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Introduction
Eight days into what we officially call Spring, and I am actually able to sit in the sun on my back patio drinking a glass of Riesling – the seasons have turned, and thank goodness, the sun is out! Along with longer days and warmer afternoons comes a desire to be out and about, and often with that comes an increase in spending. But it’s also a great time to Spring Clean your finances before you get swept up in the good vibes and decide that your bank balance is a problem for future you.
If, like me, you’re feeling somewhat energized by the arrival of Spring, then here are my top five tips for getting your finances in order – and, even better, they can all be done while sitting in the sun with your beverage of choice.
If you love a good quiz, you can take the Stuff Money Personality test here or the Financial Times quiz here and get an insight into how you view and use money. Like all quizzes, these are not gospel – and will vary if you take them multiple times. However, the advantage of knowing your money personality is that you can identify potential obstacles, self-limiting beliefs, or bad habits and then look at ways to overcome those. You can also do this without completing a quiz by simply thinking about what money means to you (Power, Freedom, Prestige, Security, Fun, Helping Others, etc.) and thinking about how you feel when you make money decisions (overwhelmed, confident, anxious, guilty, empowered, and so on) to get a sense of your drivers and relationship with money.
I know that for me, first and foremost, money means security, and this guides many of my financial decisions.
I’m also cost-conscious and don’t like spending on big-ticket items but could as easily spend that same amount on smaller purchases that make me happy, such as books or presents for family.
There is no ‘bad’ personality, there’s just knowledge, because without it, we’re driving blind.
If you took either of the quizzes in the first section, you’ll notice that there is one very similar question in each about what you are focusing on at the moment with your money. Just like any other area of your life, trying to be generically ‘good’ with money or even ‘get rich’ isn’t a great approach because it’s so broad. Are you working towards a financial milestone (think your next big trip or buying a house), or are you looking to get a better return on your money, maybe weighing up mortgage interest against investment returns? Knowing what a priority for you is in the next 3, 6, and 12 months is really helpful because it will help you home in on the actions that will have the most impact in that space.
Think back 9 months to January of this year – did you make any goals around money, even unofficially? What about fitness or other lifestyle changes? The thing about these goals isn’t so much that we don’t always achieve them, it’s what you may have spent and still be spending in pursuit of a goal you abandoned 8.5 months ago.
Did you sign up for the gym? A fitness app? A budgeting app even? Anything subscription-based that you are still paying for but haven’t used for the past 3 months or more can be cancelled.
You might be surprised by how much has been trickling out of your accounts for the sake of good intentions.
You know what’s great about Spring? It hits us with a burst of energy and motivation when there’s still a solid quarter of the year left to do something positive for yourself!
Since you’ve just reviewed any goals you made at the start of the year, you’re perfectly positioned to decide whether those goals are still relevant – in which case, is there just one action you could take to move towards reaching that goal? On the other hand, 9 months is a long time, and the areas you were focusing on at the start of the year might no longer apply. For most of us, there is always something we can be doing better, even if we are largely on track, so take a moment to consider one action you could realistically do in the next 3 months. Some relatively straightforward ideas could be:
As the weather improves, the opportunity to get out and about in ways that don’t cost anything increases dramatically. Not only will your bank balance thank you, but for most of us, our mental health improves as well! Travel and food are two of the main variable expenses in my household (mortgage and childcare being the big two non-variable ones!), and as the weather improves and the days get longer, I can take advantage of the potential cost savings as well as health benefits. Instead of Ubering around, I find that I’ll walk more, I can take the kids to the playground 1000 times, and they’ll never get bored (and unlike my other favourite places like the library, there’s no café encouraging us to buy a treat just because we’re there), and when barbeque season arrives, I’m much more motivated to cook dinner, hopefully putting my winter dependence on takeaways to an end!
We know that Spring in Wellington can be a bit like a toddler – sunny one moment and raging the next! If your motivation comes and goes with the sun, that’s OK! Just make sure when motivation strikes, you have the next item on your list lined up so you can jump on it and move your finances forward one dollar at a time.
Remember, you don’t have to work it out all on your own, and sometimes the easiest way to get the ball rolling on financially good decisions is just to book in with an adviser – like me!
Elizabeth.
I see my role as a Financial Adviser not just to advise on individual aspects of your finances, and certainly not to simply transact on your behalf. My role is as a guide, to help chart the course, provide scaffolding and support as you progress and redirect you if you’re getting lost in the weeds. Most of our regrets, I have found, come from not having started sooner. So, let’s start today.
About Elizabeth
Hi, I'm Elizabeth, one of the Financial Advisers here at Velocity Financial. Day-to-day, this involves engaging in conversations with clients about their lives, families, aspirations, and, of course, financial goals. In a big picture sense, though, I'm driven by my perpetual desire to improve outcomes for individuals and, eventually, communities. At Velocity we aim to bolster the financial literacy of Kiwis, helping to alleviate financial anxieties, and opening up the possibilities of what can be achieved. We empower our clients to formulate a plan for the future. I'm particularly passionate about assisting women in reaching their financial goals and feeling confident in managing their money. To aid in this, I write a monthly blog on topics that affect women and maintain an Instagram page @what_would_she_do.vf. This platform provides financial content for those who might not be prepared to consult with an adviser yet but still require and deserve sound advice. In my past life, I was a nurse, so helping people is essentially my modus operandi (I'm also quite resilient and not easily grossed out!). During my spare time, I'm likely attempting to keep up with my energetic kids. If I do manage to find some time for myself, you'll find me curled up with a coffee and a book.
Elizabeth is the author of the monthly blog What Would She Do? A column for women, by women.
Follow What Would She Do on Instagram
Disclaimer: Elizabeth Moloney-Geany (FSP693611) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information in this blog alone. Please see Elizabeth’s disclosure statement on our website.
Always get professional advice
The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation. As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures https://www.velocityfinancial.co.nz/disclosure-statement.