One of my clients is a broker at CIBC. Over the years of training him, I have inadvertently received a LOT of financial wisdom. Gems really. For example, I’ll share that we increased our RRSP contribution at Quentin’s job, where they match it up to 18%, and he’ll tell me that I should be maxing it out, and capitalizing on that free money!
I often share my wishes of keeping up with the “Joneses” so to speak, and he tells me that I already have everything I need, what with my healthy children, a happy marriage, and a fulfilling job. Of course he’s right, but there have been a lot of times in my life where I wanted more than I could afford in that moment and instead of listening to my inner voice of reason, I picked up that Visa and said “charge it”, faster than a heard of turtles.
When I asked him for some input for this blog post, he told me that having bad financial debt is similar in some ways to being in a bad marriage. A lot of energy, worry, anxiety and stress can surround both. Sometimes the more you try to get out, the deeper you get. Being in debt and making poor decisions with our finances can affect our relationships, our health, our jobs and ultimately our well-being.
He said the best way to avoid debt is to make mindful decisions with your money. Instead of just asking ‘what’ I will get when I spend, ask the ‘why’ do I need it? Or ‘where’ is that urge coming from? Am I envious of someone else? Do I feel a greater sense of self-worth if I have more? Answering yes to these questions may lead us down a path of debt and dissatisfaction that will be difficult to climb out of.
Here are some financial tips that Forbes lists that you can start today, to ensure you are heading down the right path:
- Schedule your money minute. Take 60 seconds a day to log into your account and see where you finances are at. Check your transactions, your balances and progress toward your goals. Wellness is not developed by sticking our head in the sand and ignoring the truth.
- Set up your savings automatic transfer. Most of us would forget to put money into savings unless it was automated. Let’s face it, if I have an extra $100 in my account this month, I’m buying another pair of boots. Once this is set up, watching those savings grow is exciting!
- Adopt a spending mantra. Behavioural economist Dr. Hersh Shefrin shows that creating a financial rule of thumb to guide your spending decisions can help make us better money managers. Scientists say, adopting a personal belief we want to live by, makes us feel guilty even if we don’t abide by it. It reminds us and brings our attention and awareness to how we want to live. Write down your mantra, snap a pic and make it the background on your phone!
- Tell yourself you deserve more. We have all been there, “treating” ourselves at the expense of our financial health. Instead of telling yourself you deserve a spa weekend, a bigger house, or an expensive dinner out, tell yourself you deserve more. You deserve to be safe if you lose your job, free of bad debt, or to save for something big.
- Build a 15 minute buffer. When you feel a financially irresponsible impulse, immediately do something to take your mind off of it. Set a timer for 15 minutes and then check back in with that urge. Does it feel as powerful? Taking time to be mindful about a purchase and working to resist that impulse to buy immediately, will strengthen our control.
Forbes has the full list of financial habits that you can start today. www.forbes.com
When I asked my client what book he would recommend if we wanted to increase our financial wellness, he didn’t hesitate to say The Richest Man in Babylon.
Now, make yourself another coffee and go check in on your bank account!
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