What are the purposes for recurring monthly sessions with a financial coach?

Monthly Financial Coaching

Would you be surprised to know that our most successful clients have monthly sessions?

There are four main reasons why they are committed to staying engaged with us in the form of monthly sessions:

1. Monthly sessions inspire the discipline to create/set up the plan for the next inflow of cash. 

If you’re following financial “best practices,” then every month, each income stream will have a different set of cash flow plans than the previous month. 

If the coach has trained their client, that current plan should be prepared by the client in advance.

The client should determine the following:

  1. What amount goes to financial traction (i.e. pay down debt, build reserves, fulfilling the sequence of steps to build the financial foundation)?

2. What amount will go to consumption (typically the lion’s share of income—recurring bills, minimum debt payments, and discretionary spending)? 

Assuming that last month’s plan is “about the same” as the current period will always default to more consumption. And consumption is by far more costly than coaching fees. 

Moreover, having this plan done in advance helps us focus the session time on more strategic issues and less on budgeting/cash flow template mechanics. 

2.  Monthly sessions help us evaluate and respond to any recent life changes that may affect the financial plan 

Since the last cash flow plan, there are likely incomplete action items or new events that invariably come up. These will have financial impact on home life, kids, school, work, savings account funding or perhaps the emergency fund. 

Failing to take inventory of these changes once every 30 days will push you off course in the long run. 

You’ll know you’ve begun to master the planning process whenever you’re preparing both the new Cash Flow Plan and updating and refreshing the Savings Distribution Sheet each month independently. 

However, without a coach and not having mastered these recurring disciplines on your own, you’re likely to be financially adrift! 

3.  Monthly sessions give time to strategically approach ongoing risks, opportunities and updates to foreseeable expenses or threats to your current and long-term plan. 

Financially drifting without an active monthly plan or forward vision of anticipation, “big picture” items often get missed. Fiscal “blind spots” develop that a coach can otherwise identify and help guide you through. 

This could involve a host of issues requiring upcoming decisions such as review of insurance coverage, open enrollment decisions, income tax planning matters or compliance, adjusting your tax withholding, contract/lease renewal or expirations, debt restructuring / refinancing, job changes, new openings or promotion considerations, evaluating new lines of business or income, resolving marital disputes on money, etc.

4.  Monthly sessions offer ongoing objective accountability to the plan.  

Since no two clients are alike, everyone progresses at a different pace. However, whenever we see a client begin to master the planning process, we will be the first to suggest we reduce our session frequency.

There’s no need to meet monthly with a coach if the client is already predominantly the planner and is substantially staying on plan. 

On the other hand, when we see that a client is dismissive of the essential financial disciplines, or consistently missing plan or a client couple is disjointed on the plan or they need regular assistance or encouragement to remain sharp and purposeful in their focus, a regimen of monthly meetings are typically necessary if for no other reason than just accountability. 

As humans, we more often respect (and stay true to) what another inspects!

If you could benefit from monthly session with a financial coach, contact StoreHouse Financial!