If we were having coffee, and you asked me what I had noticed as a pattern in my financial coaching clients, I could definitely share a few of the trends I have observed over the years.
Since clients come to me at all salary ranges, you would think that there would be more differences than similarities, but the issues that cause problems at $40,000 per year are generally still issues at $250,000 per year.
One of the main underlying problems I notice with my clients prior to working with me is–lack of clarity with their finances.
This can show up as– several credit cards, many open accounts, no clear budget or no way of tracking money. Essentially–too many transactions, and too many demands!
When I began working with Amanda and Chris, a young fun couple in their early 30s, I could instantly see through their frustration and identify their bigger issue. They had several goals, and separate accounts, and they did not have a clear plan that they were working towards.
Amanda and Chris are both lawyers, which means their income was irregular, but they typically brought in $10,000 per month. They were interested in purchasing a home and saving for a future pregnancy so that they could expand their family.
Chris had nearly $120K in student loan debt and did not want to saddle Amanda with this expense, so they kept separate accounts and split the bills. With irregular separate incomes, a substantial student loan, a desire to buy a home and save for a family–they could not see eye-to-eye on everyday expenses.
What’s more–they did have some money saved up, but because of the way it was structured, they felt broke!
They were feeling financial stress because they didn’t have full clarity into their finances. Since they didn’t have a plan to move forward, they felt unsure about how to allocate their resources.
So the first thing we worked on was shining a spotlight on their finances by combining accounts. We removed the “walls” that were obscuring their finances, and they joined together to handle their money as a team.
Next, we set aside three months of salary for an emergency fund so that they could have the peace of mind that only comes from being prepared to deal with a financial emergency!
Since they were interested in purchasing a home, they started saving money for a down payment on their next home.
With an emergency fund and a house fund ready, we made a plan as a team to address the student loans that had been looming large in their minds. We figured out a practical plan to address that debt in a way that was peaceful for the couple because they could still achieve their bigger goals.
So yes, they had money before they started working with me, but because it was being managed separately, they didn’t feel like they had money and didn’t know how to accomplish what they desired most. They needed a roadmap! By combining their finances, they’ve been able to do more, without feeling restricted.
To top it off, they even saved up enough to take a tropical belated honeymoon! Upon their return, Amanda shared with me, “Our trip was stress-free because of the work we’ve done with you! We can’t thank you enough.”
Imagine how much marital stress they avoided by deciding to figure this out early, and head on! It takes courage to open up your finances to a coach, but with the amount of peace they both feel now, I think it is worth that cost!
If you could use your own roadmap, let’s schedule a time to chat! I would love to help your family, too.
