Manifesting was such a phenomenon last year that it was Cambridge Dictionary’s word of the year. The idea has gripped social media, with proponents suggesting that if you really believe that something’s going to happen, the power of your thoughts can make it come true.
This kind of magical thinking is nothing new, but its rapid spread through social media has made it much more mainstream.
It’s hardly surprising that people are looking for easy solutions when some of the things that previous generations took for granted – like robust pensions and home ownership – can seem so far out of reach.
Unfortunately, not only is there no proof that manifesting works, it can actually be dangerous.
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However, if you believe you can take control of your finances, it can help you make a start.
Hargreaves Lansdown’s Savings & Resilience Barometer looks at people’s finances across the board, and in almost every area those who believe they can do something to change their financial position are better off.
Nearly three quarters have enough savings to be resilient (compared to half of those who don’t think they can change things), just under half are on track with pension saving (compared to a quarter of those who don’t feel they can make changes) and more than a third are on track with home ownership (compared to a fifth of those who don’t feel in control).
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It means the solution doesn’t just lie in changing your attitude – you need this alongside action to improve your financial position. Thinking positive isn’t an alternative to drawing up a budget, cutting your expenses and freeing up money to save for the future – it’s the perfect companion to all of it. You can feel positive about effort you put in, and then feel good about any improvements.
Magical thinking isn’t going to solve your finances for you: it’s when you take small steps in the right direction that the magic really starts to happen.
Sarah Coles is a personal finance analyst at Hargreaves Lansdown and co-presents Switch Your Money On podcast.
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