Successfully designing a financial plan that recognizes your financial situation, comprehends your spending habits, and successfully achieves future goals will give you financial independence and stability. But that is easier said than done. 

Everyone wants to be able to handle their personal finances successfully without the help of financial advisors and money coaches, but there’s always more to it than meets the eye. A money coach can provide financial advice in your current situation to help you achieve life-changing results by accomplishing your money goals and helping you attain financial freedom.

Let’s find out more about how financial coaches deliver personalized advice to help you achieve your personal financial goals.

What Is A Money Coach?

A money coach empowers their clients with dependable financial advice to help them achieve future goals financially. Money coaches will help develop a personal plan for individuals who have a bad relationship with managing money. This personalized advice does not include pushing the client to purchase specific financial products for personal financial gains. The coaching process helps the individual get back on their feet if their current financial situation is uncertain.

A financial coach works with clients over a period of several weeks and will require information about the individual’s current financial situation. The client’s financial information will help the financial coach develop a financial plan to help the client pay off debts, design a monthly budget, create an emergency fund, and plan for retirement. Expect to maintain a long-term connection with your money coach providing financial coaching to modulate your spending habits based on specific financial goals.

It is a common misconception to believe that you need to have thousands of dollars in assets to start working with a financial coach. On the contrary, people who are deep in debt, have little savings, and have poor spending habits are more likely to benefit from the personalized advice provided by financial coaches. It is also very common for individuals to seek out financial advice to help them successfully plan for retirement. Keep in mind that a financial coach is very different from a financial advisor, keep reading to find out how.

How Is A Money Coach Different From A Financial Advisor?

The role of a money coach is very different from that of a financial advisor. You would seek out the services of a financial advisor if you have a large investment portfolio and need help to strategize a financial plan to increase your current investment portfolio worth. Financial advisors often require a minimum asset worth to begin to deliver financial advice to the client. Individuals who fail to meet the minimum asset requirement will often be turned down by financial advisors.

Another crucial difference between a financial advisor and a money coach is that a money coach is not licensed to deliver financial advice. This means that financial coaches cannot endorse specific financial investments for their clients. A financial advisor is licensed to endorse financial investments and the advisor may receive a fee if the client decides to purchase the financial investment plan offered by the financial advisor. A money coach works with clients to help them achieve financial stability by delivering one-on-one financial coaching programs to achieve distinct financial goals.

Remember that a financial coach designs the financial coaching process for a limited time arrangement. The main goal of the financial coach is to help the client accomplish financial stability to manage their expenses successfully. A financial advisor, on the other hand, will contact a client at their whim and desire if they want to persuade them to purchase a specific financial investment plan. A money coach delivers personalized advice to help the client get out of debt, plan for a large expense, and achieve retirement or financial goals by increasing your monthly cash flow.

What Does Fee-For-Service or Fee-Only Mean?

The terms fee-for-service and fee-only both refer to the same thing. A financial coach will expect to receive a fee for the service provided by the money coach. The money coach no longer depends on income produced by sales commissions, referral fees, or assets under management. A money coach puts their best efforts to improve your financial situation without soliciting any financial investment products for a commission.

The Process of Financial Coaches

A financial coach will try to find out your current financial status and provide productive financial advice based on this information. The closer you get to achieving your financial goals, the happier and more satisfied you will be. The financial coach will help you formulate long-term financial goals and design a financial plan to help achieve these goals. It can be a lengthy coaching process especially if you are afraid to acknowledge your credit report, have declared bankruptcy at least once, or if your inner child is managing your finances.

The financial coach will use probing questions to understand what is your definition of financial success. The financial coach will use the information from the probing questions to formulate practical financial goals that are easy to accomplish. The financial coach will guide you through the process to help make sure you stay on the right track throughout the process.

A Coach Can Help Hold You Accountable

Think of the financial coach as a neutral third party who can provide productive financial advice because they are not as emotionally entangled in your financial situation. The financial coach has all the information to make the right decisions. More importantly, the financial coach can think clearly and provide advice to help you successfully manage your assets and resources.

The advice a financial coach provides will only be productive if you continue to adhere to the agreed-upon financial plan. Do not expect one-on-one coaching programs to be productive if you do not follow the regime.

Is a Money Coach Worth it? Your Success Still Depends On You

With the proper commitment and determination to achieve control over your personal finances, you can easily be on the way to success. Some people just don’t know the way to implement life-changing results because they have never had the experience to receive worthy financial advice. This is why most financial coaches offer a no-obligation initial consultation.

This no-obligation first session allows both parties to get an understanding of each other. The financial coach can get a rough idea of your current financial standing. You can use this opportunity to ask questions about the coaching process. Do not hesitate to ask how often the sessions are conducted and whether you will have meetings over the phone or face-to-face.

Looking For A Money Coach In Canada?

Worthy Financial in Halifax, Canada offers its clients the perfect blend of financial advisors and modern technology. A money coach from their organization can help you achieve financial progress by meeting with you securely online. They provide a free initial consultation so you can get answers to financial questions about their one-on-one coaching programs. You can use the free consultation to get an idea of how a financial independence coach can help you achieve financial success.