own to go through. You answer individual questions like; do you have a job with a great pension? and do you own property? Lifestyle expectation questions like; do you like your job, do you drive a nice car? 

Of course there are different questions and expectations in life for males and females.

Chapter 3 - Social Media: Your Life Checklist on Steroids

Spending too much time on social media accelerates our spending by constantly comparing ourselves to others. The more you use social media the harder it is to control your inadequacy influence. Shannon suggests taking a social media detox every now and then to break free of these feelings and to lessen your f*ck it moments.

Chapter 4 - Stop Comparing Yourself to Others: The Beyonce Factor

Try not to compare yourself to others. Reading about friends and seeing pictures of beach vacations can drive you to inadequacy. You are NOT Beyoncé so don't compare yourself to her. You don't make that kind of money or have celebrity debt. It's simple, just STOP!

Chapter 5 - Why You Need to Stop Budgeting

Budgets don't work. You will eventually go off of your budget and guilt will set in leading to more f*ck it moments for you. You will find out that you can't control your daily spending habits if you are on a budget.

Chapter 6 - The Hard Limit: How to Stop Budgeting

Shannon takes you through the four categories that make up 'The Hard Limit'. They are;

• fixed expenses
• meaningful savings
• short-term savings
• spending money

That's it. All your money goes into one of these categories no matter your income level. Once you have allocated money to the top three categories, what you have left over is your guilt free spending money. Examples are given and tables provided to show you in more detail how this works.

Chapter 7 - What Can You Actually Afford?

In this chapter Shannon shows you how to set up and follow a
'Strategic Banking Plan'. To follow one takes four steps that include;

1. Isolate the money you cannot spend into your original chequing account.
2. Isolate the money you can spend in a second chequing account.
3. Figure out what to put in your bank accounts per pay period.
4. Automate everything in the Bills and Savings account.

More client examples are given showing the different categories and how the money is diverted into each and how much remains for spending money. A further breakdown of the 3 accounts is also shown in table format. 

Chapter 8 - Can You Afford A Lifestyle Upgrade?

Using the example of Sandy and Amit the questions of whether you can afford to spend more and save less, thereby upgrading your lifestyle are asked. Can you afford a bigger house? Can you afford a better car?

Shannon explains the importance of keeping fixed expenses below 55% of your take home pay. By reducing spending money or increasing it will show you whether you can improve your life or not. Only by going through the numbers will you see the possible results.

Chapter 9 - Happy Spending

How to live within your means without hating your life. This chapter encompasses 40 pages of this book. The other newest term you are introduced to is called EROI. 'Emotional Return On Investment'. This is money that gives you a positive emotional return. Happy spending is money spent on the things in life that really matter to you and absolute must haves, or your life and money feels hollow. You are also given examples of spending on items that make you unhappy. Items that may include, a coat that you can't afford and don't need. The moment you walk out of the store the joy of the purchase has evaporated and guilt sets in.

 
Chapter 10 - Saying No to Overspending

When to say no and how to say yes is covered here. Can you upgrade your life? Can we afford to make a big purchase? If you are living within your 'Hard Limit' then you will know how much you can spend. Shannon uses the example of a couple (Dayna & John) who are invited to a destination wedding in the Caribbean. She uses a questionnaire called 'The Three Question Check-In' to see if they should go and can afford it. She then uses the 'Safe/Happy Check In'.

"Safe and happy. You must be both at the same time in order to live within your means without hating your life and to stop worrying about money once and for all." - pg. 187

  

Chapter 11 - Saying No Without Feeling Guilty

A lot of us just simply don't want to talk about money. It is one of the last taboos. To get ahead financially we must know when and how to say NO to friends and family about what we can and cannot afford.

Shannon tells us that it's OK to talk about money with your people. Being open about your situation will also help you to not experience guilt when saying no to a night out or a vacation. We have become afraid of missing out (FOMO), or of hurting anyone's feelings and of being judged. Being honest with your money will have a profound positive impact on your life.

