Personal Financial Account-ability

Until recently, I haven’t really paid attention to my finances. I’ve always lived with the belief that one day my big financial break would come along, and I would be set for life. Like a lottery win or that one big business deal that just changes your life for the better. But then, I got a big reality check. A reminder that financial freedom is not a destination but a journey. One that many of us think will sort itself out, but it doesn’t work like that. You have to take accountability and responsibility for your finances from the minute you start earning an income. My mom has now been on pension for almost 10 years and she worked for over 35 years in order to be able to afford to support herself now. My big break may come but even if it doesn’t, I want to be prepared and ready for my old age so that, like my mom, I don’t burden my kids with black tax and financial demands when they should be setting themselves up for their future.

I watched a video on Youtube where Nicollette Mashile (Financial Fitness Bunny) was interviewing the founder and CEO of Bathu, Theo Baloyi on finances and he said something that really hit home. He said that money is a resource and that made me ask myself what my honest thoughts on money were. I realised that I’ve been treating money as a need, therefore, I’ve been operating from a standpoint where even when I had money in abundance, it was never enough because I saw it as a something I need to find and have, whereas it is a resource that is to be utilised in a way that it can generate more money or to just afford me a comfortable life. That way, as Coach Malebo says, I don’t operate from a low vibration of desperation but of authority and abundance. She also suggested that I need to heal my relationship with money, which is also addressed in Mapalo Makhu’s book called “You’re not broke, you’re pre-rich”. How we see money and treat money says a lot about where we stand financially. How do you look at money? What’s your relationship with money like? A lot of people end up in money traps because of how they view and relate to it. Some will even win the lottery, but end up broke in less than 5 years, because of this.

Taken from Instagram @mapalomakhu

So, I decided to be pro-active and honestly take a look at myself and my finances and I came across a concept called Personal Financial Calendar. This excited me because we set annual goals that we want to achieve but we never really plan out how we want to make and spend money annually. But, we know that there are yearly activities and celebrations that take place that we will definitely spend money on, for example, birthdays, vacations, society, etc.  So, I took a few beginner’s steps to find my feet and put in the work needed to change my financial story. 

Here are some tips on how you can start your journey, remember I am not a financial expert but merely sharing some of the tips that are helping me:

1. Get educated.

Find out as much as you can on finances. There are YouTube channels and books out there that will help you get more confidence in knowing what financial tools and outlets there are to better your financial position. I’ve mentioned Mapalo and the Financial Fitness Bunny previously, that’s a very good start. Also, your bank will have resources that will better equip you in changing your financial standpoint.

2. Review and reflect.

There are less than 2 months left in this year, take a look at how you’ve been spending your money, especially during the pandemic. Did you have savings that could’ve helped you cope or did you have to take on more debt just to make sure that you survived? Knowing where you honestly stand financially will help you in making progress towards the financial goals that you want to achieve. Consider taking a look at all the unnecessary expenses that you’ve made in the past year and see if there is a place where you can cut your monthly expenses and redirect that money towards your existing expenses or towards a savings account.

3. Set financial goals.

Just as you set your resolutions and create action plans for them, you can do the same with your finances. Write down all your financial goals, for example, how much you want to save in 2021, where you want to travel, which course you want to start, etc. All of these will require a financial plan. Don’t forget to break each one into months and also remember to include your monthly expenses as well in your monthly financial breakdown.

These are just starting points that can help you start your own personal journey to financial freedom. You will need a more detailed plan once you’ve evaluated your spending habits, set your financial goals for the coming year and educated yourself on ways to start actioning those goals.

Good luck on your financial journey.

Cheers.