How Can a Financial Coach Help? – Coaching for Financial Success in a Recession

How Can a Financial Coach Help?

According to a September 11th, 2008 article titled “Coaches to Get Consumers Finances into Shape” from Financial Advisor, writer Joan Dubar notes “Financial coaches can help get people motivated for financial planning – and keep them committed.”

With each of our Insight on Coaching shows, my goal is to highlight the important role coaches can play in so many different facets of our lives.  With the credit and mortgage crises, a recession that just keeps getting worse, a risky $70 billion bailout plan, and the worst economic crisis we’ve seen since the Great Depression, now more than ever coaches who specialize in financial planning and management can be critical in helping us. 

Kathy Jo Pollack and Gabe Graumann reinforced several of the same points the article in the Financial Advisor highlighted, and I especially liked how Kathy Jo referred to herself as an accountability partner when she works with clients.

What are some of the benefits a financial coach can provide? 

Until next time!

Tom Floyd
CEO
IEC: Insight Educational Consulting
Specializing in Change Management, Workforce Performance, and Employee Development

Coaching for Financial Success in a Recession

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Should You Buy a Home During A Recession? – Coaching for Financial Success in a Recession

Should You Buy a Home During A Recession?

According to an article from U.S. News & World Report, now is the right time to watch closely for good buys because of historically strong gains at the tail end of a recession. The article featured an interview with John Canally, an investment strategist. 

According to John, “On average, you miss a 25 percent uptick by waiting for the end of a recession,” he says. “There’s definitely a penalty for looking in the rearview mirror. You can’t wait until home prices bottom, the recession ends, and the Fed chairman sounds the all clear.” 

Our panelists agreed.  Insight on Coaching guest William Patterson shared that when it comes to the real estate market, there are a number of great opportunities out there for those who have saved sufficient assets.

It made me realize for those of us who wonder how some of our family, friends, colleagues, and others can afford to own multiple properties and make money off of them – the answer is a little clearer.  Many of them save, save, and save some more, and then snatch up good deals from a full inventory of homes, office buildings, and other property that become available during uncertain times.

William added for people who are able to build teams and syndicates to go after properties, they’re able to get these properties at anywhere from twenty to forty percent below market value.

For our financial coaches and experts out there:

• Is our current economy a perfect time to build wealth?
• How can potential buyers overcome challenges and hurdles resulting from the credit crisis to get loans to acquire new properties?
• As a coach, how would you guide someone through a decision to buy a new home or property during this recession?

Tom Floyd
CEO
IEC: Insight Educational Consulting
Specializing in Management Consulting, Change Management, Workforce Performance, and Employee Development

Coaching for Financial Success in a Recession

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Saving Versus Spending – Coaching for Financial Success in a Recession

Saving Versus Spending

Earlier in the year, a survey by Nielsen Research asked American consumers how they would spend this past spring’s economic tax rebate checks.  While government officials were hopeful the checks would stimulate the economy, 69% of respondents to the survey said the next 12 months would be either a bad or “not-so-good” time to buy the things they want or need.

On our show Erica Sandberg made an interesting observation.  While our society tends to promote a material culture of “spending, spending, and more spending,” both society and the media don’t discuss the importance of saving. 

With the average consumer receiving little or no education about the importance of saving and how to save, American culture has set many people up to fail during a recession.

This led me to a question – during a recession, is it more important to save or spend?  

Is it important to save to continue to build up that 6 to 12 month supply of resources for tough times, or is it better to invest in some of the financial opportunities (decreased prices of homes anyone?) that can arise during a recession?

According to Gabe Graumann, creator of the blog MoneyTalkWithGabe – the answer is both. 

As Gabe explained it, the ideal goal is to be saving and spending in parallel.  However if you have a large amount of debt – you shouldn’t be spending.  Pay off your debt first. 

That said, if you’ve done a good job positioning yourself financially and have some liquidity you can direct toward an investment – do it. 

According to Gabe, you’re going to get the best deals on things like real estate and underperforming mutual funds.  This allows you to buy low and reap some profit over the next four or five years.

What are your thoughts?

• Do you think more people should be spending to help the economy right now?
• Are any of you nervous about your savings, given the current instability within the banking industry?
• For our financial coaches, what are your typical recommendations when it comes to spending or saving during a recession?

Tom Floyd
CEO
IEC: Insight Educational Consulting
Specializing in Management Consulting, Change Management, Workforce Performance, and Employee Development

Coaching for Financial Success in a Recession

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Living Beyond Our Means – Coaching for Financial Success in a Recession

Living Beyond Our Means

Well our show on Coaching for Financial Success in a Recession was certainly timely, given the news about Lehman Brothers and Merrill Lynch last Sunday September 14th.  I asked KRON-TV 4 San Francisco financial expert Erica Sandberg how the announcements would impact consumers, for example would it increase the sense of stress and panic that many are already feeling?

Her answer was “no”, because unfortunately the average person won’t be able to articulate what either firm does, let alone how the fall of both of these companies can impact their personal financial situations. 

According to Erica, most of us just want to know if our banks are secure.  And in general, we want to understand how and why the economy is in the state that it is. 

