JW’s Financial Coaching Podcast JW’s Financial Coaching Podcast-A show devoted to answering your personal financial questions and covering current events in personal finance. Giving people a new perspective on their money!

March 23, 2015  
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  • A lot of times financial stress is caused by using financial products not in a way that they were originally intended for
  • Why retirement, insurance, emergency savings, and your house shouldn't be used for other things
  • How using those products what they were intended for will make your financial life easier
  • What to do with your tax refund
  • Quote of the week

JW Financial Coaching Podcast 85For a lot of us, money can be a difficult and confusing thing to grasp. There are a lot of reasons for this including lack of financial awareness, family history, no desire to learn how to handle money. But the more and more I hear people talk about their money struggles the more I realize that some of the confusion results from us using financial product for other uses other than their original intent.

Today we are going to talk through four different financial products/assets that we are using for a different use than their original intent. Some of these we use differently because we are marketed to that way via the banks or some salesman. Others non-original uses result from just not being prepared or paying attention to our finances. Below are the four that we will talk about today

Financial Product/Asset Intended Use Un-Intended Use
401(K)/IRA (Retirement) To save for use after retirement Pay off debt/Emergency Fund
Insurance Protect family financially in case of negative life event (death, disability, accident) Way to save for retirement or children's college fund
Emergency Savings Keep family from falling off financial cliff in case of a financial emergency Use to fund inconvenices that weren't planned for
House Place to eat, sleep, and live your life Emergency Fund/Retirement Funding

 

Now we aren’t picking on anyone if you have or are doing any of these. But after going through the list it’s no wonder why money can be so confusing. But when we use these products for their original use our lives are less cluttered and our finances become clearer.

Below are other blogs or lessons of the show where I talk about these products more in depth.

In addition I also comment about an article I found on bankrate.com titled “How Americans will spend their tax refund”. 30% of Americans will use their refund to pay down their debt. While that is very admirable I can’t help but wonder how many of them have debt because they got a refund? The reason for the refund is because you have too much withheld from your paycheck. Instead of scrapping by, wouldn’t it be better to get your money each month and use that to avoid debt in the first place?

This lesson’s quote is brought to you by Audible.com

“Someone else is happy with less than what you have” ~ Unknown

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You can find prior editions of the podcast at the podcast archive page.

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