What is the main message of Real Life Money?

Taking control of your finances can lead to a fulfilling and stress-free life.

How long does it take to read Real Life Money?

The estimated reading time for Real Life Money is several hours. The Blinkist summary can be read in just 15 minutes.

Is Real Life Money a good book? Is it worth reading?

Real Life Money is worth reading because it provides valuable insights and practical advice for achieving financial well-being.

Who is the author of Real Life Money?

The author of Real Life Money is Clare Seal.

Real Life Money Summary of Key Ideas and Review

Name: Real Life Money
Rating: 3.6 (133 reviews)
Author: Clare Seal

Introduction

What’s in it for me? Get a grip on your finances.

In the twenty-first century, many millennials are deep in debt. They’re struggling to pay their rent and working in insecure jobs. Despite being in their twenties and thirties, they find themselves a long way from owning their own home or having enough money to ever start a family. And this generation has had some rotten luck – after the 2008 economic crisis, years of austerity have only made things worse. For so many young people today, lasting financial security is a passing daydream.

If you’re in the same boat, it’s easy to despair. But there’s good news – help is on the way. In these blinks, you’ll learn from British Instagrammer Clare Seal about her life in debt and the tricks she learned to pull herself out of it. You’ll discover the fundamental truths about your relationship to money, and the hang-ups that hold you back. And you’ll find a roadmap to getting yourself out of debt, effective budgeting, and appreciating the simpler things when the simpler things are all you have.

In these blinks, you’ll learn

how Instagram can fuel financial problems;
why you should make yourself at home even when renting; and
how being frugal can bring you closer to friends and family.

Key idea 1 of 8

If you’re struggling with your finances, it may be because the circumstances are outside of your control.

Are you one of those people who can’t bear to check their bank balance at an ATM? Do you push warning letters from the bank under a pile of magazines, far out of sight? You’re not alone.

If your finances are a mess, take a breath. While it’s important to take ownership of your situation and take steps to get back on track, not all of it is your fault. When it comes to money, one thing that puts many people at a disadvantage is a lack of financial knowledge.

The key message here is: If you’re struggling with your finances, it may be because the circumstances are outside of your control.

Consider the state of financial education. In UK schools, there is none – not a single class on the subject. So when, at 16- or 18-years-old, students leave for either work or university, most don’t have the faintest idea about savings, debt, or mortgages.

In the case of the author, the only time she recalls talking about money at school was when an eccentric teacher boasted about successfully manipulating a store-credit scheme. Other than that, nothing!

Instead, financial education is a job that’s often left to parents. And that can be a lottery – lots of people aren’t born to parents who know about money. Though they might be able to teach lots of other valuable things, it’s a rare few who’ll know about, say, investing or mortgages.

As well as being disadvantaged by a lack of financial education, lots of young people are also affected by the broader economic situation. Since the 2008 financial crisis, many people have struggled through no fault of their own. In the United Kingdom, things are especially dire. The Conservative government has watered down protections that once guaranteed job security and rising wages. And, with secure work hard to come by, it’s become more difficult to put money aside – whether toward a pension, for a home, or even to avoid going into debt.

This financial insecurity is a much bigger problem than individual failings. In January 2019, the average UK household debt stood at £15,400. It’s clearly a bigger problem than people overspending on holidays, clothes, and trendy furniture they’ve seen on Instagram!

While there are concrete things you can do to improve your financial position, it’s important to remember: it’s not all your fault.

Key idea 2 of 8

When it comes to money problems, there’s often one big emotion at the heart of it all, and that’s shame.

Imagine a happy family: two beautiful kids, a big house in the suburbs, both parents with stimulating, fulfilling jobs.

Except one of the parents keeps a shameful secret: through a mixture of generosity and carelessness, he’s spent far more than he can afford on credit cards and saddled himself with significant debt. For months, he’s not said a word of it to his spouse, but now that debt has begun to disturb the family’s financial security.

Unlock the full key idea

Key idea 3 of 8

If you think social media is causing money problems, take a step back to get your finances under control.

When you’re just scraping by financially, it can be disheartening to scroll through social media and see people living perfectly curated lives. Endless snaps of infinity pools, beautiful sunsets, or horseback rides through sunlit fields can make you feel like you’re missing out. It can also make your own financial situation worse.

Take this example from the author as a warning. While on maternity leave in 2018, she spent countless hours scrolling through Instagram and admiring the beautiful rooms she saw there, dreaming up ways to improve her own under-furnished house. Even though she was in debt, she began to spend lots of money on redecorating.

Unlock the full key idea

Key idea 4 of 8

Finance is a feminist issue.

Here’s a shocking statistic: in the United Kingdom, 64 percent of those who struggle with debt are women.

Whether that’s because more women than men are in lower-paid jobs or that women have more unpaid commitments around family life, it highlights one thing: when it comes to money, there is a big gender disparity.

Unlock the full key idea

Key idea 5 of 8

For previous generations, owning your own home was attainable; for millennials, it’s all but impossible.

If you’re a renter, you know the deal. You rush to clear up before a snap house inspection. You’re not allowed to drill holes in the walls. You can’t keep pets or plant anything in the garden. And to top it off, your landlord is an interfering so-and-so.

Who’d be a renter? And yet, despite all these annoyances, about a fifth of the UK population are just that. And the figure’s growing. Unless you’re from a wealthy background or have been able to save from an early age, home-ownership is a distant dream for many.

Unlock the full key idea

Key idea 6 of 8

Concrete goal-setting is the best way out of financial difficulty.

If you’re in financial difficulty, the way forward can sometimes look like a swampy landscape, with no obvious route ahead. And when you’re trying to find your way out of that swamp – either by setting your finances straight or changing your behavior around money, you need clarity.

The best way to achieve that clarity is when you can see there’s an end in sight – which is where setting goals comes in. You should form them with one very important consideration in mind: your happiness.

Unlock the full key idea

Key idea 7 of 8

Review your finances systematically and make a clear budget so you don’t overspend.

As we’ve just learned, if you want to reach your financial target – whether that’s getting out of a mountain of debt or saving up for a house – you need to get clear on what your goals are and take small steps to reach them.

Of course, you still need a handle on your finances, so the next thing to do is set a budget. Happily, there are five steps that can help you construct your own saving and spending plan to budget successfully.

Unlock the full key idea

Key idea 8 of 8

Budgeting isn’t all bad. There are also upsides to frugal living.

Budgeting can be a real slog: it’s no fun living on plain noodles, having no heating on cold days, and spending nights in when all your friends are going out. Struggling with financial pressure is hard.

But, while this kind of austere life is OK – even needed sometimes – remember that life is short. You can still enjoy yourself while watching what you spend. Being frugal with your cash may even help you appreciate some things you might previously have overlooked.

Unlock the full key idea