Diana Clement: ‘I can’ are two of the most powerful words

The right attitude can make all the difference. Photo / 123rf

Repeat after me. “I can.” Too often we limit ourselves by thinking “I can’t”, or “It won’t work” or myriad other negative phrases.

“I can” are two of the most powerful words in the English language when it comes to your personal finances. If you want something such as a new job, emergency fund or even ultimately to buy a house, then “I can” is the phrase to embed in your brain. Not “it’s impossible”.

This isn’t designed to pitch one generation against another, a la “boomers had it easy, and it’s impossible for us”. It’s actually to say: “hang on a minute, let’s think this through”. Plenty of times in my life I’ve had an ingrained opinion, which I changed when presented with good reasons to. Although unbelievable now, I thought in my early 20s that buying a house was something to do only once married. That’s the narrative I’d been fed growing up.

I know as soon as I say: “you can buy a house” that the haters will be out in force. Some people just want to be Negative Neds or Nellies. Sure, lucky young people have help from their parents. But there are thousands buying their first homes without parental help.

Start with a positive outlook.

When they think: “I can” then they start to look for reasons to make it work. Could they move to another town? Hint: Christchurch is significantly cheaper than some other centres, but still has big city jobs. Some people can work from anywhere, including more affordable locations. Take teachers, builders, accountants and so on.

A press release landed in my inbox from the head of real estate agency Century 21 boss Tim Kearins suggesting that renters should look into home ownership.

The “I can’t”, “it’s impossible brigade” will immediately come up with the answer that the median house price for Auckland is $1 million, a 20 per cent deposit is $200,000 and who could ever save that without parental help? Game, set and match? I think not.

First of all, where did the idea come from that first-home buyers would be buying a median-priced home? First homes are the first rung on the ladder. It’s still possible to buy homes in Auckland under $700,000, and apartments for less than that. What’s more, a lot of first-home buyers are quite sensibly moving out of the city. The median house price in Canterbury is $655,000 and the lower quartile much lower than that.

Brand new homes only need a 10 per cent deposit. On a $500,000 home in Christchurch, that’s $50,000. But there’s more. Kainga Ora’s First Home Loan, and First Home Partner schemes only require 5 per cent. That’s what the “I can” people see.

This is the sort of attitude that Kearins is talking about: “Given the sky-high rents and the current buying opportunities, flatmates, friends and family members should also look into collectively pulling a deposit together,” he says.

A positive mindset is often the reason that some people succeed when others from exactly the same socio-economic background don’t. It helps you:

• Focus on motivation and goal setting.
• Build confidence and resilience to overcome challenges and cope with the inevitable knockbacks.
• Have an abundance mentality.
• Improve financial decision-making.
• Attract financially beneficial opportunities, such as the promotions that come to people with can-do attitudes.

Remember that a positive mindset is not a substitute for financial knowledge or responsible financial behaviour. It complements these factors and serves as a foundation for making sound financial choices.

And be wary of the get-rich-quick gurus out there who say all you need to do to be a millionaire [or more these days] is to imagine yourself being one. I don’t agree. Sticking a picture of a Ferrari or a house on the inside of a toilet door isn’t going to mean you own one eventually.

Sure, visualising yourself doing things does help. It’s better than giving up before you start. But goals take action and work, not just imagination.

Finally, changing a mindset doesn’t come easily to many people, and it’s often necessary to seek help. That might be by contacting a free financial mentor, through MoneyTalks NZ, or seeking psychological help through your GP, employee assistance programme, online therapy, support groups, or independent professionals. Taking that step is immensely valuable long term for your personal finances.