Why Traditional Money Management Doesn't Work
MOST MONEY PROBLEMS DON’T HAVE A SIMPLE “MONEY MANAGEMENT” SOLUTION!
Listen, we all know that here in America, you just cannot live without money. You’ve got to earn it, and you’ve got to spend it. It’s a broken system we live in, and it’s full of credit card companies, lenders, corporations, and other entities that don’t help when you just want, at the very least, to have some sense of control over your financial life. The reality is, however, that these outside influences are just one part of our environment, and one of the many reasons we spend our money the way we do.
Did you know that the average American today has $5,700 in credit card debt alone? That’s just out of the total population. If you take the number of households that currently have debt, and allow balances to carry over month-to-month, that average rises to over $9,300!
Add on top of that, the average student loan debt in America is $32,731, according to the Federal Reserve. The average auto loan for new and used cars is $23,678.
Regionally, there are differences in average mortgages and rent payments, as well as a host of other costs that make up the cost of living.
Why is all this important? It’s because the average American needs a place to live (mortgage/rent), a way to get around and to and from work (vehicle/public transit), values an education (student loans), and needs to eat (food costs). On top of that, America is a capitalist society, and our economy is more and more reliant on debt and credit, putting the typical American in a vulnerable position to get into unmanageable credit card or other consumer debt.
It’s no wonder that more and more people are realizing that they need to get a hold on their financial situation before it spins completely out of control.
When people start looking into getting help with finances, there is typically two things that they do first. They look at both “budgeting” and “cutting costs”. These two terms have a whole variety of meanings, and there are plenty of financial “gurus” out there that are more than happy to sell you their course or app or program so that you can find not only financial freedom, but financial prosperity too…and a few people do find this. For most, however, it’s a short-term fix, or a complete waste of time and effort because of something that these gurus and coaches DON’T do.
Don’t get me wrong, budgets and other financial management tools are absolutely necessary to manage finances long-term. The thing is, there is a reason that you’ve found yourself in the situation you are in financially. This is what those tools and strategies and techniques cannot address. It’s your relationship with money, the beliefs and values you have around money, how you spend it, what you prioritize, and how money influences your relationships with others, your career, your goals and dreams, and ultimately the life you are able to live.
This is what I address with clients who come to me seeking help with financial stress. Many are surprised to find out just how much money and their “money story” influences their entire life, relationships, and decisions. Not only do I approach money issues from a management standpoint, but I work with my clients to take a look inward at the whole person they are, and discover both the opportunity and the motivation for long-term change.
I am a Certified Financial Social Worker and am able to approach and work with clients on an individual and customized basis, addressing both money challenges, and personal challenges along the way. I invite you to ask yourself the following questions:
Are you constantly worried about money?
Do you and your partner fight about money or spending?
Do you stay up at night thinking about how to make ends meet?
Do you feel stuck in a job that doesn’t pay well?
Have you tried the budgets and savings plans and money trackers, but nothing seems to stick?
Are you living paycheck to paycheck?
Do you have lingering debt that you just can’t seem to shake?
Do you worry that you will never be able to retire?
If you answered “yes” to any of these, it may be a symptom of a larger problem, and one that I can help shine some light on. If you’re in Arkansas, Texas, Ohio, Florida, Illinois, or Oregon, I invite you to contact me now and set up an initial session. Together, we can get started working on some of these problems you’re facing. My office is located in Little Rock, AR, however I am also licensed in Texas, Ohio, Florida, Illinois, and Oregon as well, and can provide services via secure online video conference.
SOME TOOLS TO GET STARTED:
If you’re not quite ready yet to work with a professional to start managing your finances, or just want to get a jump start on taking a more organized look at your financial life, these are a few recommendations.
Dave Ramsey’s Total Money Makeover - This book completely changed the way I looked at money and was my first step into personal money management right out of college. I made some awful financial decisions early in life, and this started the journey for me to turn things around.
You Need A Budget (YNAB) - This app is one of the most robust, yet simple, money tracking and budgeting apps that I’ve come across. It does, however, cost to set up an account and use the app. There is a short free trial.
Mint - This is a free platform for tracking spending. Because it is free, there are some ads, and it is heavily marketed by credit card companies, so be warned, but it is a good way to track where your money is going each month.
