JW’s Financial Coaching Podcast Lesson #85-Using financial products for what they are intended for

  • 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 for what they were intended 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 products for uses other than their original intent.

Today we are going to talk through four different financial products/assets that we are using differently 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 inconveniences 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 scraping 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

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com – Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

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

This entry was posted in Mortgage, Podcast and tagged , , , , . Bookmark the permalink.