From Amanda's very early writing (1990s to early 2000s), shared as it was originally written.
How to get Rich
Last week there was an article in the Bulletin on Paul Clithero - the 'money man'. I had the fortune of meeting Paul years ago at a conference and was enchanted by him as a person and by the wonderful way he made money matters sound simple, easy and interesting!
Obviously, many others have found the same thing! One line he is quoted as saying was in response to the question "how do I get rich?". His answer was "spend less than you earn." Now that is a wellness comment if ever I heard one! A blinding flash of the obvious that almost everyone ignores.
Of course, we sigh , as if we know that ; but if we all know it , then why don't more of us follow this simple and effective rule?
I started to think about financial wellness and although I have no qualifications or expertise in this area, I did start my career as a physiotherapist and we are not paid well. I also started life as the child of an only parent who struggled very hard to earn enough to support three children. And I am now in a position of what I consider to be financial security so I've been there and done that! And I recognize that financial worries are often the biggest causes of stress.
When I explored some of the strategies I used along the way , not only did I discover that Paul was right but I remembered some ideas that may be useful to others.
Firstly, have you ever taken time to write down absolutely everything you spend each day for a month? And compared it with what you earn? It's a very interesting exercise which does take time but it's well worth it. How many times have you said " I don't know where the money goes. It just seems to disappear!"?
Be rigid about noting every cent that goes out (the cents add up very quickly!) whether its on lunch and other meals, take away foods , a bridge toll, transport fares, magazines, rent, clothes, presents, cigarettes, sweets, car expenses, coffees and other daily 'needs', purchases. Then there's regular or one off payments like insurances or payments on the car, TV, computer or other items on hire purchase, lay by, lease etc. Not to mention credit card payments.
Once you have been through this often enlightening (and sometimes terrifying ) experience, you can compare what you spend each month with what you earn. If what you earn is less than what you spend , you are in deep doo doo , to use a very technical financial term.
And you had better look at where you can save money - like make your own lunches; cook at home using more vegetables and fruits instead of lots of meat and buy less take away food; ask yourself 'do you need that extra shirt/dress/ outfit?; are there cheaper ways of traveling - like walking! (which is better for you as well as being cheaper); look at every area and ask if you can make changes.
Just as important as becoming aware of what you really do spend, is your attitude to saving (or becoming rich!). Are you really committed to saving money and are you prepared to be disciplined about it? Or will you constantly give in to temptation? Sort of like a binge dieter? Because, it seems to me that by being consistent and disciplined with myself I saved enough for a deposit on my first unit from a very meagre salary. And lots of people on low salaries seem to be able to save using this thinking.
Which doesn't mean you deny yourself everything of value! I think celebration is critical for the success of any venture in which you are attempting to change behavior. So plan when you are going to lash out - set a goal or a target that when you have saved 'x' amount you will celebrate in a way that doesn't mean you spend every cent you just saved!
Anyway, if we want to start worrying and stressing less about money, we have to do something to take charge of our financial situation. This is just the first step - at least know exactly what is happening to your money and where it goes and then think about your beliefs about saving - and being rich.
Then we can start exploring courses on learning about money and investment; watching programs like Paul Clithero's; reading books on the subject; finding a financial mentor; seeing a financial planner ; setting goals for saving - just to name a few ideas. Start right now - grab a piece of paper and make your list of what you have spent so far today - who knows, this may be the first day on your path to becoming a millionaire!
