financial58

[financial58]

What is the Best Advice You Can Give to Someone Who is Always Struggling Financially?

Dealing with a serious financial problem is often a lonely and stressful time in someone’s life. Research shows that people who suffer with poor financial health also often suffer with mental health issues. Any stigma around debt and mental health problems only makes financial difficulties worse. Many suffer in silence, too ashamed to reach out for help.  

Awareness campaigns like Bell Let’s Talk teach us a lot about how to relate to people who are emotionally or psychologically distressed. Simple acts like listening; changing the words we use, and knowing the right questions to ask can make a huge difference in the way someone is feeling.   

Indeed, talking helps. It’s why we think a similar conversation about the way we talk about money can benefit those who are struggling financially and emotionally.   

How should you talk to someone who isn’t doing well financially? What are the triggers to avoid and the positive words of encouragement you can share that will contribute to someone’s road to recovery?  

Here are some tips to help you lay the groundwork for creating a safe space in which your friends and family will feel more comfortable about sharing their financial struggles.   

Check your financial privilege.

It’s always a good idea to remember that no two financial situations are the same. Being mindful of the way you talk about money will go a long way towards making your friends and family feel comfortable about opening up to you about their financial problems. Are you tempted to complain to your friends and family about how much money you owe on your tax return? About how you can only afford to take one vacation this year and not two? Or that your credit score moved from very good to “just” good this month? Try to be considerate of how this would come across to someone who is dealing with issues more serious than your own.  

Don’t assume that people’s money problems are their fault.

Oftentimes people will lack empathy for someone’s financial hardship because they believe that their problems are self-inflicted. Certain narratives can sound dismissive of a financial problem: “They chose the wrong career.” “They didn’t try hard enough at school.” “They lack willpower.” A common misperception is that a person’s financial successes are always directly related to their efforts, and that good fortune, demographic factors or other social phenomena have little effect on someone’s financial situation. In fact, more often than not, there are unexpected life events and emergencies, like health problems, medical bills, job loss or loss of a spouse, that are to blame. Moreover, assigning blame or perpetuating generalizations might make someone in your life question your capacity to understand them and their struggles.   

Don’t encourage a friend or family member to spend more than they want to.

When a person is trying to take control of their finances, they are likely already trying to curb unnecessary spending. Do your best to encourage positive steps like mindful spending and a monthly budget. If someone you know is hesitant to spend on an activity or an outing, try to be open and willing to think of less expensive options. Being mindful of the negative effects of financial peer pressure will not only help them stay true to their goals, it will also go a long way towards relieving any stress or shame they feel about their financial limitations.   

Lead by example and share your own financial problems. 

Talking about money isn’t always easy. Pushing your financial advice on someone who might take it badly can make the conversation even more difficult. Instead of directing and telling someone what they should do, model the behaviour you think would help that person. Share your experiences and challenges openly. Share a story of how you were able to resist buying something you didn’t really need. Or share the ups and downs of your debt repayment journey. Trying to overcome money problems is a goal that almost anyone can relate to. For someone who is struggling financially, this can help them feel less isolated.  

Let them know you are willing to help. 

In any relationship, it never hurts to let someone know that they can talk to you. Make this explicit. Reassuring someone that they don’t have to bottle things up and pretend that everything is fine can be a real comfort, especially if they’re going through a tough time financially. Being patient and empathetic may also help them take the necessary steps towards getting debt help.  GO URL

Know the resources they can turn to.

If you have arrived at a place where a friend or family member is able to open up to you about their financial struggles, knowing the resources they can turn to will make their journey a lot less intimidating.   

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I Am Very Bad At Money Management, What Should I Do?

Check yourself before you wreck yourself if retail therapy is a regular habit. At the very least, try to determine exactly what the problem is, find its root, and address it head-on. If you need more education to land your dream job, you should focus your finances on that rather than on needless entertainment.

I waste a lot of money on take-out. It's not that I don't like cooking — because I do — but that I am truly terrible at meal planning and buying groceries accordingly. When I was single, eating was simply a matter of buying a fresh loaf of bread and some good cheese, and maybe some cheap wine, but now I have to feed a whole family; it's become a little more complex.

Or perhaps you find yourself payingSome people are bad at money. But you don't have to be that way forever. What should they do?

You're an Impulse Spender

A little retail therapy is fine and dandy if it's not a chronic issue that causes you financial distress. Had a rough week? Sure, a splurge on a new pair of running shoes or a shade of lipstick that is inappropriate for work can offer a quick (and temporary) pick-me-up, assuming you have the cash to spare. But if you don't, then retail therapy is a bad idea. Spending to make yourself quickly feel better is almost always a bad idea.

