“You have to be able to afford to be a good person.”
This thought, from Brecht’s play ‘The Good Woman of Szechuan’, has been rattling around inside my head since 1983.
(That’s a long time for a thought to be in such a lonely place.)
The setting is a poor region of rural China. The words refer to achieving a basic level of material security, just enough to survive without the need to steal food, or otherwise take advantage of your neighbours. Material need, he is saying, sometimes forces you to act against your nature – you have no choice.
In a way, this has resonances for many, this year in the UK.
Money is tight, and we have had to tighten our belts – but not by choice.
Over 40% of people today say they are not setting money aside for a rainy day*. It’s not that they are disinclined to save, however – it’s just that, for the moment, the money isn’t there. They have no choice.
Over 38% of households cannot save because they overspend or just break even, to cover their living costs every month.** It’s not that they aren’t aware of their future needs. They have no choice.
Half of people aged over 50 reckon that they aren’t in a position to put enough away for their retirement and, as a result, they will have to work longer. They add that this is not because they want to, but because they have no choice***.
This is the point. When money is tight, the first casualty is freedom of choice. The options are dictated by necessity and circumstance.
This, in turn, means lack of control.
However, a psychology study**** recently showed that unhappiness due to money-related worries can largely be dispersed, simply by making a plan – even if you have little cash available today, to do your planning with.
The study concluded that feelings of security and happiness do not require surplus cash in your back pocket. Much more important is taking away uncertainty, by putting some kind of structure and planning in place.
The conclusion: a basic (financial) plan, which focuses the mind on where you want to be, will give you a clearer view, and restore the feelings of control that The Good Woman of Szechuan, above, had lost.
*Assoc. Of Brit. Insurers (ABI) **report by uSwitch ***report by HSBC **** The ‘FeelGood Insight Study’ by Aviva
