What is a money coach and why do I need one?
Even if you're not a tennis fan, I bet my bottom dollar you’ve heard of Roger Federer, arguably the greatest tennis player of all time (as a fan, I’m probably a bit biased). Back in 2008, Federer turned up at Wimbledon without a coach. At the time he was at the top of his game and wanted to call his own shots, so to speak. He did so for 2 years before taking on another coach and it made me wonder why he would do this after an amazing winning streak that made him the tennis favourite he is today. Could it have been the fact that life changed for Federer?
In 2009 Federer married, and his wife gave birth to twin girls. These major changes in anyone's life would most certainly change the dynamic, and perhaps with Federer, his tennis career didn't take centre stage anymore. Here was a man who was now not only responsible for himself, he had a family to provide for. The pressure to bring the focus back to tennis must have been quite overwhelming for this new husband and father. Of course, I'm taking creative licence in painting this picture, but it seems to me that it may have been a reason Federer decided it was time to take on a coach once again.
Refocus your attention with clarity
A money coach is a lot like a sport’s coach. We help to clarify your intentions regarding your spending and money habits so that you can refocus your attention on what matters most to you right now. Although as a financial adviser I coach people by providing financial advice and a being their sound board to help them work through their financial concerns, a money coach is not the same thing as a financial advisor although they are related. A money coaching service being offered by a financial planner, as a standalone service, is also a unique offering.
In my article 5 Steps to Financial Freedom you can see that money coaching focusses on step 1, whereas financial advice focusses on all 5 steps. With money coaching, we do a deep dive into step 1 to clarify your financial goals, money values, money memories as a kid, assess your motivations, spending habits and move you into a positive mindset so that you can achieve what you have set out to do.
One of my professional clients, for example, wanted to build her investment portfolio and save for retirement but she was struggling to work out where her money was going as she had high discretionary and non-discretionary expenses. Money coaching set her on the right path and gave her the tools she needed to become a more mindful spender, to implement an efficient cash flow system and worked through money value conflicts to prepare her for financial advice which addressed her retirement and investment goals.
How do I change to meet life’s challenges?
Most of us believe that we are responsible for our own money management for better or worse, even when we have not been taught how to manage money properly, if at all. In fact, many of us feel like a failure if we admit defeat where money management is concerned, when all we really need is help to stay focussed.
Some of us do well and balance the books with flare, while others flail around in the money pit but still manage to keep themselves afloat. All too often however, we don't change when life changes. That is, when life changes as it inevitably does, we remain the same or bury our heads in the sand and financially wing it. When this happens, we start to lose perspective when making decisions around our finances. Our fears start rising to the surface and slowly but surely, our personal and professional lives start to feel like a millstone around our neck. Our decisions become unfettered by the emotional baggage that money worries bring and we start to sink rather than swim. When emotion overrides logic and holds you back from achieving your goals and dreams with confidence, it may be a good time to rethink your options.
Is it time to get a money coach?
Of course, not all of you will reach the point where your money problems become bigger than Ben Hur. Some of you probably have a good handle on how to manage money when things change. Some of you may already have a contingency in place if one of you loses your job for example, or you become a one-income household while the baby is being born. And some of you may think it is a weakness to get help because after all, you should already know how to manage your money just like everyone else does, right?
On the flip side, many think they are managing their money just fine and that they don’t need any help. Don't let yourself be fooled. Even the great athletes of the world know when it's time to get a coach, even when they are at the top of their game.
If for any reason you are feeling unfocussed, distracted, self-doubting, worried or fearful, that's a sure sign it’s time to get a money coach.
"Never be a slave to money; be the master of your money. And once you become the master of your money, you will automatically start walking on the path of financial independence." - Mehrab Irani
6 sessions to financial wellbeing
As a money coach, I help you sift and shift. Over a 6 week period, we sift through the beliefs and behaviours you may have about money to understand what may be holding you back from being the money champion that you really are. Then, I will help you shift your mindset so that you can take the next logical steps toward improving your cash flow management system and your financial wellbeing.
Gianna Thomson and Thomson Wealth Pty Ltd ACN 626 920 161 trading as Gianna Thomson are authorised representatives of Fitzpatricks Private Wealth Pty Ltd ABN 33 093 667 595, AFSL 247 429. This is general information only and does not consider your personal circumstances, needs and objectives. It is important you seek advice from a professional financial adviser prior to making any decisions.