If you just had a baby and hate the way your body looks (I know nothing about this, shut up), then an expensive haircut and a bottle of self-tanner aren't going to fix the problem, although they may distract you from the issue for a day or two. If you hate your job, binge-buying many video games may entertain you in your off-time but won't make your working hours any more bearable. GO URL

 through the nose for services, like a yard or home care, that you could do yourself. There's nothing inherently wrong with paying someone else to perform work for you, as long as you can afford it, but if your budget is stretched, then cutting back makes sense. GO URL

Find ways to make the necessary work more bearable. If it's meal planning, look at websites and meal planning apps that help you plan, shop, and cook. Enlist the help of your favorite music while cleaning and doing laundry. Get a lawnmower that works. I had to spend $400 to find a lawnmower that I could start, but that's still cheaper than paying someone to come and mow my lawn every week or so.

You Had Bad Money Role Models

Maybe your parents were terrible at money, and you learned their bad money habits. It can be hard to break out of this mold if you've been shaped by it since childhood since old habits die hard. But if you want to put yourself in a better financial situation, you need to forget what you learned growing up and start fresh. Fortunately, it's never too late to learn good money management skills.

The internet is your friend when it comes to money management. You can peruse personal finance websites (like this one!) or take a free online course in money management.

You Had No Money Role Models

Maybe no one ever taught you the basics of money management, and you've been winging it poorly. (Incidentally, back when I was in school in the last millennium, Home Economics courses taught us how to sew and microwave eggs but never mentioned budgeting.)

Parents often believe that they are doing their children a favor by not exposing them to the dirty business of money management. While understandable, the notion is misguided. Sometimes families have to tighten their belts to make ends meet, and it's not wrong to explain to children why they can't go to the movies every weekend.

If you have kids, you can break the cycle of financial silence by allowing your kids to participate in planning meals and family budgets. Although learning basic money management skills can seem daunting when you're an adult, getting the whole family on board can make it less grueling.

You Try to Keep up With the Joneses

Maybe you idolize people who have a lot and believe that buying things is the only way to be happy. Or maybe you've just bought into the idea (haven't we all?) that you need to have at least as much as your neighbors to fit in.

Humans are social creatures, and we tend to care deeply about what our peers think of us. This is, of course, why many advertisers sell an image of who you can be when you buy their product, rather than just selling the actual product. GO URL

Just like occasional shopping sprees, there's nothing inherently wrong with wanting to impress other people, but buying things specifically for the sake of shaping someone else's opinion of you is silly, especially if you don't need what you are buying. Before you buy anything, ask yourself, "Would I spend money on this if I knew that no one else would ever see it?"

You Are the Joneses

Or at least… you were the Joneses until financial circumstances changed, and your spending habits didn't.

Perhaps you lost your job, and now you have to scramble to make ends meet for a while. It doesn't matter that people once envied your brand new car and constantly updated wardrobe; what matters now is putting food on the table and paying the bills. A part of your new life involves adjusting budgets and expectations to meet reality.

You might find that changing your spending habits is as simple as cooking at home instead of dining out or learning not to shop as much. Some downsizing might be more serious, like reducing the number of cars that you own or learning to live in a smaller house. Regardless of the size of changes that you have to make, you'll do well to learn to let go of the past and accept the present. GO URL

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How to Manage my Money Wisely?

Eating out every day of the week. Buying coffee every single day Paying ATM feesEver taken money out of an out-of-network ATM and thought to yourself - "It's only a $3 fee, it's not that much?" Well, if you do this once a week or 4 to 5 times a month at an average of $3 per out-of-network withdrawal, then we're talking $180 in ATM fees a year. GO URL Shopping when you're upset or bored Not having a monthly budget.

You are probably here if you are reading this because you are all about spending money wisely. That being said, we are all guilty of slipping up at one point or the other. GO URL

It's easy to fall into the habit of buying expensive coffee every day. Many of us eat out or order in every day, and we've all bought groceries that we've ended up throwing out. Sidebar, did you know that Americans waste almost 40% of the food they buy? Yikes! And then there's the money we spend buying clothes that we never wear and more.

I'll be the first to admit that I've had a couple of not-so-great money habits in the past.

But what are the true costs of these habits when it comes to your finances? Finding out can be all the motivation you need to break a bad money habit. But first, let's go over what it means to spend money wisely.

What does it mean to Manage money wisely?

Spending money wisely basically means getting the most for your money in line with what matters to you. This, in turn, helps you save more and puts you on the path to achieving your financial goals.

Living a frugal lifestyle by using savvy ways to save money is an example of spending wisely. Tweaking a few habits and setting intentions for your finances can make you a wise spender.

How to manage money wisely by watching these habits

It's much too easy to spend money, and sometimes we do it more than we think. Watch out for these 7 habits and learn how to combat them so you can spend more wisely and save more money!

Do you find yourself buying lunch at work or ordering in more than a couple of times a week? Well, let's say the average cost of lunch for you is $10 a day. Multiply that by 5 days a week for one year, and we're talking $2,600 in lunches and take-out!

How to spend wisely: Cut back on buying lunch by a third or by half and put the money you don't spend towards savings or pay off debt. You'll be surprised how much you save when you cut back. Plus, you can free up some extra money for your grocery budget and buy some of the nicer things you've always wanted to try out.

