Sunday, June 30, 2013

Why and What



What and why
     In dealing with people and their finances I not only teach them what to do with their money, but we have to understand why they got to this place financially. Everyone usually starts out thinking that they are broke because they don’t make enough or that one certain circumstance caused them to get behind and stay there.  Some times this is true, but not always.  If a person can add and subtract they have the head knowledge to know when to stop spending.  If financial problems were just a math issue we would never spend more than we have.  Personal finance is more behavior than head knowledge.  There is usually a behavioral reason as to why we spend more than we make other than just not paying attention or bad luck. Although paying attention is part of it, we also may be trying to cover up an inward problem or a possible addiction.  We try to treat the problem with spending money to make us feel good.   Financial problems show up, a lot of the times, just a symptom of the real problem. Our financial problems can point to the real issue when we unpack everything.  Bankruptcy attorneys tell us that filing bankruptcy will solve our problems.  Bankruptcy just treats the symptoms and never changes the spending habits we have developed that cause the problems.     Once you determine why you are having financial problems, and why you want to get out, you can determine what to do to fix the problem.  Money, or the lack of it, can get your emotions in high gear.  We are created to use our mind as well as our emotions to get our finances under control.  It takes head knowledge and emotional passion to change your life to go in the direction you want it to go.  Can you imagine your life being debt free and having 3-6 months of living expenses in an emergency savings account?  If this sounds good to you, start to change your life by finding out- why you are where you are at financially,- and why you need to change.  These answers will tell you what you need to do. Let me know if I can help you with your plan! 


Tim West

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