Get in the Driver’s Seat
-By Darren Smith
Managing money can be like driving a car. It doesn’t matter what kind of car, if you have your hands on the steering wheel and keep your eyes looking forward with the occasional glance back in the mirror, you are more likely to get to your destination and able to make adjustments to conditions along the way.
Feeling in control of our finances is so important for our mental health and wellbeing. One of the most important areas is our ability to manage our short term and immediate bills. It can also be one of the biggest drivers of stress for many households as prices increase.
We all have different approaches and attitudes towards money. This can be influenced by so many factors including our personal situation, mindset, life stage, technology access, experiences from a young age and those of our families and friends.
In our financial wellness education sessions, we are very grateful when people share some of the lessons passed down through the generations and techniques to take control of their money. Some recent shared examples include:
Spend it the same way your earn it – slowly.
Spend less than you earn.
If you don’t have it don’t spend it.
Put away for tomorrow / for the rainy day.
Out of sight out of mind – take small regular amounts and put them aside. An extension of this is people allocating some of every pay packet and putting it into an envelope or a glass jar.
Never pay full price.
These are just examples but they are great to share as it can really assist and inspire others.
Making the most of the income or money we have can really make a difference to the lifestyle that we can maintain and enjoy. When we are going through changes or transitions it can also create additional stress as to whether we will have enough. Things such as a change in job and approaching or entering retirement are some examples of this where we will likely need to make some adjustments. There is no single correct solution for everyone as each of us are unique and have different priorities.
Here are some general tips that can help to manage your finances and reduce financial stress:
1. Take ownership and control
Review what is important to you in terms of lifestyle.
Understand what money comes in and where it goes.
Track it regularly.
Understand areas where you can cut back, save or reduce spending.
Understand where you can get discounts.
Set a budget you can live with and won’t resent.
2. Build up a safety buffer for the rainy day or unexpected
3. Control your spending
Know your own habits and when you tend to overspend.
Create your own speed bumps to slow things down.
Always look for opportunities to save.
4. Learn from the experiences of others
Tap into the free resources that are available.
Connect within your community and start a conversation.
5. Don’t be too proud to ask for help
There are free resources available online sites such as MoneySmart, National Seniors Money Hub and Financial Wellness Matters.
There are also professionals you can approach that can assist.
Everyone wants to be in the driver seat when it comes to managing their finances. By implementing these simple steps, like the many individuals we work with, you too can make the shift from the back seat.