“Being in control of your money provides freedom.”
Simonne Gnessen
I was shaking and tearful when I spoke to ‘Mrs Smith’ in the tax office. When I received a nice bonus on a contract I had finished the previous year, I ‘forgot’ to set aside the tax element. As a result, I was now facing a £7,000 tax bill which I couldn’t pay. I did what any sensible person would do… I ignored the problem, the letters and told no one.
show moreIt wasn’t until the threat of a bailiff visit that I took action. I made the call, put on the pathetic ‘ignorant’ mask, and came to a payment arrangement. In short, I financially ‘grew up’ – coming to the realisation that my finances were my responsibility.
I’d like to say that, from that point onwards, I became completely financially clued up – but that isn’t reality. I continued to make mistakes; mismanaged money; didn’t save; was late with sending papers to the accountant; didn’t understand the implications of all of this; and relied on my poor accountant to get me out of the sh*t!
That was 20 years ago. The impact of my raging against my financial responsibilities were life-affecting, life-limiting and a constant source of anxiety.
So, what changed?
My clients helped me to change. Sorting out all their financial papers – helping them to tackle their own situations and learning the basics of how financial institutions and economics work – gave me knowledge, insight and confidence. I started helping myself by making time to get organised – finding people I could ask and work with (you do not need to be rich to have a financial advisor!).
I am still learning – still improving – but feel I am on a steadier path. I have, what I call my ‘financial flow’, organised. I know what accounts I have and why I have them, and I have an outline cashflow for both my personal life and my business. This makes it easier to manage the unexpected and plan where to invest in my business, as well as to see where I can enjoy the fruits of my labour.
I have a pension. Admittedly, I am very late to the party, but I have one. I could have set it up 10 years ago, as it was not nearly as complicated or as expensive as I thought!
I no longer feel anxious or ashamed when I think about my finances, and I must live on a budget just as most of us do. However, I do see how widespread these feelings are. I have had clients with panic attacks, tears, anger, uncontrolled spending and unnecessarily controlled spending. There is nothing I like more than working with them to establish their financial flow – understanding how that impacts them and how to work with the relevant financial institutions. Also, the great advantage is, if you have a ‘just in case’ scenario, then you leave your family with the information they need to wrap up your affairs and minimise the impact of your passing.
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