MONEY What’s your attitude to money?

What’s your attitude to money?


Money Matters
Brid Conroy

People are set in their ways. This is particularly so when it comes to money and the way we approach it.
Take a young man in the punk-inspired ’70s, let him loose on a bus to Greece, hardly a cent in his pocket, freedom the only thing that mattered. That was my husband. Then take my Dad raised in the ’40s, the war just ending, food was scarce and money was a treasure. For better or for worse, they’ve both stayed pretty much the same as time has gone on – one has a relaxed attitude towards money, the other is thrifty.
My advice for the year that’s in it is to take some time out to think about how you are with money. How does it rank in importance in your life? Do you want for something and wait while the money comes or wait until you have the money and then want for something?
Here’s a little exercise to help you on your way. Start by drawing a circle in the middle of a page. Then put lines coming out from that circle so it looks like a wheel. Between each spoke, write your main beliefs and attitudes to money. Think particularly about what really motivates you. Is it to make loads of money or to keep yourself above the bread line? Is it to take risks, be successful or be happy. Interesting, isn’t it?
When you’ve worked all that out, then write in the middle of that circle, your wish for yourself for this year. Make it something you can believe in and that can fit in with your main beliefs. Revisit this wheel regularly and monitor any changes however small.
As part of this review of your financial attitudes, it’s worth taking a look at how you did financially in 2011. When you get your P60 in the next couple of weeks, take a good look at your gross and net pay. Note for every €1 you earn, how much do you actually take home. Roughly add up your annual expenditure under the main headings that come to mind. What is the balance left that you can’t account for which will equate to your day to day living and how much is it per week. 
Speaking of tax, it’s also a good time to look at your tax credit certificate, which will have come through about now. Your credits will be listed on the back. Cross-check them to the Revenue website, Revenue.ie. In the search key put in tax credits and a list will appear.
Bear in mind, you may be due a rebate particularly if you haven’t worked for a full year. You can go back four years if need be, to 2008. Health Contribution from 2010, 2009 and 2008 may have been overpaid if you earned under €26,000 in the year but some weeks earned over €500.
As Einstein is reputed to have said, the definition of insanity is doing the same thing over and over again and expecting a different result. There really is no better time to think just that little bit differently.

BRID CONROY FCCA is a Chartered Certified Accountant with a practice in Louisburgh.
She works on improving personal finances and the profitability of small and medium-sized businesses. To contact Brid, call 098 66870 or theoldschool@iolfree.ie.