Meet Sally. 

She’s like many of us when it comes to money – she feels guilty whenever she thinks about it. 

So, what does she do? 

She tends to avoid thinking about money altogether. 

The trouble is, her credit card is near maxed out, and she’s paying shed loads of interest.  She has missed 3 payments over the last six months so has added charges for that and her credit score has plummeted . The financial storm is brewing, and unless she takes action soon, it might become a full-blown crisis.

I encourage people to treat their financial lives like an adventure. 

It’s about approaching it with curiosity, courage, and a sense of exploration as we navigate through the complex terrain of financial decisions, from credit agreements to mortgages, from buying products with guarantees to opening bank accounts.

Every financial adventure requires some essential tools.

Just like an explorer needs a map, compass, and a clear destination, we too need to be equipped for our journey. Here’s how those tools translate into personal finance:

Map (Spending Plan or Budget): 

Much like a map guides an explorer, a budget or spending plan guides our financial decisions. It helps us allocate our resources wisely and stay on the right track.  As a money coach I have a beautiful Money Map designed in excel for my clients but you can make your own.  List out EVERYTHING you spend in a year.  Have categories like Personal Care, Bills, Holidays, Debts, Household etc.  Some banks categorise spending for you – maybe mirror those categories if they work for you.  Check that your bank have categorised them correctly and you may get more useful information from your bank to help you map.  Plan for annual events NOW – start saving for Christmas in January, holidays the month after you return.  Set aside money NOW for the car service next year… plan ahead.  Map your financial path. It works I promise.

Compass (Tracking Spending): 

A compass ensures we stay on the mapped path. In personal finance, tracking our spending is our compass. It helps us monitor where our money is going and whether we’re heading in the right direction. Try using an app like Moneyhub where you can see all your transactions across all your accounts in one place.  Use your compass as you go.  Using it once per month to see if you “travelled the right way” won’t work… you want to see where you are going as you go, not after you went off track 2 weeks ago.  

Destination (Financial Goal): 

Just as an adventurer has a destination in mind, we should have financial goals that guide our actions. These goals give us a sense of purpose and motivation. Set one goal or destination and stick to it.  If this makes you feel a bit uneasy, make it small.  How about 1. Create the map?  Or 2. Set up a direct debit to pay the credit card?  Just…. Something.  You will soon get used to setting your path and look forward to it.  Give it a go today.

However, all these practical tools can be easily ignored if your mindset hinders you from taking the necessary actions. 

The problem is that whether you like it or not, your financial adventure keeps moving forward. The wheels of your financial life are always turning. The only way they’ll stop is if you choose to live a solitary life on a remote mountain top with no electricity, gas, or any modern amenities!  Living your money life on the front foot, rather than the back foot makes all the difference.  Getting into that mindset can be tough at first but, like any habit – it is easy with practice.

To illustrate the impact of your mindset on your financial journey, let’s explore the concept of Money Types. I work with my clients using 8 Money Types – 8 fictional characters, each with distinct thoughts and behaviours when it comes to money:

The Innocent: Head in the sand approach, seeks rescue, anxious, feels powerless.

The Victim: Lives in the past, blames others, highly emotional, resentful.

The Warrior: Action-taker, loyal, disciplined, confident, generous, wise.

The Martyr: Long-suffering, disappointed, critical, stressed.

The Fool: Undisciplined, restless, over-indulgent, financially irresponsible.

The Creator Artist: Non-materialistic, conflicted, passive, resistant.

The Tyrant: Controlling, oppressive, unforgiving, financially successful, materialistic.

The Magician: Wise, conscious, confident, powerful, loving, transforms reality.

Imagine these Money Types as passengers on a tour bus, which is your financial adventure. 

The critical question is, who is at the wheel? Who is driving your financial life right now?

The truth is, we all have these 8 Money Types within us, and your financial adventure will look very different depending on which Money Type is in control.

Let’s get back to Sally’s story. 

On the surface, she’s ignoring her debt situation because guilt overwhelms her whenever she thinks about money. Deep down, though, she’s worried, and her response to that worry is either to spend more or divert her attention to something easier to think about.

In adventure terms, her bus is trundling down the road with the Innocent at the wheel. It’s a dangerous path because the Innocent has their head in the sand, unable to see much ahead. If Sally doesn’t act soon, her bus is bound to meet an oncoming truck or veer off the road.

Sally’s task is to wake up, rouse the Warrior and Magician within her, and take action before crisis strikes. 

But how does she do this? 

The path to change typically involves four steps: awareness, acceptance, accountability, and action.

Awareness: Sally needs to pause and reflect on the guilt she feels when thinking about money. She must ask herself, “What is all that about?” In doing so, she becomes aware of the process she has created for diverting her attention away from solving her money problems.

Acceptance: Sally needs to accept that she has a problem and that she requires help. This realisation can encourage her to stop the bus momentarily because she knows there’s a better driver within her.

Accountability: Sally must be accountable and responsible for her situation. She can stand up, move to the back of the bus, and prod the Magician and Warrior. By sharing her problem with them, she asks them to take the wheel. They agree, and the new drivers are confident, action-takers, wise, and disciplined. Meanwhile, the Innocent takes a seat and has a nap.

Action: With the new drivers in control, Sally feels more in control herself. She can now look at her situation with fresh eyes, and the problem has a chance of being solved.

These four steps can take a few seconds or several months. The timeline is entirely up to Sally’s decision.

In today’s financial landscape, many people are struggling, while others are doing well but not paying attention to their financial adventure. 

Regardless of your situation, it’s essential to identify which of the 8 Money Types is currently driving your financial life. If the current driver isn’t taking you down the path you want to go, start by asking yourself questions and become aware of the first step in the process: awareness.

If you’re curious to learn more about your Money Type and which one is at the wheel of your financial adventure, you can take the Money Type Quiz on my website here.

Remember, your financial adventure is ongoing, and the path you choose to follow is in your hands. So, who’s driving your financial life today?

Take the Money Type Quiz – https://fannysnaith.com/take-money-type-quiz/