Even worse, many of us are terrified and paralyzed, because we don’t understand how the economy overall is going to impact our jobs, our livelihoods, and our finances in the months to come. 

We also discussed the fact that many Americans have been living well beyond their means.  According to Erica, most of us on average are carrying around $9,000 in credit card debt, and if we’re going to make it through the recession, we need to wake up and change some key behaviors.

Her recommendations?

• Get a copy of your credit report and see where you stand.
• Take a look at your budget and determine your cash flow.
• Stop using your credit cards.
• Don’t become obsessed with your credit scores, instead focus on paying off debt.
• Work with financial coaches or organizations like the Consumer Credit Counseling Service to construct a budget you can live within.

We took a much deeper dive into many of these recommendations throughout our show, but I’d like to hear some initial thoughts from all of you:

• In general, did last week’s announcements and “Black Wednesday” impact how you’ll be spending and saving money in the months to come?
• What are your biggest concerns and fears within our current recession?
• If you’re a financial coach or expert, what are your recommendations to those people out there who may be living beyond their means?  Anything you’d add to Erica’s list above?

Your Insight on Coaching Host,

Tom Floyd
CEO
IEC: Insight Educational Consulting
Specializing in Management Consulting, Change Management, Workforce Performance, and Employee Development

Coaching for Financial Success in a Recession

Lehman Brothers management consulting financial coaching Tom Floyd KRON-TV 4 life coaching Consumer Credit Counseling Service IEC Erica Sandberg recession managing debt credit card debt coaching podcast Turbo Tagger

Coaching for Financial Success in a Recession

Coaching for Financial Success in a Recession

More and more consumers are being forced into financial responsibility by the housing downtown and a weakening economy.

With less than 15 percent of Americans “living within their means,” according to the Federal Reserve’s Survey of Consumer Finances, the recession is a critical time to get personal finances in shape. 

With limited resources, what are the best ways to spend and save your money during a recession?

We speak with coaches and personal finance experts on the best recession lessons that can last a lifetime.

According to a June 2nd, 2008 online survey by The Nielsen Company, some 85% of U.S. consumers say they believe the country is in a recession.

However based on Nielsen’s research, this negative view of the U.S. economy appears not to have tainted most Americans’ views of their own financial affairs: More than half (51%) say the state of their personal finances remains excellent or good, while just over one-third (36%) rank their situation as not so good.

Feeling overwhelmed, overspent, and unsure of how to come out on top during this uncertain economic time, many consumers are showing they’re floundering when it comes to managing debt, making wise investments, and saving money to survive a financial crisis. 

What lessons for financial success can be learned from the recent housing crisis and market fluctuations?  Is it better to invest money or save money in the times ahead?

And how are coaches helping individuals get fiscally fit not only for work, but also for home and play?

Our panel of experts address these questions and more.

Highlights of the show include:

• The impact of the recession on the average consumer’s finances.
• Why many Americans are living beyond their means.
• How to manage and lower debt during a recession.
• How to make money during a recession and where to invest.
• Why it can be a good time to buy a house, building, or other real estate investment.
• How personal finance coaches can help build accountability and get you back on track.

Featured Guests:

• Gabe Graumann, Author and Creator of MoneyTalkWithGabe
• William Patterson, CEO and co-founder of The Baron Solution Group, Author of The Baron Son
• Kathy Jo Pollack, Certified Life Coach, Trainer, and Public Speaker on Personal Finance
• Erica Sandberg, National Credit and Management Authority, On-Air Credit and Money Expert for KRON-TV San Francisco

Tom Floyd
CEO
IEC: Insight Educational Consulting
Specializing in Management Consulting, Change Management, Workforce Performance, and Employee Development

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10 Ways to Market Yourself During a Recession – Coaching Through a Recession

10 Ways to Market Yourself During a Recession

Our panel agreed.  Several of our guests emphasized the importance of elevating and marketing yourself during a recession, particularly within your current organization.  Our guests shared a variety of suggestions in terms of how to market yourself and increase your chances of staying on the island: 

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Networking During a Recession – Coaching Through a Recession

Networking During a Recession

An interesting comment Amy Lindgren made during our show was that regardless of whether we are in a recession or not – people are acting like we’re in a recession.  According to Amy, she’s seeing many job seekers or people out-of-work curling up in a ball, feeling like the odds are against them. 

Feeling scared by the headlines, over-dramatizing what’s happening, and worrying they won’t be able to find a new job or better job, many people can become paralyzed, even depressed, during a recession.

Amy’s advice?  It’s not what you know, it’s who you know.

Get away from the computer, your next job is most likely not going to be found on the Internet.  It will be found within your network of colleagues, former co-workers, family members, and friends. 

While networking can be intimidating for many people even in an good economy, it’s especially important for job seekers in a recession to reach out to people in their networks.

This can include using tools like LinkedIn to identify potential leads within your contacts’ networks, going to networking and social events, volunteering in outlets where you’ll meet other professionals, and basically staying out and in-front of people at every possible professional and social opportunity.

What networking suggestions and success stories do you have? 

For both our career experts and coaches out there: