Luck or Good Financial Management
What is luck?
According to Forbes, what most people choose to call luck is the result of being open to opportunity -- something that comes down to attitude, not happy accidents. Similarly, Psychologist and author Richard Wiseman found after numerous years of research that luck is completely a matter of how we live our lives. The people who consider themselves lucky are the ones who recognise their own good fortune wherever it happens and look at the world through that lens.
So what role does luck play in finance?
From birth, we are born into different socioeconomic and life circumstances. Right then and there, depending on how you define the term "luck”, luck may have already played a major role in the course of our lives. If you are born into poverty, your “poor luck” means that you are much more likely to have lower nutrition, safety, education, health, and nurture levels than someone born into extreme or even moderate wealth. Instead of focusing on the ways you’re lucky (or unlucky) with money, step outside that unhealthy mindset because having good financial management has nothing to do with luck.
Look at Your Earnings
When was the last time you asked for a raise? In all likelihood, the answer may be “never.” In a culture that values being polite, asking for more money may feel rude or confrontational. However according to The Muse, if you want to be earning more, you may need to ask for it. Of course, there’s a method to the art of salary negotiation. Shooting an email to your direct manager may not be the best course of action. However, taking the time to understand your company’s review policy, write a meeting agenda that outlines the value you provide to the organisation and speak candidly with your supervisors about why you believe you deserve a pay increase could be worth your while.
Ultimately, if you don’t feel the position you’re in is paying you what you’re worth when you compare the salaries at similar companies for similar roles, it may be time to start job hunting. You deserve to be paid fairly for the value you’re bringing to the table.
However, if you love your current job and aren’t ready to jump to a new position – but still want to be making more money each month – you might consider starting your very own side hustle! From monetising a blog to freelance writing, to launching a local consulting business – the options are endless.
What Are Your Priorities?
If you’re still mentally linking wealth and luck, you may want to take a hard look at your financial priorities. All too often people think that there’s “never enough” money when the truth is that there’s plenty of money available to them but they’re spending it in the wrong places. Change your narrative from one of “never enough” to one of abundance where money flows to and from you easily by prioritizing your spending.
You’re more likely to feel emotionally fulfilled (which is often synonymous with “lucky”) if you spend your money in areas that are important to you. Spending mindfully can look different for everyone, but setting a cash flow oriented budget and a few mindful money goals is a good place to start. It also helps to jot these things down. Your money priorities might look like:
Save for retirement
Pay down credit card debt
Spend more time with friends and family
Travel
You might notice that only two of those are distinctly money related – and that’s okay! You’re allowed to have both money-focused goals and spending priorities like travel or experiencing new things with the people you care about. In fact, focusing your spending on these more inwardly-focused goals will help you to feel “lucky” with money, and you’ll feel less of a need to spend frivolously.
Work With a Professional
Part of creating your own luck is creating a financial plan that meets your unique needs.
Having a personal Financial Adviser can be beneficial when:
You feel “lost” in planning for your financial future and you need a roadmap.
You just don’t want to deal. When it comes to money, you’re not the DIY type, and you just want a professional to take care of it.
You like managing your money, but realize that your financial plan would benefit from an impartial and unemotional third-party opinion.
A professional financial planner can help get you on the path to success by creating avenues that help your money start to work for you.
So, kick “luck” to the curb this March – you’re all the luck you need.