Combine that with meal planning, and you will save a ton of money. You'll also be aware of everything you are eating from a health perspective because you picked it out and made it yourself! GO URL

Are you one of these people who needs that quick morning coffee fix? Find yourself stopping at Starbucks or Dunkin Donuts one too many times a week? Or even multiple times a day? Well, depending on where you buy your coffee or caffeine beverage, you can very well be spending an average of $4 a day for a single cup. Over one year, that's $1,460! GO URL

How to spend money wisely: Consider investing in your fancy at-home coffee maker. It might seem like a big investment as good ones can range anywhere from $100 to $400, but if you are a big coffee drinker, you'll be saving a ton of money by making your coffee at home. And over time, your homemade coffee will come out to pennies compared to an average of $4 a day.

You can also try out the free coffee many workplaces offer. Yes, it might taste crappy at first because your taste buds have been conditioned to fanciness, but over time you might just get used to the "ok" coffee at work!

Wouldn't you rather put that money to better use? It could go towards savings for a vacation, towards your emergency fund, or to treat yourself to something nice.

How to spend money wisely: Open a checking account with a bank with no ATM transaction fees regardless of what ATM you use or one that reimburses out-of-network ATM fees.

Pull out enough cash from your in-network ATM based on how much you think you'll be spending each week. You can determine that by creating a monthly budget!

A common bad money habit to watch is shopping when you're bored or upset. They call it shopping therapy for a reason. It's a short-term solution, or so you feel, to avoid or relieve what's truly ailing you. However, it causes more problems because you are busting your budget or racking up debt shopping.

How to spend money wisely: To stop yourself from frivolous spending, start a spending journal. Recording your transactions and your emotions when you buy something can help you learn how to manage money wisely and make you aware of your habits.

If your finances are free for all and you don't have a monthly budget, then it's time to make one. Spending more than you earn because you aren't budgeting your money sets you up for financial doom. Living beyond your means can easily happen if you aren't careful.

How to spend money wisely: Budgeting and tracking your spending is how to manage money wisely. Of course, you must find the right budgeting method that works best for you. Everyone's finances are different; find a budgeting method that's easy for you to stick with, so you can become financially savvy. GO URL

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How to Find a Trustworthy  and Efficient Financial Advisor?

Financial advisors help people manage their money and reach their financial goals. They can provide a range of financial planning services, from investment management to budgeting guidance to estate planning. The advisor you choose will depend on your financial situation and your needs.

Picking the right financial advisor for your situation is key — doing so means you won't end up paying for services you don't need or working with an advisor who isn't a good fit for your financial goals.

We recommend following this process to choose a financial advisor.

Understand the types of financial advisors

A financial advisor can apply to various services, ranging from online Robo-advisors to local, in-person traditional financial advisors.

All of these financial advisors help you manage your money in various ways:

Robo-advisors

A Robo-advisor is a digital service offering simplified, low-cost investment management. You answer questions online, then computer algorithms build an investment portfolio according to your goals and risk tolerance.

Low cost, easy entry: Fees start as low as 0.25% of your balance, and many services have no or low account minimums, so you can start investing with a small amount of money.

Good when: You need help investing for financial goals like retirement but don't want or can't afford a complete financial plan.

Online financial advisors

This is the next step up from a Robo-advisor: an online financial planning service that offers virtual access to human, financial advisors. 

A basic online service might offer the same automated investment management you'd get from a Robo-advisor, plus the ability to consult with a team of financial advisors when you have questions. More comprehensive services roughly mirror traditional financial planners — you'll be matched with a dedicated financial advisor who will manage your investments and work with you to create a holistic financial plan. Facet Wealth and Personal Capital are examples of services in this space.

Medium cost, varied minimums: Online financial planning services will typically cost less than a traditional financial advisor but more than a Robo-advisor. Some services have relatively high investment requirements of $25,000 or more; others require no minimum investment.

Good when: You need a financial advisor and a holistic financial plan, but at a lower cost than a traditional in-person advisor.

If you're looking for a personal financial advisor, see our full roundup of the best online financial advisors.

Traditional financial advisors

Traditional financial advisors include certified financial planners, stockbrokers, registered investment advisors, financial consultants and wealth managers. The same person can have more than one of these titles. For instance, a CFP may also be a registered investment advisor. If you work with a financial advisor near you, you'll typically meet in person in a local office.

Higher cost, higher minimums: This is often the highest-cost option, and some advisors also require a high minimum balance, such as $250,000 in assets.

Good when: You want specialized services, complex situations, or meet your financial advisor in person.

Choose which services you want.

If you want help choosing and managing investments, a Robo-advisor is a streamlined, cost-efficient choice. It's also good for those just starting because Robo-advisors often have low or no account minimums. 

