The Oxford English Dictionary defines a revolution as a “forcible overthrow of a government or social order, in favour of a new system”. We usually view a revolution as a political act. However, when I call for a financial revolution, it has nothing to do with the state or politics.
The financial revolution I have in mind is instead focused on ourselves and our relationship with money. We tend to have an ostrich mentality when it comes to money. This is understandable as for most of us, money is an unpleasant subject. It’s easier to stick your head in the sand and avoid the situation altogether than to take apart the pieces of your financial mess.
But let’s take our heads out of the sand for a moment and consider the following:
- Do you have a spending plan?
- Do you have a clear idea of the wants and needs in your spending plan?
- Do you know how much debt you have and how much interest you’re paying on your debt?
- Are you avoiding your creditors or leaving your credit card bills unopened?
- Do you have a rainy day fund?
- Do you leave the full management of your household finances to your partner?
- Do you know which questions listed here require a “yes” and which a “no” for a pass grade?
If you are unsure of any of your answers for the above, we can safely say you do not have a handle of your finances. We can probably also assume that if you were to investigate your financial situation, you would find that room for improvement exists.
This is exactly why we need a financial revolution. We can no longer be satisfied with the status quo. It’s impossible to achieve financial freedom without having a clear understanding of our money and our relationship with it. Instead of being ignorant about our finances, we need to educate ourselves so we know where our money is going.
If someone had to help themselves to your stationery or lunch every day at work, you would try to prevent future theft. Maybe you’ll start locking your stationery in your drawer, or spiking your sandwich with newly legalised weed. Whatever your solution may be, you will take action to affect a change and prevent more loss. Why then are we so loathe to affecting change to our finances?
We have to take responsibility for our own finances. No-one else will. In fact, according to debt counselling firm DebtSafe’s Reckless Lending Indicator, 40% of credit agreements offered by South Africa’s top 10 credit providers between April and July 2018 appear to be reckless. You’d expect these credit providers to be the more aggressive, unsecured lending players. However, top of the list was FNB. Do you really think they, or any other company, have your financial well-being at heart?
It’s also not good enough to leave your finances to your partner, no matter how much you trust them or how well they manage it. Life changes in an instant, and when it does, your lack of financial knowledge will leave you more vulnerable than you need to be.
If you are ready to be part of the financial revolution and take control of your own finances, get in touch for a cup of coffee.