As a financial coach, I've had the privilege of working with clients from all walks of life, and I've noticed some common themes among the issues they face. In this blog post, I'd like to address the top five issues that my clients have shared with me.
Debt Management:
One of the biggest issues facing many of my clients is debt management. Credit cards, student loans, and other forms of debt can easily spiral out of control if not managed properly. The first step to getting out of debt is to create a budget that allows you to pay off your debts while still covering your living expenses. There are two methods for attacking your debt, Snowball, or Avalanche methods. Read more here.
Savings:
Many of my clients struggle with saving money. It can be difficult to balance the desire for immediate gratification with the need to save for the future. One way to make saving easier is to automate your savings. Set up a direct deposit from your paycheck into a savings account so that you don't even have to think about it. Also, find more contentment in the things you have versus always keeping up the Joneses.
Retirement Planning:
Retirement may seem far off, but it's important to start planning for it early. Many of my clients haven't given much thought to their retirement plans, and it can be overwhelming to get started. Many employers have investment options to their employees sometimes this is the easiest way to start. Another way to simplify retirement planning is to work with a financial advisor, however, I advise this after you get more literacy. Not all financial advisors are equal and having some base understanding will decrease the risk of being taken advantage of by well-intended advisors.
Investing:
Investing can be intimidating, especially if you're new to it. Many of my clients are hesitant to invest because they don't know where to start or they're afraid of losing money. It's important to educate yourself about investing and to start small. Consider investing in a low-cost index fund. All investing comes with a basic level of risk.
Lack of Financial Education:
Finally, many of my clients have shared that they simply don't know enough about personal finance. They may not have learned about money management in school or from their parents, and they're not sure where to turn for reliable information. One way to improve your financial education is to read personal finance books or blogs, attend workshops or webinars, or work with a financial coach.
These are the top five issues that my clients face when it comes to their finances.
Whether you're struggling with debt, saving for the future, or just need help understanding personal finance, there are resources available to help you. Don't be afraid to reach out for help and follow me on social media.