COMMENT
How Are Your Money Manners?

By Cliff D'Arcy
March 1, 2006

I'm reading a rather amusing book at the moment: Talk to the Hand: The utter bloody rudeness of everyday life (or six good reasons to stay home and bolt the door) by Lynne Truss.

As a trainee Grumpy Old Man, I found myself chuckling at many of the observations Ms Truss makes regarding impoliteness and bad manners. Although I'm not yet in the Victor Meldrew league (though I do turn 38 this month), I do find it troubling that many of us seem to be reluctant to apologise for our actions and accept criticism without answering back!

This got me thinking about money manners and financial habits, both good and bad. Hence, here's my (slightly tongue in cheek) guide to financial etiquette:

I think it's rude to:

• not pay your bills on time (especially when paying by Direct Debit helps to avoid those rip-off late-payment penalties);
• fail to have some sort of household budget in place (because you can't manage it if you don't measure it);
• pay the full Recommended Retail Price for goods (because convenience always costs);
• spend tomorrow's money today (yet we Brits spend £110 for every £100 of take-home pay!);
• complain about rising energy prices while ignoring energy-efficiency advice;
• view a credit limit as a target (because it's a debt, not extra spending money!);
• pay over the odds by buying all of your financial products from your local bank branch;
• pay far too much interest because you won't shop around for credit cards, loans and mortgages;
• not save anything from your pay packet;
• fail to protect your possessions, family and wealth with adequate insurance;
• claim the stock market is a casino, while ignoring its superior long-term returns to patient investors;
• ignore the demands of old age by failing to set aside money for retirement; and
• pretend that any legitimate "get rich quick" scheme really can double your money in days!

On the other hand, I think it's polite to:

• plan ahead to strengthen your financial future (because if you fail to plan, you plan to fail);
• have a good idea of your monthly income and outgoings (and work on reducing the latter);
• make life easier (and avoid fines and credit problems) by paying bills by Direct Debit;
• shop around for everything that you buy (especially financial products, because many horrors lurk on the high street!);
• live below your means (in other words, spend less than you earn);
• take time to reduce your household, motoring and other bills (ditch it or switch it today!);
• call your credit card a debt card (and treat it like the double-edged sword that it is!);
• take advantage of loopholes and special offers (for example, by transferring debts to a 0% credit card);
• save some of your wage -- 5% would be a start, but a tenth (10%) would be better;
• make sure that you and your partner (especially if s/he is a homemaker) are adequately protected against perils such as death, long-term illness and unemployment;
• invest to create long-term wealth (I favour regular, patient investing in shares; others prefer property);
• invest some of today's earnings to keep you in your twilight years (I like pensions, but ISAs may be more to your liking); and
• call a scam a scam (any investment which offers returns in excess of 6% a year involves some chance of loss).

Finally, although most of my money habits and attitudes are found in the second list, I'm no angel (far from it!). However, even when things do go wrong along the way, at least I have the comfort of knowing that I have a financial plan, complete with ever-higher monetary goals. So, even if I fall short of those goals, at least I'll be much wealthier, regardless of any hiccups along the way.

More: Improve your money manners with these Best Buy credit cards, personal loans, mortgages, savings accounts and investments!