Life is a Balance: Don’t Fall Prey to Unhealthy Financial Behaviour

How many times in your life have you been forced to confront your approach to money? For the spenders it often comes after a period of excessive spending, which is often followed by a period of extreme cost-cutting and debt repayment.

Many people have a love hate relationship with their personal finances, jumping from one extreme to another. Moving from a complete lack of reasoning and understanding of consequences, to hoarding every penny. The obsessive spender transforms into the obsessive saver.

Obsessive financial behaviour has its benefits

If obsession is what leads to a ‘financial correction’, a little obsession can be a good thing… It can drive a person to mercilessly track every dollar of income and expenditure, turning their desperate financial situation into a healthy bank balance.

For individuals that see very little – if any – net income at the end of each month, this approach is highly recommended.

Taking this obsession too far can be detrimental. The passion to move your finances in the right direction can quickly become the only focus, creating an unhealthy financial approach that can negatively affect you and flow on to those around you.

The problem with extremes is they’re too absolute – “I could get hit by a truck tomorrow” is no basis for a budget (personal insurances on the other hand) and neither is a mindset of extreme frugality.

If you feel you are an extreme saver it is important to remember your value is not defined by your net worth. For the extreme spenders, there are advantages to growing your bank balance, and that is having the means and confidence to spend without the guilt of cost-cutting consequences.

In truth, the only purpose money holds for you, is what you can do with it – Money has no intrinsic meaning…

Extreme savers have an edge over extreme spenders.

Financial goals! That’s not to say the extreme spender doesn’t have goals, it’s just that their personal goals have not been pegged to a financial goal e.g. rather than saving for a holiday, it would be funded by credit, burdening the extreme spender with debt and interest charges.

Borrowing from tomorrow for today’s enjoyment can dilute the enjoyment you derive from a holiday (or any other lifestyle purchase) knowing todays spending is going to be paid for by tomorrow’s cost-cuts.

Money, just like Life, is all about Balance

As you’ve probably heard a thousand times before, life is all about balance. Yes, it is important to live each day to the fullest and never take a moment for granted, but each day must be balanced with a consideration for tomorrow.

Rather than spending because you enjoy spending, what does money mean to you?

Think about what’s really important to you and attached it to a financial goal! The next week’s credit card spree could be next month’s skydiving adventure (paid in full), or it may come down to the little things…

You don’t have to strike this balance perfectly, but for those who fall prey to unhealthy financial behaviours, anchoring personal goals to a financial plan can lead to you having (or doing) more of what is important to you and less of what is not.

Confronting your finances and striking a balance, rather than resorting to extremes, can lead to a more rewarding relationship with your money.

Get the balance right today and watch the same financial confidence begin to flow through to your bigger, longer-term personal goals.

What our clients say…

John has been working with my partner Jarryd and I for roughly six months to one year now, we are both young professionals and were looking to buy our first house. Obviously not knowing anything about the property industry or setting up long term wealth in general we really wanted to set ourselves up for the best chance of success. After meeting with John and the team at Nexus there was no question in our minds that we were going to utilise their services. John has spent copious amounts of hours with us imparting his wealth of knowledge and carefully guiding us to now having just signed the contract on our first property. From the very first meeting with John we felt extremely comfortable. He has made making such a huge decision as easy as it possibly could be and we could not recommend his and Nexus’s services more. Jarryd and I are both looking forward to a long, mutually beneficial relationship with John and the team.

After many hours of searching for financial advice within the Brisbane city, I was left with very little to choose from at a professional level. I came across the Nexus page and started researching. I liked what I saw and found it very user-friendly. Nexus offered us first class service with no hidden costs and was hassle free from the beginning. We have every confidence in the team at Nexus to help us create wealth and guide us to a healthy investment portfolio. With no hesitation whatsoever, the team at Nexus is highly recommended.

I just wanted to say a big thank you to yourself and your team. As we discussed we have found that everyone involved has been extremely personable, friendly and highly knowledgeable in their area. At no point have we felt pushed into anything and we have felt supported 100% of the way.

Our Clients

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