Case Studies

Sandra was finding her managerial job very stressful and was keen to explore the option of retiring early. Although she earned a good salary, she hadn’t been keeping on top of her spending and wasn’t saving any money.

What we discussed

First, we discussed Sandra’s goal of early retirement and why this was important to her. Although she wasn’t entirely sure what she would do next, it was clear that Sandra needed the option to leave her current job within 5 years.

Next, we examined Sandra’s attitude to money and established some of the factors behind her habits. We then went through a budgeting tool to give her more control over her spending.

In our second session, we went through her pension plans in detail, including check her state pension entitlement. Using financial forecasting software, I gave her an idea of what income she could expect. This showed her plan might be feasible, but that saving extra money each month would provide additional security and options.

The final session focused on reducing her current expenditure to accelerate her retirement plans. We also discussed Sandra’s work-life balance to reduce her stress levels in the meantime.

Outcome

After three 1-hour sessions, Sandra had a budget, a retirement plan, and some strategies for improving her wellbeing.

Peter was due to retire in the next few months. He had a few years to wait before receiving his state and workplace pensions, so needed some help with making his savings last. He was also concerned that he wouldn’t have enough money to cover care costs in old age.

What we discussed

Peter had accumulated significant savings but in accounts that were earning hardly any interest. In fact, the value had fallen over the years due to inflation. We discussed investing some money in stocks and shares for the longer term, and putting his short-term reserves in an account with a better interest rate.

We also did some calculations to work out Peter’s likely income and different stages of retirement. This showed that he needed to think about investment to ensure his money would last. As this was a large sum of money and Peter had no experience of investing, I suggested that he see an Independent Financial Advisor, as they are able to give investment advice and recommend specific products.

Outcome

After a 1-hour session, Peter understood that he would need to take action to manage his retirement income. He’d also considered his likely outgoings over the next 30 years (his life expectancy was high), so that he’d be in a stronger position to make suitable financial decisions with an IFA.

Sam was on the cusp of leaving her full-time job and setting up a business. Having been an employee for many years, she was unsure of the tax implications and how she’d manage her money. As she had significant financial responsibilities, it was important for Sam to understand exactly what was involved.

What we discussed

In the first session, we investigated Sam’s relationship with money. Events in the past were making her feel anxious about taking a big step. We then discussed her goals in more detail to establish Sam’s immediate priorities, including paying off debt and minimising outgoings. Next, we addressed how she’d structure her business and considered the differences between becoming a sole trader versus registering a limited company.

The second session was dedicated to discussing the company cashflow. This mainly involved working out the likely overheads and deciding how much to charge. We delved into the tax and National Insurance implications of being a company director to Sam could understand her potential net income.

In the final session, we focussed on pensions. Sam had a very small pension pot so realised she’d need to catch up by making significant monthly contributions. We discussed her likely retirement outgoings and created some forecasts to indicate how much she’d need to put aside. We went through the different types of pension scheme to Sam could make an informed decision on what was right for her.

Outcome

After three sessions (a total of four hours), Sam had a much greater awareness of what was involved in running her own business. Once she understood the tax implications, it was easier for her to plan the next year and also to make provision for retirement. With a strong understanding of financial matters, she hired an accountant to set up the business and manage her payroll.

Nora had just completed her PhD and wanted to set herself up as a consultant. Although she had a clear idea of the area in which she wanted to specialise, Nora felt overwhelmed by too much advice and information on how to get started with her business. She wanted to clarify her aims and develop an action plan for the next six months.

What we discussed

First, we identified the key decisions Nora needed to take. This exposed some fears that had been holding her back. We devised strategies for making those steps less scary and giving Nora a greater sense of control. Feeling in control was key.

Our discussion also revealed risk averseness, a common barrier to self-employment. Nora has a mortgage and no proper pension arrangements, so needs a reliable income. However, she also finds it hard to charge clients a realistic fee and is working on some projects for free. We worked through the true costs of running a business – e.g. rent, insurance, software – and also factored in pension contributions. This gave Nora an accurate sense of her overheads and allowed her to calculate an appropriate fee structure. She felt more comfortable in quoting a price when it was based on an underlying calculation.

Like most of us, Nora finds marketing difficult. We talked through some strategies, such as focussing on solving clients’ problems rather than “selling” herself. Nora tried out some pitches on me and we refined the message to focus on the client.

Outcome

After a 90-minute session, Nora had developed an action plan. She’d also addressed her fears around risk and control.

Tony had recently left his secure full-time job to start a business. Although he was already securing contracts, he worried about the charging structure and whether his model was sustainable.

What we discussed

Like many freelancers, Tony felt uncomfortable in negotiating fees with clients. As he was working mainly in the public sector, he was also concerned about affordability. This meant he wasn’t necessarily charging a realistic amount for his services.

We discussed some strategies for conveying value, and also adding value, rather than lowering the price. Tony then sketched out a pricing structure to improve transparency and set some limits on what he was offering.

