Money is like any other resource. There is a finite amount of it. We can sell products (like our time) and services (like our hard work) to obtain it. And we exchange it in turn to obtain other products (like bread and electricity) and services (like hair cuts and Uber Eats). It’s use and utility is perfectly rational.
But money is also unlike any other resource. Because money is more strongly tied to complex emotions and psychologies of people. Which makes managing money very complex, and highly individualized — every person will have a different right answer to managing money for themselves.
However, there are certain fundamental truths to managing money that applies to everyone. It does not matter if I’m a gas station attendant or a Fortune 500 CEO — these truths don’t change.
Today, we will start by defining the fundamental truths to good personal finances.
We all say that we want to (or that we already do) manage our money better. We have goals, aims, and aspirations for our money, and for our lives with it.
But the truth is, committing to good personal finances — really committing to it — is perhaps the hardest and most crucial first step.
Achieving good personal finances will involve changes in our lifestyle. Telling ourselves that, no matter the difficulty and discomfort of these changes and adjustments, we will commit to certain basic actions, is critical.
If we tell that to ourselves convincingly, and keep telling that to ourselves every day, half of the battle to achieve great personal finances is won.
We are in the age of instant gratification. From 1-click buys to 1-touch laughs — we have been conditioned to instantly get what makes us feel good. We’re now addicted to it, as a collective society.
And we have forgotten that there are several better things that we only get over time. Like a fit body, or great friendships, or healthy finances. They may not make you feel good at the moment. But they’ll make you feel fantastic when the results start showing up.
So once we make a commitment, it is critical to keep doing the work every day. Show up each day. The results will come.
Patience is a virtue. Let’s remember it again.
If we conquer the first two truths, the third truth becomes obvious — achieving healthy finances is not inherently difficult.
Managing money is just mechanics. They’re a series of techniques. And easy enough to teach to children in the 4th grade.
It’s the mental readiness to commit, be consistent, and wait, that is the game changer.
Let’s clear something up. The state of change is difficult. Absorbing the adjustments is difficult. Giving up certain lifestyle elements will feel difficult.
But if we’re willing to stick with these difficulties for a while, better finances is not difficult.
The road may be long
But with one foot in front of another
You can never go wrong.
River makes it easy to make and keep your money commitments to yourself, by automating most of the work needed to build healthy finances.
Find out if you have access to River - ask your HR / Benefits leaders, or reach out to us at hello@GetRiver.co.