Suppose you have a complicated financial situation or want holistic advice on estate planning, insurance needs, etc... In that case, you might want to choose an online financial planning service or a human financial advisor in your area. If you don't mind meeting with your advisor virtually, you may save money with an online service. These services also typically have lower account minimum requirements than a human advisor might. 

You'll also want to think about what each service can offer you. For example, if you're interested in impact investing, you'll want to ensure your advisor, no matter what kind they are can help you with that. 

It often makes sense to start with a Robo-advisor or online planning service — you can always hire a traditional financial advisor if your situation grows more complex.

Consider how much you can afford to pay an advisor

Financial advisors have a reputation for being costly, but these days there is an option for every budget. It's important to understand how much a financial advisor costs before you commit to services. Generally speaking, there are three cost levels you're likely to encounter:

Robo-advisors often charge an annual fee that is a percentage of your account balance with the service. Robo-advisor fees frequently start at 0.25% of the assets they manage for you, with many top providers charging 0.50% or less. On a $50,000 account balance, 0.25% works out to $125 a year.

Online financial planning services typically charge either a flat subscription fee, a percentage of your assets or both. For example, Personal Capital charges 0.89% of assets under management per year. Facet Wealth charges an annual fee that starts at $1,200 a year and goes up based on the complexity of your financial situation. Both fees include portfolio management and financial planning.

Traditional human advisors also often charge a percentage of the amount managed, with a median fee of 1%, although it can range higher for small accounts and lower for large ones. Others may charge a flat fee, an hourly rate or a retainer.

Vet the financial advisor's background

Always check out the record of the company or person you're considering by looking up the firm's Form ADV. Among other things, this Form will outline how the firm or advisor charges for its service (and what the specific fees are), conflicts of interest and any past disciplinary actions.

We also have a list of 10 questions you should ask a financial advisor — including whether they hold to a fiduciary standard, which requires that they act in your best interest.

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As a Financial Advisor What is The Most Common Mistake You See People Making With Their Personal Finances

Life is full of financial pitfalls. Even with the best of intentions, it’s easy to make financial mistakes. But it’s not just about the mistakes you’re making — it’s the opportunities you could be missing.

The good news is it’s never too late to recover from these mistakes, and it’s never too soon to learn how to avoid them! Let’s look at the most common financial mistakes to avoid and how to steer away from them.

Going Without a Plan (or a Budget)

One common financial mistake is failing to build a financial plan or a budget. 

Your financial plan is your road map to accomplish your financial goals. It’s about establishing SMART (specific, measurable, achievable, relevant, time-bound) goals and an investment and savings strategy to get you there. Meeting with a financial planner is often recommended for a strong start. 

Your budget is how you allocate your income every month. A strong budget helps ensure you’re taking care of your needs and living within your means, as well as allocating funds to your wants, debt repayment, and investments in your future. 

One good rule of thumb to use when establishing a budget is the 50/30/20 rule: 

· 50% for needs (housing, car, healthcare, etc.)

· 30% for wants (entertainment, etc.)

· 20% to savings, debt repayment, and investments 

Depending on your available income, financial goals, and stage of your career, flexibility is important. If you can comfortably allocate more than 20% of your income to savings and investment, you’ll be better off over the long term. 

Leaving Money on the Table

Does your employer offer to match funds for your 401K retirement plan? Do they offer you the opportunity to buy a stock at a discount? Don’t leave free money on the table!

Many employers offer a 401K program as part of your benefits package, and some will match your contributions up to a point. If your employer offers to match your retirement contributions up to 3% of your income and you don’t take advantage of it, it’s like turning down part of your pay. 

If you have life insurance or similar benefits through your employer, make sure you list a beneficiary on them. Your benefits package is part of your compensation—you want to ensure you maximize all potential benefits you receive. 

Preceding Life Insurance

No one wants to think about their mortality. Don’t let that force you into the mistake of not financial planning for the security of your loved ones if something unexpected happens. 

The average funeral in 2021 is expected to cost between $7500 and $12000. Life insurance will help your family handle the expenses incurred if you pass away, as well as ensure they have the resources to get through a difficult transition after you’re gone. 

Life insurance is often inexpensive for adults in good health, and the peace of mind it offers is priceless. Knowing your loved ones have the resources to thrive after you’re gone is one of the smartest moves you can make. 

Making Major Purchases Without Comparison Shopping

When it comes to recurring expenses such as car insurance, consumers often stick with what they have. However, it pays to shop around. Consumers who review their accounts before renewing and comparison shops can often save hundreds of dollars per year! Even if you stick with the same company, review your coverage to see if you’re carrying more insurance than necessary. GO URL

Maintaining Unused Services & Memberships

How many streaming services do you use? Like many Americans, you may not even realize how many recurring payments are coming out of your account. Among Americans who utilize streaming services, the average consumer wastes $348 per year on services they don’t even use. 

