As a Money Coach, I help individuals and couples get a grip on their finances, get out and stay out of debt, save for the things they want, create a money management system, and all around feel good about money. I began down this career path when, as a financial planner, I saw a big gap in the financial planning industry. Clients working with financial planners were seldom getting the objective financial advice they genuinely needed. The focus of the planning was primarily on investing, but people often needed help getting out of debt, managing their cash flow, and focusing on what they really wanted out of life. Clients turn to financial planners for investment advice, but have no one to turn to for help in managing their money on a day-to-day basis and reducing their debt. That’s where I came in and began to shift the model.
My service is needed more than ever as many Canadians are spending more than they are bringing in, credit cards and overdrafts are maxed out, and debt loads are at an all time high. Other than investment planning, very few Canadians have financial plans to help them through career transitions or job losses, buying a home, divorce and retirement, and the every day stresses that money can cause.
The first thing I ask clients to do is to start to dream about what they would like to do and what they want to achieve in life, whether that be successful entrepreneur, stay at home mom or world traveler! Once they get clear on their dreams and goals, they are motivated and determined to reach them, rather than focusing only on getting out of debt. After carefully reviewing a client’s spending patterns, I discover where they are spending on non-essentials, such as high banking fees, take-out food, excessive cable or cell bills, etc. and help them focus on allocating their money towards things they really want or that move them closer to their dreams and goals. I create a customized Spending and Savings plan to help them stay on track and know what they need to do each and every pay day. With a clearly laid out plan and goal system, it becomes easy to focus on getting out of debt, setting up a reasonable and achievable savings plan, purchasing a new home, preparing for emergencies, and planning for retirement.
Does anyone deserve to be frustrated, stressed, or embarrassed by their financial situation? No. To help a client change their financial situation, their mindset may need to shift. Many people in debt have the wrong mindset: ‘I’m in debt, I’ll never be able to reach my dreams”, so they don’t even try. A key component to money coaching is to help clients deal with the psychology of money, help them shed their negative attitudes and bad habits and motivate them to get a grip and stop self sabotaging their financial goals.
When you know where you want to go, it is easy to say “No” to the daily temptations that are keeping you from achieving your dream!