When we decide to take control of our money and start to manage it wisely we are not only changing our financial future for the better, we are also creating and exercising powerful new skills that will help us in all aspects of our lives .
The foundation of the health of our relationship with money is our money mindset and knowing why we behave the way we do around our money.
This requires a deep dive into our psyche and the drivers that influence this relationship. By becoming aware of the actions and the beliefs that cause them we uncover the unconscious elements of what “makes us tick” and start to develop the skill to relate these to all aspects of our lives. “How we do one thing is the way we do everything”
And the power behind self awareness is that we understand both our strengths and our weaknesses, and by being aware of both we can more effectively adjust our actions to maximise our strengths and cater for our weaknesses.
If you ever watch a toddler in action you will probably recognise that self discipline is a learned skill. It’s not something we were naturally born with. In fact our natural tendency is to “live for the now” and demand instant gratification.
In fact, self discipline is like a muscle that requires regular exercise to keep on working effectively.
Being disciplined around our money, sticking to a conscious saving plan and delaying our spending for a future goal, is the ultimate hardcore workout for our self discipline, and the more we practise is and consistently and consciously apply it, the easier it becomes.
And if our self discipline muscle is working for our money and getting a consistent workout it goes without saying that we can apply it to other areas of our lives, healthy eating, regular exercise and so on.
Organisational skills and diligence
Being on top of our money requires TONS of organisation. Diligent and well thought out record keeping, timetables for reviewing our spending, our bank accounts, our investments and our subscriptions. Not to mention keeping details on file of our passwords, our tax numbers and the list goes on.
For many of us this is not a natural strong point and life can often get chaotic as we try to find our lost documents, contracts and such.
Thankfully there are Apps for getting organised and Marie Kondo for inspiration.
This is a pivotal skill to learn, so fake it until you make it by breaking down the process into manageable steps, which can even be fun if you are creative and can put together attractive and user friendly filing, storage and such.
It is such a life changing skill as the ultimate result is time optimisation, efficiency and less life energy being wasted trying to scramble to get on top of things.
The skill behind critical thinking is the ability to think through the consequences of your actions.
Effectively managing your finances is the classroom of Critical Thinking 101.
Considering the consequences of your spending, understanding the impact of saving and investing and having clear financial goals requires a constant consideration of the implications of your actions.
This develops a curious, questioning approach to life. You no longer accept things at face value, you develop a hunger for knowledge and understanding, both in managing your money and in your life. You have become a financial grown-up empowered by the certainty that you are in the driving seat of your destiny. And the fact that you are reading this blog, means this is you, seeking knowledge, taking action and on the path to being a money boss.
The final skill is built from the skills we have developed above and it rests on the knowledge we seek and the well thought out plan we set.
Having a clear vision of what we want to achieve, attaining the knowledge and understanding to get us there and taking the necessary action force us out of our comfort zones. This require we face our fears and act. Confidence is the side affect of that growth.
From this it is clear, the lessons and growth we experience in this critical part of our lives serves us in every aspect of living. We clearly aren’t meant to be money guru’s from day 1, but what is important is who we become in learning to be our own money boss.