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When the Coronavirus pandemic hit in March 2020 it was a big shock in many ways. One of these was the impact on our finances. Perhaps you had to rely on grants because you couldn’t work, or maybe were made redundant, or furloughed and living off 80% of your salary. Whatever your situation, it is likely that taking control of your finances was one of the issues at the forefront of your mind.
The pandemic made us take a closer look at our finances. The positive was that the taboo topic of money was more out in the open.
Hi. I’m Anna Goodwin, your friendly finance mentor. I am keen to help people take control of their personal finances.
What Do You Want To Achieve With Your Personal Finances?
This question is the first one to answer before you can develop your personal plan of action to take control of your finances.
Manage, Spend And/Or Invest
Depending on which of these you want to achieve, you can do this by:
- Setting goals
- Creating a plan
- Setting a budget
- Getting out of debt
- Setting a savings goal
These actions will help to motivate you in the coming months.
What Is Your Current Financial Situation?
Before you go any further and take control of your finances, you need to accept your situation.
Think about your current finances:
- Do you have healthy finances?
- Are you in control of your money?
- Do you feel overwhelmed?
But Is My Attitude To Money Holding Me Back?
It may be a difficult concept to accept, but the way you feel about money has an impact. You may need to address your attitude before you can start to take control of your finances. Do any of the following statements ring any bells?
- Ignore it and it will go away
A 2018 Money Advice Survey found that 51% of people avoided talking about debt so as not to worry about their family and friends.
But the problem with this strategy is that you don’t learn about money.
- Money is a dirty word
You may have a feeling that money is dirty, it’s wrong to be comfortably off so that you don’t have to worry about money. Many of us were brought up in a culture, religion or household that believed that “Money is the root of all evil” or “Money can’t buy you happiness” or it just wasn’t something you should talk about.
This can impact on how you feel about money as an adult.
- I don’t deserve it
Your self-esteem may be low and you feel that you are not worthy to have money and should have to scrimp and save.
- I’d be ok if it wasn’t for my partner/husband/family
You may have a very good attitude to money and have organised finances; it may be your family/partner who are putting a spanner in the works!
What Can You Do To Change Your Attitude?
A change in attitude is a key step when you want to take control of your finances.
Accept Yourself And Change Your Future Choices
- Be honest with yourself
- Ask for help
I have a personal finance package on my website that may help. In the meantime, start to take control of your finances by taking the following steps:
- Get advice about money (from someone independent of you)
- Get the family on board
- Set good habits about money
You may have already started doing this during the pandemic. If so, good for you! Keep at it. This is a new skill you’re using and it’s not going to happen overnight. However, even a single step can make all the difference in helping you to control your finances.
So take some time now to think about money and your attitude to it. What do you want your future to look like? The positive thing about the Coronavirus pandemic is that many of us have the feeling that we need to take control of our money but have not blamed ourselves for the situation. Take control, take action and see the results.
Good luck with honestly facing your attitude to money.
Next week, I will concentrate on how to hit targets in a better way.