It’s a good idea to go through your bank account periodically and highlight recurring payments such as gym memberships or streaming services. There are even apps you can download for this purpose. Think carefully about whether you use each service enough to be worth the expense. While each payment may only be 10 or 20 bucks, these can add up to hundreds of dollars every year. GO URL

Choosing Not to Invest in Your Future

Not putting your money to work is a huge financial mistake. The best way to meet long-term financial goals is with a smart investment strategy that takes advantage of not only your 401K but tax-advantaged programs such as an Individual Retirement Account. Where possible, diversify your investment portfolio by participating in programs such as peer-to-peer lending. 

The earlier you begin to invest, the better off you’ll be later. However, it’s never too late to implement an investment strategy that meets your long-term financial goals. A qualified financial advisor can help you develop a strategy balancing risk with a return based on your goals and timeframe. 

Buying a New Car

Just because you can afford the payment doesn’t mean you should buy a new car. Cars are depreciating assets, which means they drop in value as they age. A new car loses 20-30% of its value in the first year of ownership. Depreciation slows down after the first year or two, so a used vehicle is usually better than a new vehicle. 

Many manufacturers offer certified pre-owned vehicles, which are typically two to three years old with low mileage. These programs usually include a full overhaul of the vehicle and a manufacturer warranty. You get the advantages of a new car for a much better value, and all you give up is the new car smell. 

Overusing Credit Cards

One of the most common financial traps, especially for individuals in the early stages of their adult life, is accumulating credit card debt. A credit card is a powerful tool to help build your credit history, but a high credit limit can encourage living beyond your means. Many people don’t realize that the minimum payment generally only covers interest. While many Americans carry debt from student loans or car loans, stacking credit card debt on top of other debt causes much financial stress. 

Responsible use of credit cards can provide many benefits, but you’ll want to avoid getting in over your head. However, if you’re already carrying big credit card balances, it’s not too late to recover! Consider using a personal loan or a credit card with a low balance transfer interest rate to knock down those balances. Then find a card with a solid rewards program and a reasonable interest rate to use for everyday purchases while paying it off every month to improve your credit score. GO URL

Letting Your Credit Report Go Unmonitored

Even if you’re careful with your credit, it’s important to regularly monitor your credit reports and ensure that you’re responsible for all the items on them. Identity theft is a growing type of crime, and it’s also possible that a creditor or the credit bureau could make an error that reflects poorly on your credit. 

You’re entitled to a free credit report from each of the three credit bureaus once every year, which you can request via reikikabbalah.com. You may dispute any incorrect items, and the credit bureau will investigate each disputed item. 

Reluctance to Pursue Financial Education

Most public schools offer very limited education on personal finances, so many Americans get by with what their parents taught them and what they pick up along the way. It’s easy to think you’ve got things handled, but by learning more about financial literacy and best practices, you could avoid many financial mistakes and find your path to financial well-being. You’re already doing so by reading our blog, and we’re so glad you’re here and taking steps to learn!

The good news is there have never been so many free ways to learn to be a financial maestro! Whether you prefer to read blogs, watch videos, or listen to podcasts, educating yourself is best to avoid making financial mistakes.

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How Does Our Optimism Help us Overcome Hardship?

There are days when nothing in our lives appears to be "sunny." When things don't go our way, we become trapped, weary, and sometimes depressed. We may have lost our job or a loved one, become unwell or had a general sense of being lost and unsure of what to do with our lives.

 When a difficult moment lasts longer than expected, we lose ourselves in the negativity of the situation, forgetting that our position may and will change in the future. When our optimism and pleasant ideas begin to fade, and we begin to believe that nothing wonderful will ever happen to us again. That we are destined to perish. GO URL

 We don't feel like being upbeat and optimistic at the time. We want to hide under a blanket and despise the world. That's OK for the time being. However, we must use extreme caution in this situation. What we concentrate on the most tends to expand and straighten out over time. What exactly does this imply? If you're depressed for a week, month, or even a year, it's easy to get into a pattern. Habits create personality traits, and before you realize it, a pessimistic attitude on life has become your "modus operandi."

 Keeping a positive attitude in the face of adversity does not come naturally to most of us. That is why it is a talent and a habit that we must cultivate. Challenges and difficult times are precisely the times when we must be brave and be hopeful. When we achieve this, our self-esteem and confidence will improve. Our anxiety levels will decrease, and our resilience will increase. We will mature as people because we will realize that we can get through anything if we keep looking on the bright side of life. GO URL

 There is always a method to overcome hurdles to being positive, no matter your life condition. All you have to do now is choose anyone and do it.

How does financial life coach help us overcome our financial Hardship!

A financial coach is someone who assists you in improving your financial connection and staying on track to achieve your financial objectives. "Imagine a financial coach as a personal trainer who helps you talk about, implement, and maintain beneficial habits," says Julie Genjac, managing director of applied insights at Hartford Funds. A financial coach, like a personal trainer, helps you understand your connection with food and exercise, develops ways to avoid your natural urges from derailing your efforts and encourages you to stay to your plan.

