Let’s be honest; people suck at personal finances.
A recent survey by Bankrate found that as many as 63% of Americans don’t have enough savings to cover a $500 emergency. It clearly demonstrates that many of us still lack basic financial literacy skills.
Every day, we hear stories of businesses going belly up, individuals having to declare bankruptcy, cars and homes getting repossessed, and the government having to bail people out. All of these point to one thing: people are terrible with money.
And that’s OK, money is hard. Not everyone can be Scrooge McDuck!
For many people, this is not their fault. Budgeting has not been an important topic taught in schools in the past several decades. Credit cards and other forms of non-cash payments give people the sense that they are not actually spending money.
We’re more used to making it rain with money that isn’t ours…
Then saving for a rainy day.
The 1950s and 1960s yielded a mindset of having to keep up with your neighbors and buying things that other people don’t have yet. Many millennials are also taking the “you only live once” approach to savings, taking long expensive trips over the summers and spending money on dinners every night instead of starting a retirement account.
The Age of Instant Gratification
We have become a world of instant gratification. The internet is moving faster today than ever before. We can buy things online and get them the next day without ever having to leave home.
With all of this, we have a tendency to want to buy now instead of saving for later. The convenience makes it easy.
But do we consider the basics of budgeting? Retirement planning? Debt payoffs? Interest rates? Good vs. bad debt? Secured vs. unsecured loans? And the list goes on.
Studies have also shown that the United States is not very good at the basics of math as well. Sure, we all know how to add and subtract, but can we estimate the solutions to compound interest problems (which is how you would figure out your interest earnings from a bank).
Or, how to calculate the future value and effect of the time value of money (which is how you would estimate your retirement savings at the date you retire)?
The resounding conclusion is that the general population wouldn’t even know how to start to find the answers to common financial problems. Luckily, a financial coach knows how to solve your problems.
Let me explain.
What is a Financial Coach?
A financial coach is a trained professional who aims to help you learn more about your behaviors, spending patterns, as well as giving you a way to fix them so that you do not find yourself in a financial nightmare. A financial coach can provide the building blocks to financial freedom.
Financial coaches sit down face-to-face (digitally or in person) with you and talk through your financial situation.
They help you figure out exactly what you are doing that is causing you to dig yourself into a hole that will grow too deep to get out of. A financial coach will help you boost your self-control when it comes to impulse buying and curtail dangerous spending habits that can hurt you in the end. Put back that iPhone 7!
Jared, we talked about this. Put it back!
Coaches can help you make a budget and show you the best way to stick with it.
Of course, financial coaches are different from counselors. Coaches are there to help provide you with a solid foundation and encouragement to make the right financial decisions. They will monitor your progress and help you keep working towards positive financial behaviors.
Financial coaches are not there to cut up your credit cards and cancel your online accounts. They are there to help you gain financial freedom without negatively affecting your life.
Why You Need a Financial Coach
There is only one reason that you need a financial coach, and that is to gain financial freedom. The coach can help you change several different behaviors in your life and get back on track to healthy living while still having enough money in the bank at the end of the day.
Consider it an investment in you. When’s the last time you invested in you?
Financial coaches offer different types of services. They can help you find out what your current financial situation is. After all, you just see monthly statements of your activity and your bank account being drawn down.
Or someone tells you that a retirement savings account is important so you head to your bank and open the first product they offer you.
A coach can provide an in-depth analysis of your spending and where changes can be made. From there, they will help create a plan customized for your needs to enable you to reach your financial goals.
A financial coach is with you every step of the way to motivate and encourage you. Remember, generally we suck at money, and that’s OK as long as we recognize it.
The coach will also be there to help you back up when you fall off the wagon. Michael! Take off the fur coat and return it, we’ve discussed this.
Once you are back on track, a financial coach can provide you with monthly updates that are much more useful than just seeing your credit card bill or the fancy pie charts on budgeting banking sites.
Coaches will talk through your progress. Overall, these coaches are the key to financial freedom if you have issues with managing your money.
Introducing Invibed’s Wealth Coaching
There are several different places to find a financial coach. Invibed’s wealth coaching services are one of my favorite. In short, Invibed can help you gain the financial freedom that you so desperately need.
Invibed provides one-on-one coaching for managing your money so you can start achieving the goals that you’ve set for yourself.
Don’t have goals? They can help with that too!
Invibed has an army of professional and experienced financial coaches that have helped others with financial literacy.
When you hire a wealth coach from Invibed, you will get a clearer picture of your financial situation. The financial coach will help create a personalized financial game plan and provide you with weekly tips and topics on how to reach your goals.
You also receive monthly status reports on the progress of your goals, as well as access to a client portal that is set up to help you meet them. The portal links you to others in the same boat, and connects you to professionals that can help you stay on track and reach financial freedom.
It’s important to realize that coaching is not just for people declaring bankruptcy or the unemployed. Financial coaching can also help young professionals that have just let life get a little too far ahead of them. Managers and corporate executives need coaching as well, and they can get it from Invibed.
Remember, it’s about investing in yourself. I guarantee you, spending a little money upfront to change your money mindset will pay off dividends into the future.
Question #1 for Glenn’s Invibed financial coach: What exactly is a dividend?
When it comes down to it, most people are terrible at managing their finances. With a financial coach, however, you can get a better hold of your finances and gain financial freedom.
Check them out today for a free tour of their services. Invest in you!