What this Money Coach actually does!!

February 14, 2013

Sally Feinerman

Have you ever wondered just what a Money Coach does? If you have, well you are certainly not on your own! It is the number 1 question I get asked! Here comes an explanation:

Recently one of my clients, the inspirational Sally Feinerman, from www.fitnessfix.co.nz, made me a very generous offer. I could blog about her journey to financial clarity and simply having a better grasp on her finances, both personal and financial.

This is the first part of that story.

JP :- So Sally, can you tell me what drew you to seeking my help with your finances?

SF:- “Well I’m very goal driven and I wanted to be really clear about my finances so that I could set some goals. I had some debt with an overdraft, which I wanted to pay off. I also wanted to get my credit card bill under control. Basically, you actually helped me pay it off altogether. Also I went from having three credit cards to just one. I now only use it for my business. This has been so fantastic. My spending is now much more in the moment, rather than retrospective. Now, I am much more conscious of what I am spending and whether or not I can afford something. Before I just put it on the credit card and dealt with it later. So the really great thing is, that now it looks as though I will have all my debt paid off this year, which is just fantastic! It also looks as though I will be able to start saving this year and have a safety net, which is just awesome. So I just feel that I will be really on top of my finances and knowing exactly where I’m sitting. I think that the discipline of going online and updating my MoneyMinder, every day just shows me visually what I’m spending and that really helps me as well. Also with my spending plan, when I do spend money I don’t feel guilty about it. I had planned to buy that and the money has already been allocated for it and is sitting there ready. Rather than if you don’t know what you are spending then you always feel kind of guilty about spending.

JP:- also, equally, even if you did spend on something that you hadn’t planned it has a great mechanism, which allows you to go back and revise the plan to account for that purchase and still stay within the plan and not go into debt.

SF:- Yes, I find that when I have done my spending plan, I know that if I stick to it , this is where I’ll be at the end of the month. If I don’t spend it all I can also see how that will make me better off.

JP:- Do you update your spending plan most days?

SF:- Yes, I do. At the beginning I did a 30 day challenge where I had to do 5 things for 30 days and 1 of them was my MoneyMinder. So that got me into a really good habit of doing it everyday. I like to get up and just do it in the morning. I also find if I do it everyday it takes no time at all to do. We’ve just been away for a long weekend, with out internet access, so it took me a bit longer this morning!

JP:- In Financial Recovery we talk a lot about conscious spending and many of my clients say that the thing they most value about the process is how aware of their spending they’ve become. Did you find this?

SF:-Yes absolutely. We find we are making different choices too. We have just been away for a long weekend  road trip and instead of eating out all the time we made lots of our own food and had picnics etc. We just loved it. It saved us money, but also we were enjoying nature and could stop and eat where and when we liked.

JP:- we use the term “spending plan” rather than “budget” as it tends to have a more positive connotation. Just as in Weightwatchers – they use food plan rather than diet for the same reason. When I was at the peak of my overspending, if anyone mentioned that I should be on  a budget, I heard deprivation. That I was going to have stuff taken away from me. Since I have been on the Financial Recovery programme I don’t feel that, as I can choose to spend my money on anything I want. It’s my choice. As Mikelann Valtera says “you can have anything you want but not everything you want”, but it’s your choice! Did you have any sense of being  deprived when you started on this programme?

SF:- In the beginning, to be perfectly honest, I probably did, but I think now we do need to question what we spend. We have become such a consumer society that when you look at life more holistically as well and get back to grassroots you don’t need half of the stuff you go and buy and so I have to say that I don’t now and it is more rewarding now to look forward and see where I’m going rather than to look back and think about what I might be missing out on.

JP:- Fantastic. It is really key to have some mechanism that draws you away from the negative behaviour. It is great when, like you, people can have goals and focus on the positive even if it is further in the future, rather than the deprivation.

SF:-If you can get yourself into, or see yourself getting into, the positive that is really good. If you have done all the planning and tracking and can see your progress you can see where you are going and be looking forward to that.

JP:- The other thing which is very linked to that is..well I’ll give you a hypothetical situation. What if you were walking along somewhere and you saw a really nice top or dress or pants that you really liked, but you had not planned to buy any clothes this month? Can you tell me how you might deal with that situation? Or how it might be different from how it would have been before?

SF:- Well, before I probably would have just got them anyway, if I really liked them. Now I would have to justify them to myself, that I could afford them or that I had them on my plan. If they weren’t on the plan then I wouldn’t get them.

JP:- that’s very good. Don’t let me put words into your mouth here, but before might you have just got them and put the expenditure onto your credit card if you couldn’t afford them at the time?

SF:- Yes, absolutely.

JP:- You said at the beginning that you are only using one credit card now. Has that made a real difference?

SF:- absolutely. I think that just knowing what I spend every day rather than just spending and then dreading the credit card bill coming in at the end of the month and then going “Oh my God, look how much money I spent last month!” Knowing that I’ve got to pay it and sort of being in fear of that bill coming in. Now that only one bill comes in a month and I know what I have spent because I have recorded it all, it’s never a shock.

JP:- Thanks for that Sally. I think that next time we should talk about how you now deal with things that come outside the normal monthly expenditure. I know, for example, that you have recently had a big overseas holiday. It will be really interesting to find out how you handled that and if it was any different from how you would have done it before.

Thanks, Sally, this has been really great. It will be useful for others who might be wondering how the process of working with me goes and if it’s for them.

 

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