Making money work for you is counter-intuitive.
People come to me embarrassed about needing help making a financial plan or feeling like they failed at adulthood by bringing a problem to solve. Personal finance is complicated. There is a big difference between having information and having knowledge. You can drown in the information available and still not know the best course of action.
The consequences for bad decisions often last a very long-time.
Set your life goals before you set your money goals. Money is a resource and resources should be used to make the life of your dreams happen. Often people make financial decisions with the intention of saving money, but this is only good if the decision helps move you toward your life goal.
I spoke to a man wanting desperately to leave a job he hated so he could flip houses. He took on a lot credit card debt to pay for the real estate classes. When it came time to pay the credit cards, he wanted to take out a low interest loan and use it to pay off the cards to save money on the interest.
But here is the catch, that is a mismatch between money and life goals. Doing so would only change the lenders – not the situation he is unhappy with.
Another possible solution.
The low interest loan can be used to get started flipping houses. Then, the profit from the houses could be used to pay off the cards a year later. The overall interest cost will be higher, but making flipping houses a full time job is the life he wants and making moves towards doing this will lead to more positive rewards down the road.
Want to make moves towards your life’s purpose? Schedule a quick call to talk about your money and life goals.