Budgeting, Debt, Education, Frugal, Personal Finance, Relationships, Saving Money

10 Reasons to Find a Money Mentor

money mentor

Financial education tends to be done through books, online or through some type of course. While these can be valuable tools to get your finances in order, one of the best resources is often not even considered — finding a money mentor. If you know someone who is good with their money and you feel might be open to teaching you what they have learned, you might want to consider asking if they would be willing to be your mentor. While talking about money is still taboo in many ways in our society, most people who are financially responsible are more than happy to help out those who are looking to get their finances in order. Even Steve Jobs thinks it’s good to do. Below are a number of reasons you should seriously consider finding yourself a financial mentor.

They Provide Honesty About Your Financial Situation

A money mentor can provide honestly about your financial situation that you would not find elsewhere. Sometimes your friends and family members won’t be willing to tell you that you’re making the wrong decisions because they’re too hesitant or wary to tell you that you’re doing something wrong. If you do get a mentor, it’s probably a good idea to find someone who isn’t a friend or a family member so they can provide you with honest advice about your financial decisions.

They Can Share Their Experience

A money mentor is someone who understands the ins-and-outs of finance due to personal or professional experience. Someone who has been in the same situation as you can share experience that will help you better understand your options or financial decisions. Sometimes learning from someone else’s experiences can you help with your own experiences.

Peace of Mind

Additionally, sometimes having a financial mentor can provide you with peace of mind. Knowing that you have someone who understands your money situation and is able to provide you with rational and reasonable advice and solutions can help you sleep easier at night.

Stability and Security

Mentors are also great for providing you with the tools you need to achieve stability and security. For one thing, they can be a great sounding board to help you figure a way out of your financial problems. They may also offer valuable help and advice as you determine the best budget or plan to keep your finances on a steady path.

Someone To Point Out Flaws in Your Plan

Do you think your financial plan is solid? Or maybe you have a plan to get out of debt that you think is flawless. Or perhaps you believe that your plan to save money is perfect and unbeatable. A moneyl mentor can help point out flaws in your plan, especially if they’re looking at your financial decisions with an objective and experienced eye.

You Don’t Understand Financial Terms and Issues

Of course, getting a financial mentor is a must if you often find yourself confused by financial terms or strategies. The world of finances can sometimes become confusing and complex, so it’s a great idea to have someone in your court who understands the terminology. Sometimes it’s nice to have someone who can help you better understand the terminology and strategies so you don’t become overwhelmed.

Poor Money Management Habits

A money mentor can also help you conquer your poor money management habits. Having poor money management skills can have a drastic impact on your life, especially if you’re trying to save money or get out of debt. A mentor can help you figure out the best ways to stop poorly managing your money. Maybe they have tricks or skills that you haven’t thought of or haven’t used before. In the end it’s going to be up to you to follow through and change these habits, but having someone in your corner to help you see them and provide ways to change them can be a huge asset when getting your finances in order.

Objective Advice

In addition to providing honest advice and a sense of security, a financial mentor can a great person to provide objective advice. Sometimes friends and family members don’t provide you with objective advice because they want their personal input to factor into your decisions. A mentor who doesn’t know your personal life can provide you with advice that won’t conflict with the advice from your friends and family.

Define and Reach Your Goals

A mentor can also help you define and plan for any goals you may want to reach. Do you want to get out of debt? Maybe you want to figure out how to save for college or want to put a down payment on a house. An experienced money mentor will be able to guide you down the right path and help you determine what financial decisions you should be concentrating on.

Learn About Your Finances

Most importantly, finding a mentor can help you learn a lot about your financial status and spending habits. Sitting down with a financial mentor for the first time can open up a window into the world of your finances. They may help you realize the poor spending habits you have or the best areas to decrease spending. Sometimes the best way to learn about our individual finances is having someone else point out our habits. A financial mentor is a great person to have in your network for many of the reasons listed above, but most importantly, your mentor is someone who can provide you with honest, objective, and experienced advice.

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5 thoughts on “10 Reasons to Find a Money Mentor

  1. My best friend and I tried something similar: the intent was to act as “mentors” for each other, a sounding board at the least. Didn’t work, both of us were too defensive about questionable spending habits! I like the idea of a neutral party, but agree with ben– who can you trust (and won’t bust your budget)?

  2. My in-laws for years have been crying the blues about how they can barely make ends meet. As I’m pretty good with numbers and had an understanding of what they had coming in, I never understood what their problem was nor did I believe them. Their house was paid off and technically owned by a son, paid off car, smaller house than us so lower utilities, no property taxes, etc. At one point they had a financial counselor in to see them and supposedly he told them he just didn’t know how they were getting by. Either they hadn’t bared their finances to him or he was too dumb to be any kind of advisor. At one point about a month ago, they showed us their finances as they wanted to find a loophole so they could continue getting subsidized Medicare D which was based on their income. It was sure fun to see their money after hearing those sad tales for so long and to find out I was right almost to the penny of what they had coming in and what their outgo should be. They took in more last year than we did only we get the privilege of still paying a mortgage, property taxes in the $5000 range/year (we live next door to them so their property taxes because of their smaller house was probably half of ours but their son paid them), much higher utilities, much more in medical expenses, yet they still stuck to the ‘poor us’ story and were fit to be tied because they had gotten a huge back payment from SS that was going to make their income too high to get that subsidized pharmacy program. You would have thought from the way they were talking and carrying on that they wouldn’t be able to afford any medications again and that they would be living like church mice because of this big chunk of change that they had gotten — more than we bring in in a year! It was like they couldn’t see this money as usable money and something that would better their lives. Just something that was going to make their finances worse.

    All that to say that some people are so used to thinking of themselves as poor or whatever, they can’t conceive of having enough ever. A mentor isn’t going to help them if you call them on what they are saying compared to what they have. Unless you can get them out of the mindset they are in, a mentor will be wasting their breath.

    I have been working with my younger son in teaching him finances and how to invest. I’m thrilled a the progress he has made considering he doesn’t have a high paying job at all. But the difference is he wants to learn to better manage his money (he could teach most people a thing or two).

  3. Getting debt consolidation help through a money mentor is so important to finally getting out of debt. Make sure you find a true professional whom you completely trust to handle your finances. This is a really great article for anyone who might be falling behind on their bills and facing debt issues.

  4. it’s important to find a money mentor no matter what generation your come from. As people get older, they sometimes think they no longer need one. This isn’t true, although that mentor may change. No matter how old you are, look for someone that can teach you about money for your age and circumstances.

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