Do you have an earning or spending problem?

When I sit down for the first time with a client, one of the primary concerns they have is if they earn enough money to reach their money goals. When people have no money at the end of the month, they believe their income is the problem. Earning enough is not usually the culprit. The numbers at the end of our session usually tell a different story, “It’s not your incoming money that is the problem. It is your outgoing.”

Before you assume you do not earn enough money to start working towards your financial goals, you need to really ask yourself, “Is the real problem my income or my spending habits?” Earning more money is not always the answer. You must first evaluate your spending. For an emotional tip to change your spending habits click here.

Don’t let the earning question stop you from moving forward. You can take the first step towards your financial goals without going out and getting a second job or applying for a promotion.

Don’t let your lack of income clarity be the justification for not getting started!

When I started to pay off my debt, I was at the lowest financial point in my adult life. It was embarrassing at times. I started paying off my debt making $20k less than I was making the year prior. I decided it was the best time to start and didn’t give myself other options. The decision not to wait was one on of the best ones I ever made. To read more about what led me to pay off my debt click here.

Additionally, it was the only time in my life that I didn’t work more than one job. I became more strategic. As a result of not working another job I not only changed my spending habits, but I also committed fully to my budget, focused on acquiring the skills needed to move up quickly in my industry, and learned to cherish work life balance. If I didn’t learn these skills, I don’t know if working another job would have fixed many other problems regarding my relationship to money.

I’m not discouraging you from working an additional job, but I’m helping you to see that the first steps can be made without making more money a requirement. If you start to take the first steps toward your money goals without another source of income, when you choose to take on another job it is icing on the cake. While I do have clients that make additional sources of income, for most it is not a requirement for them to reach their financial goals. It only boosts their rate of success and if they walk away their plans will still work.

How do you know if you have an earning problem? You need to do a deep analysis of your numbers. Until you take this step mostly likely this question won’t be answered. It is this practice that tells you where you need to adjust. It is also through this practice that you will be able to start to create a plan that fits your current circumstances and goals.

If you need help developing a plan contact kendall@jonescoachinggroup.com.