If you’ve ever played sports, you know how important a coach is. A coach has the experience and knowledge to help you get to the next level. They make sure you show up, achieve your goals, and keep you motivated and supported along the way.
But what about financial coaches? What is a financial coach? Could hiring a financial coach be the best way to improve your financial situation?
Today I’m going to explain what a financial coach is and why a financial coach might be the perfect option for you. (Be sure to stick around until the end, because I’m also going to tell you about one of the most affordable financial coaching options out there!)
What is a financial coach? (aka: the difference between a financial advisor and a financial coach)
You might think a financial coach and a financial advisor are the same thing, but they’re actually pretty different.
A financial advisor is a licensed individual that manages your financial investments for a fee. The main goal of a financial advisor is to help you grow your wealth via investing. Most financial advisors won’t work with someone unless they have at least $100,000 to invest and they charge significant fees for their help.
A financial coach, on the other hand, works with anyone - regardless of how much money they have - and helps their clients set and achieve financial goals, create a solid foundation upon which they can invest and grow their money, and holds them accountable each step of the way. While financial coaches may be licensed, they aren’t legally required to be.
You can think of it like this… A financial coach is like a personal trainer for your money. They help you assess your situation, set goals, create an actionable plan to get where you want to be, and they’re there to support you and keep you accountable as you pursue your goals.
Why hire a financial coach?
I want to bring in a personal example here, because there’s no shame in asking for help!
A couple months ago, post-pandemic, I realized I had just stopped exercising. I used to run pretty regularly and do circuits in the park with friends.
But then the pandemic happened and I just stopped. I didn’t have the motivation to do it on my own, and I knew I wasn’t going to start unless I had someone to do it with.
So I got a referral from a friend and hired a personal trainer to come to my house and make me exercise twice a week. It was the best decision! Within weeks I felt stronger, more resilient, and I was proud of myself for actually starting to exercise again.
Sometimes we just need a little outside help, and the same is true when it comes to our finances, or really anything we don’t want to do on our own :)
So, why might you hire a financial coach? Here are the 5 most common reasons:
1) They help you know what to do next
When it comes to personal finance, people often struggle to know where to even start. Should I be paying off my student loans or saving for retirement? Should I try to make more money or learn to invest? Knowing what to do, in what order, from someone who looks at your entire financial picture and can help you strategize is really valuable.
It was like when my personal trainer would show up with a pre-designed workout for me. I just had to show up and follow directions.
Similarly, a financial coach teaches you what to do, in what order, to make the most of your money and your time.
2) They help you achieve specific goals
Typically, when you go to a coach, you have a specific goal you want to achieve. For me, I wanted to strengthen my back so it didn’t hurt when I was hiking.
When you go to a financial coach, you might have a goal of becoming debt free, getting your finances organized post-divorce, or making sure you have a plan for retirement.
Whatever your goal, your coach will help you create a plan, with milestones along the way, so that you can achieve it in your desired time frame.
3) They create a plan tailored to you
There are many different theories about the best way to pay down debt, invest, and manage your money. And a lot of them are perfectly legitimate…but they’re not necessarily the best approach for you, your needs, and your lifestyle.
A coach will help you create a plan that works best for you as an individual, keeping in mind your lifestyle, your goals, and your personal preferences.
How good does that sound? Reminds me of when I made a specific request to do Barre workouts or play 80s music and Vanessa (my trainer) designed a workout just for me.
4) They hold you accountable
This is my personal favorite!
Like I said, a coach helps you create a plan to achieve your goals. But just as importantly, a coach makes sure you stay on track to meet it. There’s no way I was going to wake up at 6:45 am and put on my workout clothes unless I knew Vanessa would be knocking on the door with weights at 7 am. It didn’t matter how tired I was, or how much I didn’t want to work out - I didn’t miss a session.
THAT, in my mind, is the biggest benefit of having a coach. It’s someone to hold you to doing what you say you’re going to do.
While a financial coach will not make you wake up at 6:45am, they WILL keep you focused on your goals and make sure you’re taking action to achieve them each week.
When you have to explain to someone why you didn’t call your credit cards about lowering your APR, you’re much more likely to actually do it. At least, I know I am!
5) They save you time
Time is the biggest game-changer when it comes to personal finance. The longer you have debt, the more you end up paying in interest. The earlier you start investing, the more time your money has to grow and the more it will be worth in the long-run.
So, if a financial coach can help you achieve your goals faster so that you can start investing sooner, that’s going to have a major impact on your financial future and on the dollars in your bank account.
Plus, it’s just less time you have to spend googling things or wondering what to do. Instead of asking Google “should I save for a down payment or save for my retirement” and attempting to trust the answers on Reddit, you can just ask your coach and get a personalized answer based on your unique financial situation. How nice does that sound?
Signs you’re ready for a financial coach
- You want to achieve your financial goals but aren’t sure how or where to start
- You’re coming off of or approaching a major life change
- Maybe you’ve recently gone through a divorce or you’re getting close to retirement and you want to make sure you’re prepared for financial wellness and independence
- You’re tired of living paycheck to paycheck or want to get out of debt
- You want a money plan that meets your individual needs
- You need support and accountability
- You want to invest but you get scared every time you think about it.
How much does financial coaching cost?
Unfortunately, traditional financial coaching can be expensive. Good financial coaches charge between $300 an hour. That means that working with a financial coach for just two months could cost $2,400!
It’s so unfair, right? You need a financial coach to help you achieve your financial goals but you can’t afford a financial coach until you achieve your financial goals!
Thankfully, I have a way more affordable option for you.
We’ve deliberately built financial coaching into our signature program, the Million Dollar Year.
Each week, we offer coaching office hours for our members where you can drop in and ask your personal questions. We have a step-by-step curriculum that guides you based on where you are in your financial journey. And we help you set goals and know exactly what to do to achieve them.
And if you’re someone who wants even more support, we also offer a private coaching option, with 1:1 phone calls, weekly accountability text messages, and unlimited email support for all your tricky questions.
With either option, you get a FULL year of financial coaching for a fraction of the price of hiring a traditional coach, plus:
- access to our tried-and-true 12-step curriculum to achieve financial wellness
- a training vault with over 30 videos on a variety of topics, such as setting prices as an entrepreneur, shifting subconscious money blocks, paying off student loans, and negotiating
- all the workbooks, tools, and resources you’ll need on your financial journey
If you want to learn more, I’ll leave a link for the Million Dollar Year in the description. And hot tip, if you want to join at a discounted price, watch the webinar in the links below for a coupon code that makes it even MORE reasonable!
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