Essential personal finance – part 1

Essential Personal Finance

Money and personal finance are emotionally loaded and in money coaching the language we use is so important. Certain words can be motivating or captivating whilst others can be a turn-off. Take for example the word “budget”. It doesn’t usually bring much excitement and I would like to introduce more engaging alternatives into our Webinar and Workshop programmes.

Budgeting involves keeping track of your income and expenditure and it’s one of the most important practices in personal finance. Carefully and consistently logging money in and money out acts as a reality check, “do I really spend £65 a month on coffee!” As a process, budgeting can also be a way to create a monthly surplus to save and invest towards goals. All good. However, the word “budget” tends to have connotations of not enough, or of depriving yourself of what you really want. It can feel similar to “dieting”. The negative aspects of the denying yourself what you want mindset are exacerbated by our consumer society which is always telling us we need more.

That mindset of just learn to say no, deny yourself because you are on a budget, is one that can be changed. Instead of talking about being on a budget we can learn to see the process as being about taking control of “cash flow”. In situations where we want to put emphasis on taking control of spending we can use the positive power of a term such as “spending plan”.

In my role as a money coach it brings me a great deal of satisfaction to see coaching participants realising the benefits that come from tracking their money, not least the increased likelihood of being able to save and invest. I’m committed to bringing new energy to the tried and tested process of budgeting and that’s why in future coaching programmes you can look forward to hearing my new favourite phrase, “money tracking”!

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