Sophie Hau is the creator of Moneysophy, an online school that educates individuals on how to develop financial confidence and make smarter decisions regarding spending, saving, and investing. As a Money Coach, Sophie's ultimate goal is to help people lead happier and wealthier lives. The name "Moneysophy" is derived from the Ancient Greek word "sophy," which means wisdom and technical skill. True financial empowerment is the result of both.
In her previous role as a Wealth Manager, Sophie assisted the expat community in Hong Kong to plan for their future through different investment strategies. She was solving financial problems with financial solutions. Yet, money is not just science, it’s not just about putting numbers on a spreadsheet. There is a psychological and emotional part to it that the industry dismissed. Money behaviours are influenced by our caregivers, our upbringing, cultural norms, and societal influences.
This realisation fueled Sophie's mission, leading her to dedicate herself to extensive research, experimentation, and practical application of the most beneficial principles derived from financial education, behavioural science, psychotherapy, and neuroscience.
Sophie Hau, Money Coach
Why did you switch from wealth management to money coaching?
Firstly, I came to understand that approaching financial problem-solving solely with logic was just not effective. Do you overspend? Buy less. Don’t you invest? Buy this product. While it worked for some people, it didn’t for 90% of my clients. Financial issues are intertwined with deeper-rooted habits, beliefs, and behaviours surrounding money. These ingrained patterns held them back from making progress.
Money holds different meanings for different individuals. That's why I had well-off clients who invested a lot, but still felt anxiety about money. Or I had other clients who accumulated debts, but still indulged in dining out and shopping sprees.
I finally understood one thing: the problem itself isn’t the problem. The problem is the solution to the problem. It wasn't simply a lack of financial education or intelligence; it was about emotions, coping mechanisms, and conflicting priorities.
Personally, and without going into the details, I also trapped myself in a love-and-hate dynamic with money. If you're interested, read my complete money story here. My unconscious agreements led me to commit many financial mistakes such as taking unnecessary risks, overspending, living paycheck-to-paycheck, and, most significantly, feeling unhappy and burdened with shame.
Transitioning to money coaching was a natural career path for me. Providing more comprehensive support that addresses both the practical and emotional aspects of finance was a no-brainer. By combining financial expertise with a deeper understanding of human behaviour and emotions, I not only broke free from the vicious cycle I was trapped in, but also helped 300 individuals worldwide develop a healthier and more fulfilling relationship with money.
What is behind the rise of money coaches today?
Money is more important than ever, mainly because we live much longer lives. Over just three generations, our life expectancy has more than doubled from 32 years to 71 years. In the history of personal finances, pension is relatively new. There was little to no need for retirement planning in the past because our post-work life was almost non-existent.
More importantly, no one will care about your finances more than you do. Putting your financial well-being in someone else's hands, like relying on a "Prince Charming" figure, will never happen. And if it does happen, it comes with conditions. I have witnessed way too many individuals ending up broke after going through a nasty divorce or the loss of a loved one.
Money might not be sexy, but it doesn’t have to be complex. Just like a healthy diet and sports practice, there are strategies you can adopt to fit money management into your lifestyle. The goal is to make your life easier, not harder. Read my article, “3 common mistakes if you’re living paycheck-to-paycheck”.
Taking control of your finances and securing your future is not just about fixing your financial matters; it impacts every aspect of your life. Money influences your lifestyle, the company you keep, the food you can afford, the hobbies you pursue, and even your confidence and self-esteem.
How can one assess their financial well-being? How does one know if they are doing the right thing?
That’s an excellent question. If you are sick, you go see a GP, but what if you have financial problems? Who do you go to?
That’s why I've developed an Annual Money Health Check that provides an overview of your financial well-being. You can access it through this here. This check-up assesses five key areas of your life: goal clarity, money beliefs, cash flow tracking, savings, and investments.
The results will give you a quick snapshot of what you're missing out on, or where you can level up. It's a helpful tool to gauge your overall financial health and identify areas that may need your attention. Give it a try and see how it can provide valuable insights for your financial well-being.
