We are constantly impacted by social media with images of what we should be and should have. Its hard to escape and even more difficult to separate our own goals from those of others. Trying to have it all, juggling to keep up and only to find that you are not only unhappy but also further in debt. This is the challenge of our world with rising mental illness, anxiety and depression.
A good example of this money cycle to find happiness are clients with numerous credit cards. In some cases the total outstanding debt is more than they have as equity in their property. What has happened here is that once the Credit card has been maxed to its limit, the card is switched to a $0 or low interest rate with another lender. While this is a good strategy if you have a plan in place to pay the card out it doesn’t work if the original credit card is not cancelled. The client continues and maxes the limit on the credit again and now we have 2 cards and double the debt. This is not uncommon and the most I have seen is one client with 15 credit cards and over $100k on credit card debt.
When talking with these clients, all of them have had poor savings and spending habits and will admit that when they are spending ‘they feel better about themselves and their situation’.
So it has become important to spend the time to understand our own priorities and goals so we can discard what we really don’t need. By being mindful of these it will be easier to save and prioritise for what we really cherish.
If taking your lunch to work, cutting back on going out, having a cheaper phone plan, hiring outfits for special events rather than buying new, means you can save for a house deposit, build the new pergola you want, can save for a yearly holiday – whatever is your priority. You will find it much easier to give up those expenses that aren’t as important to you, so you can get what is.
Mindfulness over money is a skill that needs to be worked on, its not just flicking a switch and it happens. It is being aware of what you have chosen to do and to being prepared to work on it, sticking to your plan, reviewing and adjusting as required. It is having a budget account for monthly expenses, a SHTF account for emergencies and it is knowing where your money goes. Having money to back you up in these accounts gives you CHOICE.
Who are you surrounding yourself with? friends who are also mindful of their goals and understanding of the commitment will give you support and encouragement. Finding and following complimentary websites, bloggers and Instagram sites like ‘ the minimalist’ , will give you reminders and inspiration that there are others working on change and although it isn’t easy, it will be worth it to achieve your goals.
Make talking about money a normal thing, its not a dirty subject and its ok to say ‘no’ because it doesn’t fit with your goals.