Whether or not this quote presents the complete picture, there is no doubt that our thoughts have a dramatic influence over our lives.  And I’d like to explore this domino effect over the next couple of newsletters.

I whole-heartedly believe that you most certainly become what you think.  Don’t believe me?  Let me ask you then, do you know anyone who has a positive, successful and fruitful life but a negative mindset at the same time?  I don’t.  Now it’s not that there is some mystical power in thinking positively, but rather that our thinking really does determine what we say and what we do.  Let me illustrate.  If we think something is impossible, we’ll probably say so and we’ll also likely never give it a try.  If we set out  to run a race not expecting to finish it, we are considerably less likely to cross the finish line.  If you think discouraging thoughts concerning a situation in your life, you will probably lack the motivation to do anything about it.  If you have a tendency to be critical, you will continue to fault-find and neglect to see the positive.

Sure life doesn’t always go our way and at times it can throw us some major curve-balls.  And in difficult circumstances it can be hard not to get despondent.  But there is a big difference between facing the facts in a particular situation while maintaining a positive outlook versus continually being stuck in a negative groove.  For example, if you are unsuccessful in a job interview or securing a particular contract for your business, don’t berate yourself and go down the slippery slope of negativity.  Choose to believe that although that door may be shut, there’ll be another that opens.

Doubt and unbelief lead to setbacks and failure whereas confidence leads to progress and ultimately, success.  Given the effect our thoughts can have, we should make it an absolute priority to think right.  If you have a dream, learn to think and speak life into it and your actions will follow.

Stop for a few minutes and take stock, in what areas of your life do you need to adjust your thinking?  Make a decision at the start of 2012 to choose to dwell on life-generating thoughts.

But what do you do in the meantime? How can you ensure your own financial survival in the economic storm? The good news is that there is much you can do but this month I am going to focus on one of the best ways you can control your expenses. This seems fitting given that you are probably trying to recover from the spending frenzy that too often accompanies the Christmas season as well as the fact that inflation is on the rise again (and inflation means rising prices).

The main way to control your expenses is to learn to differentiate between your ‘needs’ and ‘wants’. When it comes to spending money, we are extremely good at convincing ourselves that we ‘need’ something, when in fact we simply just ‘want’ it! It’s the easiest way to justify our spending. But if we can learn to be honest with ourselves and exercise a bit of self control, we’d probably save ourselves a fortune. Now I am not saying that you should never have any luxuries. You work hard and you should be able to enjoy your money. But you should never compromise your savings goals (which are inextricably linked to your financial future) nor should you get yourself into debt over something that you simply ‘want’. Some good examples are holidays, the latest iPhone and another outfit for your already bulging wardrobe.

Why is it that we think we ‘need’ these things, especially when we can’t really afford them? When we strip the facade away, the truth is that it might be that we:

1. Are caught up in trying to keep up with the Jones’.
2. Comfort shop to fill an emotional need, e.g. loneliness.
3. Believe the lie that these things will bring us happiness when in actual fact the happiness they bring is rather short-lived.
4. Fall for the tricks of the advertising trade…the empty promises of prestige, status, respect, love, etc.
5. Are already way over our heads in debt so we simply give up.

We have made our lives too complicated. It’s amazing how much less you really need to live on and be happy at the same time. So what can we do to tackle this sort of spending? The best ways are to:

1. Sleep on it. In other words, don’t buy on impulse, walk away, sleep on the decision and see how you really feel in the morning.
2. Ask yourself whether you really do need it or simply just want it.
3. Shop according to your budget. Include in your budget money for your ‘wants’ and where necessary, save this up for a few months to pay cash.
4. Find cheaper alternatives that you can realistically afford.
5. Be accountable for your spending, whether to your partner or a good friend. It’s the things we do in secret that have power over us.

While it is true that we should always spend our money wisely, 2012 is a year where we are going to need to be more vigilant about this than ever. But know one thing, it will be worth it in the long run.

The first lesson we can learn from the physical act of sharpening an axe is that you need to have FOCUS. Not only can you hurt yourself but you can also make the axe blunt and ineffective if you don’t FOCUS on what you’re doing. So it is with us. If we don’t FOCUS on what we want to achieve in life, the likelihood of ever achieving it at all is practically zero. We will land up frustrated, disillusioned and looking back with regret. Life is busy and there is much to distract us from the things we really want out of life, from the things that matter most to us. We can fill our days doing things that may well be good, but which only serve to distract us from that which makes us come alive.

What you FOCUS on becomes your reality. Where is your FOCUS at the moment? Do your actions reflect your true priorities and personal values or are you slave to the distraction of busyness? Only this week I was challenged again to let go of ‘good to do’ tasks so I can FOCUS more of my time and energy onto my passion and priorities. It was liberating. “Remember: The duller the axe, the harder the work” King Solomon…so start by getting FOCUSSED.

If you have any insights on this topic, please do share them with me, either via email or my blog and I’ll make sure to post your comments.

Whether you are a fan of Apple or not, there is no denying that Steve Jobs took a company from its knees to being one of the greatest technology companies in the world. He became one of the world’s most inspiring and talked about CEO’s.

Barack Obama summarised the answer so well when he said in his tribute that, “Steve was among the greatest of American innovators – brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it”. In other words, Steve Jobs was a man who LIVED HIS PASSION. That which saw him harness his greatest strengths with his greatest loves so as to do something of significance… something that would add value to the world and something that would leave a legacy. We can all learn from this man and courageously pursue our own passions – what’s yours?

