What Is a Financial Coach?

Let me start by letting you know what a financial coach is not. We are not the same as other financial professional, rather than recommending investments and managing portfolios like an advisors we spend time helping clients get their finances in order.

As a financial coach I help my clients with money management topics with a mission to guide you in developing healthy money habits that last a lifetime. How do I do this?

Well this depends on your specific situation. Let’s say you just have no clue what to do, I will start with the basics and educate you on personal finance, working with you to create a financial plan that reflects your goals and be an accountability check along the way. I empower you to take responsibility for decisions you make as you work on implementing your plan.

Keep in mind this doesn’t happen overnight. The length of time we spend together depends on your specific situation and could be a single contact to over a course of a time. Typically, we meet monthly to go over your progress but could be more or less depending on where you are in the process. In any case I answer questions and provide the next steps based on your knowledge of money management.

In some cases, the first step is looking at your spending and building awareness around your habits. This is usually by tracking daily, weekly and monthly spending. Next, we define your goals which may mean you would need to create a budget, establishing an emergency fund or pay off debt. It is my mission for you to have a solid plan that will work with an ultimate goal for you to be able to attain financial independence. I am there for you during every step of the plan helping you gain knowledge, injecting hope and restoring your faith that results in you achieving your financial goals.

Who Should Work with a Financial Coach?

It doesn’t matter if you have thousands of dollars in assets or in debt with little to no savings a financial coach is beneficial to everyone no matter what level of income you have. And it works!

Let’s say you’ve tried to make a budget but you just can’t stick to it, you want to work with a coach. Some may think they just can’t stick to a budget because they don’t make enough money while others make enough but can’t figure out how to build an emergency fund in both cases a coach is very beneficial. Others may have so much debt it is overwhelming, definitely you need a coach! Or let’s say you’ve changed careers or other life changing moments like marriage, divorce, children, special needs and retirement when you just need a little guidance this is when a financial coach is also beneficial to make sure you are on the right path.

Often time my clients have deep-seated emotions around money that causes friction in a relationship. Partners that are having difficulty talking about money tend not to hear each other even if they are “listening.” I help couples overcome these barriers by helping them identify their relationship with money allowing open communication to take seed. This can save marriages and relationships. I also help singles identify how they relate to money and so they overcome barriers stopping them from reaching the next level.

What’s the Difference Between a Financial Coach and a Financial Advisor?

Many people hear financial coach but assume financial advisor. These are totally two different types of financial assistance. Coach’s help you to better save money whereas a financial advisor is there to invest your money.

Financial coach’s work with clients who have few or many assets that need to overcome financial obstacles through guidance and morale support to get over a hump. A financial advisor on the other hand manages and invests your money for fees based on a percentage as opposed to coaches who charge a flat fee. Advisor also provide options for developing an investment portfolio once you are able to securely build wealth and cover risk. Also, an advisor will often require a minimum money level to begin service. Coaches are great guides in selecting your advisor by showing you how to avoid pitfalls and scams as well as verifying advisors track record.

Another very important difference is that financial coaches are not licensed to provide financial advice like advisors, therefore, cannot provide specific product recommendations nor do they sell you anything (at least they shouldn’t). Coaches provide advice on different investing options and benefits of diversification but they cannot recommend how you should allocate your money. In other words, coaches can suggest saving money in high interest accounts but they cannot tell you where to put your money.

Coaching is limited in time arrangements as well because we help you achieve financial literacy and learn to manage your own finances. Advisors work on an ongoing relationship where you meet with them once or twice a year and they continually manage your financial portfolio.

Coaches educate you on personal finance and build your financial literacy whether it is to help put together a budget, paying down debt and creating a livable financial plan to covering risk and estate planning to house purchases so you can make smart financial decisions while taking responsibility your choices. So where do you start? Make an appointment with a coach. They should offer a consultation so you can meet and see if you can work together and go from there.

The First Steps to Getting Your Finances in Order

· Set up a plan.

· Establish an emergency fund of $1,000. Make it a priority! And don’t touch this money unless it is a true emergency. If you spend it, replenish it right away.

· Pay off your debts. I can help you fast track out of debt so contact me before filing bankruptcy – you probably don’t need to spend 1,000’s and you can rebuild your credit at the same time.

· Contact me for the rest of the steps and learn how to become financially independent!

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