Personal Finance is Personal

UNPACKING THE NON-MONETARY SIDE OF MONEY

You may be wondering, “How can money have a non-monetary side to it”? The reality is that money is more personal than we think. The sooner we come to terms with that, the sooner we will begin to understand the importance of forming healthy relationships with money.

Understanding the main use of your money is a good place to start. A quick Google search will enlighten you on the fact that money is mainly used as a medium of exchange, i.e. any object that is accepted as payment or repayment. For this reason, I like to think of money as a resource - a means to an end. The end being what you value. Here is where it gets personal, because the end is different for us all and so is the journey.

As you delve into constructing your personal money journey, consider the following:

Step 1: Define what matters to you

We all have our individual dreams and aspirations and our own idea of where we see ourselves in the next 5 or 10 years. Visualising where you would like to be is great, but what is even better is breaking that vision into bite-sized, practical goals that you can start working towards. What matters to you this year? Is it finishing your postgraduate studies or buying your first car? After giving it some thought, consider what it will take for you to achieve this - in light of your current financial status. For most of us, the reality is that we do not have an unlimited amount of resources. This is why it is so important to know what you truly value and hold yourself accountable to this at all times.

Step 2: Tackle social pressure head on

I have seen it stated that we always seem to believe we are doing well until we pull our phones out and start scrolling through social media. Suddenly our good is not good enough, as the standard of measurement is set against somebody else’s journey. Once you have fully immersed yourself in step 1 and defined what matters to you, avoid allowing the pressures from society to force you into making decisions that do not lead you to your end goal. More often than not, the pressure is not always from the strangers we

idolise at a distance but from those close to us. It’s important that your money is always directed towards what YOU truly value because trying to meet everyone’s expectations can become not only expensive but strenuous both mentally and financially.

Step 3: Avoid lifestyle inflation

ALways remember that money is limited. If you spend every bit of extra income that you earn at every given point in time, it means that you will never have enough left over to save and invest in order to grow wealth. A new job or promotion does not have to mean a car upgrade or new wardrobe. It is in fact an opportunity to accelerate your journey to financial freedom by investing in the goals you have set for yourself in step 1.

Maintaining a healthy balance in any aspect of life will never be easy. It takes constant practice, discipline and a lot of intentionality but it’s possible. The goal should never be to become perfect overnight or even after reading this article. Every day is about taking meaningful steps towards your goals and ensuring that your decisions are always aligned to what you value.

by Andiswa Mojapelo

Andiswa would love to connect and engage with you on the following Social media platforms:

Andiswa Mojapelo

Andiswa Mojapelo

@andiswamojapelo

It takes constant practice and discipline.