Many times when I work with clients, they think that the answer to all their problems could be solved with just one thing…make more money.
While an increase in cash flow does make things a bit easier, it isn’t the whole solution.
When I began working with Michael and Linda*, a couple in their 50s with older children, they had a dreamy monthly income that ranged from $14,000 – $20,000 per month. Linda is self-employed, so her income varied from month to month.
Michael and Linda had participated in Financial Peace University at their church to get a clear plan for their money. It was a good start for them, but they had a lot of competing commitments, and wanted someone to work with them directly to ensure they were on the right path.
Although they had six figure incomes, they also had a number of high-ticket obligations.
Specifically, they owed over $93,000 in debt, and were paying for private school tuition and college tuition.
They had a lot of money coming in, and a lot going out each month.
With retirement on the horizon, they wanted to save for it well, but they just didn’t know the best path forward.
So we worked together to create a realistic budget that met all their requirements, and planned for the future. They began tracking their expenses, and predictably found ways to shift their spending to be in line with their priorities.
For their family, this included paying private school tuition and college, while paying down debt and saving for the future. They also restructured their debt to bring down their interest rates and to reduce the payment amounts.**
With a bit of financial coaching, they transitioned from feeling confused and frustrated about their best path forward financially, to feeling confident and moving forward with ease.
I received a note from them a few months ago, and they were happy to report their eldest son was a senior in college, and they had been able to cash flow it all!
What a triumph!
So yes, more money can make things easier! But having worked with families at every income level, I can easily say that the ones who have the most peace with their finances are the ones with a clear, realistic plan that reflects their actual expenses and goals.
If you could use a bit of help with your finances, and working with someone to ensure you’re on the right track, then click here to schedule your free call now.
*Client names are changed to protect their privacy. This case study is shared with permission.
**Please note that I do not routinely recommend clients restructure their debt. This is a complicated issue, and one that is not done lightly.
