The Financial Gym | Shannon McLay
Episode 242
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Elevate Your Financial Fitness: Lessons from the Financial Gym
Achieving financial wellness is akin to pursuing physical fitness; both journeys require commitment, effective strategies, and a supportive community. This article synthesizes insights from Shannon McClay, founder of the Financial Gym, demonstrating that the principles of behavior change and emotional finance can transform your approach to money management.
Understanding Financial Health
Many individuals struggle with money management, feeling overwhelmed and confused. It’s essential to recognize that understanding finance is a skill that can be developed. Begin by educating yourself on the basics of personal finance, budgeting, and investment options. Consider setting realistic financial goals instead of aiming for unattainable aspirations.
Fitness Analogies in Finance
Just as embarking on a fitness journey involves creating a training plan, so does your financial journey. McClay emphasizes that financial goals should be treated similarly to fitness goals. Approach your financial health as a long-term endeavor, rather than a short-term diet or budget. Many people fail because they think of budgeting as a restriction, much like a temporary diet. Instead, frame your budget as a lifestyle change that supports your financial wellness over time.
Start Small and Build Up
To reach your peak financial health, start with manageable steps. For instance, if you aim to save for an emergency fund, devise a plan that contributes a small amount each month. Gradually increase this amount as your financial situation improves. Just as you wouldn’t run a marathon without proper training, do not expect to achieve significant financial milestones overnight.
Setting Realistic Goals
Setting financial objectives can feel daunting, especially when faced with debt or bills. A successful approach begins with envisioning your ideal financial situation without considering current constraints. Ask yourself, "If money were no object, what would my life look like?" This exercise allows you to set ambitious yet attainable goals.
For example, if you feel successful with a $10,000 emergency fund, use that as your target and break it down into monthly savings goals. Over time, your confidence will grow as you achieve smaller milestones, setting the stage for bigger achievements in your financial life.
The Importance of Community Support
Isolation in financial struggles can amplify negative feelings such as shame and fear. Establishing a supportive community can significantly enhance your financial journey. Whether it’s through a formal financial coaching service or informal discussions with friends and family, sharing your goals and challenges with others creates accountability and fosters encouragement.
Overcoming Emotional Barriers
Emotions play a critical role in financial decision-making. Many individuals face fear or shame surrounding their finances, which can lead to avoidance or procrastination. McClay advocates for acknowledging these emotions and reframing how you perceive financial challenges. Remember, your finances are just numbers, and they do not define who you are. By detaching emotions from numbers, you can free yourself from negative behaviors and empower your financial future.
Practical Steps to Financial Fitness
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Set a Monthly Budget: Create a budget that aligns with your lifestyle. Instead of viewing it as a constraint, see it as a tool for empowerment.
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Establish an Emergency Fund: Start small by saving a little each month until you reach your goal.
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Join a Financial Community: Seek out discussions or groups where you can share experiences and support one another in achieving financial goals.
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Track Your Progress: Regularly review your financial goals, celebrate small wins, and adjust your strategies as needed.
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Invest in Education: Consider financial coaching or workshops to enhance your understanding of personal finance and investment strategies.
Embrace the Journey
Financial wellness is a continuous journey. By applying these principles, you can transform how you manage your finances. Remember, every small step you take today contributes to a more sustainable and empowered financial future.
Join the Financial Gym
If you’re ready to take control of your financial health and would benefit from expert guidance, consider enrolling in services like the Financial Gym. Their coaches are dedicated to helping individuals improve their financial well-being, providing personalized strategies and accountability.
Final Thoughts
Achieving financial independence is not just a financial goal; it's about developing a mindset that fosters long-term success. Embrace the fitness analogies in finance, set realistic expectations, and surround yourself with supportive communities. By doing so, you can build a healthier relationship with money and pave your way toward financial wellness.
Shannon McLay
- Website: Financial Gym
- Podcast: Financially Naked
- Instagram: @thefinancialgym
What You'll Get Out Of Today's Show
- For those on the path to financial independence, finance, fitness, and life optimization all intersect.
- During her career in the banking industry, Shannon McLay found it didn't work for the people she wanted to help. She set out to use her skill set and training to change the coaching industry and founded Financial Gym.
- Even for those who not physically fit, they know what it looks like and there are many resources available for achieving it. The path the financial independence is similar in that it is a long journey. You have to work up to it, will experience setbacks, and take breaks.
- Much like diets, budgets don't work long-term. Making lifestyle changes is the key to success.
- At the Financial Gym, clients hit 90% of the goals set for themselves by examining their money behaviors and constantly working to figure out what's will work for them.
- The two largest emotions people have regarding money are fear and shame. Once people drop these highly charged emotions and understand the financial numbers don't define them, they can break through and embrace moving forward.
- After turning 30, Shannon realized she didn't want the life she was leading. Her life's trajectory changed when she came to understand that to have long-term sustainable happiness is to help other people and not expect anything in return.
- During her work as a financial advisor for Merrill Lynch, she discovered she enjoyed helping out her pro bono clients far more than the wealthy ones. It allowed her to see there was a need for a service where it didn't matter what you looked like financially, you just needed to get financially healthy.
- Much like going to the gym to get healthy, her concept of a financial gym was a place to meet with financial trainers for a monthly membership fee.
- Following the model of H&R Block, Shannon believed people wanted to meet with a financial advisor face-to-face. She was advised to prove the model would work before looking to raise money.
- Experimenting with different plans and prices, she had great success with her first clients increasing their net worth. Clients wanted to keep working with her, but she was running out of money to continue investing in her business. When a former boss invested $100,000 in her concept, she rebranded using the gym concept.
- The physical environment of the Financial Gym created a community where clients had a shared goal and a safe space to talk about money.
- Shannon was able to scale her business by developing a training program and teaching compassionate and empathetic people what she knew.
- Those contemplating becoming an entrepreneur should ask themselves, "Am I a good problem solver?" because running a business is like solving a lot of word problems.
- The many challenges businesses faced in 2020 have helped proved the Financial Gym's model and be part of the solution to the many problems out there.
- No one's financial situation is so bad that it can't be fixed. The trainers at the Financial Gym have seen and fixed it all.
- On average, clients pay $70-80 a month for membership, but they offer a six-month money-back guarantee which they've never needed to pay out on. The average client increases their net worth by $2,500, increases their credit score by 60 points, and negotiates a $5,000 a year salary increase within the first 3 months of membership.