"Financial coaches are there to help you create a great connection with money and figure out what your natural motives are for saving and spending – and then integrate responsibility into your future actions," Genjac explains. "(They) get to know you and your thinking, and they help you stay on track financially with day-to-day actions, ideas, and, most importantly, tiny victories."Stephanie Vaught, a financial coach and the creator of Social Money Finance LLC, says she helps her clients see how their money attitude and behaviors affect their lifestyle. "Any improvements they want to make must begin with how they think about and treat money," she says.

A financial coach, unlike a financial advisor, will not make investment suggestions. They don't create investment plans. Instead, they provide the groundwork to prepare clients for the emotional obstacles that may arise while pursuing their financial objectives.

"By displaying what they may feel and actions they may want to take in different types of markets, and then showing them another way to look at a difficulty from an instinctive, emotional, and historical viewpoint," financial coaches train clients to stay optimistic in Hardship. GO URL

How does a personal financial coach help us to stay optimistic!

A personal finance coach is a form of life coach who helps someone else achieve their financial objectives. In contrast to financial advisers, financial coaches do not provide financial advice such as recommendations for investment strategies or specific financial goods and services. Instead, they assist people in learning how to develop better money habits, such as how to pay off credit card bills best or choose which bank accounts are best for them. The purpose of financial coaching is to assist in teaching financial literacy so that people who use the service can achieve long-term financial success. A personal financial coach doesn't have to work with just one person. Partners can work with the same personal finance coach to ensure that their financial decisions are in sync.

Choosing to engage with a financial coach may be advantageous in a variety of ways. Financial counseling focuses on instilling and maintaining favorable habits. Individuals may rely on personal financial coaches to assist them in creating excellent money management habits rather than sliding into poor habits. The goal of financial educators is to assist people in comprehending the reasoning behind their financial decisions so that they can make sensible and informed judgments. This implies that people who hire financial coaches may obtain help with immediate and long-term goals, such as creating a monthly budget and repaying student debts. GO URL

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Are Certified Financial Planners Worth The Money?

While financial planners are essential advisers for many individuals, particularly those with large wealth and diverse accounts, having your own financial planner is a luxury you can definitely do without if you're just getting started with your money or don't have a lot of assets.

 It's no secret that financial planners are experts who earn a job by helping people as a money manager by helping them manage their money wisely and having one on your side may be beneficial. They're especially useful if you're looking to start investing properly and need some guidance. However, retaining a financial adviser on retainer may not be financially effective for you.

 You may believe you'll never be able to manage your money on your own, but with a few pointers, you'll be on top of your finances in no time. Hiring a financial planner doesn't make sense for me right now because I'm still young and don't have a lot of savings. Instead, I do a few simple things with the money I have, and I've managed to develop a decent portfolio that will serve as my financial basis moving forward by exploring numerous investment and savings alternatives.

 But trust me if you can’t manage your money it can lead you to debts and put you in hard situations. So managing money is really important and for that professional help is a must you need to save yourself from any debts and troubles.

 Is it really worth it to hire a financial planner? It's a major choice to decide whether to hire a financial counselor or handle your own money. A long-term engagement with a financial planner or investment advisor is not required for everyone. However, many investors who might benefit from working with a financial planner either do not seek professional assistance or believe they do not require it. Here are a few indicators that you may want the services of a financial counselor.

Debt management:

Are you in debt? Are you worried about paying your debts and how you will manage to pay them? Well, we have a solution to your problems.

Debt management is an important part of how a financial planner can assist you in your debt management and planning for a secure financial future. A person who is drowning in debt is like someone who is bleeding from an open cut; the first step is to stop the bleeding. A trustworthy advisor can help a client map out their cash flow and detect present and prospective problems.

To ensure that your adviser has the complete picture, the client should bring all essential documents to the appointment. This includes bank statements, credit card bills, installment loan statements, pay stubs, previous year's tax returns, and anything else that might affect your financial condition.

Some people may find it invasive and insulting to have a stranger evaluate their spending patterns and previous financial mistakes. Clients should be aware that they may be confronted with some difficult realities in order for the meeting to be effective.

Once the client has overcome this stumbling block, the financial advisor can create a new balanced budget that will manage the debts and cover the essentials while not adding to the debt load. This usually entails eliminating any superfluous spending so that any extra income may be used to pay down current debt. As a result, we can see that financial counseling is very beneficial in debt management.

Even if you could find the time to accomplish your financial planning, you might not want to if it takes time away from other activities. Everyone isn't interested in personal money! It doesn't have to be that way. However, if you've been ignoring your finances, it's probably time to employ a financial counselor. Delaying smart financial decisions or prolonging bad ones, such as holding too much cash or putting off creating an estate plan, costs money.

Consider whether DIY investing is a viable choice if you're unsure whether you need a financial advisor or if you can do it yourself. What has changed in your life that you now believe you can dedicate more time and attention to your investments than you previously could? It's easy for do-it-yourself to develop into no-one-does-it. We all have a couple of house projects to show for it. So, if your to-do list is never-ending and you never seem to have enough time to deal with your personal money, you may require the services of a financial counselor. GO URL

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Are Financial Planners Useful at All?

