Sarah Nulty, a twenty-something, independent career girl went from enjoying her amazing life, to living on noodles and mouldy bread to avoid bankruptcy. “It was a very different world back then in terms of lending responsibilities and requirements of the banks.”
“They could give finance out to whoever they wanted.” including to Sarah, who ended up with several loans amounting to tens of thousands of dollars.
It was 2002, and Sarah says she didn’t understand money At all.
“We didn’t learn about money at school, and it wasn’t something I was taught at home.” Still, her single mum did her best, working two jobs just to put food on the table. “So she was very careful with her money, but she never taught that to us. I think she wanted to protect us from that, so she didn’t have those conversations with us.”
Canna Campbell shares her top tips for women to become empowered with money. Article continues…
Sarah Nulty is a financial advisor, who almost went bankrupt at a young age, inspiring her to become a financial planner.Stresses the importance of educating daughter Annalise (six years old) on the value of money. Sarah started teaching her daughter from age four, gives her pocket money ($6 per week) in exchange for chores. They are also CommBank customers, with Annalise also a Dollarmites account holder.
Sarah says she finished school, got a full time job straight away, and the next thing she did was get a loan. “I wanted a car which wasn’t fully insured, it was only third party insured because as a teenager I didn’t want to have to part with any more money than I had to.”
That was the first loan, a personal loan for around $8000, which was closely followed by another loan for a better car, bringing her debt level up to $13,000, followed by a credit card.
Why did she get a credit card? “Because I could,” Sarah says. “It wasn’t like a wanted a credit card, I was aware of them, I just wanted more money than I had.”
“Because, of course, I was independent, pig-headed, and wanted to move out of home as soon as I could. That meant paying rent, groceries and everything else and I just didn’t earn enough to support myself so you get into credit cards.”
It was a move to Melbourne that exacerbated her financial problems, with the higher cost of living landing her in approximately $28,000 in debt on an annual income of around $36,000 working as a bank teller.