At Yellow Wood Coaching the approach to financial coaching is one that considers the whole personal value system. What does this mean though? First off, financial coaching is not that widely understood, being a relatively new form of coaching. Second, "personal value system" can mean different things to different people. So, let’s get some insight into this helpful approach by answering four basic questions around what meaningful money coaching is.
Before jumping into the questions, though, let’s get some shared understanding on financial coaching. Financial coaching is a process that focuses on a person’s mindsets and behaviors related to their financial life. The process works toward achieving success in financial goals by identifying what is getting in the way and working to remove the impediment. A good way to think of financial coaching is that it is to a person’s financial health what a personal trainer is to their physical health. If you want to get physically fit but want some help with it, a great way to do that is to work with a personal trainer, and financial fitness is no different. Working with a financial coach can result in life-long benefits related to your personal financial health and wellness.
Important to note, though, is that financial coaching is not financial management or advising. Financial coaches work with you on achieving your goals, they do not set them for you or tell you what to do with your money. In many cases people aren’t quite sure what their goals should be when they start working with a coach – and that is perfectly normal. Part of the engagement will be talking through the different kinds of goals and focuses to establish the ones that work best for each person. Like personal training, there is plenty of guidance in financial coaching, but also like personal training, it’s up to the client to do the work to see the benefits.
So, to understand better what meaningful money coaching is, and what makes it unique and beneficial, we’ll look at four questions.
#1 Why is it Called Meaningful Money Coaching?
At YWC, I incorporate elements of MP, which is shorthand for Meaningful Purpose Psychology into my approach to financial coaching. Your financial life is a part of you, so the mindsets and behaviors that lead you to success or struggle can come from places that aren’t so obviously finance related. Using MP helps us evaluate the meaningfulness of your goals, mindsets, and behaviors. Meaning is the why behind the what, so a strong why behind your mindsets and behaviors is a great start to ensuring they are aligned with what you truly want to achieve. And if you aren’t quite sure what those goals should be, your personal meanings are a great place to start. Aligning your financial goals with what is meaningful in your life results in aspirations that are energizing and exciting. That’s a plan worth working!
#2 Since MP is Psychology, is this Therapy?
While one of the benefits of meaningful money coaching is the positive impact on financial health and wellness, it is important to note that this is not therapy. A key distinction between therapy and coaching is in how each is oriented. Therapy is about uncover and repair, while coaching is about discover and improve. Financial coaching starts with where you are and builds upon the foundation you’ve got to help you get to where you want to go. Part of determining where you want to go and how to find passion and purpose in working toward financial goals is aligning them closely with what is most meaningful in your life. That’s where the Meaningful Purpose Psychology elements are used. The practical application of MP helps us do just that, leading to a more robust and enjoyable journey.
#3 Why Distinguish Between Money and Value?
There is an important distinction that should be made between money and value. It’s a distinction that is at times not obvious to some, leading people to lose sight of what they are working toward. Value is what each of us is out to create, obtain, and experience. The security of a well-established emergency fund, the freedom of paying down or paying off debt, the flexibility of living below your means. These are just a few examples of the value people can work toward in their financial life. At times, working the plan can become about amassing dollars, potentially losing sight of what value you’re pursuing. People are teleological, meaning we are goal- or picture-oriented. Being able to visualize success in achieving our goals, what that looks like, is a real motivation and commitment booster. When the goal is making money, versus experiencing value, the goal can become obstructed. Focusing on the value, and on money as an important element in a lot of ways to getting to that value, let’s us keep the picture in mind.
#4 Is Meaningful Money Coaching Just for High-Earners?
Everyone has a financial life. Some people have a lot of money, and some people a lot less. Regardless of your current financial situation you need to have goals, goals that are based on what is most meaningful in your life, a plan to achieve them, and the right mindsets and behaviors to work that plan. That’s what we'll work together on through meaningful money coaching. There is no value too small to justify the focus on growth and improvement that engaging in financial coaching can bring if it’s what’s meaningful to you. It doesn’t have to be that the goals are very long-term, in fact shorter-term goals can have the benefit of moving more quickly through the planning and achievement cycle, proving what works, and showing what could be adjusted for the next ones. It doesn’t have to require high-dollar goals either, saving up for a family trip can require the same kind of personal finance mindsets and behaviors that working toward buying a vacation home can use. Remember that coaching starts from where you are and works toward where you want to go. That is the case regardless of how much you currently make, have, or know.
So, are you ready to work with Yellow Wood Coaching on your meaningful value goals? Use the link below to book a short no cost introduction session where we’ll discuss the possibility of working together and what the next steps will be.
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