You make enough money on paper, but can’t seem to manage your finances. Where does all the money go? Why can’t you save?
You might need a financial coach.
What is a Financial Coach?
A financial coach is a professional who can help you make better money decisions. They are life coaches with a special focus on financial management.
Financial coaches guide your budgeting, spending, and financial goal setting, helping you identify mistakes and learn to manage your money.
They focus on the emotional side of money management, like your relationship with money and how your emotions impact your spending, rather than on the analytical side of building wealth.
Financial Coach vs Financial Advisor
Please don’t confuse a financial coach with a financial advisor or a financial planner. They offer very different services.
A financial advisor helps you manage your money and grow wealth. They manage your investment portfolio, help you decide where to invest, and offer advice on which insurance products are best, whether you should buy an annuity, and when to sell investments.
In short, they are wealth managers, focused on the analytics of money management.
A financial coach, on the other hand, should never offer investment advice or convince you to buy a financial product. They shouldn’t touch your money.
Financial coaches help you manage money in relation to your life. They help you identify your financial mistakes so you can stop repeating them over and over again, or highlight areas where your spending might not match your stated goals.
A financial coach helps you understand your relationship with money and make better financial choices.
Why Would I Need a Financial Coach?
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If you need investment advice, go to a financial advisor.
If you can’t stop spending money, or don’t even know where your money goes, you might be better off hiring a coach.
You might need a financial coach if you earn a decent income but can’t figure out how to budget, if finances make you feel overwhelmed, or if you need a battle buddy to hold you accountable.
A financial coach is also a good choice if you don’t know anything about how money works and want someone to guide you through the basics.
They help you develop a better relationship with money so you can make smarter decisions.
How Financial Coaches Help
Financial coaches can help in a variety of ways. They adapt their coaching to meet their clients’ specific needs.
Financial coaches can help you:
- Build a budget that works
- Stick to your budget
- Understand your relationship with money
- Rethink your relationship with money
- Unlearn bad financial habits
- Build healthy financial habits
- Figure out your financial goals
- Prioritize your financial goals
- Learn financial literacy
How to Find a Financial Coach
You can find financial coaches all over the internet. Check websites like LinkedIn for coaches working in your area. Explore resources like Thrivent, which offers three free financial coaching sessions. Use your favorite search engine or social media platform to search for financial coaches.
You can also find financial coaches through recommendations from friends or platforms connecting people to life coaches.
What to Look for When Hiring a Coach
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Although financial coaching is a valuable tool for many people, the lack of accreditation for financial coaches opens the door to fraud and abuse.
The internet abounds with people selling financial coaching services, and although many of them are great at what they do, some aren’t looking out for their clients’ best interests.
Before you hire someone, be sure to read client reviews and testimonials. A good coach should also offer a free introductory meeting to both build rapport with the client and ensure the coach can meet their specific needs.
Watch for coaches trying to sell financial products, like insurance, crypto, or investments. That’s not a coach’s lane, and if they’re trying to sell you something like that, they probably aren’t a good coach.
Look for someone who listens to you, hears your needs, and can help you with the specific money challenges you face.
Hiring a Financial Advisor as a Coach
Some financial planners also serve as financial coaches, so you can get both services from one professional. On the plus side, advisors are always accredited, but the negative is that the accreditation often comes with a hefty price tag. People need financial coaching because they can’t handle their money, so they don’t usually have a lot to spend on this service.
Another disadvantage to using an advisor is that their training and accreditation are focused on the money management portion. They may offer coaching services, but some struggle to connect with clients emotionally, because they’re more focused on the math.
However, your mileage may vary. You can find financial advisors offering coaching services by searching the word “coach” in Wealthtender’s financial advisor search.
When hiring someone, make sure they have a fiduciary duty toward the client, so they won’t try to sell you products you don’t need. Most fee-based advisors serve as fiduciaries toward clients, while commission-based ones don’t.
DIY Financial Coaching
Though it’s typically cheaper than a financial advisor, financial coaching can get pricey, especially if you need to see your coach multiple times per month.
Did you know that you can develop many of the skills financial coaches offer on your own?
I created an epic workbook designed to help people just like you learn better money skills without paying for an expensive coach. My printable DIY coaching bundle features 90 pages of content covering all aspects of money management.
You’ll find:
- Journal questions to help you understand your relationship with money
- Worksheets to help you identify and achieve your goals
- Budget and expense trackers
- Tips for changing your money mindset
- And much more!
All this for only $40!
Why So Cheap?
I’ve had clients ask why I priced the DIY coaching bundle so low. One even said they’d pay over $100 for it!
I get that, but the economy is tough right now, and I want to ensure that this bundle is accessible for people who need it the most. I could give it away for free, but most people don’t appreciate free things (and I spent months creating it, I should get at least a tiny something from it, right?).
So I priced it low, at a bargain basement price, because I absolutely KNOW that at this price point, you will get value from it.
Financial Coaching Can Help
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Financial coaching isn’t for everyone, but it can help people develop a more positive relationship with their money. This new relationship helps them manage money with confidence so they can reduce spending and start building wealth.
If you’re struggling financially, and it’s not an income problem, you may benefit from the guidance of a financial coach.