The phenomenon that manifested last year was a phenomenon, the annual discourse of the Cambridge Dictionary. The idea puts social media in trouble, and supporters suggest that if you really believe something will happen, the power of your mind will make it happen.
This magical idea is nothing new, but it makes it more mainstream through the rapid spread of social media.
It’s no surprise that people are looking for simple solutions when something that is taken for granted by generations (such as robust pensions and home ownership) seems out of reach.
Unfortunately, not only is there no evidence to show that the work is effective, but it can actually be dangerous.
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But if you think you have control over your financial situation, it can help you get started.
Hargreaves Lansdown’s savings and elastic barometer is all about people’s financial situation, and almost everyone thinks they can do something that changes their finances will be better.
Nearly three-quarters of savings are able to resilient (in comparison, no half thinks they can change things), only half save pensions (compared to one-quarter of people who don’t feel they can make changes), and more than one-third can own home ownership (compared to one-fifth of people who don’t control).
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This means that the solution is not just about changing your attitude – you need to take action to improve your financial situation. Thinking about positive options is not an alternative to budgeting, cutting costs and freeing up funds to save money in the future – it is the ideal companion for all of them. You can be positive about the efforts you put in and then be happy with any improvements.
Magical thinking won’t solve your financial situation for you: take small steps in the right direction, and the magic does start to happen.
Sarah Coles is Hargreaves Lansdown and co-host Open your money podcast.
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