As an Accredited Financial Counselor, I am often asked to give an overview of the services I provide to Soldiers and Airmen in my area. Although I am grateful for the opportunity, I find it challenging to persuade service members that they can benefit from financial counseling. Most of them think they are doing fine because they can make ends meet monthly. I ask them to self-evaluate their finances to get them to think beyond the next month. Below are the four questions I ask the group. These four questions can lead them on their journey to financial freedom.

1. Do you have a written spending plan you maintain and follow monthly?

“A written spending plan tells your money where to go instead of wondering where it went.” I ensure service members understand a spending plan is the foundation for everything they do with their finances. Many tools and resources are available to help create and maintain a spending plan, but they must pick and choose what works best for them.   

2. Do you have enough savings to cover six months of your living expenses?

I usually hear giggles when this question is asked because many service members feel it is impossible. To help them see this as an actual need, I ask them, “What would you do if you had to get out of the military tomorrow and you no longer had any income?” Many service members are terrified by this question because they don’t know what they would do in this situation.

3. Are you completely debt-free, or do you have a debt elimination/management plan to help you control your debt?

Many of them already know what it feels like to be overwhelmed by debt or know someone consumed by debt. At this point, I just make sure they understand that debt will eventually take control of them if they don’t get control of it.

4. Are you contributing enough money monthly into your retirement account to help you reach your financial goals?

I point out that everyone eventually gets to a point where they can no longer work or choose not to work anymore. At this point, you will need money to cover your monthly expenses. The earlier we start, the better, and this is because of the effect of compounding interest.

If everyone answers yes to all four questions, I tell the group, “Good job, keep up the good work.” But I remind them they can still benefit from financial counseling to discover what they can do even better.

If someone answers no to my questions, I’ll ensure they know I can help them convert their no to a yes. This self-evaluation aims to help potential clients see their need for my services. It is ineffective to tell young service members that you can help them set up a spending plan and get out of debt without connecting what they want to what you can provide. These four thought-provoking questions can help you bridge that gap and help your client achieve true financial freedom.

 

Cain T. Hill, AFC®, is an AFCPE® board member. Visit Cain’s FindAnAFC profile to learn more about his professional services and to contact him for financial counseling, coaching, or education services.

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