In September of this year, I had my 20th anniversary in the financial counseling/coaching field. In those 20 years, I've worked with hundreds of clients. As with most professionals, my practice has been ever-evolving, fine-tuning approaches, trying and perfecting new techniques, and adding to my experiential knowledge base.

 

You may remember that I have initiated changes in my business recently, and I'm very pleased with the results. I now focus my work with new clients on objective-based programs.

 

Before when I was working by the hour with clients, I noticed that many would quit just before the "miracle" could happen. The miracle is the moment when a client experiences enough benefit from their new behavior to be self motivated to continue improving their financial situation.

 

Before that point, I would use encouragement, accountability and the clarity of their goal to "push" them from behind, but often around the third month, they would give up. They would stop coming, seeing all of their "work" as a deterrent or a reason to quit.

 

Now I work with clients in a program format wherein they commit to the entire process and the final goal in the beginning. This is so much more rewarding for both of us. My clients get better results because they are able to see the importance of the big picture from the beginning and stay with the program until they have achieved the goal or solved the problem that they came to me with in the first place.

 

If there's something in your financial life that needs improvement, or if you just don't want to do the struggle-dance through your finances for one more year, then let's schedule a free strategy session to find out what it would take for you to have a truly new financial happy new year.

 

In the meantime, happy holidays and a very special new year!

   

Until next time,
  

Susan

 

A special welcome to my new subscribers! I sincerely hope you will appreciate my articles and insights!

sb  

Addicted to the Lifestyle
by Susan Bross, Financial Counselor and Money Coach 

 

I can't remember who said to me "addicted to lifestyle." It stuck in my mind, though, because it describes how committed we all can be to the lifestyle choices that we've made.

 

Clients generally call me because something isn't working in their financial lives. No matter how much money they are making, it isn't enough to keep all the "pots" full...monthly costs, college savings, retirement savings, and safety nets.

 

They are frustrated and confused because they can't figure out what isn't working right. They will save money only to have it disappear because of an unexpected expense. Their confusion is real, because they've run the numbers countless times and can't find the hole that's draining their money bucket.

 

When I begin working with a client, clarity about the total cost of their lifestyle choices is a first step because a system can't be developed with under-estimated numbers. We put together a full picture and look at the results. This is the stage where I come up against this concept of addiction to a lifestyle. Even when the clients have identified a problem and have decided what they intend to change, it is difficult for them to actually make the changes.

 

Why?

 

It may be that we are creatures of habit. We get used to doing something and see it as a necessary part of our lives. We see others around us who have newer electronics or a better car and we want them too. We have concepts in our minds about what an appropriate lifestyle is for the amount of money we're making. Perhaps, we're just the "kind of people" who send our kids to private schools. The rationale is deeply held. Maybe it is a family belief or something that reflects our peer group. It can feel like a necessary Truth.

 

The problem is that these choices are causing a great deal of stress in the client's life. The stress can put pressure on a marriage, endangering work performance or cause health issues. At some point, the effects of this stress have brought them to me.

 

As we look at their individual situation it can be hard for them to consider making changes. This is a very normal response. When considering any one expense it is easy to rationalize why it is important. That's why it is so important to look clearly at the whole of the situation.

 

Any expense that can be reduced, eliminated or postponed may help the situation. All changes, no matter how small, when added together become part of the larger solution. It takes time to make all the little changes, and gradual decline helps them become more sustainable. But thinking it about it this way can seem almost clinical and boring. The clients who have the most success look at it as if it was a game.

 

The game is to re-visit all of your lifestyle decisions and find ways to have virtually all of the same lifestyle choices for less or even no money. It can become the family game, and everyone can participate. Once they get over the initial resistance to the idea, clients have described this as a very fun game. You may, too.

 

NEXT STEPS

1. Find all of your lifestyle costs. It helps if you think in terms of four parts: fixed expenses and bills, irregular expenses (those pesky ones that happen annually but not monthly), monthly savings goals, and flexible expenses-spending money-errands. Figure out each of these as a monthly expense, to use as a benchmark. If the total is more than your take-home, then take the next steps.
2. Identify target areas. What are one or two categories of expenses that you want to change? There's usually a lot of flexibility in grocery spending, for instance. It is easier if you break this down to a per-week number, so that you have a smaller period of time to get feedback on how you're doing. (Hint: If it is groceries that you're targeting, menu-planning can make a big difference.)
3. Record your actual expenses. You can't tell if you're doing better unless you keep track of your spending. It's counter-intuitive, but when money feels difficult it improves with more attention rather than less. You will need to get very specific about your spending and earning.
4. The greatest deprivation you'll ever know is the lack of financial freedom. Hold this in mind as you're spending less: you're "buying" financial freedom.

Although I've described this as though it's an easy process, it can be fraught with obstacles, both emotional and practical. If your finances are stressful and you're having trouble making the necessary changes, then let's have a strategy session. Remember there is no lifestyle choice more important than choosing financial security.