To create wealth one must understand money and how to manage and make it work for you. However, creating wealth also requires patience and discipline to use money as a means to an end and not just an end in and of itself.

In a recent conversation, a fellow corporate executive confided in me that she was frustrated with her financial situation and was tired of being broke. As expected, she stated she has a sizable monthly take-home salary, with allowances and benefits. She confessed that in a bid to enjoy life, she had gradually developed extremely questionable spending habits. On the outside, life was good, and she was living the dream she had always wanted. However, with soaring expenses and now being deeply addicted to spending to keep up appearances, she was one and a half pay cheques away from destitution. Considering her dilemma, it was obvious that her relationship with money needed to be re-examined, but more so, her mindset and priorities. Patience is also important because it allows you to forgo today’s desires in order to invest, whether in a business or other assets, to achieve your long-term goals. Now, this doesn’t mean that you can’t treat yourself occasionally, but rather that you balance embracing the joys of today with set boundaries, while also giving up of today’s guilty pleasures in order to achieve your long-term goals and financial freedom. After all, building wealth requires adopting a strategic and disciplined approach with the goal of realising sustained financial success.

A Case of Instant Gratification

Instant gratification is the strong urge to fulfil a desire immediately. Oftentimes, this urge is fuelled by external stimulants such as ads that pop up on social media or the TV screen, beckoning you to live like, or beyond, “the Joneses” or to buy and do things because they are what successful people have and do. Well, what’s wrong with instant gratification — shouldn’t we enjoy life, considering we only live once?

Instant gratification can impact your finances negatively and can have a significant impact on your well-being. One typical sign is excessive credit card debt, where individuals accumulate balances due to frequent impulse purchases and an inability to resist immediate desires. This inclination to prioritise immediate desires over future needs is rooted in psychological factors based on often negative past experiences. This type of behaviour can be a significant barrier to wealth creation, even if you earn a lot of money. In other words, if the need to keep up with the Joneses outweighs the reality of your financial circumstances or prevents you from engaging in prudent financial planning, then real wealth will become elusive despite the amount you earn. Are you identifying with the circumstances outlined here? What strides can you make to break from this vicious cycle?

Wealth doesn’t usually appear instantly and doesn’t present itself unexpectedly. It usually takes a well-thought-out plan over a long period of time. This season of Lent is the opportune time to lay squarely on the table the financial opportunity that can be found in re-examining your financial circumstances, habits, and outcomes. Lent is typically a period of fasting, prayer, and repentance for the Christian faithful. Maybe it can also be a time for financial fasting and a mental reset. Here are a few pointers to get you started:

Develop a Long-Term Mindset and Have an End Goal — Embracing a perspective focused on long-term financial success involves cultivating consistent habits and disciplines which can contribute significantly to financial stability. It requires overcoming the natural inclination for instant reward in favour of more substantial gains in the future. In addition, when you develop a long-term mindset, you typically work towards an end goal. You can link your financial fasting journey to a specific goal – saving for a house or funding education. Having a concrete objective keeps you focused and motivated.

Draft a Spending Plan — Budgeting forms the cornerstone of personal finances but it requires discipline. Map out your income and expenses to spot areas where you can cut back. Once you’ve sorted your expenses, decide where your savings should go. You can do this by balancing short-term needs like dining out with long-term goals like retirement planning or paying off student loans. However, budgeting should not restrict you from enjoying the present moment. It should, however, facilitate you capping how much you spend on wants such as entertainment, etc, while allowing you to commit funds to put towards your medium-and long-term goals.

Automate Your Investments — Make investing a breeze by setting up automatic transfers to a dedicated investment asset or account. Automating the process of committing funds to your long-term goals removes the need for action on your part and is a form of built in discipline. This can be useful in the early stages when you are trying to control your impulses or build the habit. Some brokers have tools that allow clients to automatically purchase units in a pooled fund or to invest in the stock market. Choose investment options that are not easily accessible and/or have penalties for early withdrawal to help you create the discipline you need.

Uncover the Culprits Behind Your Spending Habits — The toughest part of financial fasting is pinpointing what is causing you to splurge unnecessarily. For some, it might require them to look for signs of boredom, stress, impulse buying, and social pressure from peers. Yet for others, it might be linked to past experiences, such as growing up in poverty, which has led to bad habits around spending and money. Individuals who find themselves in this scenario might require the help of a financial coach or counselling to unearth and mend the root cause of their negative relationship with money. Whatever your situation, be very deliberate in fostering a healthy relationship with money. Remember, smart spending practices will enable you to take charge of your finances and lay the foundation for you to build wealth.