My previous blog dealt with subject of money, the economy and the person and set the foundation for a self-reflection on the foundational basis of this relationship. It was not intended to cast aspersions on the readers’ ability to handle money, personal finances or to make the right investment decisions. It was aimed at sparking a debate and get us talking on this subject that we often shy away from.
Comments were received and these are welcomed and help the writer to know that somebody out there is at least reading these and respond. I hold the view that even if comments were not received, I hope some deep thoughts were generated and with time we will see a change in the narrative around money and the management of personal finances.
Having set the foundation, I believe that I can use the previous blog to offer some advice based on whatever research I have been able to gather around the topic. I have taken some tricks and tips from a few authors as discussed below:
- Make small and beneficial personal choices – consider changing to a cheaper but effective deodorant; spend less time going to eat out (without making your life boring); change to a cheaper and more efficient car; check the ATM fees etc.( adapted from Kathleen Thomas);
- Review your insurance policy portfolio – do I still need all the policies do I have? Are all the beneficiaries still eligible? Is my car /house not over-insured, etc. (adapted from Kathleen Thomas)
- Get a copy of your credit report/score (clearscore.com; www.mycreditcheck.co.za) and pay your bills on time – having a favorable credit report helps you to negotiate favorable interest rate and late payments do generate the charging of interest to your account (adapted from Kathleen Thomas)
- Establish your own emotional intelligence with money. This is about mastering your emotions in order to master your finances. Vangile Makwakwa introduces a 7 step process for doing this and I will propose that you either get her book or at least visit her website (wealthy-money.com) for more resources and perspectives.
- Change your mindset – it does not matter what your history or personal circumstances are at the moment. You do have the ability or capability to change all of that and become “Self made”. This by large involves changing your circumstances by adopting the philosophy of abundance and take calculated risks which will propel you to new ways of being. Inheritance helps in some ways but let us be honest how many people are financially independent because their parents left them a huge inheritance? You need to look at your relationship with money differently and be able to know when you are making emotional decisions which might not serve you in the long run. (adapted from Nely Galan)
- Adopt a Save Yourself Plan –Suze Orman provides guidance on this plan which is basically a combination of actions to take as well as concepts and principles to learn. Learning these concepts equips you with the knowledge you need to act correctly and confidently, whenever life presents you with a new financial challenges or choice. The Plan focuses solely on the core foundations of personal finance that you must know and take care of. (suzeorman.com)
I hope this article has started pointing you in the right direction if not affirming some of your current actions. There might be other advices that some of the readers would like to share and these are always welcome and we will need to share these. Please comment on the blog and let us keep the conversation going and I am sure the more we talk openly and freely about our relationship with money the sooner we can change our financial status.
Till next time!!!!