Personal finance is such a taboo subject. I mean, folks really hate talking about money for some reason.
A recent study found that 74% of people will not discuss money with a financial professional.
We can point the finger at shame, insecurity, or even fear as some of the top reasons why, but the truth is, not talking about money can be detrimental to your financial health.
So what about the other 26%? What are some of the top reasons they are willing to gain additional insight when it comes to money?
1. I/We “make too much money to be this broke”.
This is, by far, the number one reason folks actually work with a financial coach.
A lot of my clients feel as if they make a decent enough income to be comfortable, however, something is missing.
It doesn’t even have to be an outstanding level of debt, either. Sometimes it’s as simple as not controlling their food spending.
Often times, they have no earthly idea what to do at this point. They just know something has to change and quickly.
When folks get to this point, they almost certainly reach out for help.
2. I/We “need to get our spending under control”
Maybe they don’t have an extravagant income, but feel as though they could do better when it comes to spending.
This is usually tied to a goal like saving for a wedding, buying a house, or something along those lines.
When these types of events are in the plans, folks definitely want to know what luxuries they should pass on. This often leads them to reach out to a financial coach for another set of eyes.
3. “Our marriage is struggling because of money fights.”
Sadly, the majority of couples claim financial worries as one of the largest strains on their marriage.
There are a few reasons why financial differences can affect a marriage negatively:
- Debt- Most people marry with financial baggage. From student loans alone, the average newlywed has $29,000 in debt. The average wedding is costing roughing $30,000, and a new mortgage could run about $200,000. Those 3 items alone can bring $288,000 into a brand new marriage. The added stress can weigh on a young couple and pit them against one another if one spouse has more debt than the other or makes the majority of financial decisions. This often leads a couple to a financial professional.
- Personality Types- One spouse is a spender and the other is a saver. This creates natural tension, and often leads the couple to seek advice from a financial professional. An objective set of eyes can really help with blind spots from both parties.
- Extended Family- Someone’s parent is now elderly and one spouse would like to bring them into their home. The other spouse may or may not be on board, but the question is, can we afford it? Or maybe one spouse has been supporting a family member, while the other spouse wants to focus more on investing. These differences can definitely be solved when a couple decides to work with a financial coach.
These are just a handful of reasons why a married couple would need to work with a financial coach. We can help couples begin creating and implementing a plan while communicating more effectively.
4. “I just went through a divorce or became a widow and need guidance.”
This is always a tough one. There are instances where one spouse handled the money and the other is now absolutely clueless on what to do.
Another example is when someone has stayed home, and now has earning responsibilities placed upon them due to a life event.
Losing a chunk of income or suddenly being responsible for your household’s budget can invoke fear in a person. Enough for them to seek out and work with a financial coach.
5. “I started a new job/got a raise”
Woo-hoo! You got a raise! Now you want to ensure that you make sound financial decisions with your new income, so what do you do? You hire a great financial coach to help you get moving in the right direction.
Maybe you have a new job and are unsure whether you should participate in the regular 401(k) or the Roth 401(k).
A financial coach can present the options to you in a way that helps you make the best decision for your future.
6. “I/We know what to do; I/we just need accountability.”
Personal finance is 20% knowledge, and 80% behavior.
What this means is, often times, we know the principles like living on less than you make, avoiding debt, and saving for a rainy day, but we struggle with implementation or consistency.
In my financial story, you’ll see that I was taught to not use credit cards at a young age. I, obviously, didn’t listen, and once I figured out I was $61,000 in debt, I didn’t know where to begin to get out.
The journey to paying off our debt was definitely made easier by having accountability partners who were financial professionals, in addition to, my wife.
Work with a financial coach
Having a financial coach to help you on your wealth-building journey is awesome! You should always have at least one professional you feel comfortable discussing money with.
This only helps you see your blind spots and/or keep you accountable if you’re going the right way.
If you are in need of additional accountability, a financial plan, etc, you can schedule a 60-Minute session with me here.
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