I need help with money. I’ve heard and seen it from friends, family, social media, and just about every study that comes out about money and living paycheck to paycheck. I truly believe the best way to get help with your money is to work one on one and hire a financial coach.
A financial coach can help you understand the key foundational aspects of managing your money. Like a fitness coach, financial coaches will help you build a better relationship with your money, focus on an actionable path forward, and develop positive, life-long financial habits.
Reading a book or personal finance article once a week is helpful, but the average person needs more than that in order to properly build wealth. Money and fitness are very similar. Unless you have someone holding you accountable and showing you the way, an unnecessary roller coaster of progress, failures, and emotions. Are you wondering the same thing that millions of people who struggle with money, but are afraid to ask, should I hire a financial coach?
It’s important to not get confused on what financial coach is versus a financial advisor or financial planner (though once you understand the difference, I recommend hiring both a financial coach and a financial planner).. I’m not here to sell you insurance or tell you what stocks to invest in so you can achieve wealth faster. Let me today provide some clear examples of how I help my clients.
So what I do is broader than financial planning. For more in depth article check out “What is a money coach” and here more about my story and other financial coaches in the industry.
A good analogy to use for financial coaches is “A personal trainer for your money”. I’m not lifting weights for you. Instead I’m giving you little coaching tidbits on how to lift the weights.
But it’s more than that because showing up and being motivated to be there is many times half the battle. So yes I’m yelling “Let’s Go” as your accountability partner. Right next to you I am the person who wants you to succeed the most. I love when coaching clients Kick A** and reach their financial goals!
What’s also unique about me as a financial coach is I have made many financial mistakes so I know what it’s like to be in debt, but I also know what it takes to get out of debt. Pay off over a $100,000 in debt and you learn a thing or two.
That’s what I do as a financial coach, but why should you hire a financial coach? Let’s dive into the top 3 reasons people work with me as a coach.
The money comes in every paycheck then bills happen, you know the ones mortgage, rent, car, insurance, cell phone. But wait I still need to buy groceries. Fill up my car with gas. Let’s not forget I want to live life, go out with friends, eat at a restaurant, and maybe even take a vacation..
Then you listen to a podcast talking about wealth or see someone on Facebook or Instagram and realize you need a vacation, better car, bigger house, etc. and oh $*** I need to save some money. But wait all the money’s gone and you are again waiting for your next paycheck.
The common theme to your relationship with money is “I have no idea where my money is going”.
It’s not that you are not making money. It’s that the money disappears like some sort of magic trick. You can usually tell if you are this person if you can’t the simple question “How much do you spend on groceries?”. If you don’t know the answer to this question it’s very likely you have no idea where your money is going. Maybe you should hire a financial coach.
Have you ever tried driving to a new place you have never been before without a map or GPS? Of course not, you would get lost. One of the most common reasons people work with me as a financial coach is they are looking for an action plan to follow, so they don’t get lost.
Many of my coaching clients want someone who has done it before. Someone who not only knows the way to get there but who has traveled on the same road.
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Planning is everything. This week I was able to share my story about how I paid off debt, saved money, and live a life of financial freedom. @biggerpocketsmoney #haveaplan #financialfreedom #financialindependence #financialplanning #payoffdebt #savemoney #invest #investmore #househack #moneytips #biggerpockets #biggerpocketspodcast #biggerpocketsmoney #evensteven #evenstevenmoney #MoneyCoach
Once that plan is in place, you are able to see things so much differently. Being able to earn more money and grow your wealth with the help of a financial planner or because you want a new house, save more money because you love to travel, or pay off debt because you want the freedom to spend more time with your family.
People are unique, situations are different from person to person, and that’s why I coach clients on a 1 on 1 basis. Ultimately I want my clients to reach their financial goals. Those goals themselves are unique. I don’t take a one size fits all approach with my clients. The financial action plan focuses on how you can spend more time, energy, and money on what you value most. Another reason why you should hire a financial coach.
I have XYZ budget app on my phone. Read ABC personal finance book. Talked with Mr. or Mrs. financial advisor or financial planner. These are all steps that my current clients and many people who follow me on my website and social media have taken and they still finished in the loss column with money.
When was the last time you opened the app on your phone? Most times I will hear months ago and sometimes not even at all. The answer to your financial problems isn’t an app, the answer and the solution is YOU! It’s about creating good financial habits and a financial coach can help you with that.
Once you have your financial action plan it’s now time to make that action plan into a reality by following the plan and building better financial habits along the way.
Every coaching client I work with is smart and capable of many great things. But just because you read a book, article, podcast, or article that doesn’t mean you are able to take each nugget of wisdom and master your money.
For example Dave Ramsey helps thousands of people, but he also tells you that there is only one way to do things and that’s his way. Guess what? He’s wrong.
The debt pay off principles he teaches are solid but many clients work with me because they still want to live their lives and not abandon everything to pay off debt. My clients eat at restaurants and still pay off debt. Crazy I know.
I pick on Dave Ramsey but the main point is that whatever personal finance advice you take it’s without someone to guide and hold you accountable. A book isn’t going to do that.
Imagine someone sending you a text message Monday morning asking about how your spending plan for the month is going? Did you reach your monthly financial goal? What’s the plan for next month?
That’s just one example of how I hold my clients accountable. Would you reach your financial goal if someone was holding you accountable to your action plan? This is why you hire a financial coach.
One of the things we are taught is that money management is complicated. So we are told to meet with a financial advisor. Here are the problems that you are most likely to face when you meet:
So you did the “right thing” by going to a professional financial advisor and they either couldn’t help you or tried to sell you something you didn’t want or need. That can be really frustrating. Now, I’m not bashing on advisors. In fact, like I said above, I’d recommend hiring a financial coach and a financial advisor or financial planner (one that’s right for you) once you’re ready.
As a financial coach I don’t try to sell you anything. I don’t sell insurance or recommend stocks. If we are a good fit, the first thing we do together is create a financial action plan. If you have a plan we now have something to follow to reach your financial goals.
Most of my coaching clients choose to continue working with me after creating a financial action plan for longer because they want someone to help and guide them along the way.
The first step is always the same, it’s called a Discovery session. It’s 20-30 minutes talking about you and your financial story. I share with you if and how I would help in your situation. If we are a good fit, we get the financial coaching started pretty quickly.
Ultimately the number one reason why you should hire a financial coach is you want to make a change in your financial life and focus on building wealth for your future, that’s the person who works with me.
The amount and how much each financial coach charges will vary. So much of this depends on the the amount of time spent with the client and experience level of the coach. The range varies from $80-$600 per hour based on my research and experience talking with other coaches. Many coaches will offer packages rather than an hourly rate, which provides more accountability and makes it more difficult to figure the hourly rate charged.
The short answer is No. Like any profession however you want to have training to become the best financial coach you can be. I highly recommend checking out my post on How to Start a Financial Coaching Business to get more recommendations on certifications and training.
Dave Ramsey’s financial coach master training at the time of writing costs $1,995. Once you’ve successfully completed the training, you’ll earn the designation of Ramsey Solutions Master Financial Coach. There is also a Ramsey Preferred Coach program that is an additional $150 monthly that includes business marketing and growth along with client referral leads from daveramsey.com
How to Start a Financial Coaching Business