Personal finances + coaching = change
My athletic career peaked in the 6th grade. I played point guard for a middle schools in my district. Our little team made it all the way to the playoffs and lost the first game by a couple of points. I was devastated. I cried from the buzzer to the moment my family pulled into the driveway at home. I felt like there was so much more I could have done to help my team win. And truth be told, I was correct. The two free throws I missed would have been helpful. Way to go, Pitts. ☹ Even though it was more than 30 years ago, I still recall the feeling of defeat and coming up short. At the impressionable age of 12, I was the first in line to take all available coaching that came my way, right? Sure, let's go with that.
Had my athletic career continued, future coaches might have used that life-marking moment to draw some very important conclusions. First, I cared deeply about my performance. I wanted to be the best for myself and my team. Two, I had awareness of where I failed. Two. Missed. Free throws. Third, I didn't know how to get better, so I gave up.
Fast forward to my practice as a financial coach, I think those three principles still apply. My clients care about their financial performance. They want to do right by themselves and their dependents. They aren't intentionally trying to incur large amounts of debt or bounce back and forth between saving and spending. But my clients are also aware that they may not know how to improve their financial situation, so they have a strong pull to quit. Quit budgeting, quit trying to reduce their debt, quit setting goals and planning for their future.
Financial coaches aren't rescuers or the holders of all knowledge. They are one half of a partnership. The other half are the clients. Clients bring their frustrations and knowledge gaps to the sessions in the hope of a different experience. The coach's mission is to draw out information and help clients decide if there are opportunities to set goals that fit with the client's value or find a solution to a recurring problem.
But the partnership can't stop there. Setting goals is only the beginning. Coaches help the clients review their progress. How are the clients coming along in accomplishing what they set out to do? Are the clients still satisfied it the initial goal? I've had clients who start out on Goal A, and then about 6 weeks into the process, they express frustration. During the discussion, it became evident that the goal was out of step with their values. We had a productive discussion, and the client was tasked with reassessing what they really wanted to do that lined up with their values. That next week yielded a new list of goals, and the client has been off to the races ever since! I am so proud.
The final component of the value coaches bring is knowledge growth. Client vocabulary should develop and demonstrate that they are becoming aware of their financial decisions. The purpose isn't for the client to do exactly as the coach recommends. The intent is for client to learn information and apply it with the best judgment. We want our clients to take ownership of their finances.
I often smile when I hear clients say phrases that they never did before. Statements like, "I almost did X, but it didn't help me to accomplish my goal. And I'm sooooo close." Or, "I'm so excited that my savings account balance is now larger than my outstanding debt balance." That is a real thing, and it almost made me cry. Seeing confidence arising in the voices and eyes of clients is the best thing in our practice. It means that they are realizing that they can do it!!! I never doubted, but now they don't either.
Helping people change how they feel about their finances is literally in the name and tag line of my company. It is a privilege to help them accomplish that by asking questions and offering encouragement. Coaches poke on hard topics and give the clients assurance that it is safe to engage. But clients do the hard work of making the choices that will set them on the path to financial literacy and empowerment.
Come on in, the financial coaching waters are fine! 70% of your change will happen one step at a time. StudioM is here to help. letstalk@studiomfinancial.net or (469) 615-0387. Until we meet, keep working on the change.