Next, we addressed the longer term, including how to avoid overreliance on a small number of clients. Given Tony’s initial success, we also looked at how he could scale the business. This part of the session revealed a possible challenge to Tony’s core values around work-life balance. Often, we focus on the risks of failure, but ignore the risks of success.

Outcome

After our 2-hour session, Tony had both a plan for the short term and also a longer term view on the future challenges. He was clearer on his core values and also realised how much he had achieved.

Lucy was employed full-time but was keen to become a freelancer. Although she craved the freedom and flexibility, she also feared the uncertainty and pressure of being completely independent. Feeling overwhelmed, Lucy needed help in breaking down the challenge to make it more manageable.

What we discussed

Lucy’s main fears were around not earning enough money. One of the primary reasons for becoming self-employed was the opportunity to pursue more creative projects, but Lucy realised this came with additional risk. We discussed taking on some reliable, unexciting projects to generate a basic income, but still allowing enough time to develop other areas.

Another concern was energy levels. Lucy’s proposed business partly involved running events, which are notoriously exhausting. We identified a potential portfolio of work that would allow her to balance demanding activities with more sedentary projects.

Lucy also hated the idea of promoting herself on social media but thought this was unavoidable. We brainstormed more palatable alternatives and outlined a marketing strategy.

Outcome

After a 2-hour session, Lucy was more confident in her abilities and felt as though the move to self-employment was actually feasible.

Marine was trying to decide on a career path. She had a few choices, including pursuing a full-time teaching job, but also felt pulled in the direction of building her own business.

What we discussed

Although the teaching career was a good choice in terms of stability, Marine needed the challenge and flexibility of a freelance career. We discovered through our conversation that her outgoings were relatively modest but, as the main breadwinner, she required a predictable income. We outlined the types of project that would be suitable so she could identify clients to contact. It was clear from Marine’s body language when she was talking about work that really motivated her.

Outcome

Following our two 1-hour sessions, Marine planned a portfolio career that would provide some stability, along with opportunities to develop and explore new areas.

Polly had got into credit card debt a few years ago and was slowly paying it back. She thought of herself as being bad with money and didn’t feel hopeful about the prospect of buying a property or saving for retirement. She wanted help with organising her finances and establishing a clearer direction.

What we discussed

In the first session, we went through Polly’s spending habits in detail. By examining all of her outgoings, we were able to identify several areas where she could cut back without affecting her quality of life. This released a signicant chunk of money, allowing her to pay off her debts much sooner than expected. The timeframe went from two years to six months.

Saving for a house was the focus of our second session. Polly worked out she’d have £500 per month available after clearing those debts. We discussed options including the Help to Buy ISA and the Lifetime ISA so she could make an informed decision. Our calculations showed that she’d be able to save for a deposit and moving costs within 5 years.

In the final session, we discussed pensions. Polly (like most people) found them mystifying. Together we looked at her pension statement and projections to work out her likely retirement income. We also discussed whether she should transfer some smaller pension pots to her current provider.

Outcome

After 3 sessions (a total of 4 hours), Polly had a short-, medium-, and long-term financial plan. Her spending habits had changed and she could see the benefits very quickly. She felt much more confident in managing her finances and was optimistic about the future.

Andrea had recently finished paying off a significant amount of debt and was anxious that she would get into trouble with her credit card again. After receiving a pay rise, she was keen to use the extra money to save for a mortgage deposit.

What we discussed

Firstly, we discussed the reasons behind her spending. Andrea had absorbed negative messages about money from her parents and an ex-partner. Using Cognitive Behaviour Coaching (CBC) techniques, we unravelled the thoughts that were undermining her attempts to control spending. By examining the idea of wants versus needs, we established a spending plan that would allow Andrea to meet her saving goals while still enjoying life.

In the second half of the session, we investigated the various options for saving, including the Lifetime ISA and Help to Buy ISA. After exploring the impact of inflation, Andrea was able to choose a suitable savings account that would provide a reasonable interest rate without risking her money or tying her into a house purchase.

Outcome

After a 2-hour session, Andrea had a clearer sense of her financial priorities and a strategy for achieving them.

Sarah was about to finish paying off a significant debt, which meant she’d soon have an extra £500 available each month. She was keen to avoid getting into debt again and desperately wanted to save for her future. Although she was aware that this probably meant investing in the stock market, she didn’t know where to begin.

What we discussed

In the first session, we went through Sarah’s spending and budgeting habits so she could understand where her money was going. We used some Cognitive Behaviour Coaching (CBC) techniques so she could understand what was compelling her to overspend. We also discussed how she would feel after paying off the debt. While this was an overwhelmingly positive event, it would leave her without a big motivational goal.

When Sarah returned for the second session, she was keen to learn more about investing. In addition to types of investment, we covered attitudes to risk, timescale, and the impact of charges. We also investigated her current pension provision to see whether it would cover her projected retirement outgoings. By thinking through her short-, medium-, and long-term objectives, Sarah was able to work out a plan for saving and investing.

Outcome

After 2 sessions (a total of three hours), Sarah felt more confident in planning her financial future. Now that she understood the basics of investing, she was able to make her own decisions. Having covered her current and future financial needs, she was also feeling more secure.