How do you know you're making the right decisions with money management? If you get confused, stressed, worried and experience an emotional rollercoaster when you have to think about your money, getting help from a Financial Coach can be the mental boost you need to start feeling confident and free from money worries! 😊
What Exactly is a Financial Coach?
I am a Financial Coach but what does that mean for you? More than a professional of finances, financial coaches are like the good angel on your shoulder in this money driven life. A good financial coach can make you improve your self-confidence, your peace of mind and allow your to form healthy lifestyle habits with your money.
Financial coaches listen to your money goals, give you advice, motivation and the guidance of how to achieve those goals. Coaches focus on the everyday events like paying bills, reducing unnecessary expenses, removing credit card debt, savings, retirement, etc. They analyze your money, find the weaknesses and give you a detailed plan on how to fix them with better decision making and management.
Financial coaches are not required to be certified but I do recommend having a coach that has had some form of training, experience and/or certification. The Accredited Financial Counselor (AFC) certification is the most popular form of formal education from the Association for Financial Counseling & Planning Education (AFCPE) but there are other academies and certification programs. Financial Coaches charge less money for their services than Financial Advisors (planners) because they don't handle the large investment responsibilities that Financial Advisors do.
A Good Financial Coach will have these qualities:
Cultural Awareness
Motivational Skills
A range of knowledge for various different situations
Experience with money management and financial planning
Financial Coaches are NOT Financial Advisors/Planners!
It's a bit of a conundrum knowing that Financial Coaches help you plan your finances but they are NOT Financial Advisors. Allow the Carbon Collective to explain the differences in the photo below.
While some Financial Coaches are both, not all are. Financial Coaches don't have the same professional requirements Financial Advisors do. There are similarities though. Like Financial Advisors, Financial Coaches also create a financial plan to help you reach your goals. Coaches are different from Financial Advisors because we help with your emotions towards money management.
Financial Coaches Can support you with:
Self-Motivation & Confidence
Building your Rainy Day Fund for emergencies
Raising your credit score
Saving for retirement
Gaining Knowledge about your finances
Paying off debt
Creating a Financial Plan to achieve your goals
Educating you about the different financial products so you are prepared to choose the best for you
Changing your habits and behaviors towards money
Financial Coaches Can't:
Give investment strategies! They are not Investment Traders or Brokers! HOWEVER, they CAN suggest where you can put your money if there is a problem with your current portfolio if it´s making you lose a lot of money. Financial Coaches will give you the full picture of your investments and show you different alternatives. YOU decide what to do and YOU do it by yourself (Financial Coaches don´t do it for you).
Sell financial products like investments, funds or trades. In order to do that, a coach must be registered with the Securities & Exchange Commission or a State Securities Regulator. If a coach claims they can sell you these kinds of products, ask for their registration. The financial industry is a magnet for cons and scams. Stay vigilant!
You can use this website, AFCPE, to find other Financial Coaches if you would like to have a second opinion! I ALWAYS encourage and recommend getting a second opinion if you don't feel the coach you've chosen is the right one for you (including me!). Finding a suitable Financial Coach is like finding good shoes; Many people can say a shoe is "great", but you try it and realize that shoe isn't a "great" shoe for YOUR FEET! It's not a bad shoe, it's just not right for you. 😌 It's critically important for you to feel absolutely comfortable with the Financial Coach that is helping you manage your life in finances! 😊
📢Not Sure A Financial Coach Is A Good Idea For You?