POSTED BY July 18, 2013 COMMENTS (24)ON
Just put your hand on your heart and ask yourself what did you enjoy more ! – Your Pocket Money which you used to get or your current Salary? I have asked this simple question to many people and majority of them said “Pocket Money”. Yes that is the answer I have got!.
That small amount that we used to receive from our parents or guardians was managed very well by us. We had very little knowledge about money or anything in life, but still we were highly effective and careful with our pocket money,compared to what we are today with our salary or overall financial life. A lot of you might be giving pocket money to your kids or to some family members, just see how effectively they are with managing money. Here are 9 tips to make your kids respect money
Here are some of the reasons why we enjoyed and took care of pocket money in a much better way than our salary today are as follows.
Reason 1# : You were so excited to receive it
The amount was not important but we were excited to receive the pocket money that we use to get. When you receive salary you feel – “That idiot is paid more than me, this company really does not care for me, I am really under paid”. All these conversations inside your mind actually kill your excitement. You are unable to enjoy the money that comes into your life and obviously you cant manage what you are not very excited about. As kids we never compared, we loved what we got, we were so content. We would put a small amount in our piggy bank and would make the most out of the money that we received. The pocket money was a GIFT!
Reason #2 : We were absolutely clear on what we will do with our pocket money
When mind is clear it helps you take good decisions. Each month we knew what we will do with our pocket money. Before the pocket money came in our pocket, we knew where its going to go and how much!. We knew what to buy from our school or college canteen? How many movies we can watch? What to buy for our friends on their birthdays? It was making the most of the resources that got into our life.
Reason #3: We were accountable to someone
At the back of our mind we knew that we are answerable to someone. We were accountable to the people who gave us pocket money. I remember buying stuff from my school canteen was so much fun. Today you are not accountable to anyone in your financial life. You start your SIPs without asking anyone and even stop or redeem them without asking anyone. I always suggest our financial coaching clients to get accountable in their financial life. I ask them to see their spouse as their co-pilot. Imagine your wife won’t allow you to step into the house until you buy your term plan? Imagine your wife won’t allow you to enter the house till you don’t start your investments? Can you see the rigor it can bring into your overall financial life?
When I get on call with my clients, I keep asking them to share with me what kind of feeling they had when they got their pocket money and when they used to handle it and the same thing for the Salary they get. Here is the kind of responses I get from them. I am sure these would be true even for your case.
We want you all to do this exercise. Make a table and on one side write your experiences with your pocket money and on other side your salary.
Here is an amazing sharing from a reader Pankaj Kapadia on his experience
When I had Rs.500/ in my pocket.in 1993…I used to feel that i was richest man on the earth. I could buy pepsi Rs.2.5/-, watch movie 15/-. have bhelpuri 3/- . Give party to all friends 100/- travel by bus Rs.2/- and still had funds. Now with 50k salary and 20k emi, 8k school fees, 5k maintainance , 20k groccery bills I am left with nothing. From life of my own now I have kids and wife to look after along with parents. I am responsible for 4 more financial dependents and hence all their dreams are mine. Their education, clothes, entertainment, illness are mine.
I agree pocket money gave me more satisfaction and salary less. I also admit my son with rs.100/month is much more happier than myself. It has more to do with carrying responsibility on my shoulder. My dad did for me and I must do it for my childrens
It is really not important how much money comes into your life what really matters is how happy you are to receive that amoun and how grateful you are with that amount and what exactly you do with the financial resources that comes in your life, because that’s what is in your direct control. The experience we had while we received pocket money and our first salary was the same, we can choose to have similar experience all our life if we want to. Today the good news is that you are your own boss and the bad news is that YOU are your own boss in your financial life. Report to someone what you are doing and not doing in your financial life.
We have created 100moneyactions.com program so that you can be dedicate your 20 weeks for your financial life and complete almost all your financial life actions pending till date. This will really bring in a lot of accountability and will source your financial life with action. Do share how you are going to bring in NEW level of excitement in managing your salary money the way you use to enjoy your pocket money.
This article is written by Nandish Desai.