Many of you might be asking…What is a financial coach and why do I need one? Or What is the difference between a financial coach and a financial advisor? By the end of this article, you will have answers to those questions and many more.
A financial coach is someone who works closely with you to understand the basics of personal finances, helps you identify financial goals and helps you create a plan to accomplish those goals. The focus of a financial coach is to encourage their clients to take control over their financial future and build healthy financial habits. A coach should provide you with valuable information that you can implement to help accomplish your goals.
A financial advisor is someone who offers specialized information related to investing and building wealth. An advisor provides advise and recommendations on what to do with your money, based on your financial goals. A financial advisor can also help with tax planning, estate planning, college planning and retirement planning. The financial advisor primarily focuses on the behavior of your money.
In the current economic environment, many individuals and families struggle monthly to cover their bills. For many people, coming up with the money to cover a $1,000 emergency would be nearly impossible. Most people have little to no knowledge about how to manage their money and do not know where to go for answers they can trust. This is where a financial coach comes into play. Whether you struggle with too much debt, how to budget or need some help with how to prepare for major events in your life, a financial coach can help you.
Keep in mind, not all financial coaches are created equal. Since there is no regulation over coaches, anyone can hold themselves out as a financial coach. A good financial coach should be passionate about helping people, able to understand where you are in your financial life, guide you through the process of getting on track, provide you with helpful information and inject hope into your life. A good coach does not judge you for past actions but focuses on helping you take control of your financial future.
If you or someone you know could benefit from a financial coach, give me a call. I would be happy to sit down with you and discuss your situation and see how I can help you out. Also, if you have a group that would benefit from some basic personal financial information, I would be happy to give you a complimentary seminar.