Time for A Change?

Chances are that you are part of the 7 in 10 American households living paycheck to paycheck.  The funny thing is that only about half of you recognize that you really do live paycheck to paycheck.  That is some serious denial going on.  Here are some signs that you are indeed living paycheck to paycheck.  You have no savings, you feel like you play catch up on payday, you have too much month at the end of the money, you are anxious about how you are going to pay for an upcoming bill and most importantly- if you lost that paycheck today, you would be in serious trouble.  I'm not trying to make you feel stupid or worthless, I just want you to have a dose of reality as ugly as that might be.


There could be several reasons for being in this predicament.  Having career or medical issues, not knowing how to live differently and not having a plan are just a few.  Whatever the reason and no matter what your circumstances, you don't have to live like this anymore.  The key to unlocking a better future is change and that makes you the catalyst.  Only you can decide if you have had enough of the stress, pressure, and turmoil of living this way.  When you come to this crossroads you have a choice, either keep doing the same thing and getting the same results OR make a change (or several) that will lead you down a new path.  Sure, this new road seems scary and I won't lie to you, it will be hard at times.  You will even have setbacks and discouragements along the way.  But having traveled this road for the last 3+ years, I will tell you that I wouldn't go back to the way things were for anything.


If you don't know where to begin, start by realizing that you need to make a change.  If you are married, talk to your spouse about how you feel.  If your spouse doesn't feel the same way, get help from a third party clergy or counselor.  Not being on the same page with your spouse may be the biggest problem you are facing.  You will always be frustrated and never get anywhere if you are trying to row the same boat in different directions.  Work together to develop goals and a plan of how you are going to get there.  Gain the tools and knowledge to help you be successful in following that plan.  Get help when you need it.  Above all remember that this isn't a cake walk or a sprint.  Almost daily, I have to remind myself to think tortoise, NOT hare.

The Emotions of Money

Why is money so hard to manage?  I mean we're talking about sixth grade math.  I have come to the realization that it's hard because it's not just about the numbers.  It's all the emotions swirling around earning and spending money that make it so difficult to deal with.  This is the ugly side of money.  Today I want to talk specifically about fear.  This is the #1 emotion that I run into as a financial counselor.  Getting people to face their fear and denial is the most challenging and frustrating part of my job because I can't help them if they are paralyzed with it and in denial about their situation.


One of my financial counselor associates hit the nail on the head when he mentioned to me that every one needs a dentist, yet everyone doesn't go to the dentist.   Even when you're in pain, the fear of going to the dentist will keep some people from going anyway.  He likened what we do to being like a dentist, only for your wallet.  Some may need a check-up and others may need a root canal.  As a side note,  I hope Aaron doesn't mind that I borrowed his idea, because I thought it was brilliant.  If you are in the Kansas City area, please check him out, True North Financial Fitness Coaching.  Fear of what may or may not be needed, keeps some from trying in the first place.  Fear of actually facing the elephant in the room and fear of the ability to change things are completely normal when it comes to financial problems.  I firmly believe that if you've got the will, I've got the way for you to get help.  It's only too late if you think it is, because restoring hope is what I specialize in.
  
My point is that there are many emotions surrounding money.  From an early age our interactions with money will affect how we will use it as adults.  Think about some of your first memories of money.  Chances are, these are the roots of why you handle money the way you do. Fear is a huge stumbling block for a lot of people.  Please don't let it stop you from achieving your goals, especially the financial ones.   

Denial

Now I know some of you have been anxiously awaiting for me to update my tip of the week.  I hope you enjoy!  Inspiration for this came as I was reading the revised third addition of Dave Ramsey's The Total Money Makeover (It's great by the way if you have never read it).  I was struck by how much denial there is in this country when it comes to people and their money.  For some reason mediocrity in financial matters has become acceptable and down-right normal in this country.  Why?  The fact of the matter is 7 out of 10 households live paycheck-to-paycheck, yet as many as half of those actually think they are in the 30% group.  That is some serious Denial!  Think about it, if you had a major life event today (ie. job loss, serious illness or injury, loss of spouse through death or divorce) would you even be able to make it to the end of the month?  Be honest with yourself.  


Now I'm not trying to belittle you or tear you down,  I'm just trying to get you to face the music before life literally smacks it into you.  Sadly even faced with these kind of major events, some of us go on living life like we didn't lose a job and the new one doesn't pay as much.  Failing to make adjustments in the short term will become disastrous long term.  This is why I have talked so much about being intentional with your money.  If you are living without a plan and spending as much or more than you make, it's a dangerous road you are walking.  It's only a matter of time before life pushes you over the edge, making it hard to recover.  So please start today taking steps to correct the situation.  Who knows, maybe things really aren't as bad as you fear them to be.  If you're curled up in the fetal position with your eyes closed, you'll never find out.  Please don't let the fear become paralyzing.  Feel free to contact me if you think you need more help unpacking your particular situation.  Sometimes a fresh set of eyes, with a different perspective is needed.  I offer a free no-obligation 30 minute consultation.