Diving into financial concepts with a coaching twist is the highlight of what I do. Seriously, I could geek out over this stuff all day. While I love chatting about business strategies on the podcast, getting down to the nitty-gritty of financial coaching is where my heart’s at.

The Spark Behind the Financial Progress Number

If you’ve ever tuned into our discussions about savings rates, you’ll know that’s where the idea for the Financial Progress Number came from. I’m all about applying what we talk about to real-life scenarios, much like I outlined using our coaching framework in episode 17. If you haven’t checked that out yet, it’s a must-listen for seeing these concepts in action.

Grab Your Toolkit

We’re going a bit deeper today, which I find super fun, and I’ve made it easy for you to follow along. You can download a bunch of resources from our site, including a handout for today’s talk, a guide for chatting with your clients, and the exact spreadsheet I use daily. Grab the goodies right here.

Savings Rate Meets Financial Progress Number

When I bring up the Financial Progress Number, it’s usually around the same time we talk about Net Worth. Both are about seeing your financial health from different angles. Some clients dig the Net Worth angle, while others vibe more with their savings rate. It’s cool to introduce both and see what sticks.

Educate First, Empathize Always

First off, I like to set the stage by showing there’s another way to look at our financial health. I make it clear that it’s easy to miss the small wins along the way, especially when we’re making steady contributions to things like a 401k without even realizing it.

Then, I break down what a “savings rate” really means, but in a way that feels less like a finance class and more like a chat between friends. The idea is to make it about how much of your income is paving the way for your future.

Making It Stick

Our job is to make these concepts hit home for our clients. It’s not just about knowing what a savings rate is; it’s about why it matters to them. And how you talk about it can make all the difference.

Dive Into the Numbers

Next up, we calculate their savings rate together. It’s all about seeing how much of their income goes towards their financial progress. And if you’re keen to see this in action or want a tool to do it with your clients, I’ve shared the spreadsheet I use every day.
For those running a business, we take a slightly different tack, focusing on true business expenses versus personal ones. This helps us get a clear picture of their savings rate from a business perspective.

What’s Next? Improve It

After we’ve got their number, it’s all about looking at what we can do to bump it up. Even a 1% increase can be a game-changer. It’s about those small, consistent steps that make a big difference over time.

Committing to Change

This is where we talk about actionable steps. Whether they want to make a change right then and there or set a goal for the future, the idea is to come up with a plan that feels right for them.

Wrap Up and Reflect

In closing, we reflect on what this journey has uncovered. Understanding your savings rate is one thing; knowing how to influence it is where the real magic happens.

Today’s deep dive into your client’s Financial Progress Number is more than just financial education; it’s about empowering them to take control of their financial future. By breaking down these concepts in a relatable way, providing practical tools, and fostering a space for actionable change, we’re not just talking about financial progress; we’re making it happen.