Personal finance is a vital aspect of life that is often overlooked. It hardly makes it on the list of our new year’s resolutions. The impact of our mindset on our financial decisions and overall well-being.
Some banks have even installed apps that clients can use to keep track of and control their spending habits.
Rising cost of living gives little choice
Also not overlooking the fact that for most hard working South Africans, money remains an issue. Especially in this climate of load shedding and ever increasing prices of basic foods, petrol, education and basic services.
These can lead to emotional stress, which can lead to habits that lead to mismanagement of finances.
Sunday World shines the spotlight on the teachings of Dr Khosi Jiyani and insights from Rapule Mahlangu, a financial expert in the insurance sector. They offer guidance on integrating psychological and practical support to effectively manage personal finances.
Shift in mindset
Dr Jiyani is distinguished clinical psychologist with a focus on transformative learning, accountability, and change. They both emphasise the fact that true financial transformation begins with a shift in mindset.
By recognising how our upbringing and emotions impact our relationship with money, Jiyani delves into the core of financial decision-making. She offers practical guidance for readers seeking a healthier approach to their finances.
Transforming your money and emotions
Our relationship with money is shaped from a very early age. Growing up in a home with all the material comforts may lead to us taking money for granted. Conversely, growing up where there is a lack can be the basis for a negative relationship with money.
In adulthood, most poor financial decisions indeed come from how we think about money.
“To transform our financial fortunes, we first have to transform our thinking about money,” says Jiyani.
New year’s resolutions rarely include spending habits
The beginning of a new year is a time for new resolutions when we are easily convinced that we need to change. It can be our diet, or review our fitness regime.
But rethinking our finances comes low down on our list of priorities. And December overspending follows us into January and beyond, without being checked.
“Financial depletion and the financial anxiety that follows says as much about the time of year. It does the same about who we are as a person,” says Jiyani. “Humans are social, emotional and relational beings, and are programmed to seek pleasure but avoid pain.”
Instant gratification
“The December holidays are a time for earned pleasure, and we postpone any thought of the financial consequences,” she says.
“We look for instant gratification, delaying the subsequent pain, but we need to find a balance in life. We cannot live for the moment at the financial expense of tomorrow.”
If we do this, we run the risk of getting stuck on a financial treadmill and losing ourselves in debt.
Finding balance, separating money from our emotions
Jiyani suggests finding small, inexpensive joys and rewards in life. These will be easily attainable at the end of the month, or year, both energised and solvent.
“We cannot make our self-value about our net worth — the two are not the same. And trying to keep up financially with friends can quickly lead down a path of financial depletion.”
Mahlangu says: “If you sense that the year is already running away with you, look for help. There are available tools to equip people with psychological and practical support when it comes to managing finances.
Seek help with a financial planner
“Working with a financial planner to map out a corrective course of action helps to keep us on track, preventing the kind of self-sabotage that results from an unhealthy attitude to money.”
When it comes to our relationship with family and explaining a lack of money, Jiyani advises telling the truth that is age-appropriate for children. “They don’t need to know all the details. Just that as a parent, you are committed to providing them with everything they need. Even if that’s not the same as everything they want. Learning the difference between the two from an early age encourages a healthy attitude to spending later in life.”
Live within your reality, not aspirations
“It’s important that we learn to live with our reality and not with dreams that are beyond our financial reach,” she says. “Instead of seeing yourself as a victim of life, see yourself as a creator of opportunities, if not today, then in the future.”
Starting the year strong and getting on top of your finances now will help you end the year emotionally and financially stronger,” adds Mahlangu.
