We’ve been described as a ‘microwave generation’ of spenders. We’re constantly bombarded with seductive advertising and 101 reasons to spend our hard-earned cash – creating the perfect storm to burn money and sink further into debt.
Even with all our savings apps and helpful financial gadgets, Kiwis are getting worse with their money, says enableMe financial performance consultant Elizabeth Blake.
“Our grandparent’s generation did not spend more than they earned. Credit cards did not exist. If they needed a new washing machine they saved up for it. They did not have a sense of entitlement.”
On top of this, Elizabeth says talking about money is one of the last taboos thus perpetuating the problem of our mounting debt.
“We don’t tend to talk openly with our friends, colleagues, and peers,” she says. “It’s private. A lot of our clients were not taught about money, but now they’re keen to teach financial literacy to their own children.”
enableMe financial trainers provide a plan to get ahead faster while providing support and accountability for clients to stick to the plan along with the tools to measure their progress.
Money management leads to empowerment
”By getting in control of your finances, instead of your finances (or lack of) controlling you, you can become empowered,” Elizabeth says.
“Our clients tell us they feel like they have never had so much money, which is ironic considering they are implementing some controls around money that may never have existed before, and they have a new sense of awareness, clarity, and control.”
The psychology of spending
Elizabeth says our money personalities are developed from early childhood as we learn from those around us.
“Why do people behave as they do with money? Why do people who have no money go on a spending spree to make themselves feel better? Why do some people think medical insurance is a waste of money and others would never dream of being without it?
“Identifying your money personality and that of your partner’s is one key part of the process.
Are personal financial trainers the answer?
Elizabeth says one of the key reasons people like working with financial trainers is the fact they can provide a confidential, non-judgmental, and consultative forum for open discussion between spouses/partners about money values and setting goals that all parties engage with and are willing to buy into.
“Sometimes it is too hard to have those conversations with your partner, but we provide an objective, balanced view.
“For others it is about having a coach to guide them and discuss their options, whilst also providing the tools for them to get ahead and become debt free faster.”
Common reasons to get a financial personal trainer:
Lack of a plan
Fritter money away
Need to earn more to get ahead
Tension in relationships due to money worries
Lack of a rainy day fund for emergencies
Feel good spending
Business cash flow issues
Issues with IRD
What people want:
To get ahead faster financially
Stop living payday to payday
Get in control of credit card and other debts
Remove money worries that create tension in their personal relationships
To enjoy what money they do have without constant guilt