Scott Steger, San Diego Financial Representative says, “When dealing with their finances, the questions people do not ask are: ‘How is this going to affect my lifestyle?’ and ‘How is this going to change me as a person?’ ” One of the things that a financial consultant would need to pull out of his client is what your lifestyle is and how willing are you to opening up that lifestyle and looking through a different magnifying glass, looking through a different paradigm.
As far as financials go it’s all about paradigm shifts. Some people simply spend too much. They know that they can’t do it, but they do anyway. It’s really all about putting yourself in check and making sure that you have a plan. If you can have a written plan, it’s easier to implement than just telling yourself, ‘Hey, this is what I’m going to do today.’
A lot of people go with what is called the envelope system. That is where you dedicate envelopes to certain things that you’re going to do that week and you only put a certain amount of actual paper money in those envelopes. Then you use those for that specific purpose and only for that specific purpose and you put your credit card away. It’s really either having that plan through the envelope system or having a written budget that really is going to get you those same results. The first step of any financial plan is to determine what your income is and what is going out.
What’s coming in, what’s going out? What’s the difference between those two things? If it’s a negative number that comes out of that whole equation then you’re going to have to find either a better job or a supplementary income through another job. Or by tweaking certain things that you’re spending on. Maybe you can adjust the levers a little bit and find areas to save on like cable bills or electricity bills.
You have to really lay it all out on the table then have a third party take a look at those things and say, ‘You’re spending too much on this.’ You should really, maybe think about doing this and offering suggestions, consulting. The key to success with that third party is how persistent the other person is in their help. That person can be a spouse, a girlfriend, or somebody that’s in the financial institution that’s helping them do this. You’re either your own fitness coach or somebody else is your fitness coach. Or your financial fitness coach. A lot of times you need to be reminded how are you doing on your plan. Are you keeping within the restrictions you said you were going to keep within?
Financials are easy. They are a basic thing in life. People don’t understand it.
It’s as simple as what comes in and what goes out and do I have enough coming in to cover what I’m putting out. It’s just basic math. We’ve screwed it up by allowing people credit that they don’t understand. Steger says, “When you bring interest rates into the equation, people really don’t understand and they’re blindsided by these things.”
See more about Scott Steger San Diego Financial Representative on the San Diego Professional Journal at:
or by calling (323) 793-3574.