Have you ever had this experience?
You’re anxious to pay off your last credit card debt so you can stop those painfully high interest payments, but then you wonder about dipping into your savings to do so. “Should I lower the amount I’m putting in my 401(k) to pay off this debt, or is that endangering my retirement future?” you find yourself wondering. You then ask yourself if you should dip into your emergency savings to pay the debt or just leave things as they are for a time.
My clients often ask me such questions in the face of incredibly complex scenarios they face in a world that has become glutted with choice. They wonder, given all the choices they have to make about money, whether they are making the right choices. I’m sure you wonder,
Barry Schwartz, author of The Paradox of Choice explains the agony that decision-making can bring into our lives:
“A wealth of options…forces you to have to put time and effort into decisions, even about trivial things. It causes you to worry, if you choose without having explored all the possibilities, that maybe you’ve made a mistake. It forces you to make tradeoffs, passing up an option with one attractive feature to select a different option with another attractive feature.”
Since we can’t know everything about debt, mortgages, taxes, IRA accounts, retirement plans, and a growing host of other financial issues, most of us, now faced with a glut of choices to make about important financial decisions find ourselves confused and bewildered. What I have found in all my years of coaching hundreds of clients, one-on-one, is that instead of making a decision, many people hold back hoping something will open up for them. They tend to freeze rather than take action because it seems easier to stand still rather than go through the painful process of sorting through everything in hopes of making a wise decision, only to find that they’ve been duped by their own ignorance in the end.
Sorting It All Out…
So what can you do? Of course I advise my clients using the Money Mastery system. I am one of the co-authors of this program and I
personally live it in my own life. I have seen it work in thousands of other people’s lives, so I’m not going to beat around the bush about why I think it is so unique and so important, especially to you if you are struggling with financial complexities you don’t know how to sort out. Let me share why I think it can help simplify and clarify financial decision-making.
First, Money Mastery gives you a big picture view of your financial situation. It helps you look at your entire financial life as a “puzzle” with distinct pieces that must be fit together harmoniously.
Second, it teaches you what ALL these pieces are and how to fit them together using time-proven financial principles. Principles, unlike people, trends, or products, do not change and thus can be safely applied to varying circumstances to achieve a successful result, every time!
Let me outline one of the principles we teach in the Money Mastery program to illustrate how it can work to help you sort through financial complexities so you can be more proactive with your finances.
Money Mastery Principle 1: Spending is Emotional. Recognizing the emotions that are controlling your spending and borrowing habits and what you decide to do about that spending and borrowing will help you sort out financial complexities and make more proactive choices.
Let me go back to that debt I proposed paying off at the beginning of this post and see how understanding your emotions and the emotionality of spending may help you sort through all your questions about the best way to deal with it. Let’s say that you begin by creating a history of your spending from the last 12 months, as we teach all our clients to do. As you do, you may discover that you’ve been wasting far more money on eating out, for instance, than you thought. This realization is extremely emotional and helps you determine to spend less money on fast food going forward. You then use the money you were spending on that fast food to pay off the credit card debt. Looking at your spending helped you prioritize the way you wanted to spend and helped you realize that the money to pay off the debt was sitting in your pocket all along!
You can see from this example that understanding your emotions goes a long way towards clarifying financial issues. Applying this one principle is extremely powerful, and keep in mind, this is only one of 10 principles Money Mastery teaches. Wouldn’t it be wonderful if you could apply this principle along with others such as understanding how to get out of ALL debt (mortgage included) in under 10 years or how to get out of all this debt while still saving for emergencies and retirement? To learn more about the power of the principles, call me today: (888) 292-1099, ext. 1.