In my YouTube videos I often use the analogy of carbohydrates to explain the benefits or dangers of credit cards or other credit providing products
If you eat carbs with a balanced diet and not too late in the day, they can provide you with the right amount of energy to get through your day.
But abuse or over indulge in carbohydrate consumption and you may end up with unwanted weight gain and feeling sluggish, bloated and lethargic. Same with credit cards, use them wisely and you may save money from the interest free period, or even earn frequent flyer points (my favourite), which can save you thousands of dollars, if not more.
But go crazy with credit, you may have similar feelings, but possibly deeper and darker and with mor
guilt, remorse and often embarrassment.
For years I have always thought there was a link between weight management and financial health. I have seen it in clients, as their personal debt reduces, they start to look healthier, slimmer and to be honest, a lot happier.
Well now my theory has been proved. A study at Ohio State University, involving over 7,000 people over a 15 year period has found that as people’s weight reduced, their net wealth also increased. The study discovered that the same concepts that are needed for dieting are the same concepts for saving and investing.
Principals like making smart decisions are key…picking up an apple instead of a chocolate bar, (guilty), saying no to
another white summer dress (guilty), then understanding delayed gratification like going for a workout before tucking into that pizza for dinner or saving up for that new handbag before buying it (not guilty).
Interestingly, the one thing I find I am guilty of that relates t
o both my wellbeing and finances is relying on the ‘quickest solution’. When I am ravenous, I tend to snack on what is readily available…chocolate….and when I am time poor I will take a taxi to work instead of public transport, which actually ends up costing me 6 times the price!
So in summary, we should be making our best options the easiest and must ensure that they positively correlate with our desired outcome and goals. Also we should consistently remind ourselves of what we are working towards and our big WHY, as well as the positive feelings and changes our decisions will bring us to.
I am pleased to share with you that I am putting down that chocolate bar right now…
Canna Campbell is the founder and director of SASS Financial Services, a boutique financial planning firm. She is Channel 9’s exclusive ‘money expert’, founder of financial media platform SugarMamma.TV and best selling author of The $1000 Project and Mindful Money.