Are you ready to start your financial life?
by Terry Bennett, Money Coach, Mac’s Money Centre
As a newly minted graduate, I was certain that I had formally entered into adulthood. I had obtained a full time job in my field, I’d made arrangements to start paying my student loan and for the first time in my life I was living alone, renting a small apartment near my work.
I thought by reaching those milestones that I was well on my way to becoming financially secure. What I didn’t know was there is more to financial management than the above tasks. I hadn’t thought about how to manage my money or what I was going to do with it. I decided to get organized. This meant that I needed a spending plan (I refuse to use the word budget as it makes me feel like I’m limiting myself). The purpose was to keep me conscious and intentional about how I used my funds. I think that as a student I was very unaware about what and when I spent money- if my friends were going, I went; if an item was what everyone else had, I had to have it too. Cost and need were foreign concepts! It was now time to become intentional- what purchases fit into my plan and what activities did not.
I questioned how well I understood my student loan and the obligations that guided my payments. How much did I owe, what was the interest rate that I was paying, how long would it take paying the minimum to eliminate the debt and were there other options that could speed up my repayment?
I needed to get over my reluctance to deal with the “business” side of money. I had to grapple with designing a realistic and all encompassing spending plan and to anticipate and control my cash flow. I was acutely intent on dealing with my debt. Money is so intimidating and one of life’s last true taboos in our society today. You don’t see many of us sharing our concerns over money, even with close family and friends. Sex and drugs- sure; money, don’t bring it up!
I learned I needed to deal with my resistance to this topic. My income, the amount of money in my savings account or my credit score is not an indication of my personal worth as a human being. I needed to learn to ask for a raise without feeling that I was asking for a favour, or to be clear and unwavering about setting a fee for my services.
This newfound awareness changed my relationship with money. I began to learn the concepts relating to money management. I made a conscious decision to become empowered and in control of my money. I took stock of my current financial situation and set financial goals, determined my priorities, and made a plan.
If this sounds like something that you could use or are interested in learning more about, I am the money coach at Macs Money Centre. The Centre is all about facilitating and empowering students and alumni to gain the knowledge and skills to become financially literate. One of our objectives is to incorporate your values, goals, attitudes and behaviours into an effective money management strategy.
Life and money are inextricably linked and as we transition from a new graduate to finding a life partner, to having children, buying a home, or building wealth — it’s important to recognize that one’s financial needs, priorities and goals change over the years as well. These transitions influence your financial plan and we are here to support you as your traverse your life.
