Why You're Overwhelmed
As a full-time financial coach, I get asked a lot of questions.
Surprisingly, the most common question isn't "how do I save more money" or "how can I get out of debt", it's "where do I start?"
In today's financial world, it's extremely easy to become overwhelmed sometimes it feels like your spinning multiple plates on sticks and you're always worried one or more is about to come crashing down.
If you're taking this course, you've probably felt that way about your finances - you know you have to get better at managing them, but the thought of starting is mind numbing.
You're probably asking yourself:
"How do I build a budget I'll stick with?"
"What should I save for an emergency fund?"
"How much should I save for retirement?"
"When do I start saving for my kid's college education?"
"Which debt should I pay off first? The one with the higher interest rate? Should I make an extra $25 payment on all of them?"
"What books should I read?"
I imagine that's not even half of what's going through your mind - and when you're faced with so many decisions, the easiest one ends up being "I'll figure it out later" and you kick the can down the road.
It's this conundrum that prompted me to create The 9 Steps to Financial Freedom.
The steps guide you toward financial freedom, but also force you to focus on one step at a time, the most essential task at hand.
You see, when you focus on only the most important task, you'll devote more energy to it.
This theory was brought to my attention in the book "Essentialism" by Greg McKeown.
While looking at this image from the book, I want you to think about your finances and how you're currently managing them.
Like most other individuals, you probably associate more with the circle on the left.
You try to do a little bit of everything.
You save a little every month.
You pay a little extra on your debt.
You save a little more for your retirement.
You set aside a small amount in your kid's college fund.
Well, what if I asked you to take that list and cross off everything except the most important task?
Would you focus more on that task if it was the only one you were working on knowing that you couldn't do anything else until it was complete? Absolutely!
That's how I want you to focus on your finances.
Focus on what's most important, do it, and then move on to the next step.
Now, it's difficult to figure out what's most important, and that's where I come in with the 9 steps to financial freedom.
In the next lesson, we'll go over all 9 steps.