Determining if you need a financial or money coach can be confusing if you don’t really know what they do.
Have you been stressed about your financial situation and are not sure what you should do next?
Are you overwhelmed by the things that keep popping up month after month?
Are you tired of non-stop calls from creditors?
Have you been thinking about bankruptcy and don’t see any other way out?
Are you tired of all the debt payments that never seem to end?
Those are things that a money coach can help you figure out.
What is a money coach?
A money coach is someone that can help you with various financial areas of your life. They are often referred to as a financial coach.
A money coach is often someone that has either been good with managing their resources or have made a lot of mistakes and learned from it. They are everyday people like you and me.
They often have real-life experience dealing with finances and typically are not financial advisors or CPA’s, although they can be.
Since they rely on experience and reading lots of different material on finance, they tend to have the heart of a teacher and compassion that many people lack in the financial industry.
What does a money coach do?
A financial coach helps people manage their finances and change their behavior.
They help you make the best decision for your unique situation based on your circumstances.
Some of the things they will help you with include:
- basic money management
- budget coaching
- goal setting and monitoring
- building your financial plan
- changing behavior for the long-term
- regaining self control
- provide encouragement and support
- legacy planning
- guidance on how to deal with creditors
- help you avoid bankruptcy
They should teach you how to manage your money in a way that will build wealth and leave a legacy for your family. It is not just about basic money management. It is about your entire financial picture.
Some things that a money coach can give advice about include estate planning, insurance, legacy planning, in addition to budgeting, saving money, and paying off debt. Now a financial coach can not give you specific investing advice meaning which stocks to invest in unless they are a financial advisor.
They can give you general sound investing advice, like investing 15% of your income in a Roth IRA. They can’t tell you which funds to put it in.
What can’t a money coach do?
This will depend on what certifications that the money coach has. If they do not have any certifications, they can not give investing advice for specific funds. They can not give legal advice unless they are an attorney.
It is important to remember that a money coach is a teacher. Their job is to teach you how to handle your finances and recommend specialist that can help you with specific things when needed.
They also shouldn’t do all the work for you. That means they need to teach you how to do it for yourself.
They shouldn’t handle it all for you but give you the guidance and encouragement for you to handle it yourself.
How to find a money coach
A money coach can be found in a couple of different places. I am a money coach and do sessions virtually.
If you don’t mind doing virtual coaching sessions, then you can find a coach anywhere in the world.
If you would like to find a coach near you, simply search for a money coach or financial coach near me in Google.
If you want a Dave Ramsey Master Financial Coach, you can locate local ones on his website. I am also a Dave Ramsey Master Financial Coach.
What should I look for in a coach?
A very important quality that you should look for in a coach is that they are able to teach. It is vital for them to be able to teach you how to manage your own finances.
They should be caring and understanding but also be able to give some tough love. They need to be able to say what you need to hear when you need to hear it.
This means being encouraging but also giving you the hard truth in a constructive way so that you can fix what needs fixed.
A financial coach will not solve all your problems. They will teach YOU how to solve your problems.
They should be your cheerleader along the way while giving you the confidence and knowledge to let you save yourself.
How much does a money coach cost?
This depends. A lot of the time but not always, you get what you pay for.
However, I know coaches that do it out of the goodness of their hearts especially at their churches.
The average rate of a financial coach is around $175 per hour. I have seen coaches that charge upwards of $475 per hour.
Keep in mind that you are paying for peace of mind.
You are paying for guidance on how to stop living paycheck to paycheck. How to leave a legacy for your kids and grandkids.
How to stop the cycle of debt, stress, and poor money management.
Imagine what you would pay for things like:
- peace of mind
- not fighting with your spouse about money
- paying for your kids college
- retiring comfortably
- being able to pay for emergencies with cash
All of those things are possible when you manage your money well and have a plan. A coach helps you develop your plan and keeps you accountable to it.
What would you be willing to pay for a plan to avoid bankruptcy, build wealth, and have financial peace?
Paying a financial coach is cheaper than bankruptcy and typically costs less than one car payment.
How to prepare for a session?
When you decide to hire a money coach there are some things you should do to prepare for your first session.
This will help you save time and money by having things together beforehand so they can get a clear picture of your situation.
- last 3 months of bank statements
- retirement account statements
- list of average income and monthly expenses
- list of current debts with amounts
- list of what you are struggling with the most
Now don’t panic if this list is overwhelming. If you aren’t sure where to get started, they can help you with that also. If you can get these things together, it will help save you some time and money on the initial consultation. They can review these things ahead of your session so they are prepared for what to help you with.
Finding a good money coach is a way to regain control of your situation. It will help you manage your money, lessen your stress, and make it possible to save money. It focuses on behavior changes by providing encouragement and support.
A money coach is a teacher that will help you get your life and money on track so that you can live the life you want and retire comfortably.
You can find out more about coaching services here.