Want to Feel More in Control of Your Money? You May Benefit from Working with a Financial Coach.
You are likely familiar with wealth managers - financial professionals who manage your assets and investments. But what about those of us who need something more foundational? Do you find yourself asking questions like how does the stock market work? Can I actually afford this vacation? What can I do to feel more in control of my spending and my finances? You’re not the only one. According to a 2021 report by the Milken Institute, only 52% of women (as compared with 62% of men) are considered financially literate. Needless to say, many of us are left feeling shameful, guilt-ridden, and uncertain about our finances. If you’re nodding your head to these statements you may benefit from working with a financial coach (also known as a money coach).
What is the difference between a financial coach and a wealth manager?
Money coaches provide holistic personal finance education including investing 101, basic budgeting, retirement fundamentals, money mindset, and more. Wealth managers are focused on wealth-building through asset allocation; they are certified to provide analysis and selection regarding specific investments. Both types of advisors will work to help you understand your unique circumstances and goals, and come up with a plan to get there. However, money coaches focus on tools and skills to help you (as the individual) manage and maintain your finances and day-to-day financial decisions and mindset. A money coach enables you to DIY your own finances. In contrast, wealth managers will allocate, curate, and oversee funds on your behalf. Both are beneficial options depending on your needs and circumstances.
Who should work with a financial coach?
If you are looking to achieve a greater understanding and proficiency with your own personal financial matters you may benefit from working with a money coach. For instance, learning the foundations of the stock market can help you better understand stock market volatility and how to prepare for it both mentally and financially! Working with a money coach can also help you create mindful spending habits, establish and grow cash savings, pay off debt, and help you manage your personal finances and budget.
Money coaches also address the emotional elements of financial planning. We all come to the table with different money stories and upbringing. Understanding this part of your past can help you move past learned negative behaviors and embrace positive ones. Money coaches can address these emotional pieces and provide a safe and judgment-free supportive place to address these concerns. While money coaches work with you on your money mindset, money coaching is not a replacement for therapy and cannot replace mental health counseling or health care.
What kinds of topics are covered in financial coaching programs?
Here are examples of personal finance frameworks covered in financial coaching programs.
Values-Based Spending
Goal Setting
Net-Worth Calculations
Mindful Budgeting
Retirement Basics
Investing 101
Credit Score Boost
Debt Payment Plans
Automated Finances
Personalized Action Plan
What is it like to work with a financial coach?
Money coaches seek to understand the systemic barriers that have left marginalized groups out of the financial conversation. They work to create a safe and welcoming environment, free of judgment, where curiosity is fostered and encouraged! Money coaches address the practical and emotional aspects of financial planning so you can have financial confidence both in your day-to-day, and in your future!
Financial coaches maintain accountability through one-on-one personalized coaching and educational programs. They serve as a motivator and advocate throughout the coaching process and support you to achieve your financial goals. Ultimately, self-motivated individuals who seek clarity and control of their own finances will see the best outcomes when working with a money coach.
If you are interested in exploring if a financial coach is right for you, schedule a free discovery call today!
