HOW TO MAKE YOUR FINANCIAL PORTRAIT A MASTERPIECE

8/19/2018

There are many resources available to help you improve how you manage your money. In the past, when you searched for financial counseling help, you likely came across a traditional methodology of creating a strict monthly budget and micromanaging your spending. Today, this analytic, by-the-numbers approach still survives and can add value for many adults. But if you’re an adult struggling with organizational skills, impulse-control, follow-through, attention to details, and future planning, there is another approach. Recently, this approach has gained momentum in the field—it’s called Financial Capability Counseling

Two main differences between traditional budget and debt counseling (BDC)and Financial Capability Counseling (FCC) are:

where you start your analysis; and
who is driving the process

BDC Starting Point: Creating a Budget

Typically, with BDC, your starting point is creating a monthly budget. Many people get stalled at the get-go, even when they have the best intentions to create and track their expenses for the month. Calculating your monthly grocery bill and adding up all your credit card payment amounts is, ultimately, necessary; however, as a first step, it is about as exciting as a mashed-potato sandwich!

FCC Starting Point: Values, Emotions, Behaviors

The FCC approach takes a step back and first has you take a look at your values(i.e., what is important and meaningful to you) and how your emotions and behaviorsplay into your financial situation. “Do I really need to deal with emotions and stuff?” Both BDC and FCC approaches can foster clarity and catalyze decisive, goal-directed actions. The difference with FCC is that it is a blend of coaching and counseling.Because the coaching process enhances self-reflection and self-awareness, you gain clarity around your values as they relate to money and how emotions influence your spending behaviors. With a heightened awareness of these non-dollar, personal finance-impacting “realities,” you are more likely to gain insights and make shifts in your perspective. Ultimately, decision-making regarding your finances becomes easier as you align behaviors with your values. An added benefit is that introducing coaching to the mix builds in accountability and offers you a partner in the process.

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Introducing coaching to the mix builds in accountability and offers you a partner in the process.”

You're in the Driver's Seat

Since there is a coaching component with FCC, you play a significant role in setting your goals and action plans.With BDC the counselor-client dynamic is more like that of a teacher and student, where the counselor is in the role of teacher, educating and directing the process. FCC can also be counselor-led at times, but the dual approach is more expansive in that it promotes discovery-based inquiry and curiosity. A blended counseling-coaching approach gives you the opportunity to get and stay in the driver’s seat, thereby increasing the chances you will be motivated to follow-through.

A blended counseling-coaching approach gives you the opportunity to get and stay in the driver’s seat, thereby increasing the chances you will be motivated to follow-though."

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Regardless of which approach you choose, the following tips can help you simplify your home finance routine. For adults with ADHD and challenges with executive functioning skills, this can be a battle in and of itself!

Go paperless:Use financial management software, budget and personal finance Apps (more on this in an upcoming post!), and your bank’s auto-pay features.
Use visuals: Most budget templates on Excel have graphics including pie and bar charts (vs. a swarm of numbers), which help people visualize their financial picture more clearly.
Start with just one or two actions:Don’t overwhelm yourself. Experiment with only one or two small actions related to your finances and set a schedule of things to do around those (e.g., select a manageable interval to check your bank balance, decide when you are going to organize bills, and schedule a “pay bills day.”). After a month or two, assess how your systems worked and iterate as needed. Once those items are movin’ and groovin’, tackle a few more things on your financial agenda, and so on.
Back up your financial information:Use an automatic, external drive and/or back it up on the Cloud.

If you have ADHD or are looking for an alternative to the traditional methodology, Financial Capability Counseling is worth a try. It will keep your interest longer with discovery-based inquiries, and, as a result, your motivation will be stronger as you refine your financial goals and routines.

An artistic masterpiece takes time, dedication, and experimentation. How you manage your money is no different. Your finances are ever-evolving with the patterns, textures, and hues of your life. Keep at it! Don’t quit!

Contact Us to Schedule a Financial Capability Counseling Discovery Session Today!