Can I afford a financial coach?
How can I afford a financial coach when I have no money?
The statistics sure seem bad. One recent article shared that many Americans with a $100K salary are living paycheck to paycheck, and that it may not be enough for the American dream anymore.
Everyone in the country is feeling the effects of inflation raising the costs of everyday necessities like groceries and gas. Americans have racked up historic levels of student loan debt, mortgage debt, auto loan debt, and credit card debt.
Recent financial articles suggest that 8 out of 10 are burning through pandemic savings just to get by, and that there isn’t much savings runway left, 6 out of 10 could not afford a $1000 emergency. The number of people who are living paycheck to paycheck on the razors edge of disaster is truly staggering. The big picture here is that it looks like 2 out of 3 people are either already in financial trouble or are one Murphys law accident away from financial trouble.
All these statistics are basically screaming, “Help!, Americans can’t afford to live, how could they possibly afford a financial coach? Right?”
A more honest look at the numbers
But is it really the whole story?
Americans actually are making money. According to many other articles and reports, we have near record levels of employment. People are working. Job openings are plentiful. Businesses are having difficulty finding and hiring the people they need. Many Americans are working side hustles and second jobs. Older generation retired Americans are starting to look at coming back into the workforce.
The reasons people work one or more jobs, and the reasons retirees are coming back into the work force, might very well be to pay all those expensive bills. But the point is, those jobs are out there, they represent real income and real opportunity, and if you want more income in your life, it’s out there to get.
When you look at the bigger picture, it becomes more obvious that people don’t have an income problem, they have a spending problem.
Hmm, okay, but how does that help me afford a coach?
Earning money and spending money are two very different activities and require very different skills. Knowing where your immediate problem is (spending versus earning) gives you a way to understand a solution and act on it. For instance, you may have always believed that only “rich” people need and can afford financial coaches. It’s not true. Anyone with income who actually spends money on expenses, needs and can afford financial coaching. Here is why…
It doesn’t matter how much money you earn. $10K, $100K, $1M, $10M. Doesn’t matter. If you spend more than you make, you will go broke. The only way to build financial savings, security, flexibility, and wealth, is to spend less than you make. It’s that simple.
To afford a financial coach, or to bring anything into your life that you need, you simply choose it. A financial coach is not an expense, it’s an investment. An investment in your long-term financial wellbeing. Choosing whether your money goes to expenses or investments is ultimately up to you.
The subject of where Americans spend their money, or waste their money, is a pretty hot topic recently. It is not a surprise that if you were living paycheck to paycheck before inflation started increasing exponentially, that you are likely in a really bad spot right now.
Common culprits for spending (wasting) money depending on your perspective include; putting any expenses on credit cards without paying it off each month, going out on the town, spending on alcohol and eating out, food delivery instead of pickup, always buying the latest technology gadgets, buying expensive designer clothes, new cars and suvs, subscribing to tons of subscription services and movie channels, games and gaming subscriptions, etc etc.
Once you start looking at all the money you spend in all these “discretionary” categories, the truth is, you probably have all the money you need to hire a financial coach.
However, affording a financial coach may mean making some short term sacrifices. It may mean not getting a new cell phone this year, or cable TV, or going out to dinner, or going on vacation. You may have other things you spend money on that would be easier cuts.
The good news is that you get to decide. These are all short term choices you can make to afford a financial coach and start your journey towards financial freedom.
Come on, that sounds too easy
It both is and isn’t. The truth is, you can afford a financial coach. It is simply a choice of where you decide to spend your time and money. A financial coach can help you dig into your finances and help you identify and understand yourself and your spending priorities. A financial coach can help you identify the must have expenses from the optional expenses. They can help you understand the difference between an expense and an investment. They can help guide you along the path of success and get you off the path of misery.
The other truth, the really hard truth, is that none of this is easy. If it was easy, everyone would have healthy financial lives and would be thriving more and stressing less. But we know this is not the case. Most people actually do need a financial coach and most people actually can afford it if they choose to.
So why don’t they? To find out why this is so hard and how your brain, society and culture are working against you, keep reading...
References:
https://finance.yahoo.com/news/inflation-wreaking-havoc-american-middle-120000044.html
https://www.cbsnews.com/news/saving-emergency-expense-fund-income-economy/
https://finance.yahoo.com/news/100k-come-life-still-hard-140000314.html
https://www.newtraderu.com/2023/02/25/warren-buffett-12-things-poor-people-waste-money-on/
