Each week, we look at the ABCs of cash flow management.

P is for Procrastination

It’s common for people to put off challenging tasks. So your clients may procrastinate when it comes to dealing with their cash flows.

But you need to help them use time to their advantage. When helping a client, explain that being proactive is the best way to avoid financial disasters.

Read: Manipulate psychology to increase savings

If she needs extra motivation, point out that she’s already building up wealth via long-term investments and careful planning.

Read: The ABCs of cash flow planning: M is for Motive

Here are three ways to help your client avoid procrastination when tackling cash flow planning.

1. Create a timeline. Ask her to craft a timeline during initial meetings. Start with the current date. Then, work forward by helping her list goals and the date she wants to achieve them by. When she sees how long it can take to get results, she’ll realize the sooner she starts managing cash flow, the better.

2. Be confident. When presenting solutions, don’t give your client the impression that you don’t expect them to work. Though you can’t make promises, be positive and encouraging.

3. Use automation. Don’t play email or phone tag when booking meetings. Use an automated program that allows your client to select times that work for them out of several options. That way, you can easily book check-up discussions months or weeks in advance. Read: Man or machine? and 4 ways to effectively use automation

It can be temping for clients to put off changing spending habits, but having a cash flow plan isn’t about what they can’t have. Help people see that managing money effectively is about what they can have in the future.

Continue on to letter Q.


Don’t delay planning

Help clients prioritize retirement

The ABCs of cash flow planning: H is for Harness

Stephanie Holmes-Winton is a Halifax based financial services educator/speaker who helps advisors find the money to help their clients fund their financial plans. She is the author of Defusing The Debt Bomb & $pent. Stephanie is also the founder and board chair of the Certified Cash Flow Specialist™ designation program. You can reach Stephanie at sholmes@themoneyfinder.ca or themoneyfinder.ca
Originally published on Advisor.ca

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