“Getting started is the hardest part,” said Emily Sanders, managing director of advisory firm United Capital Atlanta.
Disorganization, anxiety over the amount of time it might take, not having the right documents and shame can also stand in someone’s way.
“[People] know they haven’t managed their money well, and they don’t want to be confronted with the truth,” Sanders said.
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We all have tapes playing in our heads that go back to childhood, Sanders says. These messages, which stem from family conversations, might be that it’s not polite to talk about money. “It could be families who are in debt and embarrassed to talk about it,” she said.
Some family stories and memories of money can be positive. “Perhaps someone’s grandfather helped her with money to go to college, so she wants to help her children or grandchildren,” Sanders said.
Whatever the message, it’s important not to let them prevent you from going forward with your financial life.
First, know your net worth. “Assets minus liabilities equals net worth,” Sanders said. “Many people don’t know this simple formula.” It’s a good starting point, because it helps you to figure out if you are in a deep hole because of credit card debt or student loans or another liability.
Another marker to identify is your credit score. Next, set your goals and priorities. “You can’t make a plan if you don’t have specific goals,” Sanders said.
Source : CNBC