Let's Talk About Money

So how are your personal finances?

Do you know?
 

Rolling in cash? Struggling in debt? Somewhere in between?

Who do you talk to about money? I think it has become a bit of a taboo subject. It can be a tricky topic for conversation with friends if you want to avoid coming across as either arrogant or incapable of managing money.

When looking for a perfect-fit career move, finances will be somewhere on the list - it varies from client to client in terms of priority, but is always a feature. We do work with the expectation of being paid.

When you're thinking about salary you need to know two numbers. How much money you NEED and how much money you WANT.

When I ask clients 'How much do you NEED to earn', they rarely know. By need, I mean how much money do you need to maintain your current lifestyle.

For you to assess your lifestyle you need a list of all the must haves e.g. mortgage/ rent, council tax, electricity etc. Get this on a spreadsheet with a column label and approximate, monthly outgoing number.

PLUS you need to add all of your wants e.g. drinks with friends twice per week, dinner out twice per week, 3 holidays a year, savings etc. List these alongside your needs.

This is important. Be clear on what you want and how much it costs - this is your lifestyle number. Most people just add up their outgoings or their 'needs' number, and miss half of the puzzle. The number may be less, the same, or more than what you currently earn. 
 

The purpose of the exercise is to establish whether you need to change something 

If you're living beyond your means, create a plan to budget or increase your income. If you have a lot of 'wants' that exceed your salary, how are you going to generate more money to achieve them? I can help you plan, negotiate, move roles, get promoted...

My aim isn't to make you obsess over money as a reason for changing your job. But check in and see whether it's working for you or not. 

This week I'd encourage you to get closer to your personal finances. One simple way is to download 3 months of data from your bank - most will export into excel. You could highlight needs vs. wants and then assess whether you've been flippant or in the cold light of day think you have good spending habits.

Money is not a subject to be avoided. Clear some time and dig into your finances.