“If I need financial advice why wouldn’t I just go to my bank? What’s the benefit of having a finance coach?!”
This is one of the questions I get asked all the time. Well a few reasons but the main one being that the ideal client for a financial planner or advisor is someone who already has a healthy net worth and some extra cash.
They’ll talk to you about things like retirement planning, insurance tax strategies, and investing (which they usually make a commission from selling).
But what about those who have no assets or even negative net worth? Or those who own a house and cars but have overextended themselves are now drowning in payments and have started accumulating debt to keep up?
It’s surprisingly common for people to be making a decent salary but somewhere along the line has started mismanaging their funds.
Or a couple who is constantly fighting over money issues (for example she’s a saver and he’s an impulsive spender. Or they combined their income and got a little carried away with their spending. Or one side of the couple has a huge amount of debt). Money issues are one of the leading causes of divorce!
The way we save, spend and handle our money is actually rooted in our personalities and many people who struggle with debt and overspending need to deal with some inner factors first before they can actually shift their behaviors to improve their money management.
FINANCIAL MANAGEMENT 101 AND BEHAVIOURAL BREAKTHROUGHS
Where a financial coach differs from an advisor is that a coach will start by educating you on basic personal finance and help you to build awareness around your spending behaviours.
They will help you get to the core of your money mindset, your habits, your past experiences that have shaped the way you interact with money, your deep-rooted fears surrounding your finances and so on.
Trust me on this, the process is eye-opening for a lot of people. It’s shocking to find out that your personality traits are contributing to your financial self-sabotage. But it’s also uplifting to know that you can change this!
SETTING GOALS AND MAKING A PERSONALIZED PLAN
Once the underlying issues are addressed you and your coach will get clear on your financial goals aka what financial success looks like to you.
Whether it’s paying off your debt, getting on the same financial page as your spouse, being financially secure enough to start a business purchasing a home, or just being able to sleep at night knowing you’re finally building wealth.
With some clear goals in mind, you’ll create a personalized and completely realistic plan with your coach that reflects these goals and your values.
They can help you identify areas to cut costs, explore ways to increase your income, and start changing your spending patterns.
It’s also worth noting that coaches are not trying to sell you anything or making any kind of commission on financial products so there won’t be any pressure on that end although a good coach can give you a basic understanding of all of these things if you’re interested in that.
SUPPORT AND FOLLOW UP
But the work isn’t done there! While you would meet with a financial advisor maybe a few times to talk about financial products and do some paperwork working with a coach is more of a long term journey.
Different coaches offer different structures but it would usually be a 3-6 month engagement where after the plan is in place your coach would follow up regularly to help you work through challenges and setbacks and give you encouragement and support to keep the momentum going.
IS IT WORTH THE INVESTMENT?
If you’re at the point of desperation with your finances on the verge of divorce or thinking that you can’t even afford to get help then you’re actually the perfect candidate for financial coaching!And yes it’s worth the investment because the new insights and money habits that you’ll form will save you enough money that the coaching will pay for itself.
When they first come to me most of my clients are completely oblivious to the fact that the way you interact with money is a combination of your personality traits, limiting beliefs, values, mindset and habits and these are the things you need to be aware of and make adjustments to before you will find financial success.
I always tell people you can be great with numbers and put together a fabulous budget but you’ll never stick to it without self awareness of WHY you’ve reached this point in the first place.
In summary if you’re feeling hopeless about your financial situation & are stressed about your debt loads or feeling you might never be able to retire or are fighting with your significant other over money matters,
(this couple is a financial coach’s dream because with commitment to the plan we also get the satisfaction that we may have contributed to saving your marriage) then
I highly recommend that you at least reach out to a money coach and get some more information! Your situation is not unsalvageable I promise!
“I always tell people you can be great with numbers and put together a fabulous budget but you’ll never stick to it without self awareness of WHY you’ve reached this point in the first place. ”
Hi I’m a Canadian Chartered Accountant and Money Coach with 10 Years of experience. I’m passionate about helping people with their money problems. Whether you’re overwhelmed with debt, stressed about managing your small business cash flows or if your relationship is suffering due to mismatched money habits I can help you overcome it. Then I’ll help you build some amazing new habits so that going forward you’ll be a master money manager. Finances do not have to be stressful!
Eclectic Brains Magazine recommends Jenelle – “while collaborating with her for the feature, we found her super co-operative, understanding & patient. Thank you, Jenelle. ”