Regardless of how much money we accumulate, most of our financial decisions are influenced by emotions or impulse. Financial decisions are often the last thing we want to think about due to our busy daily schedules and the perceived complexities around the topic.

Even when we do manage to be diligent, there will be times when we are irrational which can cause problems in the future. Ignorance might be bliss in the short term but the lack of awareness around your personal financial state can often lead you to think that financial problems are related to fate and not because of unconscious decisions.

Being honest with yourself
Events like Covid-19 are unpredictable and having to deal with the consequences of the pandemic was not anyone’s choice. Even without experiencing health effects or seeing others get sick, many of us have experienced changes in our finances.

The unfortunate reality is that no one can promise that the future will be better financially unless we as individuals actively take the steps needed now to secure our financial future. A starting point would be to become confident with your finances – this stems from being honest about what you do and don’t know about financial topics.   

Your relationship with money
A core objective of 22seven is to help make saving and investing simpler and more accessible. This helps you to become more confident about money issues. Features on the app have been developed and have been continuously improved with the aim of improving your relationship with money.

Our relationship with money is often tested, especially in times like these, where we can lose sight of our long term goals by reacting more to short term events. This is why creating a goal is so important as it gives you the reason for which you started saving. Having a “why” sets a target and rewards you for saving – improving your relationship with money.

Why do we budget?
In its simplest form, a budget gives you an indication of your expenses in comparison to your income. But it also gives you a sense of freedom, knowing you have money to invest and save.

Furthermore, having a budget automatically created for you, updated regularly and including all of your accounts, avoids the hassle of having to manually enter figures, or even omitting figures, as you unconsciously say to yourself that it was a “once-off” item.

Actually having to observe your behaviour, although it might be sometimes tough, is the start to consciously make changes to your financial lifestyle. Even when your income is less than usual, you are aware of the areas where expenses could be cut first.

In events like Covid-19, a budget helps you to navigate and adapt your finances to your current situation. Being in the dark will often add unnecessary worry which could lead to you cutting costs in areas which are actually more important than others.

Personal insights into your finances
For financially privileged individuals, access to a financial advisor means that they have someone to help remind them of the need to control expenses and to save. With financial issues often being an emotional topic, the willingness to speak to friends and family is bypassed as we naturally find it difficult to do what others tell us to – even if this advice good for us.

The feature on 22seven which gives you personal insight and nudges is often similar to the information given by a financial advisor. The app highlights things you might not have known before or may help to change your money habits. Automated alerts act as reminders, helping you remember to be conscious about the next time you swipe your card.  

You may have found yourself wondering what to do during this uncertain time with no one to turn to. Take the first step towards securing your financial future by understanding your personal financial situation with the help of a convenient, easy to use app. This, together with our weekly finance-demystifying blog content will help you to #BossYourMoney.

Ross Reid

Written by .

Ross has joined the 22seven team as a Slice and Blog writer. He's a keen financial writer who enjoys demystifying the world of finance. Ross is currently pursuing the CFA designation and has a background in Real Estate finance and investment. In his spare time, he can usually be found reading, running or on the football field.
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