Any tips for those who have never managed their money before?
People in my generation have been constantly told to "save more" and "invest early," but nobody taught us how to spend mindfully.
First, I encourage you to become familiar with your 3Fs, i.e., Foundation, Fun, and Future. The rule of thumb is to allocate 60% of your income for your living costs (aka Foundation), 20% for anything guilt-free (aka Fun), and 20% for your retirement (aka Future). This step is part of the 6Ps Payday Routine Framework I’ve developed; you can read the Ultimate Guide here. Just following this already outperforms 80% of people.
Then, you want to establish an automated money management system that works for you. The goal is for your money to go automatically to your savings and retirement every month, leaving plenty of free time to do things you love. This system will help you make smart decisions about whether a purchase or investment aligns with your goals. You don't want to waste time overthinking every decision, only to regret your choices later on.
Knowledge alone won't bring about change. It's the actions you take that will make a difference.
Lack of time is just an excuse. Something deeper is at play if you find yourself knowing what to do but still not taking action. In my industry, we refer to these as "money beliefs." In other words, it’s the underlying mindset that holds you back from taking the right financial action.
As I always say, financial habits are just the tip of the iceberg. I can't emphasise enough how worthwhile exploring what lies beneath the surface is. As a Money Coach, my goal is to delve deeper and understand what drives and prevents you from achieving your financial goals.
When should someone seek a money coach over a financial advisor or counsellor? How to choose a coach that fits your needs?
Each profession specialises in different expertises, and their roles often complement one another.
Money Coaches combine elements of both financial and emotional aspects of money. We address the psychological barriers that hinder individuals from making sound financial decisions. We help build financial confidence and offer financial education, but do not sell or provide investment advice.
Financial advisors specialise in selling investment products and providing advice on investment strategies. They consider factors such as your goals and risk tolerance to recommend suitable investments. Their services are often limited by country due to national laws and regulations.
Counsellors primarily focus on listening and offering guidance in areas such as mental health, relationship issues, overcoming addiction, stress and anxiety management… Their expertise lies in broader psychological and emotional concerns, with no support on money-related topics.
When choosing an expert, it's essential to understand the differences between them and determine which one suits your specific needs.
Each coach has their own unique style and approach. That's why it's crucial to take the time to do your homework: you want to make sure you are on the same wavelength. I definitely recommend booking a free introductory call to establish a connection, understand their methodology, and see if you resonate with the coach.
Again, if you're unsure about where to begin, take the free Annual Money Health Check to quickly assess what your needs are.
What do you love the most about coaching?
Witnessing transformation is when the magic happens. When I see my clients go from struggling with something to effortlessly implementing solutions, when they realise their own contradictions and start making progress, or when they turn their pain into the driving force behind their goals… All of these moments bring a smile to my face and motivate me to keep doing what I do.
Recently, I worked with a client carrying around a lot of resentment towards her parents. But it turned out that resentment was the fuel that drove her to a successful career. Her realisation completely changed her outlook, and she found forgiveness in the process. It's truly inspiring.
Even though I'm the coach, I learn just as much from my clients as they learn from me. It’s a two-way street. Every single client is unique, with their own personalities, goals, and preferences despite having similar financial challenges. They know how to keep me engaged and constantly expand my understanding every single day.
That's why my coaching approach embraces various techniques. I don't believe in a one-size-fits-all approach. Instead, I provide my clients with a diverse set of tools based on their individuality.
One thing I always insist to my clients is that there's absolutely nothing wrong with them. Now if they come to me because they want to make a change but don't know how, that's a different story. In that case, I'm here to give them the support and resources they need to reach their desired destination. It's all about meeting them where they are at and giving them the customised support they need.
What are the issues with money in today's society? Are there cultural differences?
We are facing the same problems globally. There are two major issues related to money: the taboo nature of money talks and the limitations of traditional financial education.
