Seemingly, contemporary society encourage consumerism where people are under intense pressure to continually work not for personal and social fulfillment but in order to achieve financial resources necessary to acquire and consume more material resources. Sadly, the more you earn, the more you acquire and the more you acquire, the more you consume and the more you consume the more you want and the cycle goes on and on. As a result, your world begins to rotate around consumption, which overrides important variables such as investments and savings because, you are more concerned about lifestyle and not financial security.
Most people going
through the cycle experience endless financial distress, surviving from
paycheck to paycheck with the hope that the next pay increase will solve their
financial mess. For those who are wise and thirst for financial independence
and security, they seek help and support by hiring a coach who teaches them how
to effectively and efficiently eliminate financial distress permanently.
Is
A Financial Coach Worth The Trouble?
For those stack at the
pre-investment stage where they do not invest in anything, hiring a coach seems
like a waste of time and money. This is because they have little or no financial
consciousness to realize that they need help to develop a practical,
sustainable, personalized and transformational financial/life plan that will
help them eliminate financial distress in their life. Life/financial coach
inject you with financial intelligence.
The main causes of
financial distress are
- Debts
- Poor
Credit Score
- Limited
or no cash flow
A coach plays an
important role in your life by ensuring that all the three causes of financial
distress are effectively and adequately dealt with by teaching you important
lessons about
1) How to eliminate debt
There is no easy way of
eliminating debt and what most people do is to immediately cancel their credit
cards in order to obtain financial freedom and security. Bad idea! Canceling a
credit card worsen your financial distress because it works against your credit
score maximization efforts.
To eliminate bad debt,
a coach guides you through the process of developing a debt elimination plan. A
debt elimination plan is essential in ensuring that
- You
are spending less than you are earning
- You
are using every penny wisely
- You
are monitoring your consumption patterns, which allows you to know where
to cut down on and thus, lowering your expenses substantially and helping resolve
your debts issues.
The best solution to
eliminating debt is paying them. You cannot become debt free when you do not
settle the outstanding debt. To chart your way out of debt, a coach makes you
aware of how much debt you have, who you owe and helps you get your debts
settled by paying down your credit debt. Settling credit debts is one way of
achieving credit score maximization.
Among ways you can
settle debts includes
- Getting
additional sources of income to help settle debts (second or part time
jobs)
- Seeking
financial help/ intervention from friends and family
- Holding
garage sales (raise money to settle small outstanding debts such as
utility bills)
- Paying
down the credit cards and closing the credit accounts to avoid the
temptation to spend beyond your means and enter into bad debt again
2) How to maximize cash flow
What separates the
wealthy and the not-so wealthy people is the ability of the former to maximize
cash flow. Cash flow maximization stimulates your credit score maximization,
which is important when you are entering into good debt.
Maximizing cash flow
begins by investing and saving in the right areas. Primarily, a coach offers
unmatched wealth of knowledge in helping you select the best avenues and ways
you can maximize your cash flow, which includes
Increasing
the inflow of cash; there is no better way for you to
maximize cash flow than to increase the amount of cash coming in. You can
achieve this by investing in real estate and business, which will create
additional flow into your account.
Additional sources of
cash means that you have additional resources to not only cater for your
expenses but also additional amount of money to save and invest.
Reducing
the outflow of cash; financial distress begins when you are
unable to manage how you spend the cash that is flowing in, which leads you to
either live beyond your means or take bad debts. Both options are avenues to
financial death. When you spend less and less and increase the amount of money
coming in more and more, ultimately, you will have more than you can spend, which
is the definition of wealth.
Therefore, a
life/financial coach are worth the trouble, doing what you cannot do on your
own, which is to bring your financial issues into a better perspective.
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