Coaching - Next Step From Educating
I have been impressed with the urgency of doing. Knowing is not enough. We must apply. Being willing is not enough. We must do.” - Leonardo da Vinci
I have found over the years that financial education has had little effect on the successful financial behavior of people I have met and who I have observed. I have also noted that, as with other types of education, the knowledge gained was quickly forgotten. Please do not take from this, that I consider financial education as useless. Financial knowledge does matter. Without financial awareness and knowledge I could not add value to my clients, people would be at the mercy of con artists, and experts would continuously make the same bad decisions as novices.
There are a few things that complicate the efforts on financial literacy. The manner in which it is taught or the methodology and setting – classes, seminars, workshops, and more are not a large factor effecting behavior. Actually what is taught also seems to have limited practical use. A person's understanding of interest rates, inflation, and risk have little bearing on daily financial habits or spending behaviors. Knowing the right thing and doing the right thing appear to be two entirely different things. So if factors other than knowledge dominate decision makers' ability to apply that knowledge, then, perhaps it would be better to focus on these other influences.
Impulsiveness, materialism, bias, fear, present gratification vs future rewards must be realistically addressed for financial knowledge to translate into positive action. Teaching someone is about knowledge transfer, while coaching that person is about action and skills. Teachers often lecture, assign work, and instill facts, but coaches are hands on with people as they make their personal attempts to excel.
Why my decision to focus as your coach, and not your information provider, instructor or teacher:
Similar to a fitness coach, I provide the information for the task at hand, making use of events of the moment to train and coach you into developing positive habits over time to help you become successful. It may be counterproductive to take extensive time to lecture you on the technical issues of money management, investment programs and products, risk measures, and the effects of interest rates and inflation on your portfolio unless and until they related to your goals and specific situation. It is always more powerful and memorable when knowledge relates to the situation at hand, and the action proposed leads to additional positive habits over time. It is my focus to have you understand where you are, where you want to go, and help you develop a flexible, adjustable plan to move you to your ongoing goals. I will keep you on track and work with you as your wants and needs change and grow.