A good coach can make a significant impact on your life. Good coaches communicate, motivate, lead, and share knowledge. They play to our strengths, identify our weaknesses, and challenge us to reach our full potential. Financial coaches tackle personal finance topics such as (but not limited to!) budgeting, getting out of debt, saving for college or retirement, and money management. Financial coaching focuses on helping you reaching your full potential when it comes to making smart financial decisions.
A Financial Coach Will Assist You In Defining Your Financial (and non-financial) Goals
You make money, but what do you want to do with it? Some financial goals that you and your coach might discuss:
- Building up an emergency savings fund
- Paying off credit card debt
- Making a large purchase (home or car)
- Paying for a wedding
- Building up a college fund for your kids
- Taking a dream vacation
- Buying or starting a small business
A great coaching relationship starts with an honest look at what you value and how you want your money to work for you. Do the goals above speak to you? Do you have another dream that money can help you achieve? Be candid and honest so your coach can understand how to help you achieve your goals.
A Financial Coach Will Challenge You To Find Ways to Achieve These Goals
Some of your goals might seem hard to reach right now. However, achieving them starts with small changes that, over time, yield big results. Your financial coach will encourage you to dig deep and use creativity, commitment, and hard work to reach milestones on the road to your goals. This might mean taking a side job for a few months, changing some spending habits, or even seeking a promotion or new job opportunity. Over time, these small steps toward your goal will put it within your reach.
A Financial Coach Will Drive You To Examine Your Relationship With Money and Redefine It
Change can be scary, but coaches exist to push you out of your comfort zone and confront behavior and choices that don’t encourage growth, knowledge, and success. Financial coaching will force you to examine your emotional relationship with money. Do you feel overwhelmed when making money decisions? Do you find yourself anxious, stressed, or fearful? Your coach will help you explore your feelings about money and ensure they don’t hold you back from achieving financial success.
A Financial Coach Will Encourage You To Keep Your Focus and Commitment
It’s not easy for everyone to track daily expenses or stick to a budget. One person’s preferred way of budgeting may seem overwhelming and impossible for another. A financial coach partners with you, plays to your strengths, and suggests tools and techniques that will help you stay committed to achieving your goals. Your coach will listen, encourage you to push past any setbacks, and celebrate victories alongside you.
Remember, a Financial Coach Is Not A Financial Advisor
Financial advisors focus on investment portfolios and provide specific investment advice. Financial coaches focus on strengthening your money management skills so that you can make sound financial decisions. Financial coaches won’t advise you on asset management and will not profit off any investments you may make. However, the skills you learn with a coach can help prepare you to work with a financial advisor if you need investment and asset allocation advice.