Financial Habits: Switch Off to Stay in Control

It sounds counterintuitive, but one of the most useful financial habits isn’t doing more. It can actually help to step away and give yourself some space.

There’s a tendency to think being “on top of things” means constant everyday attention. Checking, reviewing, reconciling, tweaking. But in reality, that can tip into noise quite quickly and you stop seeing things clearly when you look on the micro-level.

Routine helps with this habit. Not in a rigid, colour-coded way, but by making sure you check in at a similar time. Perhaps you have admin time on a Friday and so this is when you reconcile the bank, check the P&L and chase those invoices.

Making this your routine means that you know where things are, but that you can leave it alone in-between (for the most part).

When it comes to running your business, space matters. Whether it’s going for a run, getting outside, reading a book or just switching off for a bit, time away gives your brain time to settle. And decisions made from a calm place tend to be better ones.

Daniel Kahneman talks about this in Thinking, Fast and Slow (good book!). He describes how easy it is to react quickly without thinking things through, but that stepping back creates just enough distance to avoid that.

It’s not about being perfect at it either. Most of us go through phases of over-checking or avoiding things entirely. So, if you can, try for ‘little and often’ but not too often!

If any of this feels familiar, you’re not alone. Most people swing between overthinking and avoiding things altogether. If you’d like a calmer, clearer way of staying on top of your finances, it starts with getting the right habits (and systems) in place. That’s where we can help – click the link below to learn more about Middlebrook Accountancy and how we can help.