As couples strive to achieve their financial goals, they often face challenges that extend beyond mere budgeting and saving. According to financial therapist and coach Elana Feinsmith of Oak Financial Coaching, couples must navigate complex emotional and psychological issues to achieve financial stability. In a recent case, Feinsmith worked with a couple in their late 30s with two young children who were struggling to save money and wanted to buy a house. As they worked to get their financial lives on track, Feinsmith identified five key lessons that can help couples achieve their goals.
Lesson 1: Money Isn't the Root of All Problems
Feinsmith found that her clients' financial struggles were not solely due to a lack of money, but rather a deeper issue. "They were using spending to replace connection," she said. In other words, the couple was using money to fill a void in their relationship. This realization highlights the importance of addressing emotional and psychological issues before tackling financial problems. By recognizing the underlying causes of their spending habits, couples can begin to address the root of the issue and develop more effective solutions.
Lesson 2: Creating a Spending Plan is Key
A spending plan, also known as a budget, is essential for couples to manage their finances effectively. However, Feinsmith emphasizes that a spending plan should not be seen as restrictive or limiting. Instead, it should be viewed as a tool to help couples achieve their financial goals. "A budget sounds so limiting," she said. "It's like the difference between a diet and eating healthy." By creating a spending plan, couples can ensure that they are bringing in more money than they are letting go, and make informed decisions about how to allocate their resources.
Lesson 3: Consider Every Expense and Its Impact
When creating a spending plan, it's essential to consider every expense and decide whether it adds to one's life and gives them "green-light energy." This means evaluating each expense and determining whether it aligns with one's values and goals. For example, the couple in Feinsmith's case found that they were overspending on entertainment, including hosting parties. By identifying areas where they could cut back, they were able to free up more money to save and invest in their future.
Lesson 4: Align Spending with Values and Goals
Couples should align their spending with their values and goals to ensure that they are making the most of their resources. This means considering what is most important to spend money on and what is not. "Aligning spending with people's values is important," Feinsmith said. By prioritizing spending based on values and goals, couples can avoid feelings of guilt and regret associated with making impulse purchases.
Lesson 5: Seek Professional Guidance
Finally, couples should seek professional guidance to help them achieve their financial goals. Feinsmith recommends hiring a financial advisor, such as an accountant or financial planner, to help couples create a comprehensive financial plan. By working with a team of financial advisors, couples can gain a deeper understanding of their financial situation and develop a tailored plan to achieve their goals.
Conclusion
Rebuilding financial lives requires more than just budgeting and saving. It involves addressing complex emotional and psychological issues, creating a spending plan, considering every expense, aligning spending with values and goals, and seeking professional guidance. By learning these five lessons, couples can achieve financial stability and work towards their goals of homeownership and a secure financial future.
