What’s Your Financial Problem?
Today, I want to dive into this question. I think understanding this provides my clients with the most value.
When it comes to your finances: “What’s the problem?”
In my experience as a financial coach, I’ve found there are two primary levers you can pull to influence big changes in your finances: Income & Expenses.
Let’s start with expenses. It’s important to start here so we can decide if you need to increase your income.
💸 Expenses: “We make good money. I don’t know where it’s going!”
Can you relate?
This is a statement I hear time and again from clients when they first meet with me.
It’s understandable to feel that way, especially when your bank accounts don’t seem to reflect the income you bring in.
The good news is that a lot of your expenses are within your control.
By taking a closer look at your expenses and spending habits you can gain clarity on where your money is going.
My clients have saved thousands of dollars with simple tweaks I help them make – like switching insurance and cell phone providers. I see hundreds of budgets every year so when someone is overpaying for something, it stands right out to me.
Often a client will come to me wishing they didn’t overspend on ___ [insert your own temptation here: DoorDash, Amazon, purchases from Instagram ads]. With a few tweaks to your strategy, you can often minimize lots of money here and redirect it toward what you actually want! But it all starts with taking a look at where your money is going. (And if you need help with that, you know where to find me!) Once you know where your money is going you can start making changes.
This may be the only step you need to take to change your finances!
💰 Income: Do you need to earn more money?
You may be wondering why I didn’t start with increasing your income. More money will solve your problems, right? Oh, how I wish!
How many times have you received a raise, bonus, tax refund, or larger-than-usual paycheck and it disappeared?
Making more money will not change your finances UNLESS you are managing your existing income and expenses well. (See above for just a couple of the changes my clients make that save them loads!)
So after you have a good system and process for tracking your income and expenses, AND you’ve evaluated and made changes to your expenses and spending habits, it’s time to address your income.
Are you still living paycheck to paycheck? Are you struggling to save? If you answered yes, you likely need to increase your income.
Increasing your income may involve changing jobs or pursuing a side hustle.
There may be times when you want to increase your income to pay for large upcoming expenses or to reach your goals faster.
If you are managing your money well, additional income changes the trajectory of your finances and overall quality of life.
So, I’ll ask again, when it comes to your finances, “What’s your problem?”
When I work with clients the first thing I want to understand is how they are using their money. Most clients find that they only need to adjust their expenses and spending to change their finances. Others choose to pull both the income and expense levers to reach their financial goals faster. If you feel lost when it comes to figuring out where to start in changing your finances, let’s chat. Schedule a complimentary call HERE to explore how I can help you.
