Money tips: Sachin Tendulkar, P V Sindhu have them, why you need this boost too

On average we spend a third of our lives under coaches and tutors who guide us in studies, sports, music, etc. As we get older, we tend to overlook the value coaches can bring in our personal lives and careers. However, if we look at all the successful people we draw inspiration from, many of them have coaches, though they are at the top of their games. Whether it is Sachin Tendulkar, Sania Mirza or P V Sindhu; they all do.

Having a coach is greatly beneficial for our financial life too. A financial coach adds value by pushing you to do the seemingly impossible. He trains you to focus on what really matters and to ignore the rest. He helps you to distil goals, set reasonable expectations while also inspiring you to raise the bar of your aspirations.

These days it is not tough to find advisors. In fact, there would be plenty of relationship managers, insurance agents, chartered accountants and friends in your circle who are more than willing to be your financial advisor/planner. However, don’t mistake them for one. Financial planning is a profession in itself and a planner should be qualified and experienced to function as one.

A good planner or coach puts your interest above all else. He lets nothing come in between your goals and you, not even you. Having a coach can make a phenomenal difference in your financial life, putting you way ahead with goals than you may get otherwise. Here are some ways how:

1. Holistic view of finances
The different aspects of your financial life are interconnected, not isolated. When you decide to buy a house costing more than ideal for you, or buy it at the wrong time, you end up taking on more loan, perhaps at a higher interest than ideal. This in turn affects your ability to save for other goals which may either have to be postponed or be met partly through borrowing. In such situations, a financial coach helps you take a holistic view of finances.

2. Planning for goals
When investments are done purposefully, with the aim to meet goals, in pre-determined time periods, there is clarity. Clarity on how much investments are required, what instruments should be in the portfolio, to what extent, and when to exit investments. How many Do-It-Yourself investors can confidently say their current portfolio is suited to help them meet all their goals? A coach helps you plan well.

3. Higher savings ratio
When people think through their goals and plan investments for them, there is a lot more incentive and motivation to save adequately. In the absence of a plan, what remains after the monthly spends, is what gets saved. With a coach, spending is curbed to what remains after saving for future goals.

4. Less tendency to panic-react
This is perhaps the most important way a coach adds value. Studies have shown investors make lesser returns, than the markets or funds they invest in. Why? Because they panic and exit investments in times of extreme market volatility and enter when the markets are rather expensive. A good financial coach would advise against making moves that could be adverse for your portfolio.

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Even if you feel you can achieve the above benefits all by yourself, you still need a coach. Because the best of us are prone to biases and mistakes. That’s why even the best have coaches. You need a financial coach too.

(The writer is founder & chief happyness officer at HappynessFactory.in)