Many people struggle with the idea of money, and when they finally make enough to be financially stable, it can seem like a whole new world.
The truth is that there are many things in life that we don’t know much about because we haven’t experienced them first hand.
A financial coach can help you answer questions about your finances and how to manage your money better.
What is a Financial Coach?
A financial coach works with you to figure out how much money you make and what your expenses are. They work with you, not for you, to help increase the amount of money coming into your life.
Some coaches may also give recommendations on investments or other ways to put more money towards savings or retirement accounts.
A financial coach can help give you a clear idea of how much money is enough for your lifestyle. They also explain the difference between good debt and bad debt and why it’s important to have an emergency fund available in case anything happens.
How to Find the Right Financial Coach for You?
There are many financial coaches out there, and it can be hard to figure out which one is right for you.
One great way to find a coach that’s best suited for your needs is by asking friends or family members if they’ve ever used a financial coach before. They will usually have some insight into their own experience or recommend someone they’ve worked with before.
You can also find coaches on the internet. Most financial coach websites will have information on their coaching services, testimonials from previous clients, and sometimes even a list of questions that you can ask to help determine if they’re right for you.
Benefits of Using a Financial Coach
There are many benefits when hiring a financial coach, few of them are:
They help you get organized financially.
When working with a financial coach, they will help keep track of your expenses and income for you. They can also explain any fees or charges that you receive from your bank, credit card company, or the government so that there aren’t any surprises later on.
They can help you understand what your financial goals are and how to achieve them.
A coach may help set up a budget for you, explain where your money is going and how much of it needs to be saved.
They help you get rid of bad debt.
A financial coach will be able to tell you which debts are dragging down your finances and should be paid off first.
They can help you come up with a plan to pay these debts back as quickly as possible so that your credit score doesn’t suffer from being overdue on payments or having too many accounts in collections.
They help you get on track to retirement.
A financial coach can explain the benefits of starting a 401(k) or IRA and how much money should be put away each month. They will also discuss all your options for saving for retirement, including stocks, bonds, and mutual funds.
They can help you plan for unexpected expenses.
A financial coach will be able to go over the possibility of emergencies happening, whether it’s having your car break down or needing surgery unexpectedly.
They’ll work with you so that there is enough money available in savings at all times to keep these situations from affecting your finances negatively if they do occur.
Questions to Ask Before Hiring a Financial Coach
It’s always a good idea to ask as many questions as you can before hiring someone.
Here are some that we recommend:
What are your training and background?
A coach should answer this question for you, whether they’re certified or have completed some certification program. Ask for proof if they don’t have it available to be sure that the coach you’re hiring is experienced and has a good reputation in the field of financial coaching.
What are your fees?
A coach should always explain their rates before beginning any work with them so that you know exactly what you’ll be paying ahead of time. This is especially important when working with a financial coach so that there aren’t any surprises later on in the process.
When will you be available to work with me?
A coach should answer this question for you, also. Some coaches may have set availability which is typically only during the workday Monday through Friday, so that they can devote their full attention to your case.
Other coaches might be able to meet at weekends or even in the evenings when it’s most convenient for you.
What is the process of working with a financial coach?
Some coaches may have a set plan or formula that they follow to help their clients get organized and on track when it comes to their finances. Other coaches might prefer working more one-on-one so that each client’s situation can be customized as needed.
Things to Look Out for When Hiring Your Financial Coach
There are a few things you want to watch out for when working with any coach. Here is our list of what not to do:
Don’t hire someone who guarantees that they can fix all your financial problems in one sitting or session.
Many financial coaching sessions can take multiple meetings due to how complex and serious your situation is.
Don’t hire anyone who asks for payment before they’ve had a chance to meet with you first or do any work on your case.
Your coach should always give their services as a free consultation to clarify precisely what the client will be paying for and what they will get out of it.
Don’t work with a coach who was referred by someone suspicious or unreliable.
You want to be sure that you can trust the person you hire, so always ask for references from other clients and follow up on them before making any decisions about hiring someone.
Don’t work with a coach who doesn’t have experience in your area of need.
A financial coach should always be able to answer any questions you may have about the situation and how they’re going to fix it for you, so if they don’t know what’s going on, then find someone else.
Contact Us Today!
If you’re interested in learning more about financial coaching and how it can help your situation, contact us today to set up a free consultation with one of our qualified coaches!
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.