FINANCIAL WISDOM

When it comes to choices about where to get advice, I don’t think we have ever been faced with this many.  It used to be parents or a wise uncle or perhaps a newspaper that would provide strategies for accumulating wealth.  Now, you don’t even have to leave your house to be inundated with mail, video clips and other marketing strategies, all of which claim they are “the best”.

Well, I am from the pre-television days when common sense and lack of finances were the predominant influences.

Here are some very simple ideas that hopefully will help you to get clarity and success with your money:

1.    Never spend more than you earn – The concept of credit cards that began infiltrating society around 1973 has given us a false idea about what we think we can afford.  If you are using a credit card to buy things, it means that you don’t have enough money today and will end up paying more in the future once the interest is tacked on.
2.    Pay your bills on time – It doesn’t make sense to be late knowing that there will be penalties and loss of credit score.
3.    Learn how to differentiate between need and want.  
4.    Stay out of the stores and the online shopping sites.  Temptation is a very high-risk factor.
5.    Think about what you can do yourself.  Try cooking ahead of time to avoid the vulnerability of ordering food when you are too hungry and tired to make a meal.  Can you mend a clothing item instead of replacing it?  Maybe you can paint your bedroom instead of hiring someone.
6.    Consider selling things that you don’t need.  It wouldn’t take long to go around your living area and fill a box with items that would bring in cash.
7.    Try a staycation instead of an expensive holiday that will cost more than you planned and tire you out.
8.    Do research before you invest money in anything.  And remember that research is not just believing what those who will profit are touting. 
9.    Use your skills to earn more.   One of the things that I have heard a lot over the last few years is that people cannot seem to find people who will do odd jobs. 
10.    Keep track of what you are spending.  I remember my dad writing down every expenditure in a large ledger and using cash as much as possible.  It is easy to ignore the truth but knowing it will help you to make better choices.

And probably the best advice that I have given to others for years is that I don’t take financial advice from people who are poor.  If you want to be successful, find others who have become successful and learn how to do what they do.

Dr. Linda Hancock, the author of “Life is An Adventure…every step of the way” and “Open for Business Success” is a Registered Psychologist who has a private practice.   Visit  www.LindaHancock.com  or email her at  office@drlindahancock.com.