Have you ever noticed the same problem keeps showing up, no matter what you try? It could be anything, struggling to save money and invest money, getting paying clients in your business, or challenges in your career. Unfortunately, what we think is the problem isn’t really the problem. When we don’t get to the root of an issue, the cycle continues to repeat itself. That’s why it’s so important to understand what’s really causing it and where the 5 Whys technique can help.
This simple method helps you better understand what’s behind the problem, so you can take the right next step and finally move forward.
Once you know how to use the 5 Whys technique, you can start breaking old patterns in your finances, your business, and beyond.
What Is the 5 Whys Technique?
The 5 Whys technique is a simple but powerful problem-solving tool. It works by asking the question “Why?” five times in a row to get to the root cause of any problem you have.
You start by writing down the problem you want to solve. Then you ask yourself, “Why is this happening?”
When you answer, you ask “Why?” again about that answer, and repeat this process five times.
By the time you’ve asked “Why?” five times, you’ll usually figure out the real reason behind the issue, not just the surface symptoms.
Why the 5 Whys Technique Works
It’s easy to jump to quick fixes when something isn’t working like:
- Download another budget app
- Apply for another job
- Change your business offering again
- Start another diet
But if you don’t understand the real cause of your problem, those fixes won’t stick.
The 5 Whys technique helps you get clear on what’s really causing the problem, whether it’s a gap in your knowledge, a habit, a fear, or even a mindset block. Once you identify the root cause, you can figure out or build a real solution.
How to Use the 5 Whys Technique
- Pick a problem. Start with one clear problem you want to explore (money, business, parenting, anything).
- Ask Why #1. Write down: Why is this happening?
- Answer, then ask Why #2. Ask why again about your first answer.
- Repeat. Keep asking “Why?” about each answer, and aim for five rounds.
- Find the root cause. Your fifth “Why” will often reveal the real issue.
5 Whys Technique Examples
Here are a few real-life ways you can use the 5 Whys technique for personal finance and entrepreneurship:
Personal Finance Examples
Example 1: I haven’t saved any money for retirement.
Why 1: Why haven’t you saved any money for retirement?
Because I don’t have any extra money left over at the end of the month.
Why 2: Why don’t you have any extra money left over at the end of the month?
Because I’m spending most of my income on bills and everyday expenses.
Why 3: Why are your bills and everyday expenses taking up most of your income?
Because I don’t track my spending or use a budget, so I often overspend.
Why 4: Why don’t you track your spending or use a budget?
Because I feel overwhelmed by managing money and I’ve never learned how to budget effectively.
Why 5: Why have you never learned how to budget effectively?
Because personal finance wasn’t something I was taught growing up, and I haven’t sought out resources or help to learn it on my own.
Root Cause
A lack of financial education and confidence in money management is at the root of why no retirement savings have been built.
Action Steps to Save Money for Retirement
- Read one article or book about budgeting
- Set up a simple monthly budget (even on paper)
- Track spending for 30 days to see where your money goes
- Put $25–$50 a month into a savings account to start building the habit
- Talk with a financial coach, counselor, or trusted friend about money goals
Example 2: We never have enough saved for Christmas.
Why 1: Why do we never have enough saved for Christmas?
Because we don’t set aside money throughout the year for holiday expenses.
Why 2: Why don’t we set aside money throughout the year?
Because we focus on paying monthly bills and other priorities and don’t plan ahead for Christmas spending.
Why 3: Why don’t we plan ahead for Christmas spending?
Because we don’t have a system or budget for irregular or seasonal expenses like holidays or birthdays.
Why 4: Why don’t we have a system for irregular or seasonal expenses?
Because we mainly budget for immediate needs and haven’t built a habit of thinking long-term about financial planning.
Why 5: Why haven’t we built a habit of thinking long-term about financial planning?
Because managing day-to-day finances feels like enough of a challenge, so we haven’t taken the time to step back and plan for the bigger picture.
Root Cause
A short-term focus on monthly finances without a plan for irregular or future expenses leads to not having money saved for Christmas.
Action Steps to Save Enough for Christmas
- Add “Christmas savings” as a monthly budget item, even small amounts add up
- Set up a sinking fund or separate savings account just for holiday spending
- Track and review irregular expenses yearly so they can be planned for ahead of time
- Shift mindset from “last minute scramble” to “year-round planning”
Example 3: I’m living paycheck to paycheck.
