It’s spring time.
What comes to mind for you?
Sunny, warmer weather? Bike riding or running? Kids playing sports?
Getting the lawn and garden ready? Cookouts?
For me, it’s all of the above, especially since my own kids
play baseball, but I’m not a fan of yard work.
And quite honestly, I’m not good at it anyway. My neighbors, on the other hand, have both
the time and knowledge so their lawns already look like golf courses.
What does this have to do with personal finances?
Recently, there were 2 surveys conducted that revealed
incredibly unsurprising results, yet it’s good to be reminded of these results.
One survey by PNC Financial Services found that people are
twice as likely to go to the dentist this year as visit a financial
advisor. An article discussing the
survey is here.
Why? If you have a
tooth ache, you feel it right away and it’s quite painful so it’s very obvious
to you.
But if your retirement savings is low, it’s not something
you “feel” because it doesn't affect you right now.
Stress, due to worry about finances, is certainly something
people feel and causes sleepless nights and upset stomachs. For many people, feeling stressed about money
is just “normal” or you just get used to it.
The other survey asked what prevents people from handling
their finances better. The link to the
survey by Northwestern Mutual is here.
The number one reason why people don’t deal with their
finances – they don’t have time!
So think about this time of year. Which would you rather be doing – spending
time outside on a nice day or dealing with your finances?
The answer is obvious.
Another reason why people don’t deal with their finances is
lack of knowledge (find it too confusing / don’t know where to get help).
This is simple. You
are an expert in your field of employment.
You probably didn’t go to school to study taxes or finance. Or read IRS publications or study insurance
laws.
And since you’re outside, you don’t have time to look up
stuff on the internet either!
So what does this all mean?
1.
Get your vital stats
Every time you go to the doctor, what do they do first? Take your vitals –height, weight, blood
pressure, etc. This allows them to track
your health over time and establish a baseline for comparison.
With finances, it’s the same thing. What are your financial vital stats? How have they changed over time?
And for stats, I don’t just mean how much is in your
checking account.
2.
Listen to your body
If your body doesn’t feel right, or you have a “rash” that
just won’t go away, you do something about.
Either take medicine or go see a doctor.
If you’re losing sleep at night worrying about how to make
the money last for the rest of the week or month, then do something about that.
3.
Consult the expert
If you’re in pain, or worried about your health, you would
consult an expert – a doctor. Yes,
people go on the internet to get information to self diagnose, but in the end,
you still need the help of an expert.
When it comes to money, consult an expert who is knowledgeable
in finances, tax law, etc. There’s a lot
of information on the internet to help you self diagnose, but for your specific
circumstances, you still need the expert.
4.
Put it on auto pilot
Ok, I don’t know what the medical equivalent to this is, but
this is quite easy when it comes to finances.
Technology today allows for internet banking, bill pay, and there’s lots
of apps to help you track of your money.
The more you can automate your finances, the less time you
will need to handle your money, and the more time you can spend outside!
What keeps you from handling your finances?
