Improv (no typo) Your Finances: 8 Year-End Tips

Have you ever done improv?

If you’ve been following my main page, you’ll know that I have. Acting was my ‘jam’ as a kid, and I’m delighted to get back in the swing of being up on stage!

“What is improv?” I hear you ask. “Improv” is short for “improvisation” and is a form of acting. In essence, it is spontaneous ensemble theatre. It is an art form where the performers make up the theatre - usually unexpected comedy - on the spot.

Below you’ll see that I have used insights from improv to give you the nudge you might need to get ready for the final quarter of the year!

To make things a tad more spicy, I’ve added to each a tip for getting started and highlighted a bias or unhelpful thought that may hinder your progress.

If you like what you read here, feel free to get in touch with me (Krystle McGilvery) for money coaching, masterclasses or programme curation and delivery. I specialise in behavioural-psychology-informed financial training and CBT and focus on neurodivergent traits in money management.

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?? Quality Over Quantity

Embracing Minimalism: In improv, ‘less is more’. Oftentimes, the most unexpected simple action or line has the most impact. Prioritise meaningful, heartfelt gifts this season - focus on the quality, not the quantity. Financial minimalism is a popular money-, time- and space-saving concept that can be very liberating.

???Bias: ‘Social proof’ can make us follow lavish gifting trends, spend more than we need and cause unnecessary damage to our finances. Overcome this bias by remembering that personal touches often mean more than monetary value.

Getting Started: Make a list of people and think of personal, meaningful gifts for each. Oftentimes the simplest of gifts is the best - handmade cards or a theatre trip, for example.

?? Active Listening

Taking Stock: In improv, it's crucial to listen intently to cues. We spend a lot of time refining our skills to be present and keep our eyes sharp, ready for the next move. You can do the same with your money, reflecting on your financial progress and truly gauging where you stand.

???Bias: ‘Confirmation bias’ can cause us to focus solely on the positives in our financial review. Overcome this bias by actively searching for both successes and misses in your financial journey. To get a full and accurate picture, you must be open to all possibilities.?

Getting Started: Take a look at your bank balances, outstanding debts and net income - it’s like doing a mini audit on yourself!

?? Embrace the Unexpected

Budget Analysis: In the same spirit of embracing unexpected turns in improv (what you think might happen almost never does), understand where your planned budget took unplanned detours and learn from them.

???Bias: The ‘planning fallacy’ can make us underestimate expenses. To overcome this bias, make it a habit to factor in a buffer for unexpected costs. For some, this may mean putting money away into an account that does not have a mobile app or overestimating your monthly expenses. For us neurodivergent folk, hiding money away can be a gem, as it becomes less susceptible to impulse spending.

Getting Started: It may sound painful at first but 100% of my clients are delighted after this exercise. Analyse your monthly expenses and highlight any unexpected costs. Once you’re armed with this insight, you will know what to prepare for next and where the ‘culprit’ may be! If you are an ADHD entrepreneur, learn about your unique traits and learn to work with them.

?? Collaboration

Imagine sending ￡5 to your pension pot aytomatically, because you set foot into your gym!

Debt Reduction & Savings Boost: Leverage financial tools and techniques, collectively, to efficiently reduce debt and amplify savings. You know the phrase, ‘the more the merrier’!

???Bias: ‘Overconfidence bias’ may lead to thinking we don’t need tools or assistance - I know you thought it! - but you will be surprised at how nifty tech is these days. Imagine sending ￡5 to your pension pot AUTOMATICALLY because you set foot into your gym! Or adopting smart frameworks for making money decisions! Overcome overconfidence by speaking to others who have given these apps a go.?

Getting Started: Use budgeting apps or financial experts to guide you. Check the IFTT app (for crazy automations) or MoneyBox for investing.

?? Being Present

Prepare for Christmas Spending: Just as improvisers remain present in a scene, be fully conscious of your festive expenses to avoid overstretching. It is easy to get lost in the run-up to Christmas, spending and losing track of the cash!

???Bias: ‘Present bias’ can make immediate pleasures seem more tempting than future benefits. It is awfully exciting to plan for future fun, but is that purchase really worth it? Overcome this bias by reminding yourself of long-term goals and the satisfaction of financial stability. If you spend only ￡500 this Christmas, you can go on that holiday to Bali next year!

Getting Started: Start early. You still have time to plan ahead - three months, in fact! List anticipated expenses and allocate a budget. Think about who you want to buy for and allocate each person a proportion of the Christmas budget.

?? Trust the Process

Retirement Contributions: Just like trusting your fellow actors in improv, learn to trust in the financial processes by making informed pension contributions. Retirement may feel like a lifetime away but believe the maths and the finance experts!

???Bias: The ‘status quo bias’ may keep us in the comfort of our current financial habits. Don’t let inertia get the better of you! Address this bias by considering the long-term benefits of proactive retirement planning and buddying up with a friend to hold each other accountable for making smarter life choices.

Getting Started: Set up auto-contributions to retirement funds through your employer. Could you increase your contribution by a few percent?

?? Decisive Footsteps

Financial Forecasting: Successful improv requires confident moves - wishy-washy and timid lines or movements confuse the viewer and lower the energy. Instead, make split-second, impactful decisions for a secure financial future.

???Bias: ‘Analysis paralysis’ can arise from overthinking decisions. We can get stuck in the limbo state of not knowing what to invest in, what to buy or which financial product to go ahead with. Overcome this bias by trusting your research, setting a decision deadline, and committing to take action!

Getting Started: Start by getting clear on the state of your finances, how much you can spend and when. If the decision is too big, break the goal down into actionable steps and timelines. Get help if this seems like a large task to do on your own.

?? Failure is a Stepping Stone

It’s a Process: Like an improv performance, it's about resilience and making the next act even better. We all make mistakes, even the finance experts (shh), but it’s all about what you do with that new information!

???Bias: ‘Negativity bias’ can make us dwell on financial mistakes, ruminate and become paralysed by unhelpful negative thinking. Overcome this by frequently celebrating your wins - no matter how small - and treat failures as learning experiences.

Getting Started: Curate a ‘wins list’ and note down the changes, steps and actions you have taken that resulted in a win. Use this to reflect, learn and adapt!

In summary

• Listen to your money - create a financial plan.
• Embrace the unexpected - if you’re an ADHD entrepreneur, get clear on your unique traits and work with them.
• Use collaboration - take advantage of the many tech solutions available, such as IFTTT.
• Stay focused on the present - avoid getting lost and spending it all in the spirit of Christmas. Plan ahead to get clear on what you can and cannot do.
• Quality over quantity - sometimes less is more. Read about financial minimalism for inspiration.
• Trust the process - the unknown can be scary but also really empowering.
• Take decisive steps - get money confident through awareness and upskilling.
• Embrace failure - see failure or mistakes as you learning about what doesn’t work, and trust the process.

If you are looking for support shifting your money mindset or want to provide finance training, get in touch.?

I'm Krystle McGilvery, a finance and behavioral change catalyst, Chartered Accountant, and CBT Coach. My work helps individuals transform their money mindset, enhancing both their financial situation and confidence. Visit?Mind Over Money?to find out more. Or learn more about me?here.