Significant changes in one’s life can be complex, especially after always doing things a certain way. There are many reasons to resist change, and it’s entirely understandable. A person’s lack of knowledge and confidence to make a change can be one of the biggest obstacles in blocking change. Research shows that for people needing change in their lives, only one in five are ready to do what is necessary to make such changes.
The change process is broken out into six stages. One of the most critical functions of a financial coach is to recognize which stage a client is in. Every financial health change starts at stage 1 and eventually reaches stage 6. Advice and an action plan provided by a financial coach during the change process while the client is in the early stages will typically fail. This is why sometimes this change process can be discussed over multiple sessions with a financial coach.
A topic such as personal finances has multiple areas that make it up, such as income, budgeting, saving, credit score, taxes, etc. The process for making a lifestyle change in one of these areas is independent of the other processes needed for changes in other areas. This means clients could be at various stages for multiple core areas when working on improving their finances.
The six Stages of Change are listed below.
Pre-Contemplation - During this stage, the client doesn’t know or believe there is a problem, or they might blame others for issues or make excuses. They might also be ignorant or in denial.
Contemplation - This stage is the beginning process of acknowledging there may be a problem. The person begins to warm up to the idea of a new idea and is open to learning more about it; however, they are still determining if it’s worth it to change.
Preparation - During this stage, the client accepts they need to change. The information previously gathered is used to put a plan together. The client transitions from thinking about the past and its problems to the future and how pleasant it could look.
Action - During this stage, the client begins implementing their action plan. The client has to stay vigilant as it takes significant energy and commitment to follow through completely. This is the stage when a financial coach can most help their client by providing their expertise and advice.
Maintenance - This stage is when the client is learning to accept the changes they made and, with the help of a financial coach, prevents them from resorting to the old ways. The coach can also discuss alternatives for past choices and help make better decisions in the future.
Termination - During this final stage, the client has moved from the old way of thinking and has fully embraced the new way, the change, and completed the action plan previously created. The client is no longer tempted to slip back, and their financial health has forever been improved.
Regardless of the stage you’re in, I’d enjoy the opportunity to speak with you about improving your financial health.
Comments