When I was fresh out of university and was earning minimum wage, I vividly remember discussing money with my friends regularly. I was genuinely curious about their spending habits, their strategies for saving, and how they were hustling to make ends meet. But, it was always brushed off, and there was this awkward discomfort every single time I initiated the talks. We could chat about mental health, relationships, and even dive into details of their sex life, but when it came to money, finance was off the table.
Traditional financial education tends to focus on debt management or investment only, leaving out important topics such as the psychology of finances or even how to spend your money mindfully. I get approached by so many people asking, "Should I buy x or invest in y?". I'm not here to make those decisions for you, but I can show you how to build a system that empowers you to make smarter choices every day. That's why I created the Mindful Spending Plan.
Things are changing slowly. Today, more books address money beliefs, some more specific than others. Morgan Housel, a New York Times bestselling author, has written a book named “The Psychology of Money”, which provides a good starting point for thinking differently about money. On the other hand, authors such as Deborah Price and Brad Klontz delve deeper and provide practical tools to help you reflect on your relationship with money.
Improving financial education is similar to promoting a healthy lifestyle. Many people struggle with poor eating habits because they simply don't know how to eat properly. Better financial education can empower individuals to develop a balanced "financial diet".
So, how can we break the taboo surrounding money?
Talking about money more openly and more frequently.
It’s not about bragging or showing off how much you have. Instead, it's about promoting healthy conversations, knowledge sharing, and empowering others to make informed financial decisions. Through empathic listening, you could discuss without judging one’s purchases or investment decisions. Everyone has their own financial circumstances, goals, and priorities. What if we stop criticising and instead learn from mistakes and experiences?
Breaking the taboo around money is a process that requires effort and time. The more we share our experiences, challenges, and successes with others, the more normalised discussions about money become.
The reason why it was taboo at first is because people often feel unsafe discussing it. There is a fear of being judged based on one's income. If you earn too much, or not enough.
Just like Brené Brown made vulnerability cool, we can do the same with money. Eventually, talking about money can actually become sexy.
What does it mean to have financial confidence? How can one develop it?
Financial confidence is an ability to approach financial matters in a healthy and rational manner based on your life goals to build purposeful wealth. The key to develop financial confidence is repetitive action. The great thing about it? It’s a skill that can be developed, as opposed to an in-born talent. This means that anyone can grow financial confidence.
Start by breaking down your financial tasks into manageable steps. Take one step at a time and gradually tackle each aspect. Celebrate your progress along the way and acknowledge the results you achieve. This process allows you to collect evidence as you see the positive impact of your actions.
You don’t need a Master’s in finance to manage your money like a pro. In fact, I've worked with clients who are financial professionals themselves and yet struggle to manage their own finances effectively. While they learned to handle finances in a logical manner, they often lack the understanding of the emotional aspects of money.
I have created a course for people to build their financial confidence in 30 days, breaking it down into nine steps (CON-FID-ENT). In this course, I explain the entire process in a step-by-step manner and it’s packed with exercises that you can apply in the comfort of your home. The purpose of the course is for you to take action and gather evidence, which are two key actions for building your financial confidence.
When you step out and do something, even if it's a small step, you are already showing a certain level of confidence. Once you attain a healthy level of financial confidence, you become unstoppable (read my article “How to ace your way to financial confidence”. So, what are you doing today that you haven't done before
What is next for Moneysophy?
Currently, I work closely with individuals and corporations, helping them attain their financial goals and build that sweet financial confidence. I provide them with reflective prompts and practical tools, particularly catering to those who face challenges in dealing with money stress, living paycheck to paycheck, or drowning in debt.
Looking ahead, my vision for the next three years is to cultivate a financially empowered generation. And it starts with the educators, the parents, and the kids. I'm developing a programme designed specifically for parents and schools. I want to equip them with the knowledge and tools they need to teach financial literacy and build up that money confidence in the younger generation.
[Free gift] If you would like to discover how to build financial confidence to create change in your life, please visit here to access free online resources.
