In this day and age, finances have become less stable than in prior years, from possible job loss to business and other financial investments. However, it is important to have a strategy in place to manage finances on both personal and business levels. Some may believe that an accountant, financial adviser or banker is the best place to start in organizing finances. While this seems logical, the truth is that managing finances actually begins with a person’s attitude toward them.
Just like with sports, a coach helps to train and teach people how to stay on track with their goals. However, unlike bankers, life coaches do not sell investments, lower interest rates or offer lines of credit. Instead, they help to isolate goals to determine financial goals and objectives. Resources like Noomii, an Internet directory, can help individuals find the best coach for their specific needs.
A life coach helps people address the reasons they have the desires that they have. In order to reach a goal, it has to be clear what that goal is and that it is actually a goal that someone wants, versus what someone else may want.
Otherwise, the situation becomes counter-intuitive and the goals are never reached. This is because they are not actually a person’s goals. They belong to someone else. This simple strategy is just one of the things that sets apart a life coach from financial advisers.
Planning is a critical part of generating any type of results. Because time is limited, it is important to be selective about how it is spent. A life coach will teach people how to decide:
a. What can wait
b. What is important
c. What can be delegated
d. What can be eliminated
e. What can be consolidated
Every organization or goal related task begins with time. Life coaches focus and help to evaluate how time is spent and how it can be adjusted. In this way, you can learn to prioritize so that each task aligns in some fashion with your personal goals.
Personal Money Organization
Once actual goals are defined, a life coach can help people organize their personal finances. In this way, it is easier to see what is available and what is needed. Then a strategy can be developed with an eye toward reaching those financial goals.
In business, it is customary to have a budget in place that covers all expenses. However, on a personal level, it is just as important to be aware of how all money is being spent as it is in business. This essentially means applying how money is spent according to overall goals. In this way, it is easier to streamline finances toward actual accomplishments.
Mechanics of Handling Money
The mechanics of handling money from a personal or business perspective are essentially the same. For instance:
- Net worth. Understanding the net worth of an individual or company is the starting point. Once a list of assets, debts and expenses exists, it is easier to understand how tracking spending can increase assets. Essentially, tracking spending helps to define the budget. However, in order to reach goals, people need to confront their net worth.
- Developing financial goals. Once the net worth is established, reasonable and reachable financial goals may be created. This begins with envisioning the future, which a life coach can assist with. He or she will usually guide the client toward determining very precise tactical points to focus upon.
- Personal and business habits. Once it is clear what resources are available and there are goals to reach, life coaches can help people change their spending habits. This is most easily done through accountability.
A system is designed so that expenses are prioritized and a budget followed. This forces people to think twice about whether purchases are going to get a person closer to their personal or business goals. Then they can make the best decisions possible.