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Fear Holds Us Back, Not Lack of Knowledge by Tasha Danielle, CPA & Founder of Financial Garden

I became the first time homeowner of a multi-family home and a landlord all at once and I was scared to death! I'll discuss my fears, 4 steps I took to move past them, & ultimately how I used my experience to help parents apply these principles to their financial decision making process.

What I Feared

When I decided to purchase my first home I was extremely fearful. I had money saved and excellent credit but I still had doubts. Purchasing your first home is one thing but becoming a landlord at the same time- Yikes! Did I mention I had only lived in apartments my entire LIFE prior! I didn’t have any insight as to what it would take to maintain the upkeep of a house. What I did know was that I wanted to generate additional income and Real Estate could help me do just that!

My Top 5 What-ifs

  1. What if I get stuck in Michigan...This felt like an anchoring decision and I eventually would like to relocate.
  2. What if I hated the tenant and/or they don’t pay their rent on time?
  3. What if the companies I hired to make repairs rip me off...I mean I’ve seen the horror stories on HGTV.
  4. What if I encountered a huge unexpected repair and I didn’t have the money to fix it?
  5. What would I do if anything thing went wrong?

I had so many what-if questions & fears about this decision because it was life changing & expensive. I often saw motivational memes on social media that seemed to help, that is until I started to wonder what if again- like what if I lost a ton of money?!

4 Steps to Move Past Fear

  1. Eliminate analysis paralysis
  2. Talk to a field expert
  3. Take the first step
  4. Share your plans only with like minded individuals

Eliminate analysis paralysis-

I listened to a great deal of real estate podcast when trying to make a decision and felt even more overwhelmed at times. So I stopped listening to new information and wrote out all that I knew about the process. I then focused on the areas that I was most uncomfortable with to gain clarity.

Talk to a field expert-

I shared all my fears with my good friend Rochelle who also happens to be a realtor and an owner of a multi-family home. She actually took a little over a hour to address all my concerns. Rochelle shared her home improvement horror stories and how she resolved them. This made me feel better knowing the good, bad and how to proceed.

Take the first step-

The first step in the home buying process is pre-approval. It took me a month before I actually picked up the phone and called around for rates and incentives for working with that respective financial institution. I got more confident with each call that I made.

Share your plans only with like minded individuals-

I didn’t share my decision to purchase a home with anyone aside from my realtor and Rochelle until after I closed. I didn’t want any negative energy coming my way. My friends are great however, their concerns could have caused me to doubt myself. Even after I closed, I was met with “that house will be too big to handle”, “my cousin did real estate & it fell apart, but good luck”, etc. I mean this is not encouraging, but people who don’t have the same vision or goal attainment for growth will project their fears onto you!

How Parents Can Apply These Steps to Financial Decisions

Parents often ask me questions related to improving finances to create a better life for their children. The common theme behind each questions is “how do I get started with ____”. For example, let’s say the parent is wanting to get rid of the household debt. I follow-up with the question “well what do you know about eliminating debt”. 99% percent of parents follow-up with: "well I have considered consolidating my debt, filing bankruptcy, student loan forgiveness", etc. I then ask well why haven’t you picked one of those options? The response more often than not is: “I don’t know.”

My goal is never to make a person feel inadequate by my questioning. I seek to uncover that the individual has a lot more knowledge about the topic than they think. This builds confidence. When I probe deeper I typically realize most parents are more afraid of making the wrong decision than the idea that they don't know enough! It's important to must realize that NO DECISION IS STILL A DECISION. I understand that making decisions can be overwhelming, but if you want to see change in your life action has to be taken. I share how I made some big financial decisions with parents, so they can get closer to reaching their goals. The steps took to make the decision to purchase a home can be applied to almost every financial decision making process!

Get started with the major financial change you’re looking to make today!

If you have a knowledge bank of information move onto step two and talk to a field expert. I always look for ways to get complimentary information from the experts. Wondering how? Get creative! You could call 211 to be connected with a United Way Rep that can connect you with a non-profit financial coaching service. Let me know how this works for you!

Connect and share your stories with us at:

Website: http://financialgarden.net

Phone: 734.363.8845 | Email: admin@financialgarden.net

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Created with images by ambermb • rawpixel Editor: Sha Carter

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