New Year’s Resolution #5

A lot of us decide that in the New Year we’re going to be better at managing our money – often brought on by wondering on how we’re going to make it to the end of January after the expense of Christmas. Given that we’re now into February, we made it – hurrah!

If managing your money well doesn’t come naturally, don’t despair – there’s plenty of help out there from independent financial advisors (word of mouth the best way of finding a good one, if you don’t know anyone who has one, who do you know who manages his/her money well and ask them who they use) to organisations such as the Consumer Credit Counselling Service.

We sometimes make this decision because there’s something we want to save up for – as always be clear about what this is and what the benefits are to you and others of making this a reality. What are the repercussions if you can’t make this happen? Is there another way? I don’t mean stealing! If it’s something you want to buy, can you shop around – the internet has surely revolutionised the way we shop for everything – if you want to learn a new skill and can’t afford the training, is there an organisation for which you can volunteer and gain the skills that way?

Once you’ve reached your goal – let’s be positive – why not keep going? By that time you’ll have made the habit, which is the hard bit and there’s bound to be something else you’d like to save for. Keep going then you’ve made a long-term positive change out of a short-term goal.

As with all things – balance. T Harv Eker writes about money and our attitudes to it – he’s over in London later this month running his three day workshop on what it is that rich people do differently from the rest of us, which is great in a very shouty American which may not be to everyone’s taste. He maintains that we’re as rich as we are, and as adept at managing our money as we are because of our conditioning. That our outer wealth – or lack – is a demonstration of our beliefs which can, of course be changed.

He talks about balance and teaches a really simple method of achieving this – he’s big on simplification too. In his method, of course saving has its place, but he cautions against saving becoming a dominant habit, remember balance. To counteract this, and to keep the necessary discipline to keep saving for those who need that motivation, he also has a play fund which has to be spent at least once a month on something that is a pleasure or fun, a splurge.

Harv also says that you don’t need much to start this habit, whatever you can manage. The important thing is that you start to make a difference. Whatever you decide, don’t be having the same money conversation with yourself next New Year.