Three Things I Did To Help With My Financial Struggles
First published on September 9, 2020
One of the great challenges of the current moment, for many people, is financial. Our economic systems have been so shaken by the shockwaves of coronavirus and the measures we have put in place to mitigate its effects that many of us are facing a different financial situation than we were 12 months ago. And, many of us face incredibly trying financial situations anyway.
Reflecting this morning on several conversations recently with people who, in different ways, spoke about how they were sick of having no money, took my thoughts to what has changed in my relationship with money over the last decade or so. Not all money problems can be solved overnight, but in a world where many of us face financial strain, I brought to mind this morning some of the lessons I have learned.
1) Get Your House In Order
One of my favourite things to say to my friends and family when they are talking about finances is to recall something Martyn Lewis (the Money Saving Expert) says: if you were to take one (even two) days off work in order to go through his moneysaving checklist, especially for someone who hasn’t been taking care of things, this is likely to be the best paid day of your year (if not your life). If you haven’t changed your electricity or gas provider in years, that alone is likely to save you hundreds of pounds, let alone insurance, bank accounts, less interest on debt and more. When I first did this, two things happened: not only did I actually have a more secure foundation, with less wasted money. But I felt better. I felt in control. I felt less in scarcity.
When our reasoning skills seem to decrease when we are in financial scarcity (as a study Rutger Bregman highlights in his book Utopia for Realists explains) how we feel about this kind of thing matters.
There is more you can do to do this, as I’ve written about before, especially for self employed people, too. Start saving for the tough winter now.
2) Recognise The Choices You Have Made
I spent my first few years after university doing administrative jobs. I didn’t earn no money from these, and they were jobs I was grateful to have, but I wasn’t working towards anything. In essence, I was killing time. I was applying for drama schools, pursuing a dream of being an actor. It was the right thing to do (until I realised it wasn’t), but it certainly led me to have less money than – say – my wife, who moved straight into a graduate job and preceded down the same route over more than a decade. Rule of thumb: if you keep changing directions, you are sacrificing some earning potential.
Despite those jobs not being well paid, I saved money during those few years. And I spent all those savings in my next job. I wanted to work in arts and culture, but the poor pay led me to spend all my savings commuting to a four-days-a-week, low salaried job. I’m glad I worked there, I learnt so much and contributed to a wonderful community resource, and it was definitely my choice. And it definitely cost me several thousand pounds to do it for two and a half years.
The choices we make can be wise and sensible. Other things are more important than money. We can make them to pursue a dream or to develop the skills to put us on a new career path (as I did). We can choose to care for someone we love, to work part time to live a more balanced and fulfilling life, to do something we love even though it is poorly paid. These are all our choices. And they can be perfect choices. But if you’re tired of being poor, it might be time to make some different choices.
I used to really regret that I hadn’t taken graduate jobs when I left university, that I’d wasted those years. But, in the end, the only choice we have is what to do now: the best time to plant an apple tree was 20 years ago. The second best time is now. And when we take responsibility for the choices we have made, real responsibility, only then we can choose differently today.
3) Notice Your Stories About Money
And notice they are stories.
I had loads. Mostly they were nonsense. Two insights, in particular, helped me:
First, that money isn’t good or evil, it is neutral. It is a measure. As my brother wrote, it is feet and inches. Now I happen to believe this is true, but it doesn’t really matter if it is. What matters is what does your story about money do to you? If you want to have more, having a story about money that tells you it is evil and corrupting probably isn’t going to get you more of it.
Remember, the best feedback we have about what we are committed to is the results we get. If, underneath, you think money is the root of all evil, you probably will end up with none. Because, underneath, you don't want any. I don't have any judgment on that, and that isn't why everyone is poor. But, as an example, I don't earn that much money. If what really and only mattered to me was money I would be making different choices, but it isn't. That doesn't mean that rewiring my stories about money from deep suspicion to neutrality and enjoyment didn't make a difference, though. It really did.
Money can be used for incredible good, just like it can be used for incredible evil. It can empower the greatest things in the world to happen, just like it can corrupt people and distract them into greed and selfishness.
Secondly, and for my business, the most useful insight I can remember is this: money is not the purpose of the business. Money is to a business or organisation what blood is to the human body. You need it to live, but it is not the point of life. You need money for your work to live, but it is not the purpose of your work. What is the purpose? And how can money help you with that?