iscover
They say three topics should never grace a dinner party: religion, politics, and money. When it comes to money, though, could it be the first step to better financial wellbeing?
“I think it’s funny we don’t talk about money. I heard someone say that when you’re at a dinner table, you’d rather tell them about your love life than how much you earn,” said money and wellness coach Marc Bineham.
“I don’t know why, but it’s one of those hidden things that people suffer through on their own.”
Increasingly, business leaders are opening up about mental health and the way it interacts with work. Considering that the relationship between money troubles and mental health struggles is clear, it’s worth asking whether part of the conversation is being ignored.
Earlier, we put together an article based on an episode of The HR Leader with Marc Bineham on the role employers should play in protecting the financial wellbeing of their employees.
Now, we’re sharing Mr Bineham’s tips on what individuals can do to save money in a fraught economy. But first, let’s unpack why saving money – even for those on a comfortable salary – can be such a challenge.
Money is emotional
During the pandemic, many expected to save money. From cutting back on daily commutes, holidays, and other activities to saving on incidental in-person purchases, it seemed there were fewer opportunities to spend.
However, Mr Bineham said that’s to forget that money is emotional: “Everyone has experienced retail therapy. We’ve all gone and bought something to make us feel better … when people were stuck at home, being isolated, that definitely had a great effect.”
It’s a fact that mental health suffered over the COVID-19 pandemic, and, Mr Bineham said, these challenges need to be understood from a financial wellbeing perspective.
When budgeting, it pays to reflect on the emotional drivers behind our spending: “Every time you tap and go, ask: ‘Why are you spending that? Is that because you need it or because you want to feel happier?’”
“A lot of people [think] because they were good at maths at school, they’ll be good with money. No, money is a very emotional thing, and people need to recognise that to get an understanding and control of it.”
Getting your expenses under control
In our discussion with Mr Bineham, he shared the following pieces of advice for those looking to limit their spending:
1. Know your why
When you have a reason to be saving, a precise target, and a driving purpose, suddenly, the savings seem less daunting, and you can become less susceptible to impulse purchases. As quoted by Mr Bineham, it was Simon Sinek who said: “If you know your why, the what and the how come easier.”
2. Pay yourself first
All too often, people make the mistake of conflating savings with whatever happens to be left over after a given period. Instead, Mr Bineham said, we should be more proactive in setting aside a given amount before we begin chipping away at our savings account.
“Always pay yourself first when you get your salary,” he explained, “make sure you’re the first debit, and make sure you’re putting that into a separate bank account that you don’t touch”.
3. Little wins
When repaying debt, it helps to start with the smaller repayments first to build momentum. Getting in control of your debt can be emotionally empowering, and that feeling can serve as fuel. In repaying debt, it helps to simplify the process, such as by limiting the amount of credit cards in your name.
“It’s very hard not to have a credit card in this day and age, but make sure whatever credit card has got the smallest amount is the one you try and pay off first. Get little wins first, but do get in control of your debt.”
4. Map your expenses
For Mr Bineham, it’s a constant source of surprise just how many people, including those on a good salary, find themselves wondering where all their money goes each month.
“You need to sit down at least once every few months and look at your expenses, and you’ll be surprised how many streaming services you have, how much Uber Eats you’ve [ordered],” he said.
“And once you actually get an understanding of your money, get an understanding of where it’s at least going, you can get control back, and you actually then find areas to try and save. And once you’re saving, you’ve then got to get your money working harder for you. And that’s another story.”
The transcript of this podcast episode was slightly edited for publishing purposes. To listen to the full conversation with Marc Bineham, click below:
Nick Wilson
Nick Wilson is a journalist with HR Leader. With a background in environmental law and communications consultancy, Nick has a passion for language and fact-driven storytelling.
