Gameboys and money
In 1991 I wanted a Gameboy. Nintendo had released these personal gaming devices in 1989 in Japan; they appeared in Europe late the following year. Sadly it wasn’t close to Christmas or a birthday when this longing developed. My pocket money at the time was £2 per week. It was going to take a while to save up and I didn’t want to wait. That’s when my Dad did something that, in retrospect, might represent his finest act of parenting. He lent me the money.
The loans provisions were tight. Gameboys retailed at around £70, which equated to 35 weeks of pocket money. Each week I was to present with a small pink pocket book to have £2 removed from the debt recorded therein. I no longer had any of my own cash. The consequence of this was that on our Friday after-school trips to Circle K in Chobham my sister was able to purchase sweets each week and I was not. No dispensations were given for my, sometimes tearful, regret.
Given that I still remember this whole saga with some clarity, it seems to have had the impact it was designed to. I’m cautious with money. When I used to get bonuses after foreign operations in the Army I would save them. In my later corporate career when I had jobs that involved end of year bonuses I would save the vast majority there too. I have paid around 20% of my income into a pension ever since I left the army.
Not everyone finds this easy; just like I don’t find resisting biscuits particularly easy. But just because your habits point in a different direction doesn’t mean all is lost. Although I have a frugal streak, I force myself to spend on things I value – keeping physically active and my children’s extracurricular activities for instance.
Saving can be as much of a compulsion as spending. A problem only really arises if you have goals that are negatively impacted by your natural tendencies. If you need to save for retirement but are spending everything you earn every single month then that is a problem. Equally, if you have grandchildren overseas that you wish you saw more often and a surfeit of funds, why not book a few more flights?
Clearly this is easier said than done. It requires you to make decisions against the grain of your habits and beliefs. That is a hard thing. But it can be made easier with help. Financial coaching may seem like a woolly term but at Minos Wealth we believe this needs to come with tangible technical skills relating to tax and investments.
But we also believe that some of the biggest impacts can be seemingly simple. Suggesting a mindset change, providing some accountability or getting someone to write down what they really want; these can all seem without value. But our experience is that these can be some of the most impactful steps people can take to improve their finances and their lives.
If this strikes a chord, please get in touch.