Resources to Help You Manage Your Money
Over the last decade, I’ve been fortunate to find many helpful resources to improve how I think about and manage my money. Many of these concepts were incorporated into The Snowman’s Guide to Personal Finance to help others benefit. However, some ideas were left out of the book or covered at a high level. As a result, this page provides additional resources where you can learn more about topics covered in the book and new ideas that have helped me in my life.
Books about your psychology and decision making
Many people find that personal finance is more about psychology than about math. Understanding how your brain is wired helps explain why it’s so challenging to manage money and what you can do about it. Three of the best books I’ve read to advance my understanding in this area include:
The Power of Habit by Charles Duhigg
In this tremendous book, Charles Duhigg outlines how habits form and how they can be changed. If you find yourself with habits you’d like to change, or you want to start a new routine, this book is a great guide.
The key idea I took away was how impactful a seemingly simple decision can become. For instance, the decision to go out after lunch one day and get a coffee can set off a habit loop that results in years of coffees without any further thought. It’s not that the habit is necessarily bad. However, you need to understand you’re not just deciding whether to do that behaviour today. You may be creating a habit that happens automatically over time. Therefore, it’s important to reflect from time to time on your daily routine and decide whether your habits are ones you want to keep or change.
Predictably Irrational by Dan Ariely
Through creative and thought-provoking experiments, Dan Ariely outlines how we make decisions and explains why our decisions are often irrational. If you’d like to understand why we behave the way we do, and what you can do to make better decisions, this is a great start.
The key idea I took away was how effective marketing tactics can be on making you spend your money. From discounts to short-term offers to free upgrades, marketers use predictable human behaviours to get people to spend money. Knowing that people are using psychological tactics to part you from your money makes it even more important to use similar steps yourself to save some of your money for major life goals.
Thinking Fast and Slow by Daniel Kahneman
Daniel Kahneman won the Nobel prize in economics for his work, helping us understand our decisions. Thinking Fast and Slow outlines the science behind our decisions and offers ideas on well-being.
The key idea I took away was how many of our decisions are made intuitively, without conscious thought. Understanding the power of our intuition and the process it follows can help us avoid making decisions we’ll later regret.
Websites to learn more about personal finance
For additional background on personal finance topics, the best resource I can recommend is Get Smarter About Money by the Ontario Securities Commission (OSC), a regulatory body that protects investors in Canada. The site offers:
Articles on a wide range of personal finance topics
Calculators for mortgages, debt repayment, investing and more
Worksheets for budgeting
Tools, including quizzes and ideas for major life events
If you’d like to join a community where you can ask questions and see what others are thinking, the Personal Finance Canada forum on Reddit is a great option. From investing to paying off debt to negotiating your salary, there are a lot of great ideas available.
Mindsets and tools to help live a fulfilling life
As we discussed in one of our first posts, money is a tool that can help you live a fulfilling life. While it’s important to have a base level of income to meet your daily needs, there are lots of other resources to help you enjoy life. Mindsets and ideas that have worked for me include:
There is a great deal of power in the word ‘Why?’
A manager I used to work with would always ask, ‘Why are we doing this?’ and I’ve found it helps me stay motivated and on task.
There’s a framework called the ‘Five whys’ that can help uncover the root cause of a problem you may be facing.
It’s important not to compare yourself to others
We’ve covered how different we are from one another previously, and I believe it’s one of the most critical steps to enjoying your life.
Try to be a better version of yourself each day and avoid comparing yourself to others.
Gratitude and empathy are powerful tools
I have several sticky notes in our home that help remind me to do the following:
Reflect on three things I’m thankful for each day
Before starting a task, ask and visualize ‘what does success look like?’
Remain mindful of my surroundings and state of mind
When I experience a frustrating or challenging situation, I ask myself, ‘what could explain this behaviour?’
For example, a driver that cuts me off may be rushing to the hospital. Rather than assuming it shouldn’t happen, try to understand what could’ve caused it to happen.
These mindsets help me professionally, in my relationships and in managing our money. As my partner and I save for future goals, I regularly remind myself of the why. Having the freedom to move to a new city for the lifestyle we want and having the security to provide for our future family motivate us to save. I used to take on too many hobbies because I’d constantly be intrigued by what a friend was up to. I’ve since realized that I need to prioritize my spending on the activities I get the most value out of. I’ve also found that by being content with what I have, I feel less of a need to replace or expand what I own.
I wish you the best of luck with your continued pursuit of understanding your money, the role it plays in helping you live a fulfilling life and the steps you can take to make it happen. I’ll update this post from time to time as I come across useful articles, books and tools to help you enjoy your life and get the most from your money.