As a lifestyle coach, I am passionate about financial wellbeing because I see the impact that a lack of financial wellbeing can have on people. It causes unnecessary stress and pressure which affect overall health and wellbeing, self-esteem and even relationships. To whip your finances into shape and help you achieve your financial goals, here are 5 tried and tested principles that work:
- USE MONEY BUT DO NOT LOVE IT. Money is simply a tool; it is not meant to be loved. When you love money or are obsessed with it, you’ll do ANYTHING to get it. This is why you need to recognise that money is a servant, not a master and learn to treat it as such.
- PLAN YOUR SPENDING. Every time you spend, you are making a financial decision so decide wisely. When you plan your spending, you reduce your risk of impulse buying and can still afford to treat yourself occasionally.
- PAY YOURSELF FIRST. Decide to save and invest a specific amount of your income regularly. Start with what you have no matter how small. It’s all about habit-building and consistency is the name of the game. In fact, automate it. Little drops make an ocean. There is one exception though – if you have debt, eliminate that first before you save and invest.
- BE GENEROUS WITH MONEY. Back to my first tip – money is a tool you can use to make things happen for you. It can also make things happen for others. Find a way to use some of your money for the benefit of someone else. Learn to hold money loosely such that you can be generous, and don’t wait till you’re ‘rolling in it’. Some of the most generous people do not have much and yet they are willing to part with some of the little they have. This is because generosity is an attitude of the heart – if you cannot be generous when you have £10, then the likelihood of being generous when you have £10,000 is just as slim.
- PRACTISE CONTENTMENT. Contentment is choosing to appreciate what you already have. Content people do not have everything but they do make the most of everything they have. They also recognise that more does not always equal better. This is because ‘more’ comes with its own problems. ‘More’ has to be maintained, protected and looked after/insured and this can mean spending more money or giving up more of your time. I am not saying do not have aspirations, I am saying make sure they are balanced aspirations.
Which tip resonates with you the most and why? Let me know in the comments section.
PS: Always seek advice from a financial adviser regarding investments and never invest what you cannot afford to lose.