The Learn series within Wise Advice seeks to draw insights from global money masters, to enable Indian financial advisors to advice their clients better. The first series of articles profiled successful fund managers from across the world and drew insights from their styles to help us imbibe the art and science of managing money. We now commence a new set of articles within this series, which will focus attention on some of the most popular personal finance practitioners, writers and speakers across the world, to get their insights on how to help investors achieve success in their investing journey.
We begin this series with a novel concept introduced by Michelle Singletary - Washington Post's nationally syndicated personal finance columnist, whose column called "Color of Money" is carried by more than 100 newspapers across the US. She calls this concept the "21 day financial fast" and has written a book on this as well in 2014.
Here's a video where she introduces the 21 day financial fast:
Here's an excerpt from what the course promises to deliver to participants:
For twenty-one days, participants will put away their credit cards and buy only the barest essentials. With Michelle's guidance during this three-week financial fast, you will discover how to:
* Break bad spending habits
* Plot a course to become debt-free with the Debt Dash Plan
* Avoid the temptation of overspending for college
* Learn how to prepare elderly relatives and yourself for future long-term care expenses
* Be prepared for any contingency with a Life Happens Fund
* Stop worrying about money and find the priceless power of financial peace
As you discover practical ways to achieve financial freedom, you'll experience what it truly means to live a life of financial peace and prosperity. Thousands of individuals have participated in the fast and as a result have gotten out of debt and become better managers of their money and finances. The 21-Day Financial Fast is great for earners at any income-level or stage of life, whether you are living paycheck-to-paycheck or just trying to make smarter financial choices.
Michelle has written a book around this concept, which is available in Amazon and other leading book stores.
Insights for IFAs
We often say that the foundation of a successful financial plan is discipline and the first step in discipline is spending wisely and saving smartly. Think about how you can imbibe some lessons from the concept of the "21 day financial fast" and introduce an adapted version for your clients and prospects.
The outcome of your financial plan will be visible only years later. But the outcome of a program along the lines of the "21 day financial fast" will be tangible and evident in the short term itself. Your ability to guide clients towards sensible spending and smart saving will not only put them onto the road to financial success, but will also demonstrate tangible value add to them in the near term, and give them the confidence boosters to remain committed to the long term plan you draw up for them.
Content is prepared by Wealth Forum and should not be construed as an opinion of HDFC Mutual Fund.