Xentum | Inertia with your money is an active decision

Inertia with your money is an active decision

July 4, 2016 - 3 minutes read

Posted by Claire Parker


I will tell you a quick story;  In my things to do, right at the top of my list while writing this is to sort out my energy deal which has expired.  It really pains me that my loyalty doesn’t get rewarded and if I don’t switch, my price goes up!  As easy as it is to switch energy provider, I know they haven’t got my bill right ever since I moved to them and will have to spend probably hours on the phone sorting it out. I really can’t be bothered doing it but it will no doubt get done at some point when I am feeling argumentative.


The moral of this story has nothing to do with energy providers. The majority of people I come across have this same inertia with money but I want to make one point very clear; This inertia has an effect on things and is a very much an active decision made by you.  If you decide to delay sorting your money out and organising your finances, this is a decision you are actively making.


One of the biggest examples of inertia I see on a regular basis are those with money in pensions all over the place with different employers.  Does this sound like you?  It is one of those tasks that you continually put off and probably never gets done, even with all the technology around now to make this process easier.


So what can you do to fight the inertia?


The most powerful thing you can do on any task is Start.  In money management, this means understanding what you have and where you are.  With technology, this is pretty easy these days as companies like money dashboard and ontrees will link to your bank accounts and investments and give you a summary of where you stand and also keep you up to date.  Most business owners know the cash flow of their business and where they stand financially, but not their personal finances. There is also a pretty cool pensions company called Pension Bee that will consolidate your pension for to solve the problem I described above.  Its is amazing how much money sorting this stuff out early will add to your plan just in fees alone.  I estimate tens of thousands of pounds over the course of your working life as a conservative estimate.  


What are the benefits to you of taking action?


People often need a trigger to help fight this inertia.  A reason why!

I have listed a few below of the type of benefits you are going to get if you start to take control of your money:


  1. You will get rid of the little inertia man off your shoulder that is really saying sort it out.

  2. You will start to feel in control of your money and your finances

  3. You will get better investment returns and make more money – Most old providers of investments are expensive and not very good.

  4. You will start to understand where you are financially which gives you a better chance of building a successful financial plan

  5. If you have a spouse, you will probably stop arguing about money as you know where you stand financially.  Money is the highest rank reason for divorce.

  6. Know how much fees you are paying and to who.

  7. You will have more simplistic affairs to deal with – no more letters from pensions you didn’t know you had


I could go on and on based on my experience of dealing with people’s money for nearly a decade now.  Pick the benefits that are relevant for you as a call to action.  Companies are making money out of this inertia. I have even give myself motivation to speak to that energy provider today so that they don’t take me to the cleaners.


If you ever want any help then I also offer free skype sessions for 45 minutes to discuss how to approach the above.  You can find details and book a session here