Choose the way of the ostrich
How many times have you heard the phrase ‘stop burying your head in the sand’? Of course, the somewhat overused phrase comes from the myth that ostriches bury their heads in the sand, in times of fear, to avoid danger.
It got me thinking about our relationship with money, fraught with fear, uncertainty, riddled with jargon, and the all too common ‘that’s tomorrow’s problem’ attitude. Tomorrow never comes as the saying goes.
So how can we challenge this behaviour? How can we get engaged with our money, remove these feelings of fear, and replace them with control, optimism, focus, dare I say enjoyment?
Seek to understand
When we are presented with something strange and unfamiliar, it is our natural human tendency to fly to safety and stick with what we know. Think of your first time attempting something new – learning a new instrument, trying a new sport, getting to grips with a new job – at first it seems overwhelmingly complex. “I’ll never understand this”, but you persevere and grow, you develop your skillset and understanding over time. Weeks, months, years pass as you begin to master the unfamiliar. You get to the point where you look at others and wonder why they can’t master something so simple.
The difference is you pushed your boundaries, you sought to understand, to learn and grow, sometimes out of choice, other times out of necessity. Sure, there will be successes and failures in there, but it all creates this rich tapestry of development which you can choose to build on and benefit from.
When it comes to our finances, often we choose to avoid the conversation. The development doesn’t even begin. We create stories in our heads “I’m not good with money”, “it’s too complex”. You see to take control, we must seek to understand our relationship with money. It doesn’t need to involve complex algorithms, it starts with mastering the basics. How much income do I receive on a monthly basis? Where does my money go? What do I spend my money on, and why?
There are now a whole host of fantastic apps that can do this tracking process for you automatically. They offer automatic budgeting, allowing you immediate insight into your spending behaviours. Use this data to your advantage, check in weekly or monthly and gain clarity over your income and outgoings. Challenge your own money behaviours and ask why. Start to plan and control how you use your money to enjoy now, as well as plan for tomorrow. This simple exercise can set your mind at ease and help you feel in more control.
Recruit your own accountability partner
To remove the fear and anxiety many of us have around money, we need to open up the conversation and be willing to have honest conversations about our money, hopes, fears and dreams. Think of a time of stress in your life, pressure building at work, tension with family/friends, or whatever else it is. Think of how much the simple act of having someone by your side, willing to listen to you, to allow you to get it all off your chest and air your feelings with no judgement. That is a hugely powerful exercise and it’s something you can use to great effect with your money management.
Recruit your own accountability partner and really get engaged on your money journey. This could be your partner, a friend, a family member, or it could be a trusted expert adviser like me. This is a space where you can talk about money, ask questions you might have otherwise steered away from. A judgement-free zone where you can share your money questions, your goals and have a partner who’ll help you get there. They will hold you accountable. If you promise to save £500 per month, your accountability partner will hold you to it. When you teeter on the edge, your partner will bring you back on track. You’ll be in the driving seat, but with your own trusted navigator by your side to keep you on the money journey you desire.
Celebrate the wins and enjoy the journey
Money management can be fun if you choose to embrace it. Celebrate the milestones you reach. For example:
1) Saved £10,000 towards my house deposit – celebrate with a nice bottle of wine
2) Reduced my debt by £5,000 to zero – treat yourself to a nice meal out to celebrate
Choose to make it fun and enjoy the journey. Learn from your failures and use it to build and grow. Yes, the destination is important, but let’s remember the here and now – choose to enjoy the process by having enough to enjoy life now, as well as planning for your future, whatever that may look like for you.
You see when we begin to understand and engage with our money, we begin to take control. We move into the driving seat and start to make choices to give us the life we want now and in our future. it’s something we do well here at Spentwell, getting you engaged with your money and helping you take control of your financial journey. Your very own skilled navigator and accountability partner, here for whatever life throws at you.
Oh, and back to that ostrich. As it turns out, they pop their beaks in the sand to turn the eggs they’ve buried, several times each day. Keeping an ever-watchful eye and tending to their own little nest that will one day hatch.
Choose the way of the ostrich and put your head in the sand more often.
Keith
Managing Director
Spentwell.