More client examples are given with couples who struggle with dipping into savings and have a problem saying NO to expenses that do not improve their EROI. This ends up negatively impacting their Hard Limit.

Chapter 12 - Making Change Happen: You've Got Levers - Pull 'Em!

Making small changes creates BIG waves. Shannon takes us through client examples of Dylan who is struggling after a break up. His finances and plans are now in turmoil. Reducing Unhappy Spending and trying to afford a single lifestyle are some of the table examples used to provide solutions for him. 

It is extremely helpful to go through these examples on a case by case basis to watch the numbers change and help clients as they go through the struggles of setting new limits and making sacrifices.

The two biggest levers we all possess is to make more and spend less. Go out and pull them. We are then introduced to Drew and Kelly who are also constantly worried and anxious about their financial situation. Stressed all the time they feel overwhelmed as daycare costs are so extreme at $1800 a month. Shannon helps provide a way out as they don't have anymore fun in their life after kids.

Chapter 13 - Making Financial Lemonade: Opting Out of the Life Checklist

This chapter is all about tweaking your Life Checklist. When you are given lemons then it's time to make lemonade. It might be time to throw out your old ways of thinking and try new ones. Shannon challenges you to do this. Find realistic ways of making money that makes you happy. Create new rules and make tasty lemonade.

We are introduced to Sam and Dani who have a tremendous amount of debt including a huge mortgage, credit card balances, no money going toward retirement and ignoring much needed repairs to a million dollar home. They struggle mightily and need to create a different Hard Limit and eliminate Unhappy Spending with a low EROI.

Chapter 14 - Uncertainty=Real Life: It's Different Out There Now

How to survive financial life without worrying is covered here. Shannon extols the virtues of having an 'Emergency Account'.

This chapter is devoted to emergency savings and it's benefits. One topic most people don't consider is the unknown future of work. Will robots replace us? More and more we are hearing about the advances in technology and the thousands of jobs disappearing. Having an emergency fund will help you sleep at night should that happen to your job.

Chapter 15 - No Regrets: There's More to Life Than Money

Stop living a life full of regret. Follow these steps;

1. Remember why you made the decision in the first place
2. Recognize that luck has a lot to do with it
3. Recall the Beyoncé factor
4. Shift your perspective: It's not always about the money

Stop beating yourself up about falling for a scam. Stop wondering what would have happened had you bought stock in Dollarama when it was $20. You had NO money to invest in stocks at the time anyway.

" We cannot go back in time. But we can keep moving forward. And that is where your financial future lies, full of hope." - pg. 286

Chapter 16 - Call to Action: Spread the Money Love

This chapter explores the concept of inviting family and friends to share their money fears and plans. Without judging and without recrimination. Money Love vs. Money Hate. Everybody wins when you spread money love.

Be honest telling family what you can afford if they come to you for help and consequently, when asking for money be honest with the reasons you need help. This is money love so start spreading it.

Conclusion - You Got This

Take control of your financial future by following these steps;

• Choose not to compare yourself to others.
• Choose to figure out your Hard Limit and live within your means.
• Choose to say yes to Happy Spending so you can enjoy your life.
• Choose financial honesty with your family and friends
• Choose to say no to overspending
• Choose to redefine what success means to you in order to be truly happy.
• Choose to spread the Money Love.

My Final Take

I absolutely loved this simple, fresh and effective way of dealing with and managing your personal finances. This book is chock a block full of client examples that anyone can follow, implement and use immediately to improve their lives to the point of never worrying about money again.

If you have family or friends who struggle with money and are overwhelmed with worry then you owe it to them to get a copy of this book. It will assist and guide them to develop a financial plan that works for them.

Budgets don't work, Shannon provides you with the best alternative out there today. A very enjoyable read and a fantastic tool to help you reach your financial goals. Buy this book and live Worry Free and Guilt Free!