Practically it means to make a decision in advance about how much money we are going to spend on e.g. entertainment, clothes, food, holidays, etc, and when we’ve spent that amount, to not spend any more. It’s the tool that turns hum drum ineffective budgeting into that which transforms our financial future. Sure, there’s a bit of sacrifice involved. But nothing worth achieving comes without a price. As someone once wrote, “discipline is being able to plan your pain and your pleasure.” The pain being that of not buying everything we want in that moment and the pleasure that of affording our dream home later on.

If financial freedom is something you want, it’s yours if you can master the art of exercising self-discipline…planning in advance how much to spend, save and invest and then sticking to that plan.

I’m sure all of us can think of something we bought in the last year because of how we felt at the time. Recently my husband and I went attended a timeshare presentation. While we both went with absolutely no intention of buying, I must admit that by halfway I was very tempted to buy. It was only once I took a step back and considered the purchase rationally did I see that it would not fit the way we like to take our holidays. It may for others, but not for us. I am slightly ashamed to have to admit that my husband was the one who had to show me reason. The good thing about this experience is that it reinforced a principle I usually live by and that is to not make emotional choices when it comes to spending my money.

So how do you put this principle into practice without really becoming dull? The best way is to delay gratification. In other words, if you see something you think need and / or want in the shops, instead of buying it then and there, leave it. Go home and think about it overnight. Think about it rationally:

• Do you really need it?
• Are you really going to use it?
• Does it work in your wardrobe?
• Can you really afford it?
• Should you be using your money for something else?

If by the next day you still need and /or want it AND it’s within your budget, go ahead and buy it. I’m sure you’d save yourself a lot of money if you lived like this.

There are three zones to live in when it comes to our dreams i.e. the comfort zone, the panic zone and the stretch zone.  

It goes without saying that if we stay in our comfort zones, we’ll never fulfil our dreams.  Why is it then that our natural tendency is stay comfortable, to play it safe and settle for the status quo?  Is it fear, procrastination, apathy or unbelief?  It takes a hunger for a preferred future to leave the rut of comfortable living.  It takes courage to dare to believe the impossible is really actually possible.  Unfulfilled dreams is the price you pay for comfort.  To achieve your goals in life, to live your dreams and fulfil your potential you are going to have to leave this zone.

The opposite extreme is the panic zone where paralysis sets in as we take our eyes off the prize and where we forget the reason we stepped out of our comfort zone in the first place.  And as we allow fear to have the better of us, it sends us scurrying back to the land of comfort and mediocrity.  We have to determine to live beyond our feelings.  John Wayne said “Courage is being scared to death, but saddling up anyway.”  In other words, courage is not the absence of fear but acting in spite of fear.  Shattered dreams is the price you pay for living in the panic zone.  But if you push through, taking one step at a time closer to the prize, it becomes easier and easier to keep going and harder and harder to turn back. 

The only zone to live in when it comes to achieving anything of significance in life is the stretch zone.  Where we’re always growing, increasing our capacity and as a consequence moving forward.  Where we set as our pilot light our dreams and our passion and allow them to guide us in stormy or calm seas.  Fun, adventure and excitement characterise this journey of stretching and growing.  The price of living in this zone is perseverance and determination and the prize, success, meaning and fulfilment. 

So let me ask you, when it comes to your dreams, how comfortable are you?

1. Use a prepaid card.  These work in the same way as debit and credit cards, using Chip and Pin.  You preload the card with the currency of your choice and you can top up the balance any time via your mobile phone, electronic transfer from your bank account or even over the counter.  The best ones are free or cheap to use and of course, they help you stick to your budget as well.
2. Debit / credit cards.  The charges on using these cards abroad vary significantly.  Go online and check which provider will give you the best deal (see www.which.co.uk).  One rule of thumb is to never use your credit card for cash withdrawals abroad.  The charges are far too hefty.
3. Cash.  It pays to be organised when it comes to taking cash over with you.  Buying foreign currency at the airport is expensive.  The best is to order online for home delivery or collection, but do shop around for the best deal and pay cash where possible.  Again see www.which.co.uk for their recommendations.  The bank charges for purchasing foreign currency with your debit or credit card are rather high. 
4. Local currency.  It is usually always cheaper to pay for goods and services in the local currency rather than in pounds as the exchange rate will be far more favourable so do be careful of this one. 
5. Cash withdrawals abroad.  It is worth checking online before you go where your card issuer’s closest cash withdrawal machine is.  For Visa:  www.visa.via.infonow.net/locator/global.  For Mastercard:  www.mastercard.co.uk (the ATM locator can be found by clicking on ’Personal’).  For American Express:  www.amexnetwork.com/atmfinder.

Happy holidays!

1. A good leader should be genuinely interested in people and strive to see the best in them.
2. To succeed in business you need to build a great team around you that believe in what you are doing.
3. If you praise people, they flourish.  Always look for a way to praise your team.
4. Leadership requires knowing how to delegate and how to be a good listener.
5. A leader should promote people above what they expect.  This demonstration of trust often causes them to excel.
6. A successful business comes from creating something that makes a difference to other people’s lives.
7. You can identify a gap in the market by asking yourself how you can do better what others are already doing.  Go for quality, make sure you are the best in what you do otherwise it’s pointless.  Create something you can be proud of.
8. Always be prepared for the worst that can happen.  This will help turn adversity into success.
9. Starting a business is tough, but you have to fight for its survival. 
10. Don’t treat your bank like your GP, be ready to switch to get the support you need to ensure your business succeeds.
11. There is no point launching a product unless you can get the word out about it.  Free PR is one of the best ways to do this. 
12. Get the detail right!
13. Successful business leaders need to remember that they are incredibly fortunate.  They have an immense responsibility to give back to society by e.g. starting new ventures that create jobs, contributing to social upliftment, etc.  It’s about changing the community you live in.