Why don’t people do the Work?
What’s the biggest lesson when it comes to setting yourself up to live the life you want to?
Let’s first think about why people aren’t as financially savvy as they’d like to be and then work through the solutions.
So, why is this so common?
Having worked with a number of young and not-so-young people, there are some common reasons people don’t set themselves up to better manage their finances, resources and life. They:
Think that they don’t need to do it, either they don’t think it’s a big deal or that they can save $x per month or year – but they don’t
Don’t have the required knowledge and don’t know where to start – they feel overwhelmed
Think that they have time to address this in the future and don’t want to think about the long-term
Are negatively influence by people around them, e.g., “You’ll never be able to afford your own home in the day and age” or “Everyone blows their money on something”
Feel bad about their current situation and don’t know how to make a change or see past it.
The first point is by far the biggest stumbling block I see young people making – essentially not making the effort and being consistent when it comes to managing their money and life. The thing is, people often don’t understand the lost opportunity “they don’t know what they don’t know”. They could be setting themselves up to be smarter with their money throughout their life, not just now. This could result in travelling or paying a house off sooner, working in a role that they really love (rather than just paying the bills) or they could be working less or retiring earlier.
All these things make a huge difference to a person’s life. As independent adults, no one else is going to manage your resources for you – we all need to learn to do this.
For many people, it can be confronting or it’s not something that you look forward to doing – it might make you very uncomfortable. As humans, we avoid discomfort wherever we possibly can.
But what if it was easier than you thought and provided a whole lot of motivation to do what you need to do.
Addressing this thorny issue
I wish I could help more people to see a clear path through the haze of managing their finances and resources, to achieve their goals in life.
When you boil it down, it’s actually a lot easier than most people think. The other side of the coin is that we all need to make a commitment to ourselves and do the work! It’s a step-by-step process, just make one step at a time, such as:
Start by reading and improving your knowledge of financial and money management – there are lots of news articles, books and online materials out there. It’s about putting it together so you have a well-rounded knowledge base, one that helps you make good decisions
Develop a budget or a plan with numbers attached – to do this accurately you need to understand where your money goes currently and what your earning capacity is at the moment
Work out what you need to save to reach some of your goals and how long this will take you - tying your goals and finances together, so they work in concert, not pulling against each other.
Set up regular processes to monitor your progress, make payments and put money aside for savings and achieving your goals. Very few people can achieve their goals without savings.
Understand the market you want to transact or trade in eg. buying a home (i.e. the residential real estate market), a car (i.e. the new or used car market) and how to get a good deal and make the most of your resources.
Doing the work and investing in your own knowledge is so important because without it, managing your own resources can be confusing and you can make decisions that will set you back in life. The aim is to make smart financial and life decisions so that you have great options in life - start with a small step now, you’ll thank yourself.
For further information to assist you have a look at the other blogs I’ve written at www.lifelaunchpad.com.au along with the courses: “Managing your Finances and Life Goals”, “Buying a Home” or set up a coaching call.