The Serenity Prayer Of Finances
“Grant me the serenity to accept the things I cannot change; courage to change the things I can and wisdom to know the difference”. Though a fixture of contemporary life, and often joked about in popular culture, there’s a lot about the serenity prayer that can aid our finances (and general existence I think). Here are some ideas on knowing what you can change and accepting what you can’t control about your finances, and how it might benefit your long-term financial security.
The Things You Cannot Change
You cannot change the global economy. You can’t control which companies fold and which will boom. No one can comfortably predict the housing market, likelihood of recession or collapse of certain markets, and for every person that can, there will be ten who suggest otherwise. We like to think we know everything about how best to control our money, but the reality is that there are some things that might just happen. The key is to prepare as much as possible for that eventuality, protect yourself from over-exposure and let the rest go to the cosmos. Making intelligent decisions will protect you a great deal, but no one has a crystal ball and setting up your finances as if you do will only lead you astray.
The Past Just Is
You cannot change what has happened. That might seem obvious, but unless I am an anomaly, it can be a pretty hard thing to actually put into practice. The only thing you can control is the present. The only thing that will make you feel better is action. Inaction will lead to financial panic eventually. Even if you start with the smallest step, it will make the largest difference to your financial mindset.
What You Can Control
You can control what you spend. You know what your income is and what your necessary expenditure is- and if you don’t, the first step is to come to grips with those figures. Focus on the smallest of minutiae- starting with what costs you can cut out of your life. You control unnecessary expenditure and reminding yourself of that every time you go to spend money will save you a whole heap of it. You own those decisions; you can’t control the curve of the ball unless you spend some time on the pitch, to exhaust the well-used metaphor. You can control, or at least aim to improve your income. Ask for a pay rise, or look at using your hobby to draw in some extra cash.
Preparing For The Uncontrollable
The things out of our control are never as scary if we have prepared for them as much as is possible. Life throws curve balls, but they don’t necessarily need to send your finances off-kilter. An emergency fund will take the sting out of a lot of those unexpected costs. Again, you can’t control the external. All you can control is your reaction to it and how you prepare for it. An essential of good financial management is to learn from each mistake and make the changes necessary to avoid exposure to a similar problem in the future. Smart finances, with a bit of breathing space, the flexibility to adapt to changing circumstances and long-term vision and strategy will be the key to true serenity, financially at least.
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