I have been in the life coaching and financial planning industry for more than 5 years. After working with hundreds of clients, these are some of the issues I faced:
- Lack of clarity on what the future may hold
- Worry about job security in an uncertain economy
- Fear of insufficiency and losing out due to inflation
- Little knowledge on budgeting and growing your hard-earned money
- Confusion about the types of policies and portfolios out there in the market
- Unclear about your own arrangement and game plan
- Unsure about maintenance of lifestyle after retirement
Over the years, I have come up with the L.I.F.E methodology.
The L.I.F.E methodology aims to help young working professionals and families gain clarity in their lives and in their finances.
Similarly, the L.I.F.E methodology can work for you, to help you gain clarity in life, in your finances, and in your business.
L - Life Purpose
“Without a Purpose, Life is Motion without Meaning, Activity without Direction, and Events without Reason.” – Rick Warren
If you do not have your own purpose, others will use you to fulfil their purpose.
Your Mission – Mission gives your overall big picture.
Your Vision – Vision describes your desired future.
“Where there is no vision, the people perished.” (Proverbs 29:18)
Your Values – Values are what you believe in, what you stand for, and what you are willing to give your life for. Values guide our thinking and Principles guide our activities.
I - Identify
“The only true happiness lies in knowing who you are.“
– Lauren K Hamilton
Your Goals
A Dream is just a Dream without a Goal.
A Goal is A Dream with a Plan and Timeline.
Without a clear goal, it is like navigating through Life without a map, and hoping to reach our dream home, dream house, dream family.
Set Goals. And not just SMART Goals, but SMARTER Goals.
- Specific
- Measureable
- Attainable
- Realistic
- Time Frame
- Evaluate
- Reward
Your Strengths
In my work with young people, we often talk about their ideas of personal strengths and weaknesses.
The thing we need to note is:
It is much more effective to focus on taking full advantage of your strengths than investing scarce resources in correcting weaknesses.
Identifying our strengths will help us in the following:
- Improves our self-awareness
- Focuses our attention
- Provides insight into our distinctness
- Identifies where we can improve
Your Resources
There is nothing wrong with our resources. Just the way we manage them.
Time x Capital x Skills x Network
F - Funds Allocation
The 5 Es Framework
Essentials – These are the basic necessities in our lives which we have to spend on for the sole purpose of survival. E.g. Food, Transport. Shelter, Bills
Education – Never stop learning. Because life never stops teaching. Learning is a never ending process.
Entertainment – All work and no play makes Jack a dull boy
Emergency –
Emergency Funds
They are typically 3 – 6 months of our expenses. These can get us through short term unexpected events, e.g. change of job, life stage transition, and even during this Covid-19 season.
Life insurance
Death comes to everyone someday, and someday to us.
The question is – are we prepared when it comes?
Life insurance is not bought because you will die, but is for your loved ones when you die.
When we are not around, we do not want to leave any debts and liabilities to our loved ones.
Medical Expenses
A good medical plan will ease your financial strain and take care of both big and small medical bills.
Critical Illness
Having Critical Illness Coverage is important to ensure your hard-earned savings are not depleted in the event of critical illness.
Disability
Accidents happen not only on the job but also at home – and disability can strike anyone anytime. Financially speaking, disability can be worse than passing away. It is one of the most devastating threats to a family’s financial security. And it’s a mistake to think that disability only strikes the elderly.
End Goals
A common mistake young people make is to not plan their finances with the long term in mind. E.g. Marriage, Children, Property
E - Empower
“There is no success without successors.” – John C Maxwell
That is why we do not just empower ourselves, we believe in empowering others to succeed.
Your Legacy
What do you want to be remembered for?
Your Estate
What do you want to leave behind for your family and loved ones?
Your Contribution
How do you contribute back to society when you are around?
May the L.I.F.E methodology guide you further in your life, your finance, and your business.
Junwen Chen
As a coach and consultant in the financial industry, I equip my clients with empowering knowledge that enables them to make wise, informed decisions across financial aspects of life. Here are 7 simple financial concepts that will help you create more wealth in your life and coaching business immediately.
Junwen Chen
As a coach and consultant in the financial industry, I equip my clients with empowering knowledge that enables them to make wise, informed decisions across financial aspects of life. Here are 7 simple financial concepts that will help you create more wealth in your life and coaching business immediately.
Sign up to get a weekly roundup of new articles
>> YOU MIGHT ALSO LIKE
How My Daughter Made Me A Better Financial Coach
