Do You Need To Worry About Money? Not If You Do Four Things...

Jun 22, 2018

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Financial stress is a terrible thing. I’m sure everyone reading this blog has stressed out about money at some point in their life. But the thing is, stressing about money doesn’t change the outcomes. Instead, it just ruins your day.

So, am I suggesting that you should never worry about money? Not really. I believe that if you are doing all the right things then it will all work out well in the long run. And worrying about it in the interim won’t help. Taking all the rightactions and still worrying about money is a complete waste of emotional time and energy.

Here is a list of things/actions that you might need to worry about.

Spend without any consideration for the future

Do you think before you spend? Or do you consistently adopt the attitude that “you only live once and could be dead tomorrow” so I may as well buy it?

Everything in life is about moderation. I know it sounds really boring, but it’s true. I believe that we shouldn’t continually deny ourselves the things we enjoy. Investing is a journey and it should be enjoyed as much as possible. However, by the same token, we can’t always buy everything we want either. Sometimes we must make sacrifices and compromises. That is, live comfortably within our means.

If you regularly deny yourself some of the things you desire, then you probably have nothing to worry about.

Have no idea how much you spend on general living expenses

Do you know how much you spend on general living expenses (i.e. tell me an actual amount)? I don’t mean ‘guess’ or ‘estimate’. Have you actually sat down and worked out what that number is?

Probably 80% or more of prospective clients I meet cannot tell me (accurately) how much they spend on general living expenses (i.e. everything excluding mortgages, investments, school fees and holidays). I would like to make two important points about this:

You cannot manage what you do not measure. How do you know if you are spending too much if you don’t know how much you are spending? How can you make any plans or commitments without a clear picture of your cash flow?
Most people materially under-estimate how much they spend. The problem is that there are probably 30+ items in everyone’s budget that consist of several small transactions. These small expenses can add up. Often people are surprised by how much they spend.

Just knowing how

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