What's a Money Coach & Five Benefits to having one.

Updated: May 20, 2020

Coaches help you develop, implement and most importantly guide you through the process of getting your personal finances in order. It is more than just budgeting and getting out of debt, it’s about learning new habits and ensuring follow through.

By: Allan R Kirby

Financial coach looks at your habits and live style and helps build realistic financial goals while guiding your through the process and make adjustments when required. They are not there to just provide you more information, there is enough of that on the internet, it is more transformational,  helping you deal with the underlining issues and habits that are holding you back from actually succeeding.  This is fundamentally different than experts such as financial advisors or even personal finance gurus who provide you information on what you need to do. The problem is that they do not provide the tools you require to transform and guide you through the process.  However, Financial Coaches are not therapists but they do help focus on some of the underlying issues that may be holding you back from financial success. 

“Money Coaches help individuals and couples build the bridge between financial planning and actually doing it.”

What makes a financial coach so effective is that instead of selling products and services, the focus is on you, the client. This a breath of fresh air, something that is missing with many financial experts. For example, I found financial advisors to focus on the products and services they want to sell you, over simplify the entire financial investment process and in some cases make you believe they have the secret sauce that will build your wealth quickly and effortlessly.  Maybe that is true, however, to truly take control of your financial well-being,  financial coaches bring not only the experience and expertise required to achieve your goals but also provide a support system to ensure you actually complete your goals..

“Financial Coaches break down obstacles and help you gain the confidence necessary to succeed”

Financial (Money) coaches do provide sound advice and strategies to help you with managing your finances such as but not limited to:

o Learning about the budget process and understanding how to manage finances.

o Strategies to help reduce debt and improve spending habits.

o Understand how to build your savings and emergency funds.

o How to improve communications and discuss money with your partner and family.

o Developing ways to make smart and informed financial decisions.

A financial coach is just one of many tools you can utilize to help you with managing your finances and well-being,  it’s a new and different approach to personal finance,  keep in mind that like many other forms of learning,  there's no relationship between how much you spend on education and how much value you actually receive from it. Additionally if you are unable to follow through and work with a financial coach, you will not succeed. The reality is that there is a lot more commitment and financial coaches are not going to steer you into specific products and service. They will guide you and help you make sound but sometimes difficult decisions while also ensuring you build up confidence.  To me, the key is financial (Money) coaches. They not only provide guidance and expertise, they provide, in my opinion, honest support, positive feedback and of course the toughest part, making you become more accountable and help you follow through on what you have committed to. Although adjustments can be made, it’s not written in stone, it’s a journey to success.

Financial (Money) coaching as an industry is a relatively small and newer field. However I believe it’s one that definitely fills a gap that has been lacking for many years.  Specifically, I think it empowers people to be more engaged and active with their finances and breaks down the barriers necessary to succeed.   For myself, I did not use a financial coach when I set out to learn how to management my finances Either the field really did not exist or I was not aware of it at the time. I did it all through education and just simple trial and error, but in retrospect had there been a coach available, I would have used him/her.  

Remember, you have the choice to determine the path you want to take to manage your finances. You can do it alone or you can work with a bank but maybe a personal financial coach might be the ticket your looking for to help you succeed.  

This is a MySmallBank.com blog written by Allan Kirby, who writes and produces Personal Finance articles and videos along with My Success Magazine.

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