Do you really need a financial counselor with all of the knowledge accessible in books, print media, and the plethora of websites dedicated to personal finance?

So, how much spare time do you currently have? In addition, consider the following:

Do you have a good understanding of investments?

Do you love exploring certain assets and reading about wealth management and financial topics?

Do you know how to work with financial instruments? Do you have the time to keep track of your investments, review them, and make adjustments to your portfolio on a regular basis?

Doing your own research is an option, but to do it well, you'll need to devote a significant amount of time to stay current on any changes in investment and insurance legislation, among other things. Changes in tax rules or other legislation may have an impact on your financial situation. Changes in your brokerage firm's mutual fund offerings can also have a significant influence on your financial situation: One of your funds may be closing, and you'll need to determine where to place the money. You'll also need to keep up with popular financial planning as well as the debut of new ones.

When you're unsure, upset, or just uneducated about numerous wealth-management concerns, financial planners might be invaluable. When you consider that the majority of individuals can't look far enough ahead to imagine, much less financial planning for, retirement and expert planning can come in helpful. In order to gain a complete picture of where you want to go in life, a trained counselor will ask you a lot of questions, some of which will be difficult for you.

They can put together a plan and provide you advice on investments, retirement planning, estate planning, tax obligations, and your children's college tuition after they have all of the data. The advisor's knowledge base can alleviate a lot of your difficulties.

Some financial advisers go even farther, actively assisting you in the purchase of insurance and financial goods such as mutual funds and certificates of deposits (CDs). While not all financial advisers are licensed to trade assets such as stocks or bonds, they can help you find a broker or money manager who is. On your behalf, they can collaborate with a trust and estate planning lawyer or an accountant.

 Why do you need a financial advisor?

Some folks don't require much in the way of financial planners. You might not, either...

If you've been dutifully saving for retirement and investing wisely.

If you've put together a strong retirement strategy that will provide you with enough income in your senior years.

If you have the correct quantity of insurance to cover your house, automobile, life, income, and everything else that needs to be covered.

If you've done debt management.

If you have an estate plan in place that keeps your beneficiaries' taxes and headaches to a minimum.

However, few of us have all of our financial (and other) ducks in a row.

 Let’s see holistic planning:

Holistic financial planning aims to maximize all areas of a person's financial strategy and understand how all of the components fit together to assist them to achieve their objectives. A holistic financial plan depicts a client's whole financial picture and attempts to make each component complement the others. Because they have so many different financial specialists working for them, you may run into clients who don't completely get what this entails.

 A client's finances are taken to the next level with holistic planning. It does not, for example, focus solely on investing. To maximize the effectiveness of their strategy, it looks at asset location and asset allocation to simplify a tax plan and takes into consideration their risk tolerance as well as current and future demands. It's critical to think about each smaller piece and how it interacts with the others because that's how you get the best value.

 In the End, Is Hiring a Financial Planner Worth It?

 In the end, you are the only one who can decide whether or not you require the services of a financial planner. Because each investor's circumstance is unique, the value of an adviser relationship will vary.

 In general, a financial planner is likely to be beneficial to you if:

 You require assistance in developing a financial plan.

You require tax advice.

It's difficult for you to keep your emotions out of your investment selections.

You're on the verge of retiring.

You'd want assistance in lowering your risk or devising a retirement withdrawal strategy.

You may not need a financial planner if you:

You are confident in your ability to make your own financial planning.

You don't require assistance in money management.

You're not interested in tax reduction or other advanced planning tactics.

You aren't on the verge of or in the midst of retirement.

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5 Reasons Why I Wouldn't Use a Consumer Credit Counseling?

With so many credit cards and lines of credit (LOCs) available, acquiring what you want right now, regardless of whether you have the cash to pay for it, has become typical practice. There are a slew of popular justifications for justifying your need for instant fulfillment. It's easy to see how we've turned into a debt-ridden nation.

 Here are nine strategies to talk yourself out of using credit when you can't afford to pay cash, whether you need a mild prod to get back on track or fundamental information to keep yourself out of trouble.

 Credit Is a Barrier Self-Control

In the best-case scenario, a lack of financial self-control might rob you of your financial stability. In the worst-case scenario, an impulsive buying mentality can negatively affect other aspects of your life, such as self-esteem, drug misuse, and interpersonal relationships. Yes, exercising restraint may be tough and tedious, but it also has several benefits and advantages, such as the capacity to reach financial objectives such as home ownership.

 It's a good bet you don't have a budget.

It's easy to overlook how charging a cup of coffee here and a new book there can build up throughout the month and get you in trouble if you don't have a budget. A budget is a useful tool for many people who want to keep their expenditures under control.

