LESSONS FROM THE MONEY MOTIVATORS
Financial gurus know pretty much everything there is to know about making the most of your money, so we asked them to share their secrets with you…
Top financial tips
The writer of Gulliver’s Travels, Jonathan Swift, once said: ‘A wise person should have money in their head, but not in their heart.’ As money goals go, this seems like a good one. But removing all emotion from your financial decisions is not easy. And at this time of economic uncertainty, it can feel harder than ever. How do you resist the temptation to spend, and force yourself to save? What tips can help you achieve your money goals? What does the future hold? How will it affect our relationship with money? To get answers to these questions, and grab a bit of their money magic, we asked three of the most financially inspiring people we know to tell us how they learned to handle money successfully, and the advice they would pass on to others. So, read on to get money motivated…
DEBORAH MEADEN
The entrepreneur and Dragons’ Den investor is also an ambassador for the charity Lendwithcare*.
How did your childhood influence your attitude to money?
I learned very early on that I needed to work for my money. Both my parents worked – they went into business together – and we didn’t have a lot of money. I knew that if I wanted something, I would have to earn the money to buy it, and it might take a while. As a family, we talked business all the time. My parents were always looking for opportunities and new ideas, and even when I was very young, they would take my ideas seriously – such as putting a flower stall at the end of the drive. They wouldn’t patronise me or say, ‘You can’t do that.’ They would tell me, ‘Give it a go!’ That definitely helped set the tone for the way I was going to be.
How do you think you got to where you are today?
By getting on with what I wanted to do. I’m an impatient person and
I always wanted to get out there, into the big wide world. And I understood, as a young child, that you don’t just ‘get’ anything. If you want something and you don’t do something about it, nothing happens in your life. So, no matter how scary it seemed at the time, I just took one step forward, then another and another. When I think of something and I really buy into it, nothing is going to stop me doing it. I don’t see obstacles. My view is: I can overcome anything. I just need to find a way around it.
What’s your money mantra?
To make my money work for me. There’s no point visiting cash in the bank. I like my money to be out in the world, doing something.
What money mistakes have you made?
When I set up my first business, I ran up a £3,000 debt on credit cards. When you don’t have £3,000, that feels like a hell of a lot of money. I had to ask my parents to guarantee a bank loan to pay it off. And I hated that. It was a good lesson for me. It taught me that there is a big difference between borrowing money in a planned way, when you know you have a good chance of being able to pay it off, and accidentally getting into debt, which is what happened to me. It made me think long and hard, every time I borrowed money, about how I was actually going to end up paying it back.
‘I’ve introduced a “one in, one out” policy in my home’
Even when I was very young, my parents would take my ideas seriously
What advice would you give to others?
To only buy stuff that, in the long-term, is going to make your life better.
If you love it and it is going to have a long-term beneficial impact on your life, go ahead. But if it’s just that you want something shiny and new in your life, don’t do it. About 10 years ago, I introduced a ‘one in, one out’ policy in my home. So, I’m not allowed to buy anything new unless I am replacing something else. I have to ask myself, ‘What do I love less than this?’ It really does make you think.
The next big trend in money is going to be…
Fewer currencies in the world. I think there’s going to be a lifting of national boundaries around currencies as people gain more confidence in virtual currencies, such as cryptocurrencies. Just because we are in Britain, it doesn’t mean we will keep British pounds with a picture of The Queen. We are rapidly moving towards becoming a cashless society.
What is your top money tip?
To value the security that your savings can give you and not to underestimate how you might feel if you have no safety net to fall back on. There is nothing you can buy that is worth the worry you will feel if you fall into debt.