For many people, the idea of personal finances can be a minefield that affects their lives adversely. Financial troubles can lead to a host of problems that range from feelings of dissatisfaction and ineptitude to depression and health issues.
Fortunately, you don’t have to live with any of these detrimental effects. Balancing income and expenses while keeping debt in check are important skills that you need to possess. However, as with some other basic life skills that are fundamental to your survival and fulfillment, managing your finances is somehow left out of your basic toolbox when growing up.
The people and institutions that are tasked with preparing you for the challenges of life are almost criminally absent from your practical financial education. Family, school, community; no one takes the time and effort to teach you sound money management.
Digging Yourself Out of a Financial Hole
Albert Einstein said: “The most powerful force in the universe is compound interest.” Understanding this concept is the start of mastering your economic future. To better illustrate this point, let’s consider the following question: Would you rather be given one million dollars today or have a penny double for 30 days and receive the amount accrued on the last day?
If you said you’d take the million dollars, you would be leaving almost four and a half million dollars on the table. Yes, a penny that doubles every day for a month ends up amounting to just under five and a half million. It’s details like this that make a difference and keep you in debt. The interest you pay on credit cards, mortgages and other loans can sound small when expressed as a percentage, but ends up tallying to large amounts.
Getting out from under a debt burden is achievable. With the proper knowledge and with the right people, you can find the support and options you need. You have to examine solutions that will reduce your debt load while utilizing your income more efficiently to reduce the principal.
It All Starts When We’re Young
The lack of education around personal finances and management leaves us to our own devices to learn how to deal with money. It’s no coincidence that the children of the wealthy grow up understanding the value of managing money whereas the offspring of less affluent families fall behind.
The idea of financial education is becoming more and more relevant in today’s interconnected global economy. Statistics and demographics show that people’s livelihoods and well-being are directly correlated with their degree of money management abilities.
Case in point, in the United States, over 75 percent of American Indians are reported as lacking understanding of the most basic financial concepts. The lack of money management capability can be traced back to people’s upbringing and the glaring absence of financial education. This specific demographic suffers a host of consequences associated with poor economic health; higher suicide rates, depression and alcoholism.
The Money Taboo
Besides the lack of financial education, money is a taboo subject in New Zealand’s culture. The discussion around money is one that people avoid at all costs. We can talk in-depth about even the most intimate and scarring events in our lives, but when it comes to finances, silence prevails.
Research conducted in New Zealand shows that most people would rather talk about alcohol, drugs and politics than finances. Discourse on a rugby game is far likelier than a serious discussion about money.
But just like a health problem that is left unexamined, avoiding discussing your finances can only lead to something worse. Keeping your financial difficulties buried in your soul results in stress hormone levels rising, loss of sleep, increased vulnerability to illness and, of course, your debt increasing as a result of inaction on your part.
Many New Zealanders are in no position to lend money or donate to personal or family commitments but do so anyway. It is commonplace in Maori and Pacific culture to contribute to your family regardless of your situation. While on the surface this is a very noble quality, it can mean being drawn into debt’s undertow.
A Problem Shared is a Problem Halved
In order to start your journey back to financial health, you have to take the important first step. Understand that you have a solvable problem, but a problem nonetheless. Problems are solved by gaining knowledge and acting on it.
There are people out there with the knowledge to help you get out of debt. We offer solutions you can act on. Sit down with us and let’s find practical solutions that you can apply. We’ll map out a very clear path that will give you confidence and help you regain your life.
There is a reason that a problem shared is a problem halved. You don’t have to scramble in the dark to find the answer. As a matter of fact, you don’t have to suffer at all. Reach out to someone experienced in matters of debt reduction and money management. The solution is as easy as opening up to another human being.
Break Through by Taking Action
Once we’ve discussed your options, it’s important to stay the course. Changing your spending habits and possibly pursuing extra income opportunities will be key to your success.
Another of Einstein’s sayings is that ‘the definition of madness is doing the same thing over and over again and expecting a different result.’ If you don’t deviate from your current path, you can never hope to break free. A smart plan followed by disciplined action will get you through the storm into calm seas.
The Sooner the Better
Don’t put off speaking with someone about your financial issues. Remember the doubling penny from earlier. The longer you allow for your debt to grow, the more effort it will require to pay it down.
Don’t despair and don’t let the condition of your finances dictate your life. You may be tempted to run and hide from your financial circumstances. Don’t let your debt grow anymore. Draw your line in the sand today and decide that enough is enough.
We Can Help You Be Strong
Our staff understands that anyone can fall prey to money problems. Those that will pass judgment on you because of your finances are not worthy of your consideration and have nothing to offer you but their ignorance. When you know in concrete terms what the way forward is, your life will take on new meaning.
Let us help you build the strength you need to be confident and happy in your everyday life. Don’t wait another minute to feel fulfilled and to remove the hooks of debt from your soul. You don’t have to take the journey alone.
Contact us today and let’s talk about how we can help you achieve your personal finance goals.