Why Should I Consider Financial Coaching?
Why should I consider hiring a financial coach? This is a question that is quite common and the answer really depends on your situation. Each of us are in a different place in our lives and our financial situation is no different, but the reality for many of us is that we know we should save money, we want to be able to retire sometime in our lifetime, we have “goals” or “dreams” for retirement, and we want to enjoy life. The problem is that statistically this is not happening and many people are struggling through life. Your why is ultimately going to be what determines whether or not you succeed in your financial goals.
Finance is Simple, Personal Finance is Complicated
The math of finances is really very simple. If you make $40,000 per year and spend $45,000 per year you are spending $5000 more per year than what you made. If you continue doing the same math that $5000 will turn into over $50,000 in ten years without accounting for interest. On the other hand if you make $40,000 per year and are able to save $5000 per year…well, you get the point. The math part of finances is simple. The problem is that finances are personal and the personal part of the equation can prove to be very difficult.
A poll that was conducted online by Harris Poll from May 24 through June 16, 2017 yielded the following results as quoted from the press room of CareerBuilder.com.
– 78 percent of U.S. workers live paycheck to paycheck to make ends meet
– Nearly one in 10 workers making $100,000+ live paycheck to paycheck
– More than 1 in 4 workers do not set aside any savings each month
– Nearly 3 in 4 workers say they are in debt today – more than half think they will always be
– More than half of minimum wage workers say they have to work more than one job to make ends meet
These statistics may surprise you because when you look around you see people all around you that seem to have things all figured out while you are struggling to make ends meet. Maybe you are on the other side of the statistics and you did not realize that so many people were legitimately struggling to make ends meet. No matter where you are on the issue we all need to realize that there are a lot of people who are just not sure how to get ahead in their current situation.
A financial coach is ultimately someone who is going to help you take your why, develop a plan with you, and help encourage you in implementing your plan. As a financial coach it is my responsibility to help you understand the options that you have in order to achieve your why. Your why will vary depending on your values and your family, but your why will be your motivation to succeed.
“A good man leaves an inheritance to his children’s children, but the sinner’s wealth is laid up for the righteous” (Prov. 13:22) This is my personal why and is a why that many people have, even if they do not state it just like this. I was really thinking about this yesterday and the common phrase that I hear people say about their children is that they want their children to have it better than they did. In order for that to happen though that why, that motivation, needs to be followed with a plan.
Your why might be one of the following:
– I want to be able to travel the world someday.
– I want to be able to relax and enjoy life in the future.
– I want to have the opportunity to spend as much time with my grandchildren as I can.
– I am sick of worrying about how I am going to pay my bills.
– I don’t want to worry about what will happen to my family if I die.
– I want to be able to give back and to help others.
– I want to be able to teach my children to live wisely with money.
– I want to own a house free and clear.
– I want to…
It’s your why and when you figure out your why then you can put a plan in place to achieve that why and that is where a financial coach comes into play.
Motivation to Succeed
Whether you are someone who is considering trying to budget for the first time in your life or if you are someone who has done well financially and you are looking for a little encouragement and help in reaching the next level a financial coach can help. For the person who is just trying to figure things out a coach is someone who can help explain the processes in order to help them understand what it is they need to do, but more importantly why they need to do it. Even though anyone can do the math using a calculator it’s not easy to get started on something if you do not know what to do or what the hurdles are that you will face.
I remember when I first started working out in the gym. I was always in pretty good shape, but I never lifted weights before in my life. When I first entered the gym I was scared, at least on the inside, because I did not really understand what all the different machines did nor did I understand much about form and safety. Luckily for me I had some great friends who were able to help show me the ropes and explain to me the aspects I needed to know. Thinking about it now I can’t help but to chuckle, but they were also by my side to encourage me to stick in there even when I felt like I couldn’t move after a few days. A financial coach can help do the same thing when it comes to finances.
After fast forwarding a few years I had the knowledge and was pretty competent in the gym, I was never big by any means, but I knew what I was doing and why I was doing it. It felt good to work out and I understood the good that it was doing for me, but I had also hit a wall. Hitting a wall in development is quite common in life whether talking about work, relationships, money, sports, or lifting weights. We get as far as we seemingly can on our own and for some reason or another we reach a point where we almost need someone else to help us reach the next level and break through the wall and a financial coach is able to help in this respect as well.
Fear of Failure
There are a couple of things that will try to keep us from seeking out help in our lives. The first thing is our pride and let me tell you, it’s extremely difficult for me to ask anyone for help, but I not only wanted it, but I needed it. The other thing that keeps us from seeking out help and even from trying is that we are afraid to fail. Our fear can paralyze us so much that instead of trying we simply do nothing and continue to live as we always have without the realization of our own ability to do something about our current situation.
Can I just encourage you right now in saying that you do not need to be afraid of failing. Start out by just getting some information. Start asking questions, searching the internet, and try to educate yourself a little bit more about whatever you may have questions about. There is a myriad of information available for anyone who is searching and some of it is actually good. Do not thrown off track in your search by people telling you that you cannot do it, because you can and you will if you put your mind to it.
Next, I want you to be aware that not everyone has your best interest in mind. Don’t be fooled by get rich quick schemes or by ads that claim to be able to help you through some tricks or gadgetry. If you have debt, it needs to be paid or it will not go away, no amount of moving money around will change that. If you are looking for insurance realize that insurance that has investments attached to it are almost entirely a waste of your money and that you would be better off finding an actually investment professional in your area that wants to teach you about investing and help you succeed with your money. Lastly, I want to warn you to take your time during the learning phase so that you do not get caught by one of these tricks. If you take your time and learn you will quickly be able to discern whether something is too good to be true or not.
You can do it!
You have the ability to learn and to control your finances, but it starts with you. You have to know that you can do it and you have to want to do it. If you are missing either one of those two ingredients then you will fail in whatever it is you are thinking about. If you think you will fail, then you will. If you think you succeed, then you will. If you do not want to do something, then you won’t, but if you want to do something, then you will. Your attitude will determine your success moving forward and no amount of help from anyone will cause you to succeed like believing in yourself will.
If you are ready to your why into a plan or are ready to start learning more about what to do next then please contact me and we will get you set up with an appointment today. If you have someone in your life that is already winning in the area that you want to win in then ask them for help if you trust them, but whatever you do please refrain from seeking advice from someone who does not have a track record for success in the area in which you are seeking advice.
There is treasure in the house of the godly, but the earnings of the wicked bring trouble.
Foolishness brings joy to those with no sense; a sensible person stays on the right path. Plans go wrong for lack of advice; many advisers bring success.
If you listen to constructive criticism, you will be at home among the wise. If you reject discipline, you only harm yourself; but if you listen to correction, you grow in understanding. Fear of the Lord teaches wisdom; humility precedes honor.
May God bless you in your path to seeking financial freedom.