Using A Strengths-Based Approach in Personal Finance
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In the world of personal finance, there are many things that can go wrong. An unexpected expense can send a person spiraling down into credit card debt in the absence of an emergency fund. Losing a job can make it impossible to pay the mortgage on an overly expensive home. Risky investments can disappear overnight. With all of the mistakes that can be made, many people find themselves with an overwhelming amount of work to do to fix their finances. Where should they start? How should they go about it?
At this point, many people start focusing on their weaknesses and punishing themselves for them. For example, they may realize that they have a weakness for impulsive spending and decide never to go shopping at the mall again. The problem with this approach is that it usually leaves people resentful and they give up on their endeavors.
I would like to offer a different approach to fixing your personal finances: the strengths-based approach. The strengths-based approach involves identifying everything you are good at and using those things to your advantage. For example, say you have a problem with impulsive spending, as mentioned above. If you are using the strengths-based approach, you will identify what things you are good at that could help you solve this problem. Perhaps you are good at being organized and making lists. Instead of not going to the mall anymore, you can plan out exactly what you will buy at the mall, how much you are willing to spend on each item, and which stores you will visit. You would then write these things down and bring the list to the mall with you. If you stick to the list, you will have less of a problem with impulsive spending.
Another way to use the strengths-based approach is to identify which resources you have and use those resources to your advantage. For example, say that you do not have a very high income. If you are not using a strengths-based approach, you would say “Well, I do not make very much money, so I am not going to be able to buy very many groceries this week.” However, if you do use the strengths-based approach, you would consider what resources you do have. Perhaps you have a very large extended family. You might then ask your family to save up any coupons they will not be using and give them to you. This would greatly help your grocery problem without focusing on weaknesses.
The reason I like the strengths-based approach so much is because it is empowering. Instead on focusing on what you can’t do, you focus on what you can do. Instead of focusing on what you don’t have, you focus on what you do have. You are the one in control and you have the ability to make a difference. It is a great motivating tool.
When you get a chance, take a few minutes to write down what things you are good at and what resources you have available to you. Then, think of ways to use these things to your advantage. You will be surprised just how much you are capable of doing.
What do you think about the strengths-based approach? How have you used it in your own life? Please leave your thoughts.
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Thanks for sharing such great post about personal finance, it will surely help people to thing this way.
I should notify you about it.