When you have questions about getting in shape, you can consult a personal trainer and a nutritionist. When you have health questions, consult your doctor or a naturopath. When you need help navigating life, you talk to your therapist. And when you have questions about managing your money, consult a financial advisor. But how do you reach a point where you have enough money to have a financial advisor? 🧐
For example, let’s say you have your annual meeting with your financial advisor, and based on his calculations, you need to contribute $1,000 more towards retirement every month. You respond, “But I’m already stretched thin. How do I invest money that I don’t have?” A financial coach takes a holistic approach to your finances and works with you to prioritize your current income to find that money in the budget.
The financial coaching industry is poised to grow significantly in the next decade. Here’s why…
The truth is that in our society, there is a lot of shame involved with not knowing how to handle money, so it’s not something that we discuss. For many people, it is a taboo topic, but how are you supposed to learn if you are not allowed to ask questions? And when we don’t discuss it, millions of people continue to struggle.
But when you say struggle, is a financial coach just for someone desperate on the brink of bankruptcy? Absolutely not! Financial coaching is for anyone who is not entirely in control of their money and using it as a tool to enhance their daily lives. A financial coach can help you get clear on your goals to accelerate the timeline of reaching your goals faster. You aim to own a mountain vacation house, retire early, or put your kids through college without student loans. Maybe you’re just tired of making good money but not having anything to show for it at the end of the month. A financial coach can help you with all these goals and more.
For many people, discussing money is taboo, but how are you supposed to learn if you are not allowed to ask questions. What if you had a safe, judgment-free space to be completely vulnerable about your situation? This is what financial coaching provides. A coach can look at your situation, understand your financial goals, and design a roadmap for you to follow. This roadmap can help you save thousands of dollars, earn more, and achieve your financial goals faster. What if that roadmap had you sleeping better, increased productivity, and a better relationship with your spouse? This is the power of financial coaching.
Simply put, coaching (financial or otherwise) is helping another person get more out of an area of their life than they are able to on their own.
Financial coaching is a beautiful blend of numbers and emotion. The absolute best part is seeing your clients win with money and gain confidence in their abilities.
Of course, there are tangible effects, such as reduced debt, increased savings, and more money in your investment account.
And then there are the non-tangible effects, such as lowered stress, complete clarity, and increased confidence.
You may be wondering, can I just read a book about money management and be good to go? Perhaps—some people are naturally inclined to be savers and love investing. For others, it doesn’t come as naturally. Money management is a skill, and like all other skills, you can learn to be good at it. The empowerment that comes from mastering this skill can be truly inspiring and motivating.
Last week, I shared the steps to building wealth, and if you follow them, you will become wealthy. However, even though the steps are simple, that doesn’t mean they are easy.
Financial coaching is not just financial literacy. It is the application of financial literacy in a way that works for you.
Alright, I’ll step down off my soapbox now:) Let me know if you have any questions.
