Money plays a crucial role in shaping various aspects of our lives, including career choices, education, housing, relationships, and overall well-being. Despite its importance, many people struggle to understand how money works, manage it effectively, or recognize its emotional impact. Financial literacy involves more than just budgeting; it requires a deeper understanding of money’s dynamics. Poor money management can lead to stress and insecurity, while mastering it fosters peace of mind and creates opportunities for growth. In today’s fast-paced, consumer-driven world, cultivating a healthy relationship with money is essential.
A lot has been said and written about money management, with many of us familiar with the basic principles like spending less than you earn, building an emergency fund, and paying off credit card balances in full. Yet, these guidelines seem to have little impact on people's actual financial behavior. Consumer debt is on the rise, financial insecurity is common, and money remains the top concern for a large portion of the population.
American businessman and author, best known for the Rich Dad Poor Dad series of personal finance books, Robert Kiyosaki says, “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” He points out that true wealth comes from smart saving, effective investing, and building lasting financial security across generations, not just from earning money.
So maybe it’s time to look at our money habits differently; and to understand that our money behaviour lies at the intersection of psychology, behavioural economics and neuroscience. It may be worth taking the time to understand how a few key actions and perspectives could positively impact our financial wellbeing.
Marilyn L. Pinto, Founder of KFI GLOBAL, an education company that specialises in teaching individuals how to handle money smartly and responsibly, propels to the forefront the ADEPT Framework during her sessions. On a mission to bring this life-changing education to more people across the world, Marilyn feels that ADEPT is a good place to start:
A – Agency:
The first idea to grasp is that we need to take agency in this important quest. It’s all too easy to sit back and wait for the stars to be perfectly aligned before we start, while precious weeks and months fly by. We mistakenly, and oh-so-patiently wait for something or someone to urge us on.
We need to realise that getting on the path to financial wellbeing is too important to be left to chance, or to other people’s motivations. Taking agency in this aspect is crucial. We will realise that our actions compound over time and give us a financial advantage.
D – Discomfort:
We need to feel discomfort, it’s the first sign that we’re evolving. Growth happens outside the comfort zone. So if we’re not feeling stretched beyond our usual boundaries, it’s very likely we’re not doing enough reps to make a noticeable difference.
True, it isn’t ideal; no one particularly enjoys feeling inept. It’s daunting and intimidating. But as legendary self-help author and lecturer Bob Proctor said, “Everything you desire is on the other side of fear.” Putting ourselves in positions outside our comfort zones is soul-strengthening. There’s no denying that this growth will inevitably lead to financial rewards.
E – Education:
Financial education is a crucial component of the ADEPT framework because many people overestimate their financial knowledge, which can lead to costly mistakes. This overconfidence is known as the Dunning-Kruger effect, a cognitive bias where individuals with limited expertise in a subject believe they are more skilled than they actually are. In the context of money, this means that people often think they understand financial concepts like budgeting, investing, or managing debt better than they do, which can result in poor decisions—such as taking on too much debt or making bad investments. Proper financial education helps bridge this gap, empowering individuals to make informed and smarter financial choices, thus avoiding these pitfalls.
P – Purpose:
Finding our purpose is extremely important. It’s not just about choosing a career or setting goals; it’s about discovering the deeper meaning that drives us. Purpose gives us a sense of fulfilment and direction, and more importantly, it equips us to face challenges with resilience. When our work aligns with our purpose, we experience greater happiness, which positively impacts our mental and emotional well-being.
In The Happiness Advantage, author Shawn Achor argues that happiness isn’t just a byproduct of success, but actually the foundation for it. He explains that happiness fuels performance and achievement, giving us what he calls the “Happiness Advantage.” This mindset not only enhances personal satisfaction but also contributes to financial success and overall well-being.
T- Thinking long-term:
Arguably the most important element of this framework is the ability to think long term. It’s also the hardest; especially in this age of instant gratification. Used as a primary decision-making strategy, it helps us easily distil the good/ smart decisions from the bad/ stupid ones. All we need to do is ask ourselves ‘What’s better for us in the long run?’ and while the answer may not always be what we want, it will invariably align with what we need.
As with any skill, we get better at this with practice. Over time, the ability to prioritise the long-term impact our actions have becomes an invaluable asset, one that not only steers us away from impulsive decisions but also strategically positions us for success — financial or otherwise.
We can transform our relationship with money, no matter what age and stage of life we are at, and set ourselves on a path to lasting financial well-being. The journey may not be easy, but the rewards of smarter money habits are a sure-fire way to shape a more secure and prosperous future.
Source:Khaleej Times
Bd-pratidin English/ Afia
