What Is The Role Of A Money Coach

There are different types of financial advisors that one can hire for their specific business or personal needs. The three major types of financial advisors you can hire are investment advisors, Registered Representatives, and/or a Certified Financial Planner (CFP). 

The most commonly hired finance advisors “Money Coach” are advisors that offer a more hands-on approach to money management. They tend to look at the whole picture instead of putting their focus on individual aspects of finance such as investments or debt management. 

A money coach is hired to look after everything finance-related, including cash flow, money management habits, banking transactions, debt/asset ratios, etc. A money coach can therefore create a plan of action that helps you achieve your financial goals through financial literacy and financial discipline. 

What Does A Money Coach Do?

Like other financial advisors, money coaches are financial coaches that can help people through tough times to put an end to their financial struggle. The ideal money coach can identify financial problems and devise solutions that can help rectify them in order to achieve financial independence. 

When it comes to the ins and outs of personal finances, hiring a financial advisor or a money coach can be a God-send. It takes a lot to maintain and develop the financial stability and success of someone else, but for professional money coaches, this is exactly what they do and excel at. 

Financial Coach vs. Financial Advisor: What’s the Difference?

People all over the world are actively hiring financial coaches and/or advisors in order to get assistance with financial planning, organization, and management. So what exactly is the difference between financial advisors and financial coaches? As you can probably guess from the titles, both these professionals work in much the same way. After all, their main objective is to help people reach their financial goals. However, there are some differences which we will discuss in detail.

What Is a Financial Advisor?

If you need financial advice on savings, and planning your finances for the long term, a financial advisor is likely the right professional for you! Financial advisors understand how building initial wealth works. Handling all the facets of personal finance, their advice will be mainly focused on future goals such as retirement planning and asset acquisition. 

This is why in a financial advisor’s portfolio, you’ll find clients that have specific objectives in mind. Objectives such as building an investment or stock portfolio, retirement planning, asset management are all avenues best discussed with a financial advisor. Finance advisors can also help with one’s taxes, health care, and in some cases, estate planning. 

When to Hire a Financial Coach?

A question you’ll have often asked yourself is whether now is the time you need to hire a financial coach, or if you’re too late. To help with this, you need to ask yourself a simple question, “Am I having trouble managing my finances?”. When asked this question, most people crumble at the thought of where to begin, which is why they need an accountability partner by their side. 

A money coach can help anyone master financial discipline by teaching clients new skills on how to spend wisely and save as much as possible to help them get out of those poor spending habits. A willing client can learn how to save emergency funds, improve credit score, secure better lines of credit, and take advantage of investment opportunities. 

When to Hire with a Financial Advisor

There’s a common stereotype surrounding financial advisors as many believe it is only the rich and wealthy that need them. This is false as anyone can choose to work with a financial adviser regardless of their current financial situation. 

Instead of feeling overwhelmed with your financial wellbeing, hire a financial advisor to help you out. Even if you feel like your financial future isn’t going anywhere and that you’re consistently losing money, or worse, falling behind on payments, consult with a financial advisor about your financial situation and set up a strategy to obtain financial success.

Reputed organizations such as Worthy Financial can help solve many of your financial dilemmas and build a long-lasting relationship built on trust and the drive to succeed.  

The cost of a Financial Coach vs an Advisor

Unlike financial advisors, the practice of money coaches is largely unregulated. However, there are many money coaches that can be highly qualified and well-equipped to help you deal with your financial woes. The best rule of thumb is to find a money coach that has a proven track record, is readily available, and is open to sharing their wealth of knowledge. 

Financial advisors, on the other hand, charge for their services based on different structures, for example: 

1. The Fee-Only Structure

Some financial advisors have a fee-only policy based on the assets they’re given to manage or services rendered. This structure is often cost-effective for those looking for short-term advice or seeking specialized financial services as they have to pay a fixed price for each service. 

2. Commission-Based Pricing

Commission-based financial advisors often deal largely with investment and asset management. The amount of money paid to them is a set percentage of the profit they make on investments.

3. Fee and commission-based. 

An experienced and highly qualified financial advisor will likewise have both fees and commission structures laid out for their client to choose from. They’ll build a personalized plan based on the fee they’re charging so everything is transparent. 

Depending on the quality of services one needs, a financial advisor might be a more expensive option than financial coaches and vice versa. So it’s better to know what kind of an actionable plan you need before you go head-first into a decision that you end up regretting. 

To learn more about money coaches and financial advisors check out Worthy Financial. Your one-stop-shop for everything money-related.

Looking for a Money Coach in Canada?

It can be a confusing world out there when it comes to financial advice. That is why the team at Worthy Financial in Halifax is here to guide you on your journey. Book your free consultation today and see how we help.