What is staying the same costing you

Opportunity costs are the benefits a person misses out on when choosing one alternative over another.  In finance, this can be cut and dry.  For example, if someone chooses to buy a $1,500 handbag, the opportunity cost could be not being able to afford a weekend getaway.   

Often, opportunity costs fall between hiring someone to help them accomplish something and doing it themselves.  As a financial professional, I have seen this play out for years.  Someone who is not an expert in the stock market decides they will invest themselves instead of working with an Investment Advisor because the fees will be lower.  Similarly, someone who doesn’t seek the help of a Financial Coach because they are capable of paying off their debt, saving, and budgeting on their own. Here’s a question, what happens when years have passed and they haven’t done so?   What is the cost of not taking action? 

If you have $40,000 - $60,000 of debt with an average interest rate of 10%, it literally can cost you close to 20 years and around $100,000 in interest. Not to mention a lot of time and emotional energy, that shows up as stress, anxiety, and depression.  

So why do people hesitate to get help?   There are a myriad of reasons including being uncertain of the outcome and not being fully ready to change.  With finances, people can be ashamed or embarrassed, as well.

I offer this, think about what you want in December of this year. For example, do you want to pay off debt, have a good amount saved, get organized, and have a better relationship with money?  If today, you are in the same position that you were in December of last year, you have 4 months to be in a different position in December of this year.  What is the opportunity cost of staying the same for yet another year, if to change your life all you need to do is get help, put your head down, and focus?