It's easier than you think to create a budget if you don't already have one. Making a note of how much money you earn in a month, followed by a running total of spending, may be as easy as budgeting. The amount of money you have left will determine how much you can spend.

 It's Expensive to Pay Interest

The reason for the importance of self-control in money isn't moral or spiritual; it's practical. Credit card interest rates are high, increasing the cost of your purchases.

 For example, if you buy something for $1,000 on a credit card with an 18% interest rate and pay the minimum payment each month, you will pay $175 in interest after a year and still owe $946 on the transaction.

 Relationships are at risk due to bad habits.

According to studies, couples and families quarrel more over money than virtually anything else, and it may be a particularly sensitive topic when there isn't enough of it. As a result, if feasible, couples and families should work together on budgets and financial discipline.

 More Spending as a Result of Financing

When people pay with credit instead of cash, they tend to spend more money on products that aren't necessary or are too pricey. This is psychological since if you just sign a receipt and don't have to think about paying for a month, purchasing a $1,000 laptop or smartphone won't seem like a big deal.

When you pay with cash, on the other hand, you can feel the $100 notes leave your hand, giving you a stronger idea of how much those products cost and how much money you have left in your now-lighter wallet. This can also apply to a lesser extent if you pay with a check and instantly record the transaction in a checkbook that indicates the impact on your account balance.

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How Should I Choose a Money Manager?

Do you require assistance with your financial management? If you're like most people, you may require assistance. Finding a skilled financial life coach can assist you in avoiding these charges and concentrating on your objectives. Financial coach aren't just for the wealthy; everyone who wants to get their personal finances in order and create long-term goals should consult with one. To discover the proper financial coach or money coach for your requirements, follow these steps.

How will I choose the right money manager!

There is no federal legislation that governs who may use the title "financial or money coach" or offer financial coach services. While many people claim to provide financial coach services, not all of them are looking out for your best interests. That is why you must thoroughly assess possible financial life coach to ensure that they are suitable for you and your assets.

Understanding fiduciary obligation is an important part of knowing about the many sorts of advisers. Some, but not all, money coach are bound by fiduciary responsibility, which means they must act in your best interests financially. Other "coach" are merely subject to an appropriateness requirement, which means they may only recommend items that are right for you—even if they're more expensive and pay them more commission.

Regardless of the type of advisor you pick, be sure you understand how they generate money. This allows you to decide if these financial coach services are best for you—or for their pockets.

Let see the different type of advisor and choose the right for us among them:

Paid financial coach

Financial life coach that work on a fee-only basis make money from the fees you pay for their services. These costs might be calculated as a percentage of the assets you manage, an hourly rate, or a fixed rate.

Fiduciaries are almost all fee-only advisors. In general, they have decided to work on a fee-only basis in order to avoid any potential conflicts of interest. Because their income comes from clients, it's in their best interest for them to make sure you get the greatest financial coach services possible.

Commission-based financial coach

Third-party sales commissions are a source of income for certain financial coach. Some financial advisers who get sales commissions may represent themselves as "free" financial advisors who do not charge you a price for their services. Others may impose fees, implying that third-party commissions account for just a portion of their revenue.

Money coach who are compensated by third-party sales commissions make some or all of their money by selling you financial services. If you choose to deal with a financial coach that is compensated by sales commissions, you must exercise caution.

Financial coach with a License

Companies that provide fiduciary financial advice are known as Registered Investment Advisors (RIAs). Investment Advisor Representatives (IARs), who are obligated to act in the best interests of their clients, work for RIAs. One or hundreds of IARs may be employed by an RIA.

IARs might refer to themselves as financial coach services and work on a fee-only or fee-based basis. Some may have additional certifications, such as the CFP designation (certified financial planner).

What are the services money manager provides

·         Investment advice is available. Financial life coach investigate various investment possibilities and ensure that your investment portfolio remains within your risk tolerance.

·         Debt management is the managing of debt. Financial counselors will work with you to create a repayment plan if you have outstanding obligations such as credit card debt, school loans, vehicle loans, or mortgages.

·         Budgeting assistance Experts in assessing where your money goes once it left your paycheck are financial counselors. Advisors can assist you in creating budgets so that you can achieve your financial objectives.

·         Insurance protection. Depending on your personal financial condition, financial coach may analyze your current policies to find any gaps in coverage or propose new types of policies, such as disability insurance or long-term care coverage.

·         Tax planning is an important aspect of every business. Tax planning include devising strategies to reduce the amount of taxes you may owe, such as making big charitable contributions or taking advantage of tax losses. Remember that not all financial planners are tax professionals, and that tax planning is not the same as tax preparation. To submit your taxes, you'll almost certainly need a CPA or tax software.

·         Making preparations for retirement. Personal financial coach can assist you in money management for the long-term objective of retirement. Then, if you've retired or are about to retire, they may assist you in keeping your money safe.

·         Estate planning is a term used to describe the process of money coach can assist you transfer your money to the next generation, whether it's family, friends, or charity causes, if you want to leave a legacy.