I didn’t learn how important the big picture is when it comes to money until I started digging into and understanding money needs, goals, and the numbers as a banker.
Most people don’t think about it and that’s not a crazy thing because most of us aren’t taught to growing up. It’s VERY easy to grab onto the idea that the lowest rate or cost is the best option because a low price = good, right?
I mean, maybe? What I’ve learned is that everyone, and I mean everyone, has different money goals and priorities and it’s most effective to start there.
Ask yourself, “What is my need right now? What is it that I need to accomplish now?” Maybe it’s saving an emergency fund, or paying off debt, or lowering your monthly bills to make more money available each month for the essentials.
Once you have a clear handle on that, find ways to make it happen. If you need lower bills to have more money left over each month, look into refinancing any loans you have or consolidating credit cards to lower your monthly payment.
Your dad might say, “Oh, no. Don’t stretch out your loan. You’ll just pay more in the long run.” And he isn’t wrong, but what he doesn’t realize is that you need the extra money monthly now. It’s a need. It’s necessary because you can’t find enough money monthly to pay for the essentials. Does it mean that this will always be the case? No, but it is right now and when it no longer is, you can readjust your plans according to your needs and goals then.
Side note: There is nothing wrong with this example. Don’t let anyone make you feel ashamed if you’re in this situation. You should actually be proud because you’re honest enough with yourself to be self-aware and brave enough to look for solutions.
Ask yourself those questions often and remember we all have different needs and goals. Don’t let someone else’s become your own without even realizing it.
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