As part of my work at the church, I do financial counseling. Right now, as you might imagine, that part is quite busy. Unfortunately, it seems to take a crisis – job loss, late notices, creditors calling, divorce – before people are motivated to do something about their financial situation.
Twenty percent of what I do is teach. I educate them on how to do something financially ( i.e. set up a budget, start an IRA, snowball debt, etc.). The other 80% of what I do is motivating them to do the #1 basic principle for financial health – spend less than you make!
Most people who come to me, deep down inside, know what they need to do. They just need motivation to do it. That is kind of the whole principal behind the Dave Ramsey approach. He knows people need motivation more than anything else, so his whole book is a motivational tool. And although people quarrel with his debt snowball approach of paying the smallest debt first (rather than the one with the highest interest rate), he knows what I know. Motivation is the biggest obstacle.
People will know their financial boat is heading for the waterfall, and yet they will not “paddle” to safety. Inertia, bad habits, are hard to overcome. And hopelessness is a constant companion.
So in my counseling, I set simple goals that can be achieved and give small victories – a sense of accomplishment, of empowerment. Even if they don’t make the most financial sense. Because my goal is motivation – getting people to do what they don’t want to do (budget, spend less) in order to achieve what they want to achieve (financial health).
