Let’s face it, school prepares us for everything but the real world which is bogged down with taxes, repayments, loans and other financial baggage. College gives us a taste of it by forcing us to pay bills, rent and fees. However, unless you are a student in finance, financial management might not come easily to you. Some people run themselves into debt the moment they leave college because they simply do not understand the concept of money and how to make it work for you.
Turn debts into profits
It might sound like a bit of a stretch, but if one lady can manage to dig her way out of debt after being laid off, it goes to show that everyone can. Whether through the help of online loans with no credit check and instant approval to set up a new business or to help you out of a bit of a tight financial spot or simply by offering your skills up for hire, there are definitely ways that one can find a way out of debt and begin creating revenue.
How a financial coach can help
Some might wonder how is it practical to hire someone to help them out of a financial crisis, while they are in a financial crisis – wouldn’t it be much wiser to use whatever money one has to pay off their debts rather than to run up a bill with a financial coach? The matter of perspective is important here: a financial coach will be able to teach you how to avoid such circumstances in the future and how to get out of the current situation. It is a worthy investment, especially if one is completely clueless in terms of financial management.
One financial coach defined what she does as, “changing behaviors around money and helping a client see where they can reduce spending to create more savings, or helping them get out of debt or understanding their emotions around money, which may have created obstacles to good financial management.”
What is emotional spending
Everyone has heard the concept of how shopping makes one feel better – when you’re having a bad day or just feeling down in the dumps, retail therapy has been proven to lift spirits and boost one’s mood. Apparently, it ties in with wishful thinking: people purchase items that they foresee they will use in their future. As PsycologyToday puts it, “As people shop, they’re naturally visualizing how they’ll use the products they’re considering, and in doing so, they’re also visualizing their new life.” What this does is it motivates the individual into chasing their new life instead of allowing their current circumstances to stand in the way. However, this behavior can also be damaging when the shopper spends more than they can afford and purchase things which will only bring them deeper debt.
Therefore, it is crucial to be responsible with one’s finances and if you are finding it hard to control your shopping urges or do not know how to manage your salary, it is definitely helpful to turn to someone who is successful in your life – a brother, aunt or parent – to help you better manage your finances or if you are unable to find such a person, it is time to turn to a financial coach.