I thought people don’t normally consider the Fight or Flight response and money?
It is all about the resources, we feel we don’t have and feel threatened about.
So that call from the bank?
We ignore it or go, right, I am going round there to deal with it now – which is flight or fight.
What is the flight or fight response? I have a little sum up here, as I think we all know.
“Stress is a biological and psychological response, experienced on encountering a threat, we feel we do not have the resources to deal with. ” Quote and picture by Simple Psychology
When you get in a life threatening situation, you do need to take action and that’s why we have this wonderful thing.
But when it is your ego that is in danger of dying and not your physical body, we need to come up with a new strategy, particularly when it comes to money.
I think the most extreme thing I have ever seen someone do in a Fight mode is buy a house they have never seen at an auction. They just got carried away with the auction – it was like “I must have it”. Fortunately it was only £60,000 but I can’t imagine what state that house was in?
On the Flight response, I have been round to people’s offices who have years’ worth of unopened bank statements, they can’t bear it and are “la, la, la, la, la”..
Bank statement, balances, paperwork – la, la, la, la, la, with their fingers in their ears, that’s the flight response.
When we get stressed, we find it very difficult to deal with, if we deal with it at all.
Often we don’t make great decisions.
I wanted to draw your attention to this fact, so you can make better decisions.
Be in control of your money, rather than have this human response be in control.
Everything can wait one minute, nothing needs to be done that second.
We can all wait a minute, especially when it comes to the ego.
If you know you are making a decision and you are hot, sweaty and panicky about it.
Take a minute and ask yourself “am I doing this because I am ‘fighting’ or ‘flighting’ or am I doing this, because I have thought this through and it really is a sensible thing to do.
We are not going to go into the relaxation response, which is the best way to deal with it.
This is the awareness stage, to start noticing you are doing it.
Then breathe, long slow breaths to calm down your heart rate and lungs and relax in the chair.
That’s where we are going to end up, nicely relaxed about money.
Is there anything I need to do with my business before the end of the tax year on 5th April 2017? (UK)
Now this is the time of year accountants and financial advisersget very excited, they are also quite often busy.
It is all to do with Tax Allowances, which I know sounds really boring but it is essentially the government’s way of encouraging us to do things , like savings and pensions and other things like that.
So before you glaze over and switch off. I have made it as simple as possible. So you can start your journey of understanding these things, because they are important and will provide for your financial future.
Let’s face it, most of us don’t get up in the morning going yeah! Let’s sort out our savings and pensions and tax allowances, how exciting!
So simple, so clear, let’s go.
If you bring home to you, less than £11,000, from all your jobs and businesses. That’s £11,000.
Here are my suggestions to consider.
Putting some money in an emergency savings account – you know it is important, well now is the time to create or add to your emergency savings.
To check your eligibility for the state pension, before you go ‘nooo, not relevant’ and dismiss it.
You only need 30 years of national insurance now to be eligible and if you are self-employed, it is actually a really good investment.
One they are probably going to change in a few years, so worth looking at this year.
This is the one thing I recommend you do – get a statement from the government on where you are with your state pension. click here to apply
So check out your state pension as it is a very good investment particularly when you are self-employed.
Married Couples Allowance
I know it sounds archaic but was brought in by David Cameron and not of lot of people know about it.
It will give you £220 a year, so worth considering. You can just apply online.
You are eligible if one partner is earning less than £11,000 and one partner is earning over £11,000.