Point Of View
Money touches every aspect of our lives. Our bank account influences our choice of the car we drive, the size of our house, the neighborhood we live in, schools our children attend, grocery stores we frequent, the healthcare insurance we choose, and much more.
Control, competence, and confidence in our money management creates well being. Benefits of practicing financially mature behaviors include peace of mind, a sense of security, freedom for greater choices, increased life energy, and a good night's rest, free of worry.
The reverse is certainly true, as well. When our financial affairs are not "in order," we are left feeling inadequate, confused, and out of control. The result is even greater stress, which includes the pressure to earn more, conflicts within our relationships, and a deep sense of lack. Eventually, this chronic level of financial strain brings us to our knees and places us in survival mode on Maslow's hierarchy of needs. Over time, this type of continuous assault will break us down physically, mentally, emotionally, and spiritually.
Many of us come from family and educational systems that have not prepared us for even the most basic functions of money management. Money remains one of our society's most taboo topics of conversation. We talk more easily about sex.
Couple depression or mania with a lack of understanding of money handling and even more problems will arise. Using money as a device to feel better, elevate one's mood, or express an expansive mood are all ways that can drain one's bank account and assets.
To support you in discovering your personal recipe for financial success, I want to share with you, secrets of financially successful people:1
Financially successful people control their day to day finances in order to afford things that bring them satisfaction and enjoyment. In practical terms, this means creating a cash flow plan to help set priorities and stay within boundaries in order to get more of what they want in life. More freedom, more fun, and more joy are all outcomes of mindful spending.
Financially successful people are in the "know" when it comes to their finances. They know their credit score, the interest rates on their mortgages, debt balances, and how to protect themselves from fraud and scams. They initiate taking steps toward financial literacy.
Financially successful people create the habit of saving and investing money. They realize that small steps each month add up to big dollars down the road. They understand the concept of dollar cost averaging and laddering.
Financially successful people protect their assets in order to prevent financial disasters caused by catastrophic illness or personal tragedies. They insure themselves with adequate coverage and take balanced risks.
Financially successful people embrace certain mind-sets. They live in the space of possibility and gratitude. They are able to delay gratification and hold both short- and long-term visions for what they want in life. Their dollars nourish their highest values.
Integration With Team
A financial coach and consultant is an important part of the team process in supporting financial wellness. This may mean strategizing with team members on how to balance resources with lifestyle choices in order to maximize Results Worth Striving For.
A team approach is valuable in order to offer holistic support to work through limiting beliefs and emotional blocks that get in the way of financial goals. Misleading financial concepts that present in one life area, will present in other areas as well. An integrated approach best supports a breakthrough in misconceptions regarding money as well as strengthening healthy behavioral habits.
Assessment Process
Part I of the assessment process pertains to money mastery skills that help clients reach their full potential. These skills include cash flow management; strategies to fully fund emergency, savings, and investment accounts; as well as strategies to eliminate any unsecured debt. This step also includes an appraisal of mechanisms of asset protection one may need to have in place, such as various insurances and a living trust.
Part II of the assessment will focus on the attitudes and behaviors one brings to their relationship with money. Behaviors consist of one's thoughts, feelings, and actions which are motivated by underlying beliefs. The assessment process will identify both healthy and un-healthy behaviors one has with money and the consequences of each behavior.
Goal Setting
Financially successful people create a written plan to help them get from point A to point B. Examples of this may be a plan to buy a home, to fund our children's education, or to retire comfortably. A written plan gives a sense of direction and points to milestones along the journey. It also serves as a compass to re-navigate when we get off course.
Goal setting is highly individualized. Financial goals are defined by the client and supported by the assessment process. Each goal will be based on the acronym SMART: Specific, Measurable, Achievable, Realistic, And Timely. The Financial Coach and client will co-create a step by step plan to help the client achieve desired results.
Examples of financial goals might be:
- Eliminate $6000 of debt over the next 12 months, by paying $500 more a month towards these debts. Find a way to get this extra money by taking on part-time work or a creative project to support this goal.
- Find a good referral to a financial planner to help support me in knowing what it takes to meet both my short- and long-term goals. Complete this in one month.
- Create a cash flow plan, track against that plan, and analyze how well the goals are achieved. Take the insights learned into the following month with the intention of doing better.
Treatment
Treatment plans are client specific and based on the agreed upon goals for the course of session work. Generally speaking, a treatment plan may consist of the following processes and concepts:
- Move out of the money fog - Gaining clarity is the first step in the process. Insight allows one to operate from a perspective based on reality. In regards to money, one needs to be cognizant about the entire financial picture. This includes cash flow, savings, investments, debts, all property loans, income, etc.
- Take action - The goal is to bring the behaviors of respect, mindfulness, and stewardship to one's finances.
- Create healthy money habits - The desired outcome is to be in a place of control, ease, and peace when it comes to money.
Generally speaking, money coaching sessions consist of bi-monthly appointments. Session appointments are focused on both process and outcome. Homework assignments, requiring about one hour per week are also required.
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