How long have you been avoiding dealing with your money? I don’t mean everyday stuff like spending it, paying bills and even managing to stash some away in a savings account. Avoidance can look like something I used to do not so long ago. For instance, I would go to the ATM, withdraw money and refuse to be issued a receipt. I just didn’t want to deal with what the balance is. Many times I wasn’t even sure that the machine would even spit out the money in the first place. Some of us can relate to this. Others may be going on with their lives deluded that all is well.
So what does it mean to deal with your money? Think about it like a relationship. There are ups and downs but you are still in it. You learn a lot along the way about a person (and yourself) as you relate and spend time with them.
It is hard to have a relationship with someone when you never know where they are. What are you spending money on? You can have the grandest of plans but if you do not have a grasp on this, they will not materialize. Track your spending and it will reveal your habits – the good and the bad. Like the drinks you randomly go for after work, daily newspapers, lunch, parking fees, impulse spending etc. Most people do not actually know where their money goes. Once you know how much you spend on entertainment, you will make a decision on whether you are happy with that amount or not. If not, you will become very intentional about it. You are now officially dealing with your spending.
You also stop avoiding your balances like I used to do. Get to know how much money you have whether it is in the bank, Sacco, land, shares and how much debt you have. Call the bank and find out how much you owe them. Now you truly know where your significant other is. It is scary and most people avoid doing this but nothing can happen until you are clear on this.
The next step is coming to grip with the work that has to be done. Many would rather hope that a deal will come and make all your dreams come true. Not going to happen! The same way in a relationship you soon understand that you did not get the perfect mate and neither are you. A lot of work has to go into making this relationship work. If you did the first exercise you will start to see where you are being wasteful and can cut down. However most of the work will be in building the foundation for you to achieve your goals. Nobody will resolve this for you and you will constantly need to come out of your comfort zone and continuously ask yourself what you will do about it.
What will you do so you earn more money next year in order to take your kids to school? It’s not your employer’s responsibility but yours to deliver more value so this increase can happen. What will you do with that idle plot of land to generate revenue and fund your retirement? What will you do with your business to deliver more value and be more profitable? This is truly the essence of dealing with your money as you are taking responsibility. The more you delay doing this the more inadequate you will feel about your ability to handle it.
It may be hard to connect all the dots and have all the answers. It is one step at a time. Start the business, save more, get a new investment, get a standing order to reduce debt, take your Chama seriously, have an honest Conversation on spending with your true significant other etc. Commit to being a student and learning as you go along. Try and fail fast. Be open and honest with those you need. Don’t hide behind perceptions as you kill your dreams. Ask for help when you need it. That’s now dealing.
Waceke runs programs on Entrepreneurship and Personal Finance Management. Registration is currently open and ongoing through our website centonomy.com For more information get in touch with her through waceken@centonomy.com /Facebook-Waceke Nduati /Tweet @cekenduati