The Seven Steps Of Wealth Coaching - Step 3

Step Three – Improve Your Financial Health

If you have followed step one and two of our wealth coaching advice you will now know your goals and your numbers. Now you can make adjustments that will improve your financial health and set yourself up for a better future.

Reducing your costs

When was the last time you looked at how much things like utilities or insurance cost you? Would it pay to shop around and get a better deal? Do you have multiple streaming services for music or television you rarely use that you could cut down on? Monthly or yearly membership for a gym you don’t go to or apps that you had forgotten about? Or maybe you could change your gym membership to off-peak and pay less. Perhaps you could alter your food shopping habits? Or order fewer takeaways?

When you look at what is going out of your accounts take some time to consider whether this is the best use of your money. Look at the areas where you could easily reduce your spending and hardly notice.

Reducing your debts

If you have loans or credit card debts it makes sense to look at those you pay the highest interest rates on and aim to reduce those first. Ideally, you should be trying to pay them off completely. Can your debts at lower interest rates be consolidated to save money? By cutting back on your spending and paying off as much debt as possible you will have more money available in the longer term. Why pay interest if you don’t have to? If you are confused or scared by your debts and are not sure where to start a wealth coach can advise you on how best to approach your debt and minimise it as quickly as possible.

Increasing your income

Have you maximised your income? If you are employed, is there another income stream that you haven’t considered? Is there a promotion you could apply for, or is it time to think about changing jobs?

If you have your own business, are you using your time wisely? Could you outsource some of the more menial or time-intensive work you do and use your time to build your business? Would it allow you to take on more clients and therefore be more cost-effective? Do you have an exit strategy that will allow you to sell your business or pass on leadership and retire?

Planning for improved financial wellbeing and your own wellbeing

Reducing your costs and debts and increasing your income potential will not just improve your financial wellbeing, it should improve your mental wellbeing too. Worrying about your finances and feeling they are out of control is very stressful. Organising your incomings and outgoings and knowing that you are in the best financial position possible will reduce stress and anxiety. It should give you a sense of control and purpose. A wealth coach can help you if the process feels overwhelming.

Once you know your goals and numbers and have improved your financial health you can build on solid foundations. The next step is protecting what you have, and we will be looking at how you can do this in our next blog.

If you need any assistance with wealth planning, please make sure you speak to an expert wealth coach who can give you impartial advice. Paula Bicknell Wealth Management can help you understand what you have and make the right decisions. Please get in touch as we would love to help.

Please note that advice with regard to exit strategy planning may involve the referral to a service that is separate and distinct to those offered by St. James's Place.