What do the worlds of Fitness and Finances have in common? Much more than you’d realise. In today’s article, join our credit analyst, Khadine Bovell, as she lays out the 5 ways your financial advisor is in fact just like your personal trainer.
Get into it below!
This article is a 12 minute read.
We’re at the start of another year and if you’re a habitual planner like me, it means that you’ve likely already taken some time to take stock of the rollercoaster that was 2021 and have already jotted down some things you’d like to tackle in 2022 (or 2020-too as social media is calling it). Maybe you’re the type to really delve into New Year resolutions or maybe you’re into making Vision Boards, but one common thread we tend to see featured on both is a desire to get fit, to lose weight, or simply to be more active.
Now, while some of us have a go at it alone, many of us see the benefit in having a personal trainer or at least a group fitness class to keep us motivated and well on our way to accomplishing those goals. But what if I told you that this is not the only aspect of our lives where we can benefit from having a trusted and experienced professional to help us along the way?
Many of us create financial goals for ourselves for the upcoming year. We sit and prepare our budget: catering for big ticket items and general recurring expenses, our savings and investments. Maybe we want to go on a solo or family trip, or splurge on some gadget or household item that we’ve been eyeing for some time. This sounds great in the grand scheme of things, but when it really comes down to it, do we really feel certain that we’re allocating our financial resources wisely – catering to long-and-medium-term plans in addition to those right in front of us? This is where the advice of an expert comes in handy – you don’t have to go it alone!
Similar to relying on a personal trainer to help with achieving your fitness goals, a financial advisor is best equipped to look after your hard-earned cash and assist you with achieving your financial goals.
In fact, here are five ways your financial advisor is like a personal trainer:
1. They Help With Developing A Structured Plan. 
Like a personal trainer, a financial advisor provides knowledge and advice as they assist you with developing self-discipline. Many people admit that group fitness classes help with developing the habit of sticking to a commitment and provides them with the motivation and support to continue with what may often be a difficult or boring journey.
Maybe you have a hard time sticking to your monthly budget and making sound financial decisions; with the support of an advisor, who takes the time to align your goals with an achievable and actionable plan, you are more likely to hit your targets as they provide a measure of structure and accountability.
2. They Prepare An Adjustable Plan Specific To Your Needs - so all that’s required of you is to show up and put in the work.Life is unpredictable and as much as we love to plan, a number of core events can happen over the course of the year. The type of decisions that we make when these events happen is directly correlated to our emotional states, and stress levels. In fact, it is not unusual to see people in a vulnerable mental state, stressed out to the hilt, but needing to make major decisions about their finances that will affect them in the long term. It’s a recipe for disappointment.
So, how do we ensure that we make the best possible decisions in stressful, unexpected circumstances? Here is where having a financial advisor is invaluable.
In situations like that, your advisor has known your goals, your strengths, weaknesses, and how you prefer to work when everything is ok. This means that when your world is becoming a bit intense, your advisor can provide pertinent, sound financial advice, knowing the impact it would have on you and the plans you were working towards. They are that guide you want to hear from as they know your intended destination but are not so embroiled in the problem that they cannot see the path from a bird’s eye view.
You see, the best plans are alive, and must move and breathe with you in order to be effective. Your Financial Advisor is there to give you the guidance you need when life has caused your plans to need an urgent update.
3. They Have Studied And Amassed Experience In Their Field - so that you don’t have to.
Imagine how overwhelming and deterring it would be if we were required to learn the ins and outs of fitness or finances to get started or make any meaningful progress. It would be exhausting, lengthy, and quite painful! (A bit like needing your own dental degree before you go to see a dentist)
Relying on a professional who has already done the research and is there to support you, results in great time and energy savings. Now you can lean into your strengths while using their expertise to help you navigate the pitfalls along the way.
4. They Stay Abreast Of All The Developments In Their Field - so they can adjust their methods and advice to give you the best there is to offer.In the world of health and fitness, training methods and beliefs are always evolving. In the world of finance, there are always new investment products (speculative and otherwise) and geo-political issues unfolding that affect our investment options, risk and returns. While we may stay on top of current events generally, it’s a whole other ballgame to constantly stay on top of current events, know how these events may impact the range of your investments, and then adjust your investments to allow for more opportunity and wealth to come your way. To ask yourself to do all of that, whilst juggling your own career and personal life is a big ask – and frankly, an unnecessary one.
Having a personal financial advisor means that you do not personally have to keep on top of the many issues unfolding daily that affect the financial markets, your investments or your retirement plans. It also means that you can continue to focus on your strengths, knowing that you will be advised as to the minutiae of how some events will impact your investments. It’s the difference between having to do all the general and applied research yourself (an extra 48 hours at least per news event), and a personalised 15 minute in-depth explanation, allowing you to stay within the world of “big picture”, and make informed decisions about your financial future.
Using a personal financial advisor allows you to operate as the CEO of your life when it comes to your wealth decisions.
5. They Help You Get Started - and you eventually develop knowledge, good habits, and can handle yourself with minimal intervention.
Most people new to fitness would admit that when they got started, they did not know much about what they were doing, but overtime learnt enough to reasonably guide themselves and develop independence. People tend to take this same approach with their finances as well. They throw themselves head first into the deep end of the pool and force themselves to survive.
Whilst it is a technique that can definitely be employed, it’s a path that is much slower, less effective, and more prone to major injuries. The problem with the sink or swim approach is that you may almost drown a couple of times and then decide to never go in the pool again. This happens in finance so often. After almost drowning 3 times in a row, they come out of the pool and vow never to return – that it is too risky to be worth it. However, going into the pool for the first time with a life guard who tells you where the deep end will just drop off would significantly alter your experience in that pool. Taking this analogy even further, you would learn to swim stronger, faster, and enjoy the process along the way if you didn’t have to deal with constant near death experiences every time you went in the pool.
It is so much more effective to learn to swim with a life guard waiting to assist you before you’re about to go under. It is so much more effective to learn how to navigate the world of finance with an advisor waiting to assist you before you’re about to go under.
You do not have to go it alone, and that helping hand in the beginning could be life saving. With time and practice, you then develop a wide range of skills and the mindset required to personally manage your finances and portions of your investment portfolio comfortably and confidently. Your advisor will continue to assist and provide advice where needed, but over time you will learn how to rely on yourself and have exciting adventures in the world of finances all on your own.
So you see, whilst the worlds of fitness and finance are separate, there is no major differentiator in the world of someone focused and with a plan. The best sports people in the world all have trainers and coaches for a reason. It’s time to give the execution of your financial goals the same targeted energy that you give to the planning process!
We are Firstline Securities Limited, an independent financial services firm, based in Trinidad and Tobago.
We are experts in creating, growing, and retaining wealth for our clients in T&T, as well as in the French, Dutch, and OECS territories of the Caribbean.
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