Sometimes the correct financial choice means doing something the math doesn’t line up with. Your relationship with money is about so much more than numbers. We are not spreadsheets–we are complicated, emotional, dynamic beings. Your values, life experiences, strengths and challenges are more important than calculations alone. There is no one right way to accomplish a financial goal.
Experts love expressing opinions. Its how they make their money. And there is so much conflicting financial advice out there. I am here to remind you that you are the expert on you.
Below are some very common financial choices that folks are often contemplating in their journey of financial wellness.
I offer the below as an exercise: some questions you can ask yourself, from a mindful, as well as mathematical perspective, to help you achieve some clarity.
1) Should I buy or rent?
Mindful: What does “Home” mean to me?
Math: Do I have 20% saved for a down payment?
2) How should I start paying off debt?
Mindful: When I imagine paying it off, is there a particular debt that would provide me the most release to be rid of?
Math: What debt carries the highest interest rate?
3) What should I invest in?
Mindful: How much risk am I comfortable with? How will I feel if I lose some or all the funds I invested?
Math: What rate of return is this investment likely to provide?
4) How can I increase my income?
Mindful: What work can I do that I can get lost in, where time flies by because I am so passionate and engaged?
Math: What work can I do that will pay the most?
5) I want to donate and help important causes, but can I afford it?
Mindful: What one cause aligns the most with my values?
Math: Do I have a budget that incorporates giving and also ensures I can meet my financial obligations each month?
If you are struggling with some of these choices, know that you are not alone–in your finances or in the complicated emotions that may accompany them. Money challenges often bring up feelings of embarrassment or shame. I would like to gently remind you that money is hard because we are human.
If you choose to get professional guidance please remember that your relationship with a financial professional should feel like a collaboration. Choosing the right partner to work with can have a big impact on outcome.
That being said, you’ll want to collaborate with someone who doesn’t shy away from the elephant in the room, and the uncomfortable or difficult topics–because that won’t serve you well either.
When you feel pressured to do something with your money that doesn’t feel right, your body may tell you. You may go into fight or flight. Developing a strong connection to your intuition will be an asset. Your intuition will tell you when something is wrong, so you can take proper action–like saying no or switching providers.
I’d like to remind you that you are the expert on you.
This newsletter is dedicated to everyone that has shared an aspect of their relationship with money with me. Thank you for trusting me with your vulnerability.