Why 1: Why are you living paycheck to paycheck?
Because I spend almost all of my income each month on expenses.
Why 2: Why do you spend almost all of your income each month?
Because my monthly expenses (rent, car payment, groceries, entertainment, etc.) are high compared to my income.
Why 3: Why are your expenses high compared to your income?
Because I haven’t prioritized saving or cutting unnecessary costs, and I’ve taken on some debts with large monthly payments.
Why 4: Why haven’t you prioritized saving or cutting unnecessary costs?
Because I’ve been focused on maintaining a certain lifestyle and haven’t created a plan for managing my money differently.
Why 5: Why haven’t you created a plan for managing your money differently?
Because I’ve never taken the time to really review my financial situation or set long-term financial goals.
Root Cause
A lack of intentional financial planning and goal-setting is contributing to the paycheck-to-paycheck cycle.
Action Steps to Stop Living Paycheck to Paycheck
- Take time to review income, expenses, and debts
- Create a realistic budget that you’ll use
- Set goals (like building an emergency fund or paying off debt)
- Adjust spending habits over time to align with those goals
Entrepreneurship Examples
Example 1: Why haven’t you started the business yet?
Why 1: Why haven’t you started the business yet?
Because I keep researching and learning, but I haven’t taken the first step to launch.
Why 2: Why haven’t you taken the first step to launch?
Because I don’t feel ready and I’m worried I’ll make mistakes.
Why 3: Why do you feel unready and worried about mistakes?
Because I want everything to be perfect before I share it with the world.
Why 4: Why do you feel like it needs to be perfect before launching?
Because I’m afraid of failing and what other people might think if it doesn’t succeed.
Why 5: Why are you afraid of failing and of what others will think?
Because I tie my self-worth to the success of the business and I lack confidence in navigating uncertainty.
Root Cause
Fear of failure and perfectionism rooted in self-confidence issues is what’s holding you back, not a lack of knowledge or research.
Action Steps to Start a Business
- Shift mindset: focus on progress, not perfection
- Redefine “failure” as learning, not personal defeat
- Break the first step into smaller, manageable actions (ex: register business name, make first offer)
- Seek support from a mentor or entrepreneurial community for accountability and encouragement
Problem 2: I don’t know how much to charge for my services.
Why 1: Why don’t I know how much to charge?
Because I haven’t decided on a clear price or pricing structure.
Why 2: Why haven’t I decided on a clear price?
Because I’m unsure what people would be willing to pay.
Why 3: Why am I unsure what people would be willing to pay?
Because I haven’t done enough market research or talked to potential customers.
Why 4: Why haven’t I done enough market research?
Because I feel nervous about asking people and worry my services aren’t “good enough” yet.
Why 5: Why do I feel nervous about asking and worry that my services aren’t good enough?
Because I lack confidence in my value and experience.
Root Cause
Lack of confidence and limited market research is making it hard to set prices.
Action Steps to Decide Your Pricing
- Research what others in your field are charging
- Talk to potential clients to understand what they value and what they would pay
- Start with a price that reflects your time, skills, and value, not just what feels “safe”
- Practice saying your price out loud to build confidence
- Remember: pricing can change, start now and adjust as you gain experience
Relataed: Simplifying Complex Financial Decisions
You Can Use the 5 Whys for Anything
This isn’t just for money or entrepreneurship. You can apply the 5 Whys technique to just about anything:
- Career challenges
- Parenting struggles
- Marriage and relationships
- Health and fitness goals
- Daily habits
The key is to stay curious and honest with yourself. Don’t settle for the first answer. Keep digging with “Why” to get to the real cause of a problem. Then, you can create a plan to address the actual problem.
Wrapping Up the 5 Whys
Problems don’t usually fix themselves and trying random quick fixes only works for so long. The 5 Whys technique gives you a way to slow down, dig deeper, and really understand what’s getting in the way. Whether it’s money, business, or life, breaking problems down with “Why?” helps you see what’s actually going on so you can take small, real steps forward. The more you practice it, the more confidence you’ll build in solving challenges instead of feeling stuck in them.
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Featured image by: Petty Officer 